Goldman Sachs: $1.7 trillion buyback wave will cushion the impact of a surge in equity supply.

Goldman Sachs said U.S. companies are expected to return a record $1.7 trillion to shareholders through stock buybacks in 2027, potentially shielding market valuations from dilution caused by equity issuance near historic highs. The investment bank expects the supply of publicly traded shares to rise sharply next year. While such an increase would typically weigh on stock prices, Goldman Sachs added that corporate buybacks, combined with strong demand from households and foreign investors, should be sufficient to absorb the new shares.