While markets often view large-scale buyback authorizations as positives in and of themselves, authorizations are just one part of the buyback equation. Unlike dividends, which companies must pay after declaring, there is no hard requirement for companies to spend the buyback capacity they authorize.
Thus, many of the benefits of buybacks do not occur until companies turn their words into action. In Q1 2026, these three firms did just that, spending billions on share repurchases. However, looking at raw dollars alone does not fully capture the size of their buybacks. The spending at these firms was also very high relative to their market capitalization, enabling significant share count reductions.
Pinterest Sees Massive Share Count Drop in Q1
First up is the visual discovery application Pinterest (NYSE: PINS), which has had a poor start to 2026, down more than 15% on the year. Pinterest’s adjusted earnings per share (EPS) postings have been a very significant weak point over the recent past. The firm has missed on this metric in five of its last six reports.
However, its latest quarter was the exception, with Pinterest beating on both sales and adjusted EPS. Sales eclipsed $1 billion, with a solid growth rate of 18% year over year (YOY)—one of its best showings in several quarters. Meanwhile, adjusted EPS rose 17% YOY to 27 cents. Notably, Pinterest has nearly tripled its monthly active user base since 2017, with the figure now standing at 631 million strong.
Pinterest also spent big on buybacks during the quarter. Total repurchases came in at approximately $2 billion, dropping its outstanding share count by a whopping 16%. That is a rather astounding figure, which many companies would be happy to achieve over the course of multiple years. Additionally, the company still has significant buyback capacity of $2 billion that it can use to lower its share count further.
Southwest Drops Over $1 Billion on Buybacks as Fuel Prices Take a Toll
Shares of Southwest Airlines (NYSE: LUV) are essentially flat in 2026, with factors outside its control weighing heavily on the company. These include highly elevated jet fuel prices, which surged after the beginning of the conflict in Iran. The company notes that in its latest quarter, fuel was a 22-cent headwind to adjusted EPS. This is massive, considering that Southwest’s total adjusted EPS during the quarter was just 45 cents.
Still, Southwest was able to dramatically improve its bottom line, as the company posted an adjusted loss per share of 13 cents a year ago. Operating margin greatly improved by 810 basis points to 4.6%, which the company credits to its transformation initiatives. These initiatives include a shift away from its first-come, first-served seating model. The goal of this is to attract customers who are willing to pay more in order to secure their seats, and thus drive up margins.
Southwest’s buyback spending in Q1 came in at $1.25 billion, allowing the firm to drop its outstanding share count by a very significant 5%. This marks a continuation of Southwest’s highly aggressive buyback strategy. Since the beginning of 2025, Southwest has lowered its share count by around 19%. The firm still holds a moderate amount of buyback capacity, with $450 million left under its current authorization.
United Therapeutics Scores Tyvaso Win, Lowers Share Count Over 3%
United Therapeutics (NASDAQ: UTHR) has fared much better than Pinterest and Southwest during 2026, with shares up more than 10%. The stock has seen three single-day spikes during the year of 10% or greater. The most recent of these came in late March, as the company released strong results on its nebulized Tyvaso treatment. The drug met its primary endpoint for the treatment of idiopathic pulmonary fibrosis (IPF).
Tyvaso is already approved for other conditions, and the company is aiming to make IPF its next market. If approved, analysts at Jefferies suggest that Tyvaso could have a $5 billion to $10 billion opportunity in IPF. With this, it makes sense why shares gained over 12% after these results.
In March, United entered into and utilized a $1.5 billion accelerated share repurchase (ASR) program—buying back its stock quickly. In turn, the company saw its outstanding share count fall by around 3.2% during the quarter. When announcing this program, management was resolute in its confidence around the future of UTHR shares. The company’s CEO noted, “we believe there is a clear disconnect between United Therapeutics’ fundamentals and valuation." The company retains $500 million in buyback capacity, equal to around 2% of its market capitalization.
Pinterest Holds Large Buyback Firepower After Spending Spree
Pinterest, Southwest, and United Therapeutics put their money where their mouth was in Q1 2026, sending their share counts down significantly. Pinterest was the clear standout, and comparing its spending to Southwest’s demonstrates this.
In one quarter, Pinterest reduced its share count by 16%, just under the impressive 19% reduction Southwest achieved over five quarters. The firm’s remaining buyback capacity is still very large, equal to almost 17% of its $12 billion market capitalization. Pinterest’s big-time spending indicates it has strong confidence going forward, even as shares face pressure.
The article "These 3 Stocks Lowered Their Share Counts Drastically in Q1" first appeared on MarketBeat.
