US Companies Reach $1 Trillion Buyback Milestone in Record Time

US companies are planning to buy back shares at a historic pace, with announced buybacks surpassing $1 trillion in the shortest amount of time on record. Firms such as Nvidia, Apple, and Alphabet have announced large share-repurchasing programs. This trend is expected to continue through the end of the year, with forecasted completed repurchases reaching a record $1.2 trillion in 2026.

US companies have surpassed $1 trillion in announced buybacks, marking the fastest pace on record. This unprecedented level of corporate spending on share repurchases underscores the confidence of Corporate America in the current economic climate. According to data compiled by Birinyi Associates, the milestone was reached on August 20, 2025, just a few months after the previous record was set in October 2024.

Major corporations, including Apple Inc., Alphabet Inc., JPMorgan Chase & Co., Goldman Sachs Group Inc., Wells Fargo & Co., and Bank of America Corp., have initiated substantial share repurchasing programs. Apple, for instance, has announced plans to buy back $100 billion in stock following its quarterly results in May 2025. Alphabet and the other mentioned companies have also announced buybacks of at least $40 billion each [1].

Jeffrey Yale Rubin, president of Birinyi Associates, attributes this trend to strong earnings and ample capital for expenditures. "There is going to be a continuation of the ultimate dip buyer in the market, which is the company themselves," he said. "Earnings are good, they have enough money for capital expenditures, and this is a nice way to reward investors and owners of the company."

The momentum is expected to continue through the end of 2025, with announced buybacks forecasted to reach $1.3 trillion and completed repurchases to set a new record. Rubin forecasts that 2026 completed buybacks will reach $1.2 trillion, surpassing the previous record [1].

However, the surge in buybacks has drawn criticism from some quarters. Treasury Secretary Scott Bessent, speaking on Fox Business, took aim at Boeing Co. for its "massive" share buyback instead of investing in research and development. This criticism echoes concerns raised during the Trump administration over the use of share buybacks [1].

Moreover, the Inflation Reduction Act of 2022 has introduced a 1% excise tax on US corporate share repurchases, effective January 1, 2023. This tax has been associated with a significant decline in corporate repurchases, with aggregate repurchases declining from about $1 trillion in 2022 to just over $800 billion in 2023. The tax has not led to an increase in investment activity, suggesting that the stated policy objective may not have been achieved [3].

In conclusion, the current buyback spree reflects the optimism of US companies about their financial health and the economy. However, the impact of the new excise tax on repurchases remains a topic of debate and further study.

References:
[1] https://www.markets.com/news/us-companies-record-stock-buybacks-nvidia-joins-the-trend-830-en-EU/
[2] https://www.ainvest.com/news/companies-reach-record-1-trillion-buybacks-economic-confidence-2508/
[3] https://www.ainvest.com/news/crowdstrike-q2-2026-outperformance-case-accelerated-ai-driven-cybersecurity-adoption-2508/