Stock Buyback Bonanza: 3 Companies Scooping Up Shares

There are many ways that companies can keep shareholders happy, whether that be through robust financial performance or consistent dividend payouts, just for a few simple examples.  

Companies can also demonstrate a shareholder-friendly nature through share repurchase programs, also commonly known as stock buybacks.

Several companies, including Arista Networks ANET, Apple AAPL, and Applied Industrial Technologies AIT, recently unveiled fresh buybacks. Let’s take a closer look at the benefits and the announcements of each.

Benefits of Stock Buybacks

Stock buybacks, also known as share repurchase programs, are commonly deployed by companies to boost shareholder value. 

A stock buyback occurs when a company purchases outstanding shares of its stock. In its simplest form, buybacks represent companies essentially re-investing in themselves. Reducing the number of outstanding shares can boost earnings per share (EPS), also helping to put a floor under shares, reflective of consistent buying pressure.

Still, it’s worth mentioning that buybacks can sometimes bring out critics, as some believe the cash could be better deployed elsewhere, such as R&D. Nonetheless, buybacks are generally a net positive for shareholders, particularly those of mature companies with a much smaller growth runway.  

ANET Benefits from AI

Arista Networks’ latest set of quarterly results beat our consensus EPS and sales estimates handily, with revenue of $2.0 billion showing nearly 30% growth year-over-year. The company’s sales growth has been fueled by the AI frenzy, as the company is an industry leader in data-driven, client-to-cloud networking for large AI, data center, campus, and routing environments.

The stock also sports a favorable Zacks Rank #2 (Buy), with EPS expectations increasing across the board. Arista Networks unveiled an additional $1.5 billion repurchase program in the release.

Apple Unveils Massive Stock Buyback

Down 15% year-to-date, Apple shares have struggled in 2025, underperforming relative to the S&P 500 in a big way and driven lower by initial tariff headlines. Shares faced pressure as a result, but the recent de-escalation announcement between the US and China has brought back positivity.  

Apple unveiled a massive $100 billion additional repurchase program in its latest quarterly report, putting some of its cash to work. The earnings outlook for the tech titan remains under pressure, with analysts taking their EPS expectations lower across the board over recent months.

The evolving EPS outlook of Apple is certainly going to be interesting, particularly so amid all the back-and-forth news we’ve received concerning tariffs and other economic developments. It’s worth remembering that the company is no longer the growth machine it used to be, with EPS forecasted to climb 6% on 3% higher sales in its current fiscal year.

AIT Generates Serious Cash

Applied Industrial Technologies exceeded both our consensus EPS and sales estimates, with EPS growing 4% YoY on the back of a 2% sales increase. The company’s cash-generating abilities saw a notable boost throughout its latest period, with free cash flow of $115 million up 50% YoY.

The cash-generating abilities have allowed the company to sport a shareholder-friendly nature, currently boasting a 5% five-year annualized dividend growth rate. AIT unveiled a new repurchase program to buy up to 1.5 million shares, replacing the prior repurchase plan.

As shown in the annual chart below, AIT’s dividend consistency is stellar. Please note that the final value is currently shown on a trailing twelve-month basis, as the company’s current fiscal year is not over yet.

Bottom Line

Companies commonly deploy repurchase programs to boost shareholder value, all of which we’ve recently seen from Arista Networks ANET, Apple AAPL, and Applied Industrial Technologies AIT.

All three companies have been aggressively buying shares over recent years, helping put in a floor while also aiding EPS. Though buybacks are criticized by some, they make great sense for mature companies with little growth left to squeeze.

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This article originally published on Zacks Investment Research (zacks.com).

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