Apple Inc. announced its quarterly financial results after the market close on May 1, and for one week through Thursday its stock was down 7.4%, while the S&P 500 rose 1.1%.

One reason cited for stock’s decline following the earnings report was disappointment that Apple’s board of directors had added $100 billion to the company’s stock-repurchase authorization — down from $110 billion a year earlier.

Mark Hulbert reviewed the history of Apple’s buybacks and determined that the stock has actually performed better during periods of reduced stock repurchases.

Apple’s shares were down 21% for 2025 through Thursday, while the S&P 500 was down 3.3%, both with dividends reinvested.

So Hulbert’s observation and this year’s price decline might support a case for buying Apple’s stock now. But what if you are a long-term investor? Another look at the company’s buyback history can provide some comfort.

According to FactSet’s data going back 40 fiscal quarters, Apple has spent $697.7 billion on stock repurchases over the past 10 years. And the company’s share count (upon which earnings per share are based) has been reduced by 35%.

But the effect on the company’s earnings per share has been greater, which we can illustrate with an example:

• A company’s profit is $1,000.

• There are 100 shares.

• Earnings per share came to $10.

If we reduced the share count by 10%:

• The company’s profit would still be $1,000.

• There would be 90 shares.

• EPS would be $11.11.

• EPS would have increased 11%.

For Apple, the 35% reduction in the share count has boosted earnings by 54% over the past 10 years, all things being equal. For 10 years through Thursday, Apple’s stock returned 590%, while the S&P 500 returned 220%, both with dividends reinvested.