Goldman Sachs sees $1.7 trillion buyback wave cushioning stock supply surge
SPY•Goldman Sachs expects US companies to return a record $1.7 trillion to shareholders through buybacks in 2027, potentially absorbing much of a projected rise in share issuance. The brokerage forecasts $600 billion in equity issuance that year.
1. Buybacks and issuance
US companies are poised to return a record $1.7 trillion to shareholders through stock buybacks in 2027, Goldman Sachs said, which could cushion the impact of rising equity issuance on market valuations. The brokerage expects corporate equity issuance to total $600 billion that year.
2. AI drives offerings
Equity issuance has reached about $431 billion this year, up 98% from a year earlier, and is on track to exceed the annual record of $540 billion set in 2021, Goldman said. The brokerage estimated that AI-related follow-on offerings totaled about $65 billion this year, or 45% of total US volumes, and expects net public equity supply in 2027 to post its largest increase since 2000.
