Markets / 11

Tech Buybacks

Capital return behavior: buybacks relative to net income and R&D.

Buybacks to net income

Top software-tech firms: buybacks as a percent of aggregate net income.

Buyback/net income
-30%0%50%100%130% 200020052010201520202024 Year Buybacks / net income Buyback/net income: Year 2024, Buybacks / net income 76% Buyback/net income: Year 2000, Buybacks / net income 0%Buyback/net income: Year 2001, Buybacks / net income -4%Buyback/net income: Year 2002, Buybacks / net income -5%Buyback/net income: Year 2003, Buybacks / net income -22%Buyback/net income: Year 2004, Buybacks / net income -15%Buyback/net income: Year 2005, Buybacks / net income -8%Buyback/net income: Year 2006, Buybacks / net income 13%Buyback/net income: Year 2007, Buybacks / net income 8%Buyback/net income: Year 2008, Buybacks / net income 12%Buyback/net income: Year 2009, Buybacks / net income 0%Buyback/net income: Year 2010, Buybacks / net income 2%Buyback/net income: Year 2011, Buybacks / net income 2%Buyback/net income: Year 2012, Buybacks / net income 4%Buyback/net income: Year 2013, Buybacks / net income 55%Buyback/net income: Year 2014, Buybacks / net income 81%Buyback/net income: Year 2015, Buybacks / net income 58%Buyback/net income: Year 2016, Buybacks / net income 49%Buyback/net income: Year 2017, Buybacks / net income 53%Buyback/net income: Year 2018, Buybacks / net income 107%Buyback/net income: Year 2019, Buybacks / net income 98%Buyback/net income: Year 2020, Buybacks / net income 91%Buyback/net income: Year 2021, Buybacks / net income 85%Buyback/net income: Year 2022, Buybacks / net income 94%Buyback/net income: Year 2023, Buybacks / net income 79%Buyback/net income: Year 2024, Buybacks / net income 76%
Data: tech-buybacks-profitability.csv tech-buybacks-profitability.xlsx

Buybacks to R&D

Five-year moving average of buybacks relative to R&D.

Buyback/R&D
-30%0%50%100%150%200% 200020052010201520202024 Year Buybacks / R&D, 5-year MA Buyback/R&D: Year 2024, Buybacks / R&D, 5-year MA 174% Buyback/R&D: Year 2000, Buybacks / R&D, 5-year MA 0%Buyback/R&D: Year 2001, Buybacks / R&D, 5-year MA -2%Buyback/R&D: Year 2002, Buybacks / R&D, 5-year MA -5%Buyback/R&D: Year 2003, Buybacks / R&D, 5-year MA -11%Buyback/R&D: Year 2004, Buybacks / R&D, 5-year MA -13%Buyback/R&D: Year 2005, Buybacks / R&D, 5-year MA -16%Buyback/R&D: Year 2006, Buybacks / R&D, 5-year MA -11%Buyback/R&D: Year 2007, Buybacks / R&D, 5-year MA -8%Buyback/R&D: Year 2008, Buybacks / R&D, 5-year MA -1%Buyback/R&D: Year 2009, Buybacks / R&D, 5-year MA 4%Buyback/R&D: Year 2010, Buybacks / R&D, 5-year MA 9%Buyback/R&D: Year 2011, Buybacks / R&D, 5-year MA 13%Buyback/R&D: Year 2012, Buybacks / R&D, 5-year MA 10%Buyback/R&D: Year 2013, Buybacks / R&D, 5-year MA 37%Buyback/R&D: Year 2014, Buybacks / R&D, 5-year MA 68%Buyback/R&D: Year 2015, Buybacks / R&D, 5-year MA 93%Buyback/R&D: Year 2016, Buybacks / R&D, 5-year MA 111%Buyback/R&D: Year 2017, Buybacks / R&D, 5-year MA 127%Buyback/R&D: Year 2018, Buybacks / R&D, 5-year MA 164%Buyback/R&D: Year 2019, Buybacks / R&D, 5-year MA 165%Buyback/R&D: Year 2020, Buybacks / R&D, 5-year MA 160%Buyback/R&D: Year 2021, Buybacks / R&D, 5-year MA 173%Buyback/R&D: Year 2022, Buybacks / R&D, 5-year MA 181%Buyback/R&D: Year 2023, Buybacks / R&D, 5-year MA 187%Buyback/R&D: Year 2024, Buybacks / R&D, 5-year MA 174%

Filled area restores the original read: the ratio crossed 100%, meaning buybacks exceeded R&D on this five-year moving average.

Data: tech-buybacks-profitability.csv tech-buybacks-profitability.xlsx

Description

This module separates buyback behavior from overall market concentration.

Methodology

The series tracks aggregate net income and buyback ratios for major software-tech firms, including buybacks relative to both net income and R&D.

Data

All chart files for this module are local to this research folder.

Sources

  • SEC EDGAR company filings 10-K and 10-Q buyback, income, and R&D data.
  • Apple investor filings Major firm-level source in the sample.
  • Company investor-relations annual reports Alphabet, Meta, Microsoft, Oracle, Netflix, eBay, Match, and related sample firms.

Limitations

The firm set is focused rather than exhaustive. Buybacks can have legitimate uses; the chart measures scale and priority, not intent.