Strong profits + abundant cash! The scale of stock buybacks in the U.S. stock market may exceed $1.1 trillion in 2025, setting a new record
American companies are repurchasing stocks at a record pace, with total stock buybacks expected to exceed $1.1 trillion by 2025. So far, $983.6 billion in buybacks have been announced, primarily led by tech giants and large banks. Strong earnings performance and economic resilience have driven this trend. In July, the buyback scale reached $165.6 billion, setting a new high. Despite facing trade uncertainties, companies are still actively repurchasing, with S&P 500 constituents' buybacks reaching $293.5 billion in the first quarter of 2025, setting a record for a single quarter
According to reports, American companies are buying back stocks at a record pace, with total stock buybacks this year expected to exceed a record $1.1 trillion. Data shows that U.S. companies have announced stock buybacks worth $983.6 billion so far this year, led by tech giants and large banks. Media outlets cited data from Birinyi Associates, indicating that this figure marks the best performance for the early part of the year on record since 1982. The companies with the largest stock buyback plans include Apple (AAPL.US), Alphabet (GOOGL.US), JP Morgan (JPM.US), Bank of America (BAC.US), and Morgan Stanley (MS.US).
Strong earnings performance, the conclusion of trade agreements, and economic resilience drove U.S. stocks to new highs in July, leading more companies to announce stock buybacks. Birinyi's data shows that the buyback scale announced by companies last month was $165.6 billion, far exceeding the previous July record of $87.7 billion set in 2006.
Jeffrey Yale Rubin, president of Birinyi Associates, stated, "The situation is much better than everyone thinks. Companies are flush with cash and are in a healthy state even before earnings improve."
In the context of trade uncertainty, stock buybacks have also become more attractive, as uncertainty suppresses companies' investment plans. While companies often buy back stocks when prices rise, they also engaged in buybacks during the market weakness earlier this year. The stock buyback scale for S&P 500 constituents reached $293.5 billion in the first quarter of 2025, setting a record for a single quarter
