Apple Announces $110 Billion Share Buyback and Raises Quarterly Dividend by 4%
Apple unveiled its largest-ever share repurchase programme alongside a 4% dividend increase, signalling confidence in its long-term cash generation even as iPhone sales moderate.
- •Record $110B share buyback authorised — surpasses prior all-time high of $90B
- •Quarterly dividend raised 4% to $0.25/share
- •Services revenue grew 14% to a record $23.9B; offset China iPhone weakness
- •Shares rose ~6% after-hours on the capital return announcement
Apple Inc. announced a record $110 billion share repurchase authorisation on Thursday, topping its previous all-time high buyback of $90 billion set in 2023. The company also raised its quarterly dividend by 4% to $0.25 per share, payable in mid-May to shareholders of record as of early May.
The capital return announcement came alongside fiscal second-quarter results that beat Wall Street expectations on earnings but missed slightly on revenue. EPS came in at $1.53 versus the $1.50 consensus, while revenue of $90.8 billion fell just short of the $90.9 billion estimate.
CEO Tim Cook highlighted that the company's Services segment — which includes the App Store, Apple Music, iCloud, and Apple Pay — grew 14% to a record $23.9 billion in the quarter, more than offsetting a 10% decline in iPhone revenue in Greater China.
Buybacks matter for shareholders because they reduce the number of shares outstanding, which mechanically increases earnings per share even if profits stay flat. Apple has returned over $700 billion to shareholders through buybacks and dividends since 2012, a scale unmatched by virtually any other public company.
Shares rose about 6% in after-hours trading. Analysts noted that the buyback programme gives Apple significant firepower to support its stock price and signals that management believes shares are undervalued relative to the company's long-term earnings power.
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