Ericsson Q3 2026 net income falls 49% to SEK 5.8B

Q4 Networks adjusted gross margin is expected to be 49% to 51%, while higher component costs are cited as a gross-margin headwind next year.

Rhea-AI Filing Summary

Telefonaktiebolaget LM Ericsson (ERIC) reported Q3 2026 net sales of SEK 59.5 billion, up 6% year over year, with organic sales growth of 7%. Net income was SEK 5.8 billion, down 49%, diluted EPS was SEK 1.77 versus SEK 3.33, and EBITA was SEK 9.2 billion versus SEK 15.5 billion. The prior-year comparison included a SEK 7.6 billion capital gain from the Q3 2025 divestment of iconectiv.

Networks sales increased 9% to SEK 38.7 billion and Cloud Software and Services sales increased 3% to SEK 15.8 billion. Enterprise sales decreased 10% to SEK 4.6 billion, reflecting the divestment of iconectiv. Free cash flow before M&A was SEK 4.9 billion; net cash was SEK 60.7 billion at September 30, 2026. Ericsson repurchased 49,225,701 Class B shares during the quarter for SEK 4.8 billion.

For Q4 2026, Networks adjusted gross margin is expected to be in the range of 49% to 51%; sales growth in Networks and Cloud Software and Services is expected to be broadly similar to three-year average seasonality. Ericsson cited a flat RAN market in 2026, geopolitical uncertainty and higher component costs as a gross-margin headwind next year.

1 point · 0 major

NegativeiHow 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 · 2 points

How the balance works

Positive

• Moderate pointQ3 sales rose 6% to SEK 59.5 billion.

Negative

• Moderate pointQ3 net income fell 49% to SEK 5.8 billion.
• Moderate pointQ3 EBITA declined 41% to SEK 9.2 billion.

Filing Explained

As of September 30, 2026, Ericsson reported 3,257 million basic shares outstanding, while repurchased shares were held in treasury.

Ericsson reports that it announced a simplification of its operating structure and changes to its executive team, saying the changes are intended to improve customer focus, speed and accountability.

At September 30, 2026, Ericsson reported 114,080,663 treasury shares, compared with 38,002,276 at December 31, 2025; the company says repurchased shares are held in treasury and reduce the average share count used for EPS.

Key Figures

Net sales: SEK 59.5 billion; 6% year-over-year increase Organic sales growth: 7% Net income: SEK 5.8 billion; 49% year-over-year decrease +5 more

8 metrics

Net sales SEK 59.5 billion; 6% year-over-year increase Q3 2026

Organic sales growth 7% Q3 2026 year over year

Net income SEK 5.8 billion; 49% year-over-year decrease Q3 2026

Diluted EPS SEK 1.77; 47% year-over-year decrease Q3 2026

EBITA SEK 9.2 billion; 41% year-over-year decrease Q3 2026

Free cash flow before M&A SEK 4.9 billion; 26% year-over-year decrease Q3 2026

Net cash SEK 60.7 billion At September 30, 2026

Class B shares repurchased 49,225,701 shares for SEK 4.8 billion Q3 2026

Key Terms

organic sales growth, Adjusted EBITA, Free cash flow before M&A, IPR licensing revenues, +1 more

5 terms

organic sales growth financial

"Organic sales growth"

Organic sales growth measures how much a company’s revenue rises from its regular business activity — like selling more products, charging higher prices, or selling to more customers — without counting money from buying other businesses or one-time currency effects. Investors watch it because it shows whether demand and the company’s core operations are genuinely getting stronger, similar to judging a garden by how much the plants you planted yourself are growing rather than by adding bought potted plants.

Adjusted EBITA financial

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

Adjusted EBITA is a measure of a company’s operating profit before interest, taxes and amortization, further modified to remove one-time or unusual items so it reflects ongoing business earnings. It matters to investors because it aims to show the company’s core cash-making ability — like listening to an engine without road noise — making comparisons across periods or peers easier, though companies may differ in what they exclude.

Free cash flow before M&A financial

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

IPR licensing revenues financial

"IPR licensing revenues increased to SEK 3.9 (3.1) b."

Non-IFRS financial measures financial

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

Non-IFRS financial measures are company-reported numbers that modify or exclude items from standard accounting results so management can highlight what it sees as underlying business performance—common examples are adjusted EBITDA or adjusted earnings per share. They matter to investors because they can make trends clearer by removing unusual or noncash items, like cleaning lens smudges off a camera, but they require scrutiny since companies decide what to exclude and comparisons across firms may not be uniform.

FAQ

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

What were Ericsson’s Q3 2026 sales and net income?

Ericsson reported Q3 2026 net sales of SEK 59.5 billion, up 6% year over year, and net income of SEK 5.8 billion, down 49%; organic sales growth was 7%.

How many shares did Ericsson repurchase in Q3 2026?

Ericsson repurchased 49,225,701 Class B shares for a total consideration of SEK 4.8 billion during Q3 2026. Year-to-date repurchases were 78,761,682 Class B shares for SEK 8.1 billion.

What is Ericsson’s Q4 2026 Networks margin outlook?

Networks adjusted gross margin is expected to be in the range of 49% to 51%. Sales growth in Networks and Cloud Software and Services is expected to be broadly similar to three-year average seasonality.

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

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Available on EDGAR 10/15/2026 - 11:11 AM EDT Accepted by SEC EDGAR 10/15/2026 - 11:10 AM EDT Learn about SEC filing dates

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of October, 2026

Commission File Number

000-12033

LM ERICSSON TELEPHONE COMPANY

(Translation of registrant’s name into English)

Torshamnsgatan 21, Kista

SE-164 83, Stockholm, Sweden

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F [x] Form 40-F [ ]

Announcement of LM Ericsson Telephone Company, October 15, 2026 regarding “Ericsson reports third quarter results

2026”

Exhibits

Exhibit 99.1 Announcement of LM Ericsson Telephone Company, October 15, 2026 regarding “Ericsson reports third

quarter results 2026”

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed

on its behalf by the undersigned, thereunto duly authorized.

TELEFONAKTIEBOLAGET LM ERICSSON (publ)

By: /s/ LARS SANDSTRÖM

Lars Sandström

Senior Vice President, Chief Financial Officer

Date: October 15, 2026

Ericsson  |  Third quarter report 2026. October 15, 2026. 1

Third quarter report 2026

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.

–Adjusted1 gross income increased to SEK 28.4 (27.0) b., driven by Mobile Networks. Reported gross income was SEK 28.0 (26.8) b.

–Adjusted1 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%).

–Adjusted1 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	59.5	56.2	6%	52.7	13%	161.5	167.4	-4%
Organic sales growth*²⁾	-	-	7%	-	-	-	-	4%
Gross income	28.0	26.8	5%	24.1	16%	75.4	80.0	-6%
Gross margin²⁾	47.1%	47.6%	-	45.8%	-	46.7%	47.8%	-
EBIT	8.9	15.2	-41%	5.9	50%	16.2	27.5	-41%
EBIT margin²⁾	14.9%	26.9%	-	11.2%	-	10.0%	16.4%	-
EBITA²⁾	9.2	15.5	-41%	6.3	47%	17.3	28.9	-40%
EBITA margin²⁾	15.5%	27.6%	-	11.9%	-	10.7%	17.3%	-
Net income	5.8	11.3	-49%	4.1	42%	10.8	20.1	-47%
EPS diluted, SEK	1.77	3.33	-47%	1.22	45%	3.24	5.94	-45%
Free cash flow before M&A²⁾	4.9	6.6	-26%	0.4	-	11.2	11.9	-6%
Net cash, end of period²⁾	60.7	51.9	17%	59.8	1%	60.7	51.9	17%
Adjusted financial measures¹⁾²⁾
Adjusted gross income	28.4	27.0	5%	25.5	11%	77.6	80.7	-4%
Adjusted gross margin	47.7%	48.1%	-	48.4%	-	48.0%	48.2%	-
Adjusted EBIT	9.8	15.5	-37%	6.5	50%	21.5	28.7	-25%
Adjusted EBIT margin	16.4%	27.5%	-	12.4%	-	13.3%	17.2%	-
Adjusted EBITA	10.1	15.8	-36%	6.9	47%	22.6	30.2	-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.

Ericsson  |  Third quarter report 2026. October 15, 2026. Group results 2

Amounts marked with an ‘*’ in this document represent sales growth adjusted for the impact of acquisitions and divestments and effects of foreign currency

fluctuations, also named organic sales growth. These numbers present performance on a comparable basis to improve the comparability of results between

periods. Organic sales growth figures are non-IFRS measures.

‘Adjusted’ metrics are adjusted to exclude restructuring charges and are non-IFRS measures. This is a change in nomenclature only.

See ‘Financial statements and other information’ for Alternative performance measures.

