Share buyback
When a company buys its own shares and retires them.
Fewer shares means each remaining share owns a bigger slice of the same company, so per-share numbers can grow faster than the company itself.
Examples from real companies
- Apple (AAPL): Apple’s share count fell about 40% from 2007 to 2025. Through buybacks, each remaining share owns a bigger slice of the company.
- AutoZone (AZO): AutoZone’s share count fell about 73% from 2008 to 2025. Through buybacks, each remaining share owns a bigger slice of the company.
- The Home Depot (HD): The Home Depot’s share count fell about 46% from 2008 to 2026. Through buybacks, each remaining share owns a bigger slice of the company.
More investing words
Profit per share (EPS)P/E ratioBook value per shareFree cash flowCapital spending (capex)DividendDividend yieldPayout ratioDilutionRevenue (sales)Profit marginDebtMarket capitalization10-K and 10-Q reportsStock split
For education only, not investment advice.