US companies announced $166 billion in July stock buybacks, a record and triple the 2021-2023 average.

US companies announced $166 billion in July stock buybacks, a record and triple the 2021-2023 average.

US companies announced $166 billion in stock buybacks in July 2025, a record and triple the average for the years 2021-2023, according to new data from Birinyi Associates [1]. This surge in buybacks, which reduces a company's shares outstanding and boosts earnings per share, underscores corporate America's continued confidence in their business prospects despite ongoing tariff-related economic uncertainty.

The top three sectors of the S&P 500 (^GSPC) for buyback activity this year include Financials (XLF), Technology (XLK), and Communication Services (XLC), which together repurchased $689 billion of their stocks in 2025. Utilities (XLU), on the other hand, has been the most cautious repurchaser with $55 billion. Several large buyback announcements were made in July as markets climbed to records, with JPMorgan (JPM) leading the way by announcing a $50 billion buyback, followed by Bank of America (BAC) with $40 billion and Morgan Stanley (MS) with $20 billion. Other notable announcements include Meta (META) with $10.6 billion, Alphabet (GOOG, GOOGL) with $13.6 billion, and Microsoft (MSFT) with $4.5 billion.

However, this focus on buybacks may come at the expense of richer dividend checks for shareholders. Deutsche Bank strategist Jim Reid noted that S&P 500 dividend yields are now within just 20 basis points of their all-time low, last reached during the tech bubble in 2000 [1]. Reid warned that companies may be putting shareholder capital at risk by buying back stock at market tops and in the face of economic uncertainty.

Investors should also be aware of the discretionary nature of buybacks, which can disappear quickly in a downturn, and the potential impact on true profitability. Moreover, buybacks may reduce investment in the business, especially if used to meet executive compensation targets or earnings guidance.

Coinbase, the world’s third-largest cryptocurrency exchange, is also planning to raise over $2 billion in a dual-tranche offering to fund future investments and stock buybacks [2]. This move signifies a shift in capital migration from traditional markets into digital assets. Coinbase may become the first company in the S&P 500 index to acquire Bitcoin from the proceeds of a private note offering, signaling further integration of cryptocurrencies into mainstream finance.

In conclusion, the record stock buybacks in July 2025 reflect corporate America's continued optimism despite economic uncertainty. However, investors should remain vigilant about the potential risks and implications of these buybacks.

References:
[1] https://finance.yahoo.com/news/corporate-america-remains-obsessed-with-stock-buybacks-130608383.html
[2] https://cointelegraph.com/news/coinbase-2b-dual-tranche-note-sale-fund-buybacks-acquisitions