Melpomenem
S&P 500 (SP500) Q1 2025 buybacks reached a record $293.5B, surpassing the previous Q1 2022 record of $281B despite higher stock prices. Q1 2025 buybacks rose 20.6% from Q4 2024 ($243.2B) and 23.9% from Q1 2024 ($236.8B).
Top 5 companies with the highest total buybacks for Q1 2025:
- Apple (NASDAQ:AAPL): $26.2B (4th highest in S&P 500 history), down from Q4 2024’s $26.5B.
- Meta Platforms (NASDAQ:META): $17.6B, a major jump from $3.9B in Q4 2024.
- NVIDIA (NASDAQ:NVDA): $15.6B, up from $9.7B in Q4.
- Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL): $15.1B, slightly down from $15.6B in Q4, 2024.
- JPMorgan (NYSE:JPM): $7.5B, up from $4.3B in Q4, 2024.
Sector shifts: Communication Services (+56.5%), Financials (+41%) and Information Technology (+25.8%) increased buybacks, while Consumer Staples (-25.6%) and Consumer Discretionary (-16.8%) cut back.
In Q2 2025, S&P 500 buybacks were more cautious, driven mainly by companies with stable cash flows using repurchases to cover employee stock options amid ongoing market volatility.
Looking ahead to the second half of 2025, demand for shares to fulfill employee compensation obligations is expected to rise, assuming stock prices remain steady and provide a base for further repurchase activity. Discretionary buybacks by companies with robust cash flows are also anticipated to hold steady.
Overall, 2025 remains on pace to set a new record for total buyback spending, even though the resulting impact on earnings per share is projected to fall short of previous highs.
Source: S&P Dow Jones Indices data
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