U.S. companies are on pace for a record year of stock repurchases, helping drive a Wall Street rally to fresh highs, The Wall Street Journal reports.
Firms have announced $983.6 billion in buybacks so far in 2025, according to Birinyi Associates, and are projected to top $1.1 trillion by year’s end—an all-time high. Tech giants Apple and Alphabet lead the surge, alongside major banks like JPMorgan Chase, Bank of America and Morgan Stanley.
Strong earnings, tax cuts and cautious capital spending amid trade uncertainty have fueled the trend, with S&P 500 firms spending a record $293.5 billion on buybacks in the first quarter alone. Supporters say buybacks lift earnings per share and signal financial health, while critics argue they divert cash from longer-term investments and risk inflating already lofty valuations. Despite the debate, robust corporate results—82% of S&P 500 companies beat second-quarter estimates—are keeping momentum strong, with analysts expecting repurchases to continue bolstering stocks in the months ahead.
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