Ericsson reports third quarter results 2026

Quarterly sales increased, while net income declined against a prior-year period that included a divestment gain.

Rhea-AI Summary

Ericsson (ERIC) reported third-quarter 2026 sales of SEK 59.478 billion, with growth led primarily by higher Networks sales. Sales rose 6% year over year; organic growth, excluding acquisition, divestment and currency effects, was 7%. Net income fell 49% to SEK 5.797 billion, and diluted earnings per share declined to SEK 1.770 from SEK 3.330. The prior-year quarter included a divestment gain of SEK 1.72 per share.

Adjusted earnings before interest, taxes and amortization fell to SEK 10.121 billion, but increased excluding the prior-year SEK 7.6 billion capital gain. Reported gross margin fell to 47.1% from 47.6%. Free cash flow before acquisitions and divestments declined 26% to SEK 4.902 billion; net cash rose 17% to SEK 60.687 billion. Ericsson announced a simpler operating structure and expects higher component costs to weigh on gross margin next year.

11 points · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 21 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter sales rose 6% year over year to SEK 59.478 billion, and 13% sequentially.
• Moderate pointThird-quarter gross income increased 5% year over year to SEK 27.990 billion.
• Moderate pointPeriod-end net cash increased 17% year over year to SEK 60.687 billion, and 1% sequentially.
• Moderate pointShare repurchases returned SEK 4.8 billion to shareholders during the quarter.
• Minor pointThird-quarter organic sales grew 7% year over year, primarily driven by Networks; three of four market areas grew.

6 minor points

• Minor pointThird-quarter adjusted gross income increased 5% to SEK 28.351 billion, driven by Mobile Networks.
• Minor pointNetworks margin increased, supported by retroactive intellectual-property-rights revenues.
• Minor pointThird-quarter operating expenses decreased year over year.
• Minor pointJanuary–September organic sales growth was 4%.
• Minor point. Forward-looking: it has not happened yet and may not happen.Operating-structure simplification is intended to improve customer focus and efficiency.
• Minor point. Forward-looking: it has not happened yet and may not happen.Portfolio optimization, pricing and efficiency measures aim to offset higher component costs.

Negative

• Moderate pointThird-quarter net income fell 49% to SEK 5.797 billion year over year, although up 42% sequentially.
• Moderate pointThird-quarter operating profit fell 41% to SEK 8.864 billion; operating margin declined to 14.9% from 26.9%.
• Moderate pointThird-quarter free cash flow before acquisitions and divestments fell 26% to SEK 4.902 billion year over year.
• Moderate pointJanuary–September sales fell 4% to SEK 161.500 billion year over year.
• Moderate pointJanuary–September gross income fell 6% to SEK 75.411 billion; gross margin declined to 46.7% from 47.8%.
• Moderate pointJanuary–September operating profit fell 41% to SEK 16.226 billion; operating margin declined to 10.0% from 16.4%.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Ericsson expects higher component costs to pressure gross margin next year, alongside a flat radio-access-network market.

14 minor points

• Minor pointThird-quarter diluted EPS fell 47% to SEK 1.770; prior-year EPS included a SEK 1.72 divestment gain.
• Minor pointThird-quarter EBITA fell 41% to SEK 9.228 billion; its margin declined to 15.5% from 27.6%.
• Minor pointThird-quarter adjusted operating profit fell 37% to SEK 9.757 billion; its margin declined to 16.4% from 27.5%.
• Minor pointThird-quarter adjusted EBITA fell 36% to SEK 10.121 billion, but increased excluding the prior-year SEK 7.6 billion gain.
• Minor pointThird-quarter adjusted EBITA margin declined to 17.0% from 28.1% year over year.
• Minor pointThird-quarter gross margin declined to 47.1% from 47.6%; adjusted gross margin fell to 47.7% from 48.1%.
• Minor pointEnterprise margin was lower following the iconectiv divestment.
• Minor pointJanuary–September adjusted gross income fell 4% to SEK 77.567 billion; adjusted gross margin declined to 48.0% from 48.2%.
• Minor pointJanuary–September EBITA fell 40% to SEK 17.292 billion; its margin declined to 10.7% from 17.3%.
• Minor pointJanuary–September adjusted operating profit fell 25% to SEK 21.488 billion; its margin declined to 13.3% from 17.2%.
• Minor pointJanuary–September adjusted EBITA fell 25% to SEK 22.554 billion; its margin declined to 14.0% from 18.0%.
• Minor pointJanuary–September net income fell 47% to SEK 10.760 billion year over year.
• Minor pointJanuary–September diluted EPS fell 45% to SEK 3.240 year over year.
• Minor pointJanuary–September free cash flow before acquisitions and divestments fell 6% to SEK 11.207 billion.

News Explained

In its third-quarter results, Ericsson reports capital returns to shareholders through share repurchases, adding a disclosed buyback return to the operating and financial results.

