Telstra Group shares surged to a nine-year high Thursday after the Australian telecom giant reported stronger-than-expected interim earnings and expanded its share buyback program. The Sydney-listed company's profit attributable to shareholders rose 9.4% to A$1.12 billion for the six months ended Dec. 31, while revenue remained steady at A$11.64 billion.

Shares climbed nearly 4% to A$5.160, their highest level since August 2016. The improved performance was driven by growth in mobile and infrastructure services, continued cost discipline, and progress under Telstra's multi-year Connected Future 30 strategy. The company also declared a partially franked interim dividend of 10.5 cents per share, up from 9.5 cents a year ago.

Telstra expanded its on-market buyback to up to A$1.25 billion in FY26 and tightened its underlying EBITDA after lease amortisation guidance to A$8.2 billion-A$8.4 billion. The buyback expansion and dividend increase signal management's confidence in the company's cash generation and growth prospects, particularly as Telstra continues to execute its strategic transformation.