Stock buyback activity slowed in the first half of 2025 but is expected to rebound to record levels in the third quarter and next year. S&P 500 buybacks fell 20% in Q2 but are projected to increase due to lower interest rates and economic policy stability. However, analysts warn buybacks may not boost EPS growth as before.

Big companies like Apple, Meta Platforms, Alphabet, and Nvidia saw limited year-over-year buyback growth in Q2. The S&P 500’s buyback yield hit a 20-year low due to decreased activity, impacting EPS growth. Share prices rose faster than earnings, leading to lower buyback yields and payouts.

Despite the decline in buyback yield, Goldman Sachs expects repurchase activity to increase, totaling $1 trillion in 2025, a 5% rise from the previous year. Companies with sustained buyback activity, like Bank of America and JPMorgan Chase, could benefit from a rising scarcity premium, according to analysts.

Read more at Yahoo Finance: Stock Buybacks Have Slowed. Here’s Why It Matters That They Could Bounce Back.