Key Figures

Reported sales: SEK 59.5 billion (vs. SEK 56.2 billion) Organic sales growth: 7% Adjusted gross margin: 47.7% (vs. 48.1%) +5 more

Reported sales

SEK 59.5 billion (vs. SEK 56.2 billion)

Q3 2026

Organic sales growth

7%

Q3 2026 YoY

Adjusted gross margin

47.7% (vs. 48.1%)

Q3 2026

Adjusted EBITA

SEK 10.1 billion (vs. SEK 15.8 billion)

Q3 2026; prior-year period included a SEK 7.6 billion capital gain

Net income

SEK 5.8 billion (vs. SEK 11.3 billion)

Q3 2026

Diluted EPS

SEK 1.77 (vs. SEK 3.33)

Q3 2026

Free cash flow before M&A

SEK 4.9 billion (vs. SEK 6.6 billion)

Q3 2026

Capital returns

SEK 4.8 billion

Share repurchases during Q3 2026

Key Terms

ebita, ran, m&a, non-ifrs

4 terms

ebita financial

"Adjusted EBITA was SEK 10.1 (15.8) b."

EBITA stands for Earnings Before Interest, Taxes and Amortization and measures a company’s profit from operations after removing the effects of financing, tax rules and amortization charges. Investors use it to compare underlying business performance across firms by focusing on the company’s core ability to generate cash, like judging a car’s engine power before accounting for fuel costs, loan payments and bookkeeping adjustments.

ran technical

"Looking ahead, the RAN market is flat"

"Ran" is the past tense of "run," which in finance often describes the period during which a stock, market, or investment performs strongly and steadily increases in value. When an investment "ran," it means it experienced a notable upward movement, gaining attention from investors. This term helps convey how well an asset has performed over a certain time, highlighting periods of growth or success.

m&a financial

"Free cash flow before M&A was SEK 4.9 (6.6) b."

M&A, short for mergers and acquisitions, involves one company combining with or purchasing another company to grow, streamline operations, or gain competitive advantages. For investors, M&A activity can signal potential for increased value, new opportunities, or changes in market dynamics, making it an important factor to watch in the business landscape.

View in glossary

non-ifrs financial

"Non-IFRS financial measures are reconciled at the end of this report"

Non-IFRS refers to financial measures that companies report outside the standard accounting rules set by the International Financial Reporting Standards; these figures exclude or adjust certain items such as one-time costs, stock-based pay, or restructuring charges. Investors care because non-IFRS numbers try to show the business’s underlying performance — like a chef presenting a dish with optional toppings removed to highlight the core flavor — but they can be shaped to look more favorable, so compare them with the official IFRS statements.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

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

Strategic highlights – executing well in a challenging environment

• Solid customer demand in strategic markets, combined with near-term commercial actions, supported organic growth of 7%*.
• Customer wins and deployments across network modernization, differentiated connectivity and mission-critical networks.
• Driving portfolio optimization, pricing and efficiency measures to help offset higher component costs and to strengthen competitiveness.

Financial highlights – sales growth and cost discipline

• Reported sales were SEK 59.5 (56.2) b. Organic* sales increased by 7%* YoY primarily driven by higher sales in Networks. Organic* sales grew in three out of four market areas.
• Adjusted [1] gross income increased to SEK 28.4 (27.0) b., driven by Mobile Networks. Reported gross income was SEK 28.0 (26.8) b.
• Adjusted [1] gross margin was 47.7% (48.1%). Networks margin increased, supported by retroactive IPR revenues. Enterprise margin was lower, due to the divestment of iconectiv. Cloud Software and Services margin was stable. Reported gross margin was 47.1% (47.6%).
• Adjusted [1] EBITA was SEK 10.1 (15.8) b. with a 17.0% (28.1%) margin. Excluding the prior-year period capital gain of SEK 7.6 b., adjusted EBITA increased. Operating expenses decreased YoY. Reported EBITA was SEK 9.2 (15.5) b., with a 15.5% (27.6%) margin.
• Net income was SEK 5.8 (11.3) b. and diluted EPS was SEK 1.77 (3.33). Prior-year EPS included a SEK 1.72 per share divestment gain.
• Free cash flow before M&A was SEK 4.9 (6.6) b.
• Capital returns to shareholders were SEK 4.8 b. of share repurchases.

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: investor.relations@ericsson.com

Lena Häggblom, Director, Investor Relations
Phone: +46 72 593 27 78
E-mail: lena.haggblom@ericsson.com

Media
Ralf Bagner, Head of Media Relations
Phone: +46 76 128 47 89
E-mail: ralf.bagner@ericsson.com

Media relations
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com

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

 

View original content:https://www.prnewswire.com/news-releases/ericsson-reports-third-quarter-results-2026-302909526.html

SOURCE Ericsson

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What does Ericsson exclude from its adjusted third-quarter 2026 financial measures?

Ericsson's adjusted financial measures exclude restructuring charges. Organic sales growth separately adjusts sales for acquisitions, divestments and foreign-currency fluctuations.