The supply of US corporate stocks is increasing significantly. Data compiled from the Federal Reserve's financial account shows that in the second quarter of 2026, net stock issuance by US non-financial companies will rise to approximately $152 billion, the highest level since the late 1990s; this compares to approximately $45.4 billion in the first quarter and net buybacks of approximately $97.7 billion in the second quarter of 2025. Over the course of a year, net issuance will fluctuate by approximately $250 billion. Total corporate stock issuance in the second quarter was approximately $502 billion. After deducting approximately $216 billion in stock buybacks and approximately $134 billion in equity write-offs resulting from mergers and acquisitions, net issuance will be approximately $152 billion. For nearly two decades, buybacks and write-offs have typically exceeded new issuances, consistently reducing the market's stock supply; now, financing issuances and M&A activities are changing this pattern. If net issuance remains high, the support of corporate buybacks for earnings per share and stock prices may weaken, and the new stock supply will become a significant variable in the supply and demand of funds in the US stock market.