Group results

SEK b.	Q3 2026	Q3 2025	YoY change	Q2 2026	QoQ change	Jan-Sep 2026	Jan-Sep 2025	YoY change
Net sales	59.5	56.2	6%	52.7	13%	161.5	167.4	-4%
Organic sales growth*¹⁾	-	-	7%	-	-	-	-	4%
Gross income	28.0	26.8	5%	24.1	16%	75.4	80.0	-6%
Gross margin	47.1%	47.6%	-	45.8%	-	46.7%	47.8%	-
Research and development (R&D) expenses	-11.8	-11.5	3%	-10.5	13%	-35.8	-35.8	0%
Selling and administrative expenses	-7.4	-7.9	-6%	-7.7	-4%	-23.3	-24.7	-6%
Impairment losses on trade receivables	0.1	0.0	52%	0.0	-	-0.1	0.1	-
Other operating income and expenses	0.1	7.7	-99%	0.1	4%	0.2	7.8	-97%
Share of earnings/losses of associated companies	0.0	0.0	-	-0.1	-	-0.2	0.1	-
EBIT	8.9	15.2	-41%	5.9	50%	16.2	27.5	-41%
EBIT margin¹⁾	14.9%	26.9%	-	11.2%	-	10.0%	16.4%	-
EBITA¹⁾	9.2	15.5	-41%	6.3	47%	17.3	28.9	-40%
EBITA margin¹⁾	15.5%	27.6%	-	11.9%	-	10.7%	17.3%	-
Financial income and expenses, net	-0.9	-0.2	-	-0.2	-	-1.3	-0.3	-
Income tax	-2.2	-3.6	-41%	-1.7	30%	-4.2	-7.1	-41%
Net income	5.8	11.3	-49%	4.1	42%	10.8	20.1	-47%
Restructuring charges	-0.9	-0.3	195%	-0.6	49%	-5.3	-1.2	-
Adjusted financial measures¹⁾
Adjusted gross income	28.4	27.0	5%	25.5	11%	77.6	80.7	-4%
Adjusted gross margin	47.7%	48.1%	-	48.4%	-	48.0%	48.2%	-
Adjusted EBIT	9.8	15.5	-37%	6.5	50%	21.5	28.7	-25%
Adjusted EBIT margin	16.4%	27.5%	-	12.4%	-	13.3%	17.2%	-
Adjusted EBITA	10.1	15.8	-36%	6.9	47%	22.6	30.2	-25%
Adjusted EBITA margin	17.0%	28.1%	-	13.1%	-	14.0%	18.0%	-

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

Net sales

Reported sales increased by 6% YoY to SEK 59.5 (56.2) b.

Networks sales increased by 9% to SEK 38.7 b. Cloud Software

and Services sales increased by 3% to SEK 15.8 b. Enterprise

sales declined by -10% to SEK 4.6 b., reflecting the divestment of

iconectiv in Q3 2025. Sales in segment Other were stable at SEK

0.4 b.

Organic sales increased by 7%* YoY primarily driven by

increased Networks sales. Sales grew in market areas North

East Asia, South East Asia, Oceania and India and in market

area Europe, Middle East and Africa. Growth was partly offset by

a -1%* decline in market area Americas, reflecting lower sales in

Latin America. Networks sales increased by 9%* with growth in

three of the four market areas. Cloud Software and Services

sales grew by 3%*, with growth in three of the four market areas.

Sales in segment Enterprise increased by 1%*.

IPR licensing revenues increased to SEK 3.9 (3.1) b. The

increase was partly driven by retroactive revenue related to

previously unlicensed periods. 82% of IPR licensing revenues are

reported in segment Networks, with the remainder in Cloud

Software and Services.

Gross income and margin

Gross margin declined slightly to 47.1% (47.6%), reflecting higher

restructuring charges and the impact of the divestment of

iconectiv.

Gross income increased to SEK 28.0 (26.8) b. Higher gross

income in Networks and in Cloud Software and Services was

partly offset by lower gross income in Enterprise following the

divestment of iconectiv. Gross margin and gross income

benefited from higher IPR licensing revenues, in part reflecting

retroactive revenue related to previously unlicensed periods.

Adjusted gross income increased to SEK 28.4 (27.0) b., with a

margin of 47.7% (48.1%).

Research and development (R&D) expenses

R&D expenses increased to SEK -11.8 (-11.5) b., reflecting

higher restructuring charges of SEK -0.3 (0.0) b. Cost-reduction

actions offset salary increases.

Selling and administrative (SG&A) expenses

SG&A expenses were SEK -7.4 (-7.9) b., including restructuring

charges of SEK -0.3 (-0.1) b. SG&A expenses declined as a

result of cost-reduction actions, with the largest reduction in

Enterprise.

Other operating income and expenses

Other operating income and expenses were SEK 0.1 (7.7) b. The

prior-year period included a SEK 7.6 b. capital gain from the

divestment of iconectiv.

Restructuring charges

Restructuring charges were SEK -0.9 (-0.3) b. Gross income

included SEK -0.4 (-0.3) b. of restructuring charges, while

Ericsson  |  Third quarter report 2026. October 15, 2026. Group results 3

operating expenses included SEK -0.5 (0.0) b. of restructuring

charges.

EBITA

EBITA decreased to SEK 9.2 (15.5) b. reflecting a SEK 7.6 b.

capital gain in the prior-year period as well as higher restructuring

charges. Profitability improved excluding the capital gain. Gross

income improved by SEK 1.2 b. while operating expenses

decreased by SEK 0.2 b. YoY. The EBITA margin was 15.5%

(27.6%).

Adjusted EBITA decreased to SEK 10.1 (15.8) b. reflecting the

capital gain in the prior-year period. The adjusted EBITA margin

was 17.0% (28.1%).

EBIT

EBIT decreased to SEK 8.9 (15.2) b., reflecting the capital gain in

the prior-year period. The EBIT margin was 14.9% (26.9%).

Amortization was stable at SEK -0.4 (-0.4) b.

Adjusted EBIT decreased to SEK 9.8 (15.5) b. reflecting the

capital gain in the prior-year period. The adjusted EBIT margin

was 16.4% (27.5%).

Financial income and expenses, net

Financial income and expenses were SEK -0.9 (-0.2) b. Financial

net was negatively affected by provisions related to interest

expenses associated with the resolution of tax matters and a

currency hedge effect of SEK -0.2 (-0.1) b.

Income tax

Taxes were SEK -2.2 (-3.6) b. A tax rate of 28% is expected for

the full year, mainly reflecting the impact of elevated restructuring

costs and provisions for resolutions of tax matters. The effective

tax rate in 2025 was 25%.

Net income

Net income decreased to SEK 5.8 (11.3) b. Diluted EPS was

SEK 1.77 (3.33).

Employees

The number of employees on September 30, 2026, was 85,417

compared with 86,536 on June 30, 2026. On September 30,

2025, the number of employees was 89,898.

Financial highlights, year-to-date (Jan-Sep) development

Reported sales decreased by -4% to SEK 161.5 (167.4) b.

including a negative currency impact of SEK -9.6 b. Sales in

Networks declined by -2% to SEK 104.7 (106.8) b. Sales in Cloud

Software and Services declined by -1% to SEK 42.4 (42.7) b.

Sales in Enterprise declined by -20% to SEK 13.2 (16.5) b.,

including a SEK -2.7 b. impact from the divestment of iconectiv in

2025.

Organic sales increased by 4%*. Sales increased organically

in Networks by 4%*, in Cloud Software and Services by 4%* and

in Enterprise by 3%*.

Organic sales increased in three of the four market areas.

Sales in market area Americas declined slightly, reflecting high

deliveries in North America in the prior-year period. IPR licensing

revenues declined to SEK 10.4 (11.2) b., as the prior-year period

benefited from higher revenues related to previously unlicensed

periods.

Gross income decreased to SEK 75.4 (80.0) b. impacted by

lower net sales, a negative currency impact of SEK -4.7 b. and

restructuring charges of SEK -2.2 (-0.7) b. Gross margin was

46.7% (47.8%). Adjusted gross income decreased to SEK 77.6

(80.7) b., with a margin of 48.0% (48.2%). Adjusted gross margin

was stable in Networks and increased in Cloud Software and

Services. Gross margin in Enterprise declined YoY primarily as a

result of the divestment of iconectiv.

EBITA decreased to SEK 17.3 (28.9) b. with a margin of

10.7% (17.3%), impacted by lower net sales, increased

restructuring charges, the divestment of iconectiv, and a negative

currency impact of SEK -2.9 b. The prior-year period included a

SEK 7.6 b. capital gain from the divestment of iconectiv. Adjusted

EBITA decreased to

SEK 22.6 (30.2) b., with a margin of 14.0% (18.0%). 

EBIT decreased to SEK 16.2 (27.5) b., with a margin of

10.0% (16.4%). Adjusted EBIT was SEK 21.5 (28.7) b., with a

margin of 13.3% (17.2%). Amortization of intangible assets was

SEK -1.1 (-1.5) b.

Net income decreased to SEK 10.8 (20.1) b. including

restructuring charges of SEK -5.3 (-1.2) b. Diluted EPS

decreased to SEK 3.24 (5.94).

