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Ericsson reports third quarter results 2026

prnewswire.com
ERIC Ericsson reported mixed Q3 results with sales growth and cost discipline but a significant drop in EBIT and Net Income YoY. The company sees efficiency gains from AI but faces headwinds from component costs and geopolitical uncertainty.

STOCKHOLM, Oct. 15, 2026 /PRNewswire/ --

Strategic highlights – executing well in a challenging environment

Financial highlights – sales growth and cost discipline

Comment from Per Narvinger, President and CEO: "We delivered strong third-quarter results, supported by focused execution, the strength of our portfolio, and the trust customers place in Ericsson. During the quarter, I met with many of our customers. A consistent theme was the need for more intelligent and autonomous networks to improve performance, efficiency, robustness and resilience. Ericsson is well positioned, and we are already seeing the efficiency gains from AI-enabled features in our portfolio being deployed in customer networks.

Today, we also announced a simplification of our operating structure that will strengthen our customer focus and drive further efficiencies over time. It will enable us to move faster, improve accountability and better support our customers in a changing market. Ericsson has a proud history of shaping global connectivity, and I am excited to lead the company in this period of rapid technology change.

Looking ahead, the RAN market is flat, geopolitical uncertainty remains elevated and component costs are a headwind to gross margin next year. We will stay close to our customers, continue to prioritize technology leadership and take disciplined actions to strengthen competitiveness. Ericsson remains well positioned to navigate these challenges and deliver profitable long-term growth, with all segments contributing."

SEK b.

Q3

2026

Q3

2025

YoY

change

Q2

2026

QoQ

change

Jan-Sep

2026

Jan-Sep

2025

YoY

change

Net sales

59.478

56.239

6 %

52.691

13 %

161.500

167.396

-4 %

Organic sales growth*[2]

-

-

7 %

-

-

-

-

4 %

Gross income

27.990

26.777

5 %

24.122

16 %

75.411

79.963

-6 %

Gross margin[2]

47.1 %

47.6 %

-

45.8 %

-

46.7 %

47.8 %

-

EBIT

8.864

15.151

-41 %

5.919

50 %

16.226

27.473

-41 %

EBIT margin[2]

14.9 %

26.9 %

-

11.2 %

-

10.0 %

16.4 %

-

EBITA[2]

9.228

15.516

-41 %

6.277

47 %

17.292

28.931

-40 %

EBITA margin[2]

15.5 %

27.6 %

-

11.9 %

-

10.7 %

17.3 %

-

Net income

5.797

11.300

-49 %

4.076

42 %

10.760

20.143

-47 %

EPS diluted, SEK

1.770

3.330

-47 %

1.220

45 %

3.240

5.940

-45 %

Free cash flow before M&A[2]

4.902

6.631

-26 %

0.385

-

11.207

11.916

-6 %

Net cash, end of period[2]

60.687

51.858

17 %

59.839

1 %

60.687

51.858

17 %

Adjusted financial measures[1][2]

Adjusted gross income

28.351

27.047

5 %

25.481

11 %

77.567

80.703

-4 %

Adjusted gross margin

47.7 %

48.1 %

-

48.4 %

-

48.0 %

48.2 %

-

Adjusted EBIT

9.757

15.454

-37 %

6.520

50 %

21.488

28.713

-25 %

Adjusted EBIT margin

16.4 %

27.5 %

-

12.4 %

-

13.3 %

17.2 %

-

Adjusted EBITA

10.121

15.819

-36 %

6.878

47 %

22.554

30.171

-25 %

Adjusted EBITA margin

17.0 %

28.1 %

-

13.1 %

-

14.0 %

18.0 %

-

*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 https://www.ericsson.com/en/investors/financial-reports/interim-reports

Video webcast for analysts, investors and journalists

President and CEO Per Narvinger and CFO Lars Sandström will comment on the report and take questions at a video webcast at 9:00 AM CEST (8:00 AM BST London, 3:00 AM EDT 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

Investors

Daniel Morris, 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]

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 October 15, 2026.

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

https://news.cision.com/ericsson/r/ericsson-reports-third-quarter-results-2026,c4409101

The following files are available for download:

https://mb.cision.com/Main/15448/4409101/4319119.pdf

Ericsson Q3 2026 ENG

https://mb.cision.com/Public/15448/4409101/a2ce6f0c7987fd03.xlsx

2026 Q3 Financial tables