DAX firms unleash €54.6 billion in record share buybacks to prop up stocks
The DAX faces pressure in 2026, but Germany's corporate heavyweights are fighting back. With share buyback programs totaling a record €54.6 billion, they are sending a strong signal, according to Handelsblatt. This year alone, companies plan to pull shares worth €26 billion off the market.
The figures are undeniably impressive. Twenty-three of the 40 DAX-listed firms are currently repurchasing their own stock or will do so in the coming months—more than half the index. Sixteen of them intend to spend at least €1 billion each. Leading the charge are DHL Group, Siemens, and Siemens Energy, each allocating €6 billion, while SAP has authorized a €10 billion program.
Share buybacks are a proven tool to support stock prices and return capital to shareholders. By reducing the number of outstanding shares, future profits and dividends are spread across fewer securities, typically driving prices higher.
"These extensive buyback programs, combined with high dividend payouts, provide a crucial foundation to keep the DAX attractive even amid challenging geopolitical conditions," Commerzbank analyst Andreas Hürkamp told Handelsblatt. But not everyone shares this optimism. Critics argue that substantial funds are being diverted from investments, while corporate liquidity—potentially needed in light of the Iran crisis and looming profit declines—is shrinking.
Handelsblatt reports that the buyback surge follows the New York model. Apple, the world's largest buyer of its own shares, spent $96.7 billion on repurchases over the past four quarters. Since 2013, the iPhone maker has cut its share count by 44%. Whether DAX companies will ultimately benefit from this strategy or weaken themselves by starving meaningful investments of capital remains to be seen.
