When Tim Cook took over as CEO of Apple in 2011, one of his key strategic decisions was to return capital to shareholders. This move marked a significant shift in the company’s approach, as Cook reinstated the dividend in 2012 and launched a massive stock buyback program.

Apple has consistently spent more on stock buybacks than any other company over the last decade, according to research by The Motley Fool. In this article, we’ll delve into the details of Apple’s stock buybacks under Cook’s leadership, exploring why this move matters for shareholders and what it means for the company’s future.

Apple’s Stock Buybacks under Tim Cook’s Leadership

Cook has been instrumental in implementing multiple record-breaking share buybacks during his tenure as CEO. The company’s board initially authorized a $10 billion buyback for fiscal 2013, which was later increased to $60 billion, the largest single share-repurchase authorization in history. In 2018, Apple authorized repurchases of $100 billion, followed by $110 billion in 2024, with the latter remaining the company’s largest-ever buyback. In 2025 and 2026, Apple authorized $100 billion in buybacks.

It’s essential to note that a buyback authorization only means a company can spend up to that amount, not that it will. However, Apple has consistently used most of its authorized funds, buying back a whopping $877 billion in shares under Cook’s leadership.

The Impact of Stock Buybacks on Shareholders

After Apple buys back shares, it retires them, reducing the number of shares in circulation. This leads to each shareholder owning a larger slice of the company. While this may seem like a minor change in the short term, it has a significant impact on long-term investors.

To illustrate this point, let’s consider Apple’s market capitalization, which stood at $4.6 trillion as of August 19. A $100 billion repurchase authorization represents buying back a little over 2% of the company. However, for a long-term investor, this makes a substantial difference.

When Cook took over, Apple had approximately 26 billion split-adjusted outstanding shares. As of July 2026, the company reported 14.6 billion outstanding shares, a decline of about 44%. A share purchased at the start of Cook’s tenure now owns nearly 80% more than it did then.

The Caveat: Valuation and Shareholder Value

While Apple’s stock buybacks have been a major tailwind for most of Cook’s tenure, the company’s valuation has risen significantly since the early days of its buyback program. Apple traded between 12 and 18 times earnings for much of the 2010s, whereas it now trades at 36 times trailing earnings.

Buying back shares at a higher valuation means less added value for shareholders. As Apple’s valuation becomes more expensive, it may be wise to consider alternative growth drivers, such as research and development or strategic acquisitions.

With John Ternus set to become the company’s new CEO on September 1, 2026, the leadership transition could signal a shift in strategy. While buybacks will remain part of Apple’s approach, the company may divert some capital to research and development or acquisitions.