Ericsson  |  Third quarter report 2026. October 15, 2026. Market area sales 4

Market area sales

SEK b.	Q3 2026	Q3 2025	YoY change	YoY organic growth	Q2 2026	QoQ change	Jan-Sep 2026	Jan-Sep 2025	YoY change	YoY organic growth
Americas	19.8	19.8	0%	-1%	18.8	5%	55.7	60.5	-8%	-1%
Europe, Middle East and Africa	17.5	16.7	4%	4%	16.3	7%	48.0	47.4	1%	5%
South East Asia, Oceania and India	8.8	7.1	24%	25%	5.4	63%	21.1	19.8	7%	14%
North East Asia	4.5	3.8	19%	22%	3.7	22%	11.4	10.8	5%	15%
Other	8.9	8.8	1%	7%	8.5	5%	25.2	28.9	-13%	1%
Of which IPR	3.9	3.1	24%	-	3.4	14%	10.4	11.2	-7%	-
Total	59.5	56.2	6%	7%	52.7	13%	161.5	167.4	-4%	4%

Market Area Americas

Sales decreased by -1%* YoY. Networks sales declined slightly,

with a slight increase in North America, supported by project

phasing, offset by lower sales in Latin America, mainly reflecting

timing of rollout services. Cloud Software and Services sales

increased due to acceleration of project deliverables. Reported

sales were stable YoY.

Market Area Europe, Middle East and Africa

Sales increased by 4%* YoY. Networks sales grew with

increased sales in the Middle East, supported by ongoing

network modernization and expansion projects. Sales in Europe

declined slightly following the gradual completion of

modernization projects. Cloud Software and Services sales

increased across Europe, Middle East and Africa, supported by

accelerated project deliverables. Reported sales increased by

4% YoY.

In the quarter, Ericsson announced a multi-year 5G expansion

agreement with stc in Saudi Arabia and began the rollout of a

next-generation 5G Core network with VodafoneThree in the UK

as part of its long-term partnership.

Market Area South East Asia, Oceania and India

Sales increased by 25%* YoY. Networks sales increased as a

result of the timing of project deliveries in South East Asia and

India. Cloud Software and Services sales declined due to project

phasing. Reported sales increased by 24% YoY. 

In the quarter, Ericsson technology was selected for the first

stage of Queensland's next-generation rail communications

network, providing mission-critical private 5G capabilities for rail

operations.

Market Area North East Asia

Sales increased by 22%* YoY primarily driven by Japan,

supported by higher project deliveries in Networks and the timing

of project milestones in Cloud Software and Services. Reported

sales increased by 19% YoY.

In the quarter, NTT DOCOMO selected and began deploying

Ericsson's next-generation RAN Compute platform to support 5G

Advanced and future AI-driven network capabilities.

Market Area Other

Market area Other includes IPR licensing revenues and almost

all sales in segment Enterprise. Sales increased by 7%* YoY,

with sales growth in IPR licensing revenues, in part reflecting

retroactive revenue related to previously unlicensed periods, and

a positive hedge effect. Reported sales increased by 1% YoY,

impacted by the divestment of iconectiv in Q3 2025.

Ericsson  |  Third quarter report 2026. October 15, 2026. Segment results 5

Segment Results

Mobile Networks –

Segment Networks

SEK b.	Q3 2026	Q3 2025	YoY change	Q2 2026
Net sales	38.7	35.4	9%	33.0
Of which IPR licensing revenues	3.2	2.6	24%	2.8
Organic sales growth	-	-	9%	-
Gross income	19.3	17.7	9%	16.0
Gross margin	49.8%	50.0%	-	48.3%
EBIT	8.4	7.1	19%	6.0
EBIT margin	21.8%	20.0%	-	18.2%
EBITA	8.4	7.1	19%	6.0
EBITA margin	21.8%	20.0%	-	18.3%
Restructuring charges	-0.5	-0.1	-	0.2
Adjusted financial measures
Adjusted gross income	19.4	17.8	10%	16.6
Adjusted gross margin	50.3%	50.1%	-	50.4%
Adjusted EBIT	8.9	7.2	25%	5.8
Adjusted EBIT margin	23.1%	20.2%	-	17.6%
Adjusted EBITA	9.0	7.2	25%	5.8
Adjusted EBITA margin	23.1%	20.3%	-	17.7%

Breakdown of sales into products, services and IPR licensing is available in

note 2.

Net sales

Sales increased by 9%* YoY. Organic sales growth was driven by

higher sales in market areas North East Asia, South East Asia,

Oceania and India and Europe, Middle East and Africa. Sales

declined slightly in market area Americas. Sales were also

supported by higher IPR licensing revenues, including retroactive

revenue related to previously unlicensed periods. Reported sales

increased by 9% to SEK 38.7 (35.4) b.

In North East Asia and South East Asia, Oceania and India,

growth was primarily driven by the timing of project deliveries in

Japan and India. Sales grew in Europe, Middle East and Africa,

supported by ongoing network modernization and expansion in

the Middle East, partly offset by a slight decline in Europe

following the gradual completion of modernization projects. Sales

in market area Americas declined slightly, with slight growth in

North America offset by lower sales in Latin America.

Gross income and margin

Adjusted gross income increased to SEK 19.4 (17.8) b.

Adjusted gross margin was 50.3% (50.1%), including a

positive impact from product mix and retroactive IPR licensing

revenues, partly offset by increased component costs.

EBITA

Adjusted EBITA increased to SEK 9.0 (7.2) b., driven by higher

sales. R&D expenses increased slightly to support the strategy to

build high-performance programmable networks, offset by lower

SG&A expenses. The adjusted EBITA margin was 23.1%

(20.3%).

For the rolling four quarters, net sales were SEK 148.9 b. and the

adjusted EBITA margin was 21.0%.

Mobile Networks –

Segment Cloud Software and Services

SEK b.	Q3 2026	Q3 2025	YoY change	Q2 2026
Net sales	15.8	15.3	3%	14.7
Of which IPR licensing revenues	0.7	0.6	24%	0.6
Organic sales growth	-	-	3%	-
Gross income	6.7	6.5	4%	5.9
Gross margin	42.4%	42.1%	-	39.8%
EBIT	1.7	1.7	0%	1.1
EBIT margin	10.9%	11.2%	-	7.8%
EBITA	1.7	1.7	0%	1.1
EBITA margin	10.9%	11.2%	-	7.8%
Restructuring charges	-0.3	-0.2	-	-0.7
Adjusted financial measures
Adjusted gross income	6.9	6.7	3%	6.5
Adjusted gross margin	43.5%	43.6%	-	44.1%
Adjusted EBIT	2.0	1.9	6%	1.8
Adjusted EBIT margin	12.8%	12.5%	-	12.4%
Adjusted EBITA	2.0	1.9	6%	1.8
Adjusted EBITA margin	12.8%	12.5%	-	12.4%

Breakdown of sales into products, services and IPR licensing is available in

note 2.

Net sales

Sales increased by 3%* YoY. Organic sales increased in market

areas Americas, in Europe, Middle East and Africa and in North

East Asia, while sales declined in South East Asia, Oceania and

India. Sales were supported by higher IPR licensing revenues,

including retroactive revenue related to previously unlicensed

periods. Reported sales increased by 3% to SEK 15.8 (15.3) b.

Services sales accounted for 62% (65%) of sales.

Sales increased in market areas Americas and Europe, Middle

East and Africa, driven by accelerated project deliverables. Sales

increased in market area North East Asia, reflecting the delivery

of project milestones in Japan. Sales in South East Asia, Oceania

and India declined due to project phasing.

Gross income and margin

Adjusted gross income increased to SEK 6.9 (6.7) b.

Adjusted gross margin was stable at 43.5% (43.6%), with

improvements in delivery performance.

EBITA

Adjusted EBITA was SEK 2.0 (1.9) b. EBITA was supported by

higher sales. Increased R&D investments were largely offset by

lower SG&A expenses. The adjusted EBITA margin was 12.8%

(12.5%).

For the rolling four quarters, net sales were SEK 62.4 b. and the

adjusted EBITA margin was 13.1%.

Ericsson  |  Third quarter report 2026. October 15, 2026. Segment results 6

Enterprise –

Segment Enterprise

SEK b.	Q3 2026	Q3 2025	YoY change	Q2 2026
Net sales	4.6	5.1	-10%	4.5
Organic sales growth	-	-	1%	-
Gross income	2.3	2.6	-13%	2.3
Gross margin	50.0%	51.6%	-	50.7%
EBIT	-1.0	6.6	-	-1.2
EBIT margin	-21.2%	131.5%	-	-27.1%
EBITA	-0.6	7.0	-	-0.9
EBITA margin	-13.9%	138.1%	-	-19.8%
Restructuring charges	-0.1	0.0	-	-0.1
Adjusted financial measures
Adjusted gross income	2.3	2.6	-13%	2.3
Adjusted gross margin	50.0%	51.6%	-	50.9%
Adjusted EBIT	-0.9	6.7	-	-1.2
Adjusted EBIT margin	-19.3%	132.0%	-	-25.9%
Adjusted EBITA	-0.5	7.0	-	-0.8
Adjusted EBITA margin	-12.1%	138.7%	-	-18.7%

Net sales

Sales increased by 1%* YoY, driven by growth in Technologies

and New Businesses. Reported sales decreased by -10% YoY to

SEK 4.6 (5.1) b., reflecting the divestment of iconectiv in Q3

2025.

