Tech buybacks accelerate in 2026 even as Meta and others cut jobs

U.S. technology companies are stepping up stock repurchases in early 2026 even as they pare headcount, a juxtaposition highlighted in new research from JPMorgan.

Analyst Nikolaos Panigirtzoglou wrote Friday that the tech sector’s share of overall buybacks this year is significantly higher than in 2025, with activity “driven by much stronger buybacks in February and March.” He called the trend “puzzling,” noting that “given concerns about AI capex financing, one would expect US tech companies to contain rather than accelerate their share buybacks.” Panigirtzoglou added that “the past few quarters have seen more favourable news in terms of the financing needs of the tech sector, allowing tech companies to bolster their buybacks this year.” One recent example came Tuesday, when Adobe authorized a $25 billion repurchase plan.

The move amounts to nearly a quarter of the company’s market capitalization and was described as an aggressive step intended to counter investor concerns that AI tools could disrupt its core software franchise. The pickup in buybacks comes as several large tech firms are trimming staff.

In a memo to employees Thursday, Meta said it would reduce headcount by 10%, affecting roughly 8,000 workers, as it reallocates resources toward AI investments. Last week, Snap announced it would cut roughly 16% of its workforce — about 1,000 positions — according to a letter to staff filed with the Securities and Exchange Commission.

Other major players, including Salesforce, Amazon, and Block, have also announced layoffs. Investors will get a clearer read on how aggressively these companies are deploying capital to buybacks when Big Tech begins reporting first-quarter results over the next two weeks.