Corporations Announce Record $100 Billion Stock Buybacks

American corporations have announced a record-breaking pace of stock buybacks, signaling strong confidence in the economy. As of August 20, the total announced stock buybacks have surpassed 100 billion dollars, marking the fastest time to reach this level. This surpasses the previous record set in October of the prior year.

Over the past few months, numerous major corporations, particularly in the financial and technology sectors, have approved substantial stock buyback plans. Following the release of its quarterly earnings after the market close on Wednesday, NVIDIA announced a plan to repurchase 60 billion dollars worth of its own stock.

Earlier in May, Apple declared a 100 billion dollars stock buyback program. Other major companies, including Alphabet, JPMorgan Chase, Goldman Sachs, Wells Fargo, and Bank of America, have also announced plans to repurchase at least 40 billion dollars worth of their shares.

The president of Birinyi Associates highlighted that companies with strong earnings and ample capital for investments are increasingly becoming the market's ultimate buyers. This strategy not only benefits investors but also aligns with the interests of company owners. The surge in stock buybacks, particularly from large financial and technology firms, has provided crucial support to the U.S. stock market, contributing to the recent all-time highs of the S&P 500 index.

This trend is expected to continue through the end of the year, with predictions of announced buybacks reaching 130 billion dollars and completed buybacks setting a new historical high. If the economy avoids a significant slowdown, the completed buybacks for 2026 are projected to reach 120 billion dollars, establishing another record.

However, the aggressive stock buyback plans have drawn criticism from some officials within the Trump administration. The U.S. Treasury Secretary expressed disapproval of Boeing's substantial stock repurchases, arguing that the company should prioritize research and development investments over buybacks.