Sales in Global Communications Platform were broadly stable as

sales growth in CPaaS and Network Powered Solutions largely

offset declines in legacy Applications. Sales in Enterprise

Wireless Solutions declined slightly, as continued subscriptions

growth was offset by customer hardware order phasing.

Gross income and margin

Adjusted gross income was SEK 2.3 (2.6) b., reflecting the

divestment of iconectiv in Q3 2025. The adjusted gross margin

was 50.0% (51.6%). 

EBITA (loss)

Adjusted EBITA (loss) was SEK -0.5 (7.0) b., supported by

ongoing efficiency measures. The prior-year period included a

SEK 7.6 b. capital gain from the divestment of iconectiv. Adjusted

EBITA margin was -12.1% (138.7%).

For the rolling four quarters, net sales were SEK 17.8 b. and the

adjusted EBITA margin was -22.2%.

Segment Other

SEK b.	Q3 2026	Q3 2025	YoY change	Q2 2026
Net sales	0.4	0.4	-4%	0.4
Organic sales growth	-	-	-5%	-
Gross income	-0.3	0.0	-	0.0
Gross margin	-68.4%	0.0%	-	0.5%
EBIT	-0.3	-0.3	-	0.0
EBIT margin	-81.6%	-71.5%	-	-3.4%
EBITA	-0.3	-0.3	-	0.0
EBITA margin	-81.5%	-71.3%	-	-3.4%
Restructuring charges	0.0	0.0	-	-0.1
Adjusted financial measures
Adjusted gross income	-0.3	0.0	-	0.1
Adjusted gross margin	-65.6%	1.0%		13.3%
Adjusted EBIT	-0.3	-0.3	-	0.0
Adjusted EBIT margin	-78.8%	-70.6%	-	10.9%
Adjusted EBITA	-0.3	-0.3	-	0.0
Adjusted EBITA margin	-78.8%	-70.3%	-	10.9%

Net sales

Reported sales were stable at SEK 0.4 (0.4) b.

Gross income and margin

Adjusted gross income was SEK -0.3 (0.0) b., reflecting a non-

cash impairment charge of SEK -0.3 b. related to Red Bee

Media.

EBITA (loss)

Adjusted EBITA (loss) was SEK -0.3 (-0.3) b. reflecting the

impairment charge. In the prior-year period EBITA was impacted

by a revaluation of the Ericsson Ventures portfolio.

For the rolling four quarters, net sales were SEK 1.7 b.

Ericsson  |  Third quarter report 2026. October 15, 2026. Cash flow and financial position 7

Cash flow and financial position

Free cash flow bridge, SEK b.	Q3 2026	Q3 2025	Q2 2026	Jan-Sep 2026	Jan-Sep 2025
Adjusted EBITA	10.1	15.8	6.9	22.6	30.2
Depreciation and amortization of non-acquired assets	1.8	1.8	1.6	5.1	5.6
Restructuring charges	-0.9	-0.3	-0.6	-5.3	-1.2
Changes in operating net assets	-3.7	-0.5	-4.4	-2.5	-6.0
Interest paid/received, taxes paid, and other	-0.8	-8.9	-1.6	-4.0	-12.1
Cash flow from operating activities	6.5	7.9	1.9	15.8	16.4
Net capex and other investing activities	-1.1	-0.8	-1.0	-3.2	-2.9
Repayment of lease liabilities	-0.5	-0.5	-0.5	-1.4	-1.7
Free cash flow before M&A	4.9	6.6	0.4	11.2	11.9
Cash flow from operating activities	6.5	7.9	1.9	15.8	16.4
Cash flow from investing activities	1.2	3.2	-3.7	-0.7	-6.4
Cash flow from financing activities	0.4	-1.2	-9.2	-11.1	-5.4

SEK b.	Sep 30 2026	Sep 30 2025	Jun 30 2026
Gross cash	98.0	88.4	91.3
- Borrowings, current	9.5	6.7	9.5
- Borrowings, non-current	27.8	29.9	22.0
Net cash	60.7	51.9	59.8
Equity	111.3	102.5	104.8
Equity ratio (%)	36.9%	36.3%	36.4%
Capital turnover (times)	1.4	1.5	1.4
Return on capital employed (%)	16.5%	22.5%	20.7%

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

Cash flow

Cash flow from operating activities was SEK 6.5 (7.9) b. driven

by earnings and impacted by increased operating net assets.

Quarterly cash flow from operating activities decreased

compared to the prior-year period. Earnings decreased,

reflecting the contribution from the divestment of iconectiv in the

prior-year period. Working capital also increased, with higher

inventories, reflecting timing of project deliveries and higher

component prices.

Cash flow from investing activities was SEK 1.2 (3.2) b. driven

by purchases of interest-bearing securities. The prior-year period

had a one-time impact of the iconectiv divestment.

Cash flow from financing activities was SEK 0.4 (-1.2) b.

including SEK 4.5 b. of share repurchases and SEK 5.5 b. of

proceeds from new borrowings, reflecting a EUR 500 m. bond

issuance in September.

Financial position

Gross cash increased sequentially by SEK 6.7 b. to SEK 98.0 b.,

supported by free cash flow before M&A of SEK 4.9 b. and

proceeds from new borrowings, partly offset by share

repurchases.

Net cash increased sequentially by SEK 0.8 b. to SEK 60.7 b.

The average maturity of parent company borrowings was 2.9

years as of September 30, 2026, compared with 2.5 years as of

June 30, 2026.

Liabilities for post-employment benefits decreased

sequentially to SEK 14.3 b. from SEK 18.0 b. The Swedish

defined benefit obligation (DBO) was calculated using a discount

rate based on the yields of Swedish government bonds. If the

discount rate had been based on Swedish covered mortgage

bonds, the liability for post-employment benefits would have

been approximately SEK 6.6 b., which is SEK 7.7 b. lower than

current DBO.

Ericsson  |  Third quarter report 2026. October 15, 2026. Key data points 8

Key data points

Market

Dell’Oro estimates that the global RAN equipment market will

remain stable in 2026. 

Source: Dell’Oro Mobile RAN Quarterly Report Q126, May 2026.

Ericsson

Net sales

Reported average seasonality last 3 years (2023–2025), %.

	Q4 → Q1	Q1 → Q2	Q2 → Q3	Q3 → Q4
Networks	-25%	+4%	+1%	+17%
Cloud Software and Services	-33%	+13%	+3%	+29%

Net sales may show large variations between quarters, including

currency changes.

IPR licensing revenues

Annualized recurring IPR licensing revenues were

approximately SEK 13.5 b.

IPR licensing revenue growth opportunities remain in new

market segments. Optimizing the terms and value of new

agreements and renewals will remain a priority.

Currency exposure

Currency exposure may vary significantly from quarter to quarter.

In 2025, approximately half of net sales were USD-denominated,

over 15% of net sales were EUR-denominated, and five other

currencies (INR, JPY, GBP, CNY, AUD) contributed approximately

15% of net sales.

Further currency information is available at:

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

presentations/foreign-exchange-rates

Amortization of intangible assets

Amortization of intangible assets is expected to be around

SEK -0.4 b. per quarter in segment Enterprise.

Restructuring charges

Restructuring charges for 2026 are expected to be at elevated

levels.

Segments

Increased uncertainty remains in the outlook and in the broader

macroeconomic and geopolitical environment.

The Q4 2026 outlook assumes currency rates of USD:SEK 10.0,

EUR:SEK 11.3.

Networks

Sales growth in Q4 2026 is expected to be broadly similar to 3-

year average seasonality.

Adjusted gross margin in Q4 2026 is expected to be in the range

of 49% to 51%.

Cloud Software and Services

Sales growth in Q4 2026 is expected to be broadly similar to 3-

year average seasonality.

Ericsson  |  Third quarter report 2026. October 15, 2026. Parent Company 9

Parent Company

Income after financial items January – September 2026, was

SEK 30.1 (28.9) b.

At the end of the quarter, gross cash (cash, cash equivalents plus

interest-bearing securities, current and non-current) amounted to

SEK 82.7 (76.3) b.

There was an increase in intercompany lending of SEK 1.0 b.

and an increase in intercompany borrowing of SEK 5.7 b. in the

quarter.

At the end of the quarter, non-restricted equity amounted to SEK

54.7 (41.1) b., and total equity amounted to SEK 103.0 (89.4) b.

During the quarter, Ericsson repurchased 49,225,701 Class B

shares for a total consideration of SEK 4.8 b. in accordance with

the AGM authorization. Repurchases year-to-date amounted to

78,761,682 Class B shares for SEK 8.1 b. Repurchased shares

are held as treasury shares and presented as a deduction from

equity.

