Johnson & Johnson (J&J) has revealed its board of directors has authorized a share repurchase program, allowing the company to repurchase up to $5 billion of its common stock. The company announced the decision, stating it reflects confidence in J&J’s financial strength and future business outlook.

Share buybacks, also known as stock repurchases, are a way for companies to return capital to shareholders. By reducing the number of outstanding shares, earnings per share can increase, potentially boosting the stock price. The program will be executed at the discretion of the company’s management team.

The timing and amount of repurchases will depend on various factors, including market conditions, legal requirements, and other corporate considerations. J&J may use open market purchases, negotiated transactions, or other means to repurchase the shares.

This announcement comes as J&J continues to navigate the healthcare landscape and invest in innovation. The company’s diverse portfolio includes pharmaceuticals, medical devices, and consumer health products.