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Ericsson reports first quarter results 2026 USA - English USA - English

prnewswire.com
ERIC Ericsson reported a 10% YoY decrease in net sales and a significant drop in EBIT and net income, despite 6% organic sales growth. While acknowledging rising input costs, the company expresses confidence in future growth driven by a focused strategy and leading portfolio.

STOCKHOLM, April 17, 2026 /PRNewswire/ --

Strategic highlights – Robust execution reflecting a more balanced global footprint

Financial highlights – Solid financial performance with broad-based contribution

Börje Ekholm, President and CEO, said: "Our Q1 results demonstrate continued resilience in a dynamic environment, with organic sales growth of 6%. Our healthy gross margins and strong cash flow reflect the progress we have made in recent years, reducing reliance on geographic mix and strengthening our foundations globally.

Our multi-year investments in building a resilient, diversified, supply chain have enabled us to deliver consistently for customers amidst geopolitical and macroeconomic uncertainties. We are facing increasing input costs, especially in semiconductors, caused in part by AI demand. Our ambition is to offset these challenges, by working closely with customers and suppliers, and through product substitution and efficiency actions.

Looking ahead, while we continue to expect a flattish RAN market, our focused strategy, leading portfolio, and strengthened positions in mission critical and Enterprise give us confidence in our ability to grow faster than the mobile networks market and drive long-term success."

SEK b.

Q1

2026

Q1

2025

YoY

change

Q4

2025

QoQ

change

Net sales

49.332

55.025

-10 %

69.285

-29 %

Organic sales growth * 2

-

-

6 %

-

-

Gross income

23.299

26.537

-12 %

32.705

-29 %

Gross margin 2

47.2 %

48.2 %

-

47.2 %

-

EBIT

1.443

5.931

-76 %

11.161

-87 %

EBIT margin 2

2.9 %

10.8 %

-

16.1 %

-

EBITA 2

1.788

6.652

-73 %

11.601

-85 %

EBITA margin 2

3.6 %

12.1 %

-

16.7 %

-

Net income

0.887

4.217

-79 %

8.571

-90 %

EPS diluted, SEK

0.270

1.24

-78 %

2.57

-89 %

Free cash flow before M&A 2

5.921

2.704

119 %

14.853

-60 %

Net cash, end of period 2

68.141

38.647

76 %

61.236

11 %

Adjusted financial measures 1 2

Adjusted gross income

23.734

26.695

-11 %

33.243

-29 %

Adjusted gross margin

48.1 %

48.5 %

-

48.0 %

-

Adjusted EBIT

5.211

6.212

-16 %

12.258

-57 %

Adjusted EBIT margin

10.6 %

11.3 %

-

17.7 %

-

Adjusted EBITA

5.556

6.933

-20 %

12.698

-56 %

Adjusted EBITA margin

11.3 %

12.6 %

-

18.3 %

-

* Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations.

1 Adjusted metrics are adjusted to exclude restructuring charges.

2 Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statement.

NOTES TO EDITORS

You find the complete report with tables in the attached PDF or on www.ericsson.com/investors

Video webcast for analysts, investors and journalists

President and CEO Börje Ekholm and CFO Lars Sandström will comment on the report and take questions at a video webcast at 9:00 AM CEST (8:00 AM GMT London, 3:00 AM EST New York).

Join the webcast or please go to www.ericsson.com/investors

To ask a question: Access dial-in information here

The webcast will be available on-demand after the event and can be viewed at www.ericsson.com/investors.

FOR FURTHER INFORMATION, PLEASE CONTACT

Contact person

Investors

Daniel Morris, Vice President, Head of Investor Relations

Phone: +44 7386657217

E-mail: [email protected]

Lena Häggblom, Director, Investor Relations

Phone: +46 72 593 27 78

E-mail: [email protected]

Alan Ganson, Director, Investor Relations

Phone: +46 70 267 27 30

E-mail: [email protected]

Media

Ralf Bagner, Head of Media Relations

Phone: +46 76 128 47 89

E-mail: [email protected]

Media Relations

Phone: +46 10 719 69 92

E-mail: [email protected]

This is information that Telefonaktiebolaget LM Ericsson is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 CEST on April 17, 2026.

This information was brought to you by Cision http://news.cision.com.

https://news.cision.com/ericsson/r/ericsson-reports-first-quarter-results-2026,c4336146

The following files are available for download:

https://mb.cision.com/Main/15448/4336146/4042449.pdf

Ericsson Q1 2026 ENG

https://mb.cision.com/Public/15448/4336146/8b7e23e127c39c27.xlsx

Q1-26 financial tables