Swedish telecoms equipment maker Ericsson said it will return 15 billion Swedish crowns ($1.7billion) to shareholders through its first-ever share buyback programme, after delivering a strong quarterly earnings beat on Friday.

The announcement sent Ericsson shares up more than 11% in early Stockholm trading, making it the top gainer on Europe’s benchmark STOXX600 index.

Ericsson reported adjusted earnings before interest and taxes, excluding restructuring charges, of 12.26billion crowns for the fourth quarter of 2025, comfortably above the 10.09billion-crown average estimate in an Infront poll of analysts.

One of the two major Western suppliers of network equipment alongside Nokia, Ericsson has moved swiftly to adapt to US import tariffs and has continued a deep restructuring effort to offset weaker investment in 5G networks. Earlier this month, the company said it would cut 1,600 jobs in Sweden as part of its push to improve efficiency.