As of September 30, 2026, Ericsson held 114,080,663 treasury

shares (38,002,276 as of Dec 31, 2025). Repurchased shares

are reflected as a reduction in the average number of shares

outstanding and in the calculation of earnings per share.

Ericsson  |  Third quarter report 2026. October 15, 2026. Other Information 10

Other information

Legal proceedings involving governmental authorities

In February 2022, Ericsson publicly disclosed that an internal

investigation in 2019 included a review of the conduct of

Ericsson employees, vendors and suppliers in Iraq during the

period between 2011 to 2019. The investigators could not

determine the ultimate recipients of any payments, nor identify

that any Ericsson employee was directly involved in financing

terrorist organizations. The Company’s 2019 internal Iraq

investigation did not conclude that Ericsson made or was

responsible for any payments to any terrorist organization.

The Company continues to fully cooperate with the US

Department of Justice (DOJ) in its investigation into matters

discussed in the 2019 internal Iraq investigation report and

related topics concerning historical conduct in jurisdictions

including Iraq and Syria and continues to be in discussion with

the government on these matters. As additional information

continues to be identified and evaluated in continued cooperation

with the DOJ during its ongoing investigation, it is expected that

there will not be any conclusive determinations on the outcome

until the investigation is completed. The scope and duration of

the investigation remain uncertain.

In April 2019, Ericsson was informed by China’s State

Administration for Market Regulation Anti-monopoly Bureau

(SAMR) that SAMR has initiated an investigation into Ericsson’s

patent licensing practices in China. Ericsson is cooperating with

the investigation, which is still in a fact-finding phase. The next

steps include continued fact-finding and meetings with SAMR in

order to facilitate the authority’s assessment and conclusions. In

case of adverse findings, SAMR has the power to impose

behavioral and financial remedies.

Legal proceedings not involving governmental authorities

In August 2022, a civil lawsuit was filed in the United States

District Court for the District of Columbia against

Telefonaktiebolaget LM Ericsson and Ericsson Inc. (collectively,

the “Ericsson defendants”). The lawsuit was brought by US

military service members, employees of US government

contractors and other civilians who were killed or injured in

terrorist attacks in Iraq, Afghanistan and Syria from 2005 to 2021,

as well as by their family members. The lawsuit asserts claims

against the Ericsson defendants under the U.S. Anti-Terrorism

Act alleging that the Ericsson defendants made payments that

ultimately aided the terrorist organizations that committed,

planned or authorized the attacks. In November 2022, the

Ericsson defendants filed a motion to dismiss the complaint. On

December 20, 2022, plaintiffs filed an amended complaint, which

added additional plaintiffs, including a plaintiff injured in Turkey,

and also named Ericsson AB (collectively with the Ericsson

defendants, the “Ericsson corporate defendants”), former CEO

Börje Ekholm and a former employee (who has not been served

with process) as additional defendants and also asserted

additional allegations and claims. In March 2023, the Ericsson

corporate defendants and Mr. Ekholm filed motions to dismiss

the amended complaint. Plaintiffs filed their oppositions to

defendants’ motions to dismiss the amended complaint in June

2023, and defendants filed reply briefs in support of their motions

to dismiss in July 2023. All briefing has been submitted, and

resolution of the matter is pending with the District Court. All

defendants will continue to vigorously defend this matter.

In February 2024, a second civil lawsuit also alleging

violations of the U.S. Anti-Terrorism Act was filed in the United

States District Court for the District of Columbia. The lawsuit was

filed by the same law firm and involves substantially similar

factual allegations and claims as those made in the Anti-

Terrorism Act lawsuit originally filed in August 2022, and similarly

names the same Ericsson corporate defendants, former

President and CEO Börje Ekholm and a former employee as

defendants. The new lawsuit was brought by additional US

military service members, employees of US government

contractors and other civilians who were killed or injured in

terrorist attacks in Iraq, Afghanistan, Syria, Turkey, Niger, and

France from 2005 to 2021, as well as by their family members.

The District Court for the District of Columbia has stayed the

proceedings in this matter pending its decision on the motions to

dismiss in the earlier-filed suit. The defendants will vigorously

defend this matter.

In November 2025, a third civil lawsuit also alleging violations

of the US Anti-Terrorism Act was filed in the US District Court for

the District of Columbia. The lawsuit was filed by a law firm not

involved in the August 2022 and February 2024 lawsuits and

involves substantially similar factual allegations and claims to

those made in the Anti-Terrorism Act lawsuits filed in August

2022 and February 2024, and similarly names the same Ericsson

corporate defendants, former CEO Börje Ekholm and a former

employee as defendants. The new lawsuit was brought by

additional US military service members, employees of US

government contractors and other civilians who were killed or

injured in terrorist attacks in France, Afghanistan, and Belgium

from 2012 to 2018, as well as by their family members. The

District Court for the District of Columbia has stayed the

proceedings in this matter pending its decision on the motions to

dismiss in the earlier-filed suit. The defendants will vigorously

defend this matter.

In March 2026, a fourth civil lawsuit also alleging violations of

the US Anti-Terrorism Act was filed in the US District Court for

the District of Columbia. The lawsuit involves substantially similar

factual allegations and claims to those made in the Anti-Terrorism

Act lawsuits filed in August 2022, February 2024, and November

2025, and similarly names the same Ericsson corporate

defendants, former CEO Börje Ekholm and a former employee

as defendants. The new lawsuit was brought by additional US

military service members and civilians who were killed or injured

in terrorist attacks in Afghanistan, Iraq, Niger, Tajikistan and

Turkey from 2005 to 2018, as well as by their family members.

The District Court for the District of Columbia has stayed the

proceedings in this matter pending its decision on the motions to

dismiss in the earlier-filed suit. The defendants will vigorously

defend this matter.

In September 2026, a fifth civil lawsuit also alleging violations

of the US Anti-Terrorism Act was filed in the US District Court for

the District of Columbia. The lawsuit involves substantially similar

factual allegations and claims to those made in the Anti-Terrorism

Act lawsuits filed in August 2022, February 2024, November

2025, and March 2026, and similarly names the same Ericsson

corporate defendants, former CEO Börje Ekholm and a former

employee as defendants. The new lawsuit was brought by a new

set of plaintiffs. The defendants will vigorously defend this matter.

Beginning on August 4, 2023, a number of civil lawsuits have

been filed against Telefonaktiebolaget LM Ericsson in Solna

Ericsson  |  Third quarter report 2026. October 15, 2026. Other Information 11

District Court, Sweden. 93 claimants have filed suit, which are

coordinated and financed by a UK-based litigation funder. The

claimants consist of a group of non-Swedish funds and financial

institutions that allegedly are or have been shareholders of the

Company. Their damages claims are primarily based on alleged

inadequate disclosure of the contents of the Company’s 2019

internal Iraq investigation report. Ericsson filed its statement of

defense on March 15, 2024. On February 14, 2025, the District

Court ordered Ericsson to produce the 2019 internal Iraq

investigation report to the claimants’ external counsel. Ericsson

appealed the decision and on August 15, 2025, the Court of

Appeal overturned the District Court’s decision. The claimants

appealed, but on March 12, 2026, the Supreme Court refused

leave to appeal. Proceedings on the merits of the case have now

resumed in the District Court. Ericsson will continue to vigorously

defend this matter.

The Company actively manages its IPR portfolio and its need

for third-party licenses and is involved from time to time, in the

ordinary course of business, in litigation related thereto, as

plaintiff, defendant and other capacities.

In addition to the proceedings discussed above, the Company

is, and in the future may be, involved in various other regulatory

investigations, enforcement actions, lawsuits, claims (including

claims by third-parties the Company has indemnified against

infringement liability or provided guarantees to) and proceedings

incidental to the ordinary course of business and transactions.

PRESS RELEASES

July 21  2026	Ericsson announces change to the Executive Team
October 15 2026	Ericsson announces simplification of Group structure and changes to the Executive Team

Information on the share buyback program and related press

releases is available on the Ericsson investor website at:

Share buyback program

Ericsson  |  Third quarter report 2026. October 15, 2026. Risk factors 12

Risk factors

Ericsson is exposed to a number of risks in its activities. To

stimulate identification and support cross-functional treatment

within the Ericsson Group, risks are grouped in a number of

categories, including, for example, risks relating to technology,

IPR, compliance, project execution, operations, supply chain and

sourcing concentration, products and services, customer

concentration, treasury and accounting, the geopolitical

environment, M&A, cybersecurity and occupational health and

safety. Ericsson’s risk management is embedded into strategy

development and operational processes, and material Group

risks are regularly assessed and reviewed by executives as

required by Ericsson’s Material Group Risk Protocol to ensure

accountability, effectiveness, efficiency, business continuity and

compliance. Risks are defined in both a short-term and long-term

perspective and are related to long-term objectives and strategic

direction as well as to short-term objectives. Risk factors and

uncertainties of relevance to Ericsson are described in the

Ericsson Annual Report 2025 and in the Annual Report on Form

20-F for the year ended December 31, 2025 (in the following, the

“Annual Report 2025”). See also the risks set out in the section

titled “Forward-looking statements.”

Date for next report: January 22, 2027.

