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Uber's $20B Buyback Could Spark a Trend—2 Stocks Already on Board
Written by Leo Miller. Published 8/12/2025.
Key Points
- Uber just announced a massive new buyback program worth $20 billion.
- The firm is looking to make buybacks a key part of its future plans, which is a good sign for investors.
- Roku and LSEG are two more stocks planning to substantially boost their buyback spending.
Uber Technologies (NYSE: UBER), the global leader in ride-sharing, just reported Q2 results that drew mixed reactions—but its actions spoke volumes. The company unveiled a new $20 billion buyback authorization, equivalent to 10.7% of its market cap as of the Aug. 8 close, signaling strong confidence in its future. Below, we break down Uber's latest performance and cash-flow turnaround, then highlight similar buyback boosts at Roku and the London Stock Exchange Group (LSEG).
Uber's Free Cash Flow Surge Fuels Massive Buyback
Uber delivered solid Q2 results, with revenue up 18% year-over-year to $12.65 billion—beating Wall Street forecasts by nearly $200 million—and adjusted EPS of $0.62, $0.02 above estimates. Management guided Q3 revenue growth of 17%–21%. Despite these beats, shares rose less than 0.2% on Aug. 6. Still, about six analysts raised their price targets on Aug. 7, lifting the average target by almost $4.
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While analysts' confidence ticked up modestly, Uber's announcement of a $20 billion share repurchase underscores management's strong self-belief—anchored by exceptional free cash flow (FCF). Trailing-12-month FCF reached an all-time high of $8.5 billion, and Q2 alone generated $2.5 billion, a 44% increase from a year earlier. This marks the eighth time in nine quarters that FCF growth met or exceeded that pace.
Historically, Uber operated with negative FCF and rarely bought back shares. Now that it has become a cash engine, management plans to deploy at least half of its future cash flow toward repurchases. As Uber stated on its earnings call, "at least half of our cash flow generation over the coming years will go to share repurchases." Investors should expect buybacks to remain a key part of its capital policy.
Roku's Buyback Capacity Grows with FCF Gain
Entertainment stock Roku (NASDAQ: ROKU) also beat Q2 estimates—yet shares plunged 15% on Aug. 1. The company swiftly authorized a $400 million buyback, about 3.3% of its market cap as of Aug. 8, citing strong FCF as the catalyst.
Roku's trailing-12-month FCF rose 23% compared to Q2 2024. To date, the firm has spent only about $169 million on buybacks since going public, so this new authorization—more than twice its historical total—marks a significant shift in capital allocation.
LSEG Plans Its Largest Rapid Buyback Yet
London Stock Exchange Group (LSEG), a roughly $70 billion European capital-markets powerhouse, aims to repurchase around $1.37 billion of its own stock in H2 2025 (based on June 30 USD/GBP rates), equal to just under 2% of its market cap.
While 2% might seem modest, the plan to execute the buyback in just six months makes this the largest repurchase LSEG has ever undertaken in such a short span.
Buybacks Signal Confidence Across the Board
Collectively, these buyback announcements reflect growing confidence among corporate leaders. Uber, in particular, has now delivered positive FCF for ten consecutive quarters and is making repurchases a cornerstone of its capital strategy. For investors, these programs represent potential returns on excess cash and a vote of confidence from management.
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