Up Over 20% in 2025, These 3 Stocks Are Boosting Buyback Capacity

Key Points

• Buyback capacity is on the rise for these three stocks, which are beating the S&P 500 in 2025.
• After impressing investors with their latest earnings, KEYS and SOLV each announced $1 billion or more in buyback authorizations.
• SEA is up big in 2025, but down significantly from its ATH. The company's new buyback program is a positive sign for its future.

 

Three stocks that are performing well in 2025 just made notable buyback announcements. All three have achieved returns north of 20% this year, beating the 18% return of the S&P 500 Index. Let’s dive into the important buyback news surrounding these three firms. 

KEYS: Enabling AI and Boosting Buybacks After Earnings Win

First up is Keysight Technologies NYSE: KEYS, which is up 23% in 2025. The company’s latest earnings post has driven a significant portion of the stock’s gains this year, with shares popping 10% on Nov. 25 following the release of the report.

Keysight beat estimates on both sales and adjusted earnings per share (EPS), with revenue rising by 10%. The firm’s next quarter guidance also implies a significant acceleration in growth, with Keysight anticipating sales to rise by around 19%.

Keysight provides a variety of solutions that enable artificial intelligence infrastructure buildouts. For example, its specialized electronic design automation (EDA) software helps drive advancements in the networking chips that enable high-speed data transfer in data centers.

The company enabled Broadcom NASDAQ: AVGO to build its 1.6-terabyte networking chips, which are some of the most advanced of their kind.

Along with its strong earnings report, Keysight announced a buyback program increase worth $1.5 billion. This adds to the approximately $110 million in repurchase capacity that the firm had at the end of October. Keysight’s repurchase capacity now equals a significant 4.7% of the firm’s market capitalization. This signals confidence from management and allows Keysight to add a tailwind to EPS by reducing its shares outstanding.

Does Management See Value in SEA Shares?

E-commerce and gaming company SEA NYSE: SE has also performed well in 2025, up approximately 31%, though still down 29% from its 2025 high, which was reached in September.

The company’s Shopee e-commerce platform, which primarily serves customers in Southeast Asia and Brazil, saw sales rise 35% last quarter to $4.3 billion, according to SEA's most recent earnings report.

Its Garena gaming platform is also growing, with revenue rising 31% last quarter. However, the company’s significant miss on adjusted EPS led shares to fall over 8% on Nov. 11.

On Nov. 17, SEA announced a share repurchase authorization worth $1 billion. This is equal to around 1.2% of the stock’s over $80 billion market capitalization.

Although this buyback program is relatively small, it is meaningful, as SEA has not traditionally engaged in buybacks. In fact, over the past five years, SEA’s outstanding share count has increased by about 20%, showing that buybacks have not been a big part of its capital allocation policy. Authorizing this buyback now, with shares down substantially from their highs, suggests that SEA believes there is value in its stock price.

SOLV Announces Strong Earnings, First Buyback, and a New Acquisition

Lastly, healthcare company Solventum NYSE: SOLV has just turned its fortunes around in a big way. As of the Nov. 6 close, shares were flat on the year.

The company’s Q3 2025 earnings report sent shares up nearly 8% on Nov. 7, and they haven’t looked back since. The stock is currently up 29% for 2025.

SEA solidly beat Wall Street estimates on the top and bottom lines, and raised its full-year guidance. Notably, the firm experienced organic growth across its surgical devices, dental solutions, and health information software businesses.

On Nov. 20, Solventum announced a large buyback program worth $1 billion, which equates to around 6.7% of its market capitalization. 

This is the company’s first-ever repurchase authorization and comes after it sold its water filtration business to reduce debt by $2.7 billion. Solventum still retains $1.6 billion in cash and plans to acquire Acera Surgical for up to $900 million, positioning itself for continued expansion.

SEA: Growth, Profitability, Buybacks Are Up, Shares Are Down

Among the three, SEA’s buyback news carries particular weight due to the context. The company is growing both revenue and profits, yet its stock has significantly pulled back. Management’s decision to authorize a buyback for the first time in years suggests a belief that shares are undervalued.

Investors interested in growth names taking steps to enhance shareholder value should consider further due diligence on SEA, especially given its combination of operational improvement and capital return initiatives.