Ericsson  |  Third quarter report 2026. October 15, 2026. Editor's note 13

Editor’s note

Media and analyst briefing

Ericsson invites media, investors and analysts to a conference

call and live video webcast at 09:00 AM CEST on October 15,

2026.

Link to the webcast, dial-in to audio conference, supporting

material and replay will be available at:

www.ericsson.com/investors and

www.ericsson.com/newsroom

For further information, please contact:

Lars Sandström, Senior Vice President, Chief Financial Officer

Phone: +46 72 161 20 04

E-mail: investor.relations@ericsson.com 

Peter Borsos, Vice President,

Head of Group Communications

Phone: +46 70 317 68 00

E-mail: media.relations@ericsson.com

Telefonaktiebolaget LM Ericsson

Org. number: 556016-0680

Torshamnsgatan 21

SE-164 83 Stockholm

Phone: +46 10 719 00 00

www.ericsson.com

Investors

Daniel Morris, Vice President,

Head of Investor Relations

Phone: +44 7386 657217

Lena Häggblom, Director,

Investor Relations

Phone: +46 72 593 27 78

Guido Carlo Ferrante

Investor Relations

Phone: +46 72 467 52 59

E-mail: investor.relations@ericsson.com

Media

Ralf Bagner, Head of Media Relations

Phone: +46 76 128 47 89

Corporate Communications

Phone: +46 10 719 69 92

E-mail: media.relations@ericsson.com

Ericsson  |  Third quarter report 2026. October 15, 2026. Forward-looking statements 14

Forward-looking statements

This report includes forward-looking statements. All statements

other than statements of historical fact are forward-looking

statements. The words “believe,” “expect,” “foresee,” “anticipate,”

“assume,” “intend,” “likely,” “projects,” “may,” “could,” “plan,”

“estimate,” “forecast,” “will,” “should,” “would,” “predict,” “aim,”

“ambition,” “seek,” “potential,” “target,” “might,” “continue,” or, in

each case, their negative or variations, and similar words or

expressions are used to identify forward-looking statements.

These statements are subject to risks and uncertainties that

could cause actual results to differ materially and adversely from

those expressed in, or implied or projected by, the forward-

looking statements, including, in particular the following:

–Potential material additional liability resulting from past

conduct, including allegations of past conduct that remains

unresolved or unknown in multiple jurisdictions, including Iraq

and Syria, which remains the subject of ongoing investigations

by Ericsson and US governmental authorities

–Risks related to internal controls and governance, including

the potential to incur material liability in connection with

internal controls surrounding payments made to third parties in

connection with past conduct in multiple jurisdictions, including

Iraq, which remains the subject of ongoing investigations by

Ericsson and US governmental authorities

–The risk that the ongoing investigations by Ericsson and US

governmental authorities result in a conclusion by Ericsson or

US governmental authorities that the Company’s past conduct

included making or having responsibility for making payments

to a terrorist organization or other improper payments, which

could lead to material additional liability

–Risks related to the Company's ongoing compliance with

obligations under the National Security Agreement entered

into in connection with Ericsson’s acquisition of Vonage

Holdings Corp. (Vonage), which may adversely affect the

Vonage business and subject the Company to additional

liabilities

–Ericsson's goals, strategies, planning assumptions and

operational or financial performance expectations

–Macroeconomic conditions, including inflationary pressures

and effects on customer investments, market recovery and

growth

–Ongoing geopolitical and trade uncertainty, including

challenging global economic conditions, market trends and the

imposition of tariffs and sanctions

–Continued growth of mobile communications, the success of

Ericsson's existing and targeted customer base, and

Ericsson's ability to maintain technology leadership

–Success in implementing key strategies, including improving

profitability, leading in 6G, capturing 5G market opportunities,

capitalizing on network API and Enterprise opportunities,

incorporation of AI technologies into certain products, services

and processes and expected benefits from restructuring

activities

–Risks related to cybersecurity and privacy, security and data

localization

–Industry trends, future characteristics and development of the

markets in which Ericsson operates

–Risks of global operations, including legal and regulatory

requirements and uncertainties, and unfavorable lawsuits and

legal proceedings

–Ericsson's future liquidity, capital resources, capital

expenditures, cost savings and profitability, and risks related to

financial condition

–The expected demand for Ericsson's existing and new

products and services as well as plans to launch new products

and services including research and development

expenditures

–Ericsson's ability to deliver on future plans and achieve future

growth

–The expected operational or financial performance of strategic

cooperation activities and joint ventures

–Risks related to acquisitions and divestments that may be

disruptive and incur significant expenses, including Ericsson's

ability to successfully consummate such transactions, protect

the value of acquisitions during integration, or achieve the

value anticipated with an acquisition

–Trends related to Ericsson's industry, including Ericsson's

regulatory environment, competition and customer structure

–Intense competition from existing competitors, and new

entrants, including vendor consolidation

–Risks related to the supply chain and single-source or highly

concentrated third-party suppliers

–Large, multi-year agreements with limited number of  key

customers, and operator consolidation

–Risks related to intellectual property, key employees, and

unforeseen risks and disruptions due to natural or man-made

events

–Risks related to environmental, social, governance, diversity,

equity and inclusion and business conduct

–Other factors included in Ericsson's filings with the US

Securities and Exchange Commission (SEC), including the

factors described throughout this report, included in the

section Risk factors, and in “Risk Factors” in the Annual

Report 2025, as updated by subsequent reports filed with the

SEC.

These forward-looking statements also represent Ericsson's 

estimates, assumptions and expectations only as of the date that

they were made, and to the extent they represent third-party

data,  Ericsson has not undertaken to independently verify such

third-party data and does not intend to do so. Given these risks

and uncertainties, readers are cautioned not to place undue

reliance on such forward-looking statements and are urged to

carefully review and consider the various disclosures made in

this report and in other documents Ericsson files from time to

time with Ericsson's regulators that disclose risks and

uncertainties that may affect Ericsson's business. Ericsson

expressly disclaims a duty to provide updates to these forward-

looking statements, and the estimates and assumptions

associated with them, after the date of this report, to reflect

events or changes in circumstances or changes in expectations

or the occurrence of anticipated events, whether as a result of

new information, future events or otherwise, except as required

by applicable law or stock exchange regulations.

Ericsson  |  Third quarter report 2026. October 15, 2026. Auditors' Review Report 15

Auditors’ Review Report

Introduction

We have reviewed the condensed interim financial information

(interim report) of Telefonaktiebolaget LM Ericsson (publ.) as of

September 30, 2026, and the nine months period then ended.

The Board of Directors and the CEO are responsible for the

preparation and presentation of this interim report in accordance

with IAS 34 and the Swedish Annual Accounts Act. Our

responsibility is to express a conclusion on this interim report

based on our review.

Scope of review

We conducted our review in accordance with the International

Standard on Review Engagements ISRE 2410, Review of Interim

Financial Information Performed by the Independent Auditor of

the Entity.

A review consists of making inquiries, primarily of persons

responsible for financial and accounting matters, and applying

analytical and other review procedures. A review has a different

focus and is substantially less in scope than an audit conducted

in accordance with International Standards on Auditing, ISA, and

other generally accepted auditing practices in Sweden. The

procedures performed in a review do not enable us to obtain a

level of assurance that would make us aware of all significant

matters that might be identified in an audit. Therefore, the

conclusion expressed based on a review does not give the same

level of assurance as a conclusion expressed based on an audit.

Conclusion

Based on our review, nothing has come to our attention that

causes us to believe that the interim report is not, in all material

respects, in accordance with IAS 34 and the Swedish Annual

Accounts Act, regarding the Group, and with the Swedish Annual

Accounts Act, regarding the Parent Company.

Stockholm, October 15, 2026

Deloitte AB

Jonas Ståhlberg

Authorized Public Accountant

Ericsson  |  Third quarter report 2026. October 15, 2026. Financial statements and other information 16

Financial

statements

and other

information

Contents

Financial statements (unaudited)	17
Condensed consolidated income statement	17
Condensed consolidated statement of comprehensive income	17
Condensed consolidated balance sheet	18
Condensed consolidated statement of cash flows	19
Condensed consolidated statement of changes in equity	20
Condensed consolidated income statement – isolated quarters	20
Condensed consolidated statement of cash flows – isolated quarters	21
Condensed Parent Company income statement	22
Condensed Parent Company statement of comprehensive income	22
Condensed Parent Company balance sheet	23
Accounting policies and Explanatory notes (unaudited)	24
Note 1 – Accounting policies and other information	24
Note 2 – Segment information	25
Note 3 – Financial income and expenses, net	29
Note 4 – Provisions	29
Note 5 – Financial risk management	30
Note 6 – Cash flow	31
Note 7 – Contingent liabilities and Assets pledged as collateral	31
Note 8 – Share information	32
Note 9 – Employee information	32

