Swedish telecom equipment maker Ericsson said it will launch its first-ever share buyback programme, returning 15 billion Swedish crowns ($1.7 billion) to investors, after reporting quarterly profit well above market expectations.
Ericsson posted adjusted earnings before interest and taxes of 12.26 billion crowns for the final quarter of 2025, exceeding analysts’ forecasts of 10.09 billion crowns. The strong result sent shares up more than 11% in early Stockholm trading, leading gains across Europe.
The company said the buyback programme is expected to begin after the release of its first-quarter results and run through 2027. Ericsson also raised its annual dividend to 3 crowns per share, up from 2.85 crowns last year.
Improved cash flow, driven by cost-cutting measures and the sale of its U.S.-based Iconectiv business, supported the decision. Ericsson has been restructuring to counter weaker 5G investment and adjust to U.S. import tariffs, including plans to cut 1,600 jobs in Sweden.
Quarterly net sales reached 69.3 billion crowns, beating estimates, with growth in Europe, the Middle East and Africa offsetting stable performance in North America. Ericsson said it could benefit from proposed EU measures to phase out high-risk suppliers in critical sectors.
