Equinor Buyback Tranche Tests Balance Between Cash Returns And Profit Pressures

Simply Wall St

Wed, February 11, 2026 at 5:15 PM GMT+9 4 min read

In this article:

EQNR

+0.72%

STOHF

-0.08%

BP

-5.74%

Find your next quality investment with Simply Wall St’s easy and powerful screener, trusted by over 7 million individual investors worldwide.

Equinor (OB:EQNR) has started the first tranche of its 2026 share buy-back programme.

The launch follows Board approval of a broader buyback plan aimed at reducing share capital.

The move comes shortly after the company announced a substantial repurchase programme for 2026.

For you as an investor, the new buy-back tranche puts fresh attention on how Equinor is using its balance sheet to return cash. The share price stands at NOK265.2, with the stock up 5.3% over the past week and 10.6% over the past month. Over 5 years, the return is 149.5%, which shows how the company has rewarded longer term holders.

This 2026 programme also lands at a time when some peers, such as BP, are pausing buybacks in response to market challenges. That contrast may influence how investors weigh OB:EQNR against other energy names, particularly if you focus on capital return policies and potential share count reduction over time.

Stay updated on the most important news stories for Equinor by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Equinor.

OB:EQNR Earnings & Revenue Growth as at Feb 2026

Is Equinor’s dividend sustainable? Check out what every dividend investor needs to know in our dividend analysis.

The new 2026 buy-back tranche sits alongside a proposed cash dividend of US$0.39 per share, which still requires approval at the annual general meeting on 12 May 2026. For you, the pairing of ongoing dividends with a share repurchase program of up to US$1.5b signals that management is comfortable committing a meaningful portion of cash flows to capital returns, even after a year where net income for 2025 was US$5.0b compared to US$8.8b a year earlier. With all repurchased shares set to be cancelled, any dividend you receive in future would be spread over a smaller share base if earnings hold up, which can support dividend-per-share outcomes over time.

How This Fits Into The Equinor Narrative

The continued use of dividends and buybacks supports the narrative that disciplined capital allocation and shareholder payouts remain a core part of Equinor’s story.

Lower net income in 2025 versus the prior year could challenge assumptions that high cash returns are easily maintained if energy markets soften or investment needs increase.

The specific size and timing of the US$1.5b 2026 buyback, together with the US$0.39 dividend proposal, adds detail on capital returns that may not be fully reflected in earlier narrative commentary.

 






Story Continues  

Knowing what a company is worth starts with understanding its story. Check out one of the top narratives in the Simply Wall St Community for Equinor to help decide what it’s worth to you.

The Risks and Rewards Investors Should Consider

⚠️ Analysts have flagged an unstable dividend track record, which means you may want to look closely at how consistent Equinor’s payouts have been through the cycle.

⚠️ Profit margins of 4.8% are lower than 8.6% the year before, so sustaining both dividends and buybacks could be harder if profitability stays under pressure.

🎁 Trading at 67.2% below one estimate of fair value suggests some investors may see room for upside if the company delivers on its plans.

🎁 Earnings are forecast to grow 7.51% per year in available models, which, if realised, could help support ongoing dividends and share repurchases.

What To Watch Going Forward

From here, you may want to track three things in particular. First, whether the US$0.39 dividend is approved and how the yield looks versus other energy majors such as Shell, BP and TotalEnergies. Second, how aggressively Equinor actually uses the US$1.5b 2026 buyback authorisation and what that does to the share count over time. Third, whether future results show profit margins stabilising alongside the company’s guided 3% oil and gas production growth for 2026. Together, these will help you judge how sustainable Equinor’s current mix of dividends and buybacks really is.

To ensure you’re always in the loop on how the latest news impacts the investment narrative for Equinor, head to the community page for Equinor to never miss an update on the top community narratives.

_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include EQNR.OL.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

Terms and Privacy Policy

Privacy Dashboard

More Info