Is Corporate America Stepping In? Stock Buyback Announcements Rise as Markets Stumble

• Software stocks are down big YTD, but AI-targeted companies have signaled confidence through increased buyback announcements

• Record YTD buyback authorizations suggest potential equity market support—but execution remains the wildcard

• Investors should watch capital allocation trends closely amid rising interest rates, inflation risks, and fragile investor sentiment

“Buy when there's blood in the streets, even if the blood is your own.”

The 18th-century Baron Rothschild was onto something. A “sell first, ask questions later” environment naturally creates deals in financial markets, and today, bargains may be unfolding in the software space. While the British-German banker surely had no clue what AI was, he would likely not be surprised to learn that some of the world’s biggest software-as-a-service companies have announced significant share-repurchase plans in recent weeks. 

In fact, a flurry of stock-buyback announcements has littered the Street. From late January through the middle of this month, major software, data, and fintech players signaled optimism to investors with notable facilities. Tech heavyweights such as Salesforce (CRM), ServiceNow (NOW), Intuit (INTU), and, to a lesser degree, Experian (EXPN), Gartner (IT), and OpenText (OTEX) may aim to take advantage of some sizable year-to-date stock price declines. 

Global Buyback Count Remains Modest, Large U.S. Repurchase Plans Dominating

Source: Wall Street Horizon

Buybacks as Corporate Signal, Not Commitment

Consider that even after Monday’s TACO-related market pop, a basket of eight domestic software buyback stocks is down 17% year to date. The declines range from –7% for Synopsys (SNPS) to -36% for IT, perhaps prompting executives and boards to step in and deploy capital. Of course, these are share-purchase intentions, not commitments. 

Still, it’s a form of corporate body language suggesting those in the know believe their respective company’s equity is undervalued.

SaaSpocalypse and the Narrative Shift

But are they really diamonds in the rough? That's the big question among investors following the so-called “SaaSpocalypse” that seemed to reach a climax when the now-infamous Citrini Research piece was published last month. 

Before the war in Iran commanded the headlines, the iShares Expanded Tech & Software ETF (IGV) endured its own Black Monday (February 22). You couldn’t go a half hour on financial TV without hearing the latest AI hot takes and opinions on Citrini’s dystopian view of what macroeconomic ills could be realized within just a few years.

Buybacks vs. Balance Sheet Discipline

Money often speaks louder than words and stories, though, and the next few months will be critical to watch from a capital-allocation perspective. CEOs and CFOs will have a lot to juggle, given the recent interest rate spike, rising commodity prices, and the very real threat of an inflationary snapback. 

Preserving capital could become the priority, rather than aggressive buybacks.

What Investors Want From Corporate Cash

To that point, it’s always interesting to see how investors feel about how firms should use capital. Bank of America’s March Global Fund Manager Survey revealed something interesting. 

When asked what companies should do with cash flow, 35% of respondents said “return cash to shareholders,” 34% said “improve balance sheets,” and 22% said “increase capital spending.” Rewarding equity holders (through buybacks and dividends) was the most popular response going back 13 years. 

Portfolio managers are clearly on edge, with a relatively small percentage of those surveyed preferring more corporate capex (despite this year’s tax benefits, courtesy of the One Big Beautiful Bill).

A More Cautious Backdrop for Repurchases

Zooming out, the broad trend in global buyback announcements is uninspiring, as illustrated in the chart above. Now a half-decade removed from the heyday of 2021, there’s a degree of caution among multinational corporations to reduce share counts. 

Steeper borrowing rates are likely a contributing factor—it's simply no longer appealing to lever up and buy back stock. Looser labor markets may also pressure management teams, as the optics of hiring halts while announcing a new buyback program are not ideal.

Shareholder Voices and Boardroom Decisions

But there’s a clear (albeit quiet) buyback theme sweeping across the domestic corporate landscape. Goldman Sachs reports that through mid-March, the notional dollar value of U.S. buyback authorizations ticked to a record high (though only fractionally above 2023 levels—when the stock market was smaller). 

For investors, this is critical, as if a bid surfaces via buybacks, the current S&P 500 decline may prove to be a garden-variety dip. If said authorizations are issued only as a signal (and not executed), a deeper correction or even a bear market is arguably more likely as 2026 progresses.

A Critical Corporate Event Period On Tap

So, what’s an investor to do? Reading between the lines in the upcoming Q1 reporting season will be all the more critical. Likewise, listening to quarterly conference calls, reviewing executive commentary at key conferences, and keeping tabs on Analyst Day trends might be good practices.

Furthermore, April–May is what the Wall Street Horizon team dubs “shareholder meeting season.” Most Annual General Meetings are held over the next two-plus months, and boards may take direction from what their investors voice. If capital prudence is urged, that buyback bid could fade.

Shareholder Meeting Season Front & Center

Source: Wall Street Horizon

The Bottom Line

The software selloff sparked a slew of U.S. stock buyback announcements. Whether they will be acted upon is another story. For now, corporations may look to buy the dip amid intense volatility within domestic and international markets. Push could come to shove in just a few weeks, when the reporting period begins. What’s more, this active corporate event stretch may shape where equities go from here as investor anxiety increases by the week.

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