Source: https://mochatrade.com/learn/glossary/buyback

# Buyback
URL: https://mochatrade.com/learn/glossary/buyback
Last modified: 2026-10-17

A buyback is a company buying its own shares and cancelling them, so the same profit is spread over fewer shares and EPS rises. US companies return more cash this way than through dividends, and it is announced [with results, next to the guide](https://mochatrade.com/learn/us-market-structure/us-earnings-explained). A company issuing stock to fund spending is the reverse, as [Oracle did in 2026](https://mochatrade.com/blog/mocha-markets-weekly-ccd).

## Related terms

- EPS: https://mochatrade.com/learn/glossary/eps
- Free cash flow: https://mochatrade.com/learn/glossary/free-cash-flow
- Order backlog (remaining performance obligations): https://mochatrade.com/learn/glossary/order-backlog
- Guidance (earnings guidance): https://mochatrade.com/learn/glossary/guidance
- Earnings season / earnings report: https://mochatrade.com/learn/glossary/earnings-season-earnings-report
- Dividend ETF: https://mochatrade.com/learn/glossary/dividend-etf