Alternative performance measures (unaudited)	33
Sales growth adjusted for comparable units and currency	33
Items excluding restructuring charges and impairments of goodwill and intangible assets	34
EBITA and EBITA margin / Adjusted EBITA and Adjusted EBITA margin	35
Rolling four quarters of net sales and adjusted EBITA margin (%)	35
Gross cash and net cash, end of period	36
Capital employed	36
Capital turnover	36
Return on capital employed	36
Equity ratio	37
Return on equity	37
Operating working capital	37
Free cash flow before M&A / Free cash flow after M&A / Free cash flow before M&A (% of net sales)	38
Sales growth by segment adjusted for comparable units and currency	38
Sales growth by market area adjusted for comparable units and currency	39
Rolling four quarters of net sales by segment	39
Gross margin by segment by quarter	39
EBIT margin by segment by quarter	39
EBITA and EBITA margin by segment by quarter	40
Restructuring charges by function	40
Restructuring charges by segment	41
Adjusted gross income and Adjusted gross margin by segment	41
Adjusted EBIT and Adjusted EBIT margin by segment	42
Rolling four quarters of adjusted EBITA margin by segment (%)	42
Operating working capital days	43

Ericsson  |  Third quarter report 2026. October 15, 2026. Financial statements 17

Financial statements (unaudited)

Condensed consolidated income statement

		Q3				Jan-Sep
SEK million	Note	2026	2025	Change		2026	2025
Net sales	2	59,478	56,239	6%		161,500	167,396
Cost of sales		-31,488	-29,462	7%		-86,089	-87,433
Gross income	2	27,990	26,777	5%		75,411	79,963
Research and development expenses		-11,841	-11,510	3%		-35,810	-35,754
Selling and administrative expenses		-7,411	-7,913	-6%		-23,283	-24,714
Impairment reversals/losses on trade receivables		69	46	52%		-107	112
Operating expenses		-19,183	-19,377	-1%		-59,200	-60,356
Other operating income and expenses¹⁾		93	7,715	-99%		206	7,790
Share of earnings/losses of associated companies		-37	36	-		-192	76
Earnings before financial items and income tax (EBIT)	2	8,864	15,151	-41%		16,226	27,473
Financial income and expenses, net	3	-910	-212	-		-1,282	-252
Income after financial items		7,954	14,939	-47%		14,944	27,221
Income tax		-2,157	-3,639	-41%		-4,184	-7,078
Net income		5,797	11,300	-49%		10,760	20,143
Net income attributable to:
Owners of the Parent Company		5,806	11,149			10,740	19,865
Non-controlling interests		-10	151			20	278
Other information
Average number of shares, basic (million)	8	3,269	3,333			3,305	3,333
Earnings per share, basic (SEK)²⁾	8	1.78	3.34			3.25	5.96
Earnings per share, diluted (SEK)²⁾³⁾	8	1.77	3.33			3.24	5.94

¹⁾ Jan-Sep 2025 and Q3 2025 includes a gain of SEK 7.6 billion due to the divestment of iconectiv.

²⁾ Based on net income attributable to owners of the Parent Company.

³⁾ Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.

Condensed consolidated statement of comprehensive income

	Q3			Jan-Sep
SEK million	2026	2025		2026	2025
Net income	5,797	11,300		10,760	20,143
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit pension plans	4,531	5,698		5,141	4,881
Revaluation of credit risk on borrowings	34	-93		21	-2
Tax on items that will not be reclassified to profit or loss	-793	-1,143		-921	-1,130
Items that have been or may be reclassified to profit or loss
Cash flow hedge reserve
Gains/losses arising during the period	-186	29		-607	4,684
Reclassification adjustments on gains/losses included in profit or loss	-455	-59		-1,587	263
Translation reserves
Changes in translation reserves	2,096	-1,029		5,558	-10,927
Reclassification to profit or loss	–	1,304		-10	1,358
Share of other comprehensive income of associated companies	10	-8		116	-64
Tax on items that have been or may be reclassified to profit or loss	132	6		452	-1,019
Total other comprehensive income, net of tax	5,369	4,705		8,163	-1,956
Total comprehensive income	11,166	16,005		18,922	18,187
Total comprehensive income attributable to:
Owners of the Parent Company	11,110	15,872		18,841	17,758
Non-controlling interests	55	133		81	429

Ericsson  |  Third quarter report 2026. October 15, 2026. Financial statements 18

Condensed consolidated balance sheet

SEK million	Note	Sep 30 2026	Dec 31 2025
Assets
Non-current assets
Intangible assets
Capitalized development expenses		3,611	3,866
Goodwill		50,647	46,882
Customer relationships, IPR and other intangible assets		5,032	5,631
Property, plant and equipment		8,889	8,789
Right-of-use assets		7,123	6,738
Financial assets
Investments in associated companies		1,387	1,507
Other investments in shares and participations	5	2,166	1,909
Customer finance, non-current	5	6	238
Interest-bearing securities, non-current	5	39,175	37,298
Other financial assets, non-current	5	7,338	5,960
Deferred tax assets		18,514	16,851
		143,887	135,669
Current assets
Inventories		35,404	23,451
Contracts assets		8,855	7,333
Trade receivables	5	38,846	40,327
Customer finance, current	5	1,913	852
Current tax assets		5,466	5,030
Other current receivables		8,347	9,920
Interest-bearing securities, current	5	7,697	12,715
Cash and cash equivalents	5	51,087	43,926
		157,614	143,554
Total assets		301,501	279,223
Equity and liabilities
Equity
Stockholders' equity		110,482	109,535
Non-controlling interest in equity of subsidiaries		773	729
		111,255	110,264
Non-current liabilities
Post-employment benefits		14,277	18,648
Provisions, non-current	4	4,253	2,993
Deferred tax liabilities		240	152
Borrowings, non-current	5	27,816	29,165
Lease liabilities, non-current		6,268	5,772
Other non-current liabilities		1,396	1,292
		54,251	58,022
Current liabilities
Provisions, current	4	7,781	5,691
Borrowings, current	5	9,455	3,538
Lease liabilities, current		1,795	1,789
Contract liabilities		40,548	36,867
Trade payables	5	30,380	26,335
Current tax liabilities		6,276	2,679
Other current liabilities		39,760	34,038
		135,995	110,937
Total equity and liabilities		301,501	279,223

Ericsson  |  Third quarter report 2026. October 15, 2026. Financial statements 19

Condensed consolidated statement of cash flows

		Q3			Jan-Sep
SEK million	Note	2026	2025		2026	2025
Operating activities
Net income		5,797	11,300		10,760	20,143
Adjustments for
Taxes		2,459	3,647		4,463	7,350
Earnings/dividends in associated companies		140	50		373	30
Depreciation, amortization and impairment losses	6	2,155	2,129		6,130	7,056
Other		-135	-7,549		-1,213	-7,844
		10,415	9,577		20,512	26,735
Changes in operating net assets
Inventories		-4,086	-680		-10,438	-2,738
Customer finance, current and non-current		-192	372		-719	2,627
Trade receivables and contract assets		-355	-889		3,444	-1,013
Trade payables		613	1,102		1,809	-1,106
Provisions and post-employment benefits		770	-565		2,637	-3,178
Contract liabilities		-5,399	-2,869		1,302	4,398
Other operating assets and liabilities, net		4,922	3,047		-558	-4,970
		-3,728	-482		-2,524	-5,980
Interest received		687	433		1,956	1,567
Interest paid		-273	-328		-1,438	-1,798
Taxes paid		-632	-1,261		-2,701	-4,077
Cash flow from operating activities		6,469	7,939		15,805	16,447
Investing activities
Investments in property, plant and equipment	6	-846	-491		-2,104	-1,781
Sales of property, plant and equipment		84	57		117	136
Acquisitions/divestments of subsidiaries and other operations, net		6	10,064		-304	10,201
Product development	6	-291	-286		-1,053	-786
Purchase of interest-bearing securities		-9,370	-9,633		-29,311	-28,448
Sales of interest-bearing securities		12,843	3,549		33,545	11,821
Other investing activities		-1,216	-106		-1,543	2,454
Cash flow from investing activities		1,209	3,154		-652	-6,403
Financing activities
Proceeds from issuance of borrowings		5,505	–		5,633	198
Repayment of borrowings		–	-26		-207	-537
Dividends paid		0	-1		-5,037	-4,811
Repayment of lease liabilities		-461	-507		-1,433	-1,654
Repurchase of own shares		-4,526	–		-7,760	-116
Other financing activities		-161	-643		-2,333	1,540
Cash flow from financing activities		357	-1,177		-11,137	-5,380
Effect of exchange rate changes on cash		1,361	-841		3,144	-5,854
Net change in cash and cash equivalents		9,396	9,075		7,160	-1,190
Cash and cash equivalents, beginning of period		41,691	33,620		43,926	43,885
Cash and cash equivalents, end of period		51,087	42,695		51,087	42,695

Ericsson  |  Third quarter report 2026. October 15, 2026. Financial statements 20

Condensed consolidated statement of changes in equity

	Jan-Sep
SEK million	2026	2025
Opening balance	110,264	92,983
Total comprehensive income	18,922	18,187
Sale/repurchase of own shares	-8,045	-116
Share issue, net	–	116
Long-term variable compensation plans	155	115
Dividends to shareholders¹⁾	-10,042	-9,545
Transactions with non-controlling interests	–	754
Closing balance	111,255	102,494

¹⁾ Jan-Sep includes SEK 5,004 (4,769) million of dividend approved by the Annual General Meeting on March 31, 2026, which was paid out on October 2 2026.

