IONOS launches €60M share buyback amid AI-driven growth push
IONOS has unveiled a new €60 million share buyback programme, set to launch in the coming days. The move comes as the company sharpens its focus on AI-driven growth with its Momentum initiative. Investors responded positively, pushing the share price up by nearly 1.8% after the announcement. The buyback programme will run until August 25, 2026, aiming to repurchase up to 2.2 million of the company's own shares. This represents around 1.6% of IONOS's total share capital. The scheme will also help cover obligations tied to employee stock ownership plans.
IONOS has a history of such programmes, having previously acquired 4.35 million treasury shares under earlier authorisations. The last major buyback in 2022, worth up to €100 million, concluded in December that year. Since then, the company's market capitalisation has fluctuated—rising to roughly €2.5 billion by late 2023 before dropping to about €1.2 billion by March 2026, as share prices fell from around €20 to under €10.
Alongside the buyback, IONOS is pushing its Momentum AI strategy, which includes tools like an AI phone assistant. This product has already attracted around 3,300 orders in Germany and the U.S. The company aims to shift from being a pure infrastructure provider to an integrated service partner, using AI to increase revenue per customer.
Financially, IONOS targets 7% revenue growth and an EBITDA margin of 37-38% for 2026. In the medium term, it seeks 10% annual revenue growth and a 40% EBITDA margin. The €60 million buyback programme reflects IONOS's confidence in its financial position and long-term strategy. With AI-driven tools like Momentum and clear growth targets, the company is positioning itself for higher profitability and a stronger market presence. The share price uptick suggests early investor approval of these plans.
