Ericsson has officially announced a new share buyback program to optimize its capital structure and return value to shareholders. Following approval at the company’s March 31, 2026, Annual General Meeting (AGM), the Board of Directors has resolved to repurchase up to SEK 15 billion in Class B shares.
Program Highlights
• Purpose: To distribute surplus liquidity, optimize capital structure, and fulfill obligations related to the company’s share-based incentive programs.
• Timeline: Repurchases are expected to commence on April 23, 2026, and will continue until no later than March 31, 2027.
• Execution: The program will be managed by an independent financial firm to ensure market neutrality and compliance with EU regulations.
• Limit: The total number of shares held by Ericsson will not exceed 10% of its total issued shares at any time.
This initiative is a cornerstone of Ericsson’s 2026 capital allocation strategy. By reducing its overall share capital, the company aims to improve capital efficiency. Shares not required to satisfy the company’s long-term incentive obligations—such as the 2026 Long-Term Variable Compensation Program—are intended to be cancelled following a proposal at the 2027 AGM.
The buyback announcement follows Ericsson’s recent Q1 2026 performance report, which highlighted resilient organic growth of 6% and strong cash flow, even amidst a challenging macroeconomic and geopolitical landscape.
“Our healthy gross margins and strong cash flow reflect the progress we have made in recent years,” said Börje Ekholm, President and CEO of Ericsson. “This program is part of our commitment to maintaining a disciplined approach to capital while continuing to invest in our future.”
In addition, the Program is subject to the following terms:
- Acquisitions are expected to commence on April 23, 2026, at the earliest, and end on March 31, 2027, at the latest.
- A maximum number of Ordinary Shares may be repurchased so that Ericsson’s total holding at any time does not exceed 10 per cent of Ericsson’s total number of issued shares.
- The Ordinary Shares may only be purchased at a price which falls within the prevailing interval registered on Nasdaq Stockholm at each point in time (i.e. in the interval between the highest purchase price and the lowest selling price).
There are in total 3,371,351,735 shares in Ericsson, 261,755,983 shares of Class A and 3,109,595,752 shares of Class B. Ericsson’s holding of treasury stock as of April 16, 2026, amounts to 38,002,276 shares of Class B.
