- Record $293.5 billion in S&P 500 buybacks in Q1 2025, a 20.6% increase from Q4 2024.
- Apple (AAPL) led buybacks with $26.2 billion, followed by Meta Platforms (META) at $17.6 billion.
- Buyback activity is expected to decline in Q2 2025 due to market volatility.
The S&P 500 companies reached a record high in stock buybacks during the first quarter of 2025, totaling $293.5 billion. This marks a significant 20.6% increase from the previous quarter (Q4 2024) and a 23.9% rise compared to the same period last year (Q1 2024). The 12-month expenditure through March 2025 amounted to $999.2 billion, reflecting a year-over-year increase of 22.4%.
Leading the buyback expenditures was the Information Technology sector, contributing 27.3% of the total with $80.2 billion. The Financials sector followed closely, accounting for 20.2% of the buyback activity at $59.4 billion. Apple Inc. (AAPL) remained the top spender on buybacks, investing $26.2 billion in Q1 2025.
The recently imposed 1% buyback tax had an impact, reducing Q1 2025 operating earnings by 0.50%. Despite this, buyback activity significantly contributed to earnings per share (EPS) growth during the quarter. However, due to current market turmoil and volatility, buybacks are anticipated to decrease in Q2 2025, with expenditures likely confined to companies with strong cash flows, mainly for employee stock options rather than discretionary share count reductions.
