Goldman Sachs: US stock buybacks to hit record levels in 2026, exceeding stock supply

The strategy team led by Ben Snyder predicts that the total amount of US stock buybacks in 2026 will reach $1.3 trillion, while the scale of corporate stock issuance will be $1.1 trillion. Due to a surge in capital expenditure in the artificial intelligence sector, the growth rate of stock buybacks has slowed. In the first quarter of 2026, the buyback scale increased by only 4% year-on-year; with rising market capitalization, the buyback yield of S&P 500 component stocks has dropped to 1.9%, approaching the lowest level since 2021. So far this year, the total amount of announced stock buyback plans has reached $860 billion, setting a record high. The financial sector contributed 27% of the total buybacks among S&P 500 component stocks, with the sector’s buyback amount in the first quarter up 18% year-on-year. The firm expects the total fundraising amount from US IPOs in 2026 to reach a historic high, revising its previous estimate from $160 billion to $225 billion. Taking into account additional offerings and other equity issuances, the total annual corporate equity supply will reach $675 billion.