S&P 500 buybacks decline 20% to $234.6 billion in Q2 amid uncertainty

NEW YORK - S&P 500 companies reduced share repurchases by 20.1% in the second quarter of 2025, spending $234.6 billion compared to the record $293.5 billion in the first quarter, S&P Dow Jones Indices reported Wednesday.

The Q2 expenditure was also down 0.6% from the $235.9 billion spent in the same quarter last year. For the 12-month period ending June 2025, buybacks totaled $997.8 billion, up 13.7% from $877.5 billion in the prior 12-month period. For deeper insights into market trends and company-specific metrics, InvestingPro subscribers can access comprehensive research reports covering 1,400+ US stocks, including detailed analysis of buyback trends and their impact on company valuations.

Buyback concentration increased during the quarter, with the top 20 companies accounting for 51.3% of all repurchases, up from 48.4% in Q1. Apple remained the largest repurchaser, spending $23.6 billion, followed by Meta Platforms ($14.3 billion), Alphabet ($13.6 billion), and NVIDIA ($11.6 billion). These four companies alone represented nearly 27% of all S&P 500 buybacks.

Utilities was the only sector to increase spending, up 16.5% over Q1. Health Care saw the largest reduction, cutting buybacks by 39.3%, while Information Technology and Communication Services reduced spending by 16.3% and 15.0% respectively.

The 1% excise tax on net buybacks reduced Q2 2025 operating earnings by 0.39% and As Reported GAAP earnings by 0.42%, according to the report.

The number of companies conducting buybacks of at least $5 million decreased to 338 from 384 in the previous quarter. However, 17.3% of companies reduced their share counts by at least 4% year-over-year, up from 13.8% in Q1 2025.

Total shareholder returns, including both buybacks and dividends, decreased to $399.7 billion in Q2, down 12.6% from Q1’s $457.6 billion but up 2.7% from Q2 2024.

According to the press release, companies pulled back on buybacks as uncertainty over tariffs and economic policy increased during the quarter. S&P Global itself demonstrates strong fundamentals with a 69.6% gross profit margin and has maintained dividend payments for 55 consecutive years, as revealed by InvestingPro data. The company’s financial stability is further evidenced by its robust revenue growth of 10.7% over the last twelve months.

In other recent news, S&P Global announced a strategic collaboration with investment firms Cambridge Associates and Mercer to launch private markets performance analytics. This initiative, set for beta release by the end of 2025, aims to standardize data collection and reporting in private markets using S&P Global’s iLEVEL platform. Additionally, S&P Global appointed Scott Fredericks as President of CARFAX and Joe Lafeir as President of Mobility Business Solutions. Fredericks steps into his role following his tenure as Chief Operating Officer of CARFAX, while Lafeir will oversee the Mobility Business.

In other updates, S&P Global reported that Spain’s services sector growth slowed in August but remained strong, with the PMI dropping to 53.2 from 55.1 in July. Meanwhile, India’s services sector growth hit a 15-year high in August, with the PMI rising to 62.9, driven by robust demand. Conversely, Kazakhstan’s manufacturing sector saw a contraction, with its PMI falling to 47.9 in August from 49.9 in July. These developments reflect varying economic conditions across different regions as reported by S&P Global.

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