Global Buybacks Surge 26.8% as Technology and AI Drive Corporate Cash Returns

Key takeaways

• Global buybacks reached $572.0bn in Q2 2026, rising 26.8% year-on-year
• Technology overtook financials as the largest source of buybacks, repurchasing $121.1bn of shares
• Global dividends reached $757.8bn, with underlying growth of 7.3%
• Financials remained the largest source of dividends globally, paying $239.7bn, an increase of 8.1%
• UK dividends reached $39.5bn, rising 14.6%, led by strong banking distributions
• European consumer weakness was most pronounced among automobile manufacturers, a result of softer demand combined with growing competition from Chinese EV makers
• Janus Henderson forecasts global dividend growth of 5 to 6% in 2026 and buyback growth of 7 to 8%

Financials remain a powerful source of shareholder returns

Financials continued to play a central role in global capital returns, with banks rebuilding dividends towards more normal historical levels and increasingly using buybacks to distribute additional surplus capital. The industry remained the largest contributor to dividends, distributing $239.7bn in Q2, with underlying growth of 8.1%. The trend was particularly evident in the UK, where companies in the Index distributed $39.5bn in dividends. Growth reached 14.6%, well above the global rate, with banks leading the increase.

European consumer pressures expose a more structural challenge

Europe, excluding the UK, was the largest regional dividend payer in Q2, distributing $242.3bn, reflecting the seasonal concentration of European dividends in the second quarter. Growth was more modest at 3.2%, however, compared with stronger growth in markets including the UK, Japan and North America.

Consumer weakness is becoming increasingly visible in parts of the European market, particularly among automobile manufacturers. Softer demand is being compounded by growing competition from Chinese electric vehicle manufacturers, creating a more structural challenge for European carmakers.

Outlook for the rest of the year

Janus Henderson forecasts global dividend growth of between 5 to 6% in 2026, while buybacks are expected to grow around 7 to 8%.

The outlook for dividends remains supported by resilient corporate earnings and strong cash generation across financials and technology. Dividends remain comparatively well protected, with companies generally placing a high value on maintaining regular distributions even when the economic backdrop becomes more difficult.

Jane Shoemake, Equities CPM Lead, EMEA at Janus Henderson, said:

“We’re seeing a shift in how companies think about returning capital. Dividends remain an important long-term commitment, but buybacks give management teams much more room to respond as their priorities change. That flexibility is particularly important in technology, where the scale of investment in AI is forcing companies to balance shareholder returns with significant demands on capital. As those investment requirements grow, buybacks are likely to be the first lever companies adjust, rather than regular dividends.

“That same distinction helps explain what we’re seeing in financials. Banks have spent years rebuilding their dividend bases and are now increasingly using buybacks to return surplus capital without committing themselves to permanently higher payouts. More broadly, this is becoming a much more selective market, where strong earnings still support shareholder returns, but where that growth comes from depends on the structural and competitive forces facing each sector.”

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