Stockholm, Jan 23, 2026, 11:06 CET — Regular session underway.
- Shares surged over 11% in early trading in Stockholm as Ericsson surpassed quarterly profit expectations
- The board proposed a SEK 15 billion share buyback and raised the dividend to SEK 3.00 per share
- Management signaled additional cost measures, including more job reductions
Ericsson shares jumped over 11% on Friday following the Swedish telecom equipment firm’s announcement of its inaugural share buyback program. The company also surpassed expectations for fourth-quarter profits, leading gains on Europe’s STOXX 600.
This matters because investors have expected a sluggish, uneven 5G spending phase, with operators cautious about capital allocation. A buyback sends a clear message: Ericsson is shifting its focus from survival to cash deployment.
Telefonaktiebolaget LM Ericsson (publ) posted an adjusted operating profit of 12.3 billion crowns for the quarter, excluding restructuring charges, on sales of 69.3 billion crowns. Net cash ended 2025 at 61.2 billion crowns. The board plans to propose a dividend of 3.00 crowns per share along with a buyback mandate. CEO Börje Ekholm said, “Our Q4 results demonstrate solid execution of our strategy priorities,” and noted the group expects the radio access network (RAN) market—the gear connecting phones to cell towers—to remain flat in 2026. PR Newswire
The planned buyback amounts to 15 billion crowns and will extend until the 2027 annual general meeting. Repurchases are set to start following Ericsson’s release of first-quarter 2026 results. Jefferies analysts noted the buyback “reflects changes in the board’s capital allocation strategy” amid a low-growth forecast. Investing.com
Cost is the other key factor. On the post-earnings call, Ekholm revealed Ericsson slashed 5,000 jobs in the last year and “expect[s] to continue reducing headcount going forward.” Reuters
Earlier this month, Ericsson notified Sweden’s public employment service that roughly 1,600 jobs in the country might be cut, as talks with trade unions are underway.
But the rally isn’t without its caveats. The buyback mandate still requires shareholder approval, and cash returns could dwindle quickly if operators clamp down on spending or if price pressure intensifies in mobile networks. Restructuring poses its own risks: while cost cuts might safeguard margins, they could also drag down delivery if the market shifts.
Ericsson’s shareholder vote is scheduled for March 31 at the annual general meeting. Investors will then turn to the first-quarter report on April 17 for clues on demand and when the buyback might kick off.
