Swedish telecom equipment maker Ericsson reported quarterly profit that exceeded market expectations. The results surprised investors and highlighted stronger operational performance during the period. As a result, the company’s shares rose sharply in early trading.

The earnings beat came at a time when many telecom equipment makers continue to face pressure from slower network spending. However, Ericsson managed to deliver better results through cost discipline and improved margins.

💰 Buyback Plan Boosts Investor Confidence

Alongside the earnings report, Ericsson announced its first-ever share buyback programme. The company said it plans to repurchase shares worth 15 billion Swedish crowns, equivalent to about $1.7 billion. The programme will begin after the release of first-quarter results and run through 2027.

Therefore, investors welcomed the move as a sign of confidence in Ericsson’s balance sheet. The announcement also reinforced expectations of improved shareholder returns.

📊 Details Behind the Earnings Beat

Ericsson reported adjusted earnings before interest and taxes of 12.26 billion Swedish crowns for the quarter. Analysts had expected a result closer to 10.09 billion crowns. The stronger-than-expected performance reflected lower costs and steady demand in selected regions.

In addition, the company benefited from earlier restructuring efforts. These measures helped offset weaker investment in some telecom markets.

📉 Share Price Reaction

Following the announcement, Ericsson shares jumped in European trading. The stock led gains among major telecom companies and outperformed broader regional benchmarks. Consequently, market sentiment around the company improved during the session.

Investors also reacted positively to the combination of profit growth and capital returns. The buyback programme added further support to the share price.

🏗️ Strategic and Industry Context

Ericsson remains one of the world’s largest suppliers of telecom network equipment. However, the company continues to navigate slower spending on 5G infrastructure in several markets. At the same time, it faces competition from both Western and Asian rivals.

Earlier, Ericsson announced job cuts in Sweden as part of ongoing efforts to streamline operations. Despite these challenges, the latest results suggest progress in stabilising parts of the business.

🔍 Outlook Going Forward

Company executives said they remain focused on efficiency and disciplined investment. They also said capital returns will remain a priority as long as financial conditions allow. Meanwhile, analysts will watch upcoming quarters to assess whether the earnings momentum can continue.

As global telecom investment patterns evolve, Ericsson’s ability to manage costs and return cash to shareholders will remain under close scrutiny.