Condensed consolidated income statement – isolated quarters

2026					2025
Isolated quarters, SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Net sales	59,478	52,691	49,332		69,285	56,239	56,132	55,025
Cost of sales	-31,488	-28,568	-26,033		-36,580	-29,462	-29,483	-28,488
Gross income	27,990	24,122	23,299		32,705	26,777	26,649	26,537
Research and development expenses	-11,841	-10,480	-13,489		-13,098	-11,510	-12,212	-12,032
Selling and administrative expenses	-7,411	-7,736	-8,135		-8,971	-7,913	-8,180	-8,621
Impairment reversals/losses on trade receivables	69	-20	-156		127	46	34	32
Operating expenses	-19,183	-18,237	-21,781		-21,942	-19,377	-20,358	-20,621
Other operating income and expenses¹⁾	93	90	24		420	7,715	67	8
Share of earnings/losses of associated companies	-37	-56	-99		-22	36	33	7
Earnings before financial items and income tax (EBIT)	8,864	5,919	1,443		11,161	15,151	6,391	5,931
Financial income and expenses, net	-910	-178	-193		-80	-212	34	-74
Income after financial items	7,954	5,741	1,250		11,081	14,939	6,425	5,857
Income tax	-2,157	-1,665	-362		-2,510	-3,639	-1,799	-1,640
Net income	5,797	4,076	887		8,571	11,300	4,626	4,217
Net income attributable to:
Owners of the Parent Company	5,806	4,046	888		8,563	11,149	4,567	4,149
Non-controlling interests	-10	30	0		8	151	59	68
Other information
Average number of shares, basic (million)	3,269	3,313	3,333		3,333	3,333	3,333	3,333
Earnings per share, basic (SEK)²⁾	1.78	1.22	0.27		2.57	3.34	1.37	1.25
Earnings per share, diluted (SEK)²⁾³⁾	1.77	1.22	0.27		2.57	3.33	1.37	1.24

¹⁾ Q3 2025 includes a gain of SEK 7.6 billion due to the divestment of iconectiv.

²⁾ Based on net income attributable to owners of the Parent Company.

³⁾ Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.

Ericsson  |  Third quarter report 2026. October 15, 2026. Financial statements 21

Condensed consolidated statement of cash flows – isolated quarters

2026					2025
Isolated quarters, SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Operating activities
Net income	5,797	4,076	887		8,571	11,300	4,626	4,217
Adjustments for
Taxes	2,459	1,652	353		2,724	3,647	1,949	1,754
Earnings/dividends in associated companies	140	64	169		27	50	-22	2
Depreciation, amortization and impairment losses	2,155	1,988	1,987		2,185	2,129	2,177	2,750
Other	-135	-531	-547		-735	-7,549	-410	115
	10,415	7,249	2,849		12,772	9,577	8,320	8,838
Changes in operating net assets
Inventories	-4,086	-4,622	-1,730		3,667	-680	210	-2,268
Customer finance, current and non-current	-192	94	-622		406	372	391	1,864
Trade receivables and contract assets	-355	2,516	1,283		-3,288	-889	188	-312
Trade payables	613	1,667	-471		1,568	1,102	-636	-1,572
Provisions and post-employment benefits	770	-690	2,557		1,743	-565	-298	-2,315
Contract liabilities	-5,399	-1,376	8,077		-2,913	-2,869	-1,329	8,596
Other operating assets and liabilities, net	4,922	-1,985	-3,494		5,175	3,047	-1,187	-6,830
	-3,728	-4,397	5,600		6,358	-482	-2,661	-2,837
Interest received	687	739	531		716	433	458	676
Interest paid	-273	-631	-534		-407	-328	-699	-771
Taxes paid	-632	-1,028	-1,042		-2,932	-1,261	-1,268	-1,548
Cash flow from operating activities	6,469	1,932	7,403		16,507	7,939	4,150	4,358
Investing activities
Investments in property, plant and equipment	-846	-637	-620		-849	-491	-561	-729
Sales of property, plant and equipment	84	23	10		56	57	40	39
Acquisitions/divestments of subs. and other operations, net	6	-238	-72		338	10,064	141	-4
Product development	-291	-384	-378		-352	-286	-193	-307
Purchase of interest-bearing securities	-9,370	-13,548	-6,393		-10,310	-9,633	-12,295	-6,520
Sales of interest-bearing securities	12,843	11,988	8,714		4,867	3,549	2,568	5,704
Other investing activities	-1,216	-926	599		1,216	-106	-562	3,122
Cash flow from investing activities	1,209	-3,721	1,860		-5,034	3,154	-10,862	1,305
Financing activities
Proceeds from issuance of borrowings	5,505	128	–		200	–	198	–
Repayment of borrowings	–	-207	–		-3,001	-26	-432	-79
Dividends paid	0	-5,037	–		-4,734	-1	-4,810	–
Repayment of lease liabilities	-461	-513	-459		-461	-507	-554	-593
Repurchase of own shares	-4,526	-3,224	-10		-6	–	-116	–
Other financing activities	-161	-362	-1,809		-841	-643	2,243	-60
Cash flow from financing activities	357	-9,216	-2,278		-8,843	-1,177	-3,471	-732
Effect of exchange rate changes on cash	1,361	381	1,403		-1,399	-841	-787	-4,226
Net change in cash and cash equivalents	9,396	-10,624	8,388		1,231	9,075	-10,970	705
Cash and cash equivalents, beginning of period	41,691	52,315	43,926		42,695	33,620	44,590	43,885
Cash and cash equivalents, end of period	51,087	41,691	52,315		43,926	42,695	33,620	44,590

Ericsson  |  Third quarter report 2026. October 15, 2026. Financial statements 22

Condensed Parent Company income statement

	Q3			Jan-Sep
SEK million	2026	2025		2026	2025
Net sales	–	–		–	–
Cost of sales	–	–		–	–
Gross income	–	–		–	–
Operating expenses	-192	-371		-733	-1,237
Other operating income and expenses	688	640		2,137	1,956
EBIT	496	269		1,404	719
Financial net	637	9,295		28,741	28,149
Income after financial items	1,133	9,564		30,145	28,868
Transfers to (-) / from untaxed reserves	–	–		–	–
Income tax	-88	-335		-522	-514
Net income	1,045	9,229		29,623	28,354

Condensed Parent Company statement of comprehensive income

	Q3			Jan-Sep
SEK million	2026	2025		2026	2025
Net income	1,045	9,229		29,623	28,354
Other comprehensive income, net of tax	–	–		–	–
Total comprehensive income	1,045	9,229		29,623	28,354

Ericsson  |  Third quarter report 2026. October 15, 2026. Financial statements 23

Condensed Parent Company balance sheet

SEK million	Sep 30 2026	Dec 31 2025
Assets
Fixed assets
Intangible assets	135	151
Tangible assets	315	300
Financial assets¹⁾	137,950	135,029
	138,400	135,480
Current assets
Receivables	18,991	19,323
Short-term investments	7,510	12,651
Cash and cash equivalents	36,040	27,807
	62,541	59,781
Total assets	200,941	195,261
Stockholders' equity, provisions and liabilities
Equity
Restricted equity	48,351	48,351
Non-restricted equity	54,672	43,051
	103,023	91,402
Provisions	121	60
Non-current liabilities	27,838	29,164
Current liabilities	69,959	74,635
Total stockholders' equity, provisions and liabilities	200,941	195,261
¹⁾ Of which interest-bearing securities, non-current	39,175	37,298

Ericsson  |  Third quarter report 2026. October 15, 2026. Accounting policies and Explanatory notes 24

Accounting policies and

Explanatory notes (unaudited)

Note 1 – Accounting policies and other

information

Accounting policies for the Group

This condensed consolidated interim financial report for the

reporting period ended September 30, 2026, has been prepared

in accordance with International Accounting Standard IAS 34

“Interim Financial Reporting”. The term “IFRS Accounting

Standards” used in this document refers to IFRS® Accounting

standards as issued by the International Accounting Standards

Board (IASB) as well as interpretations of these standards as

issued by IASB’s Standards Interpretation Committee (SIC) and

IFRS Interpretations Committee (IFRIC). The accounting policies

adopted are consistent with those of the annual report for the

year ended December 31, 2025, and should be read in

conjunction with that annual report. Amendments to IFRS

Accounting Standards that became effective during 2026 do not

have a material impact on the result and financial position of the

Company.

New accounting standards and interpretations

IASB has issued the following new standard with effective date of

January 1, 2027:

– In April 2024, IASB issued a new standard, IFRS 18 that will

replace IAS 1 Presentation of Financial Statements. The standard

sets out the requirements for the presentation and disclosure of

information in the financial statements to ensure better

comparability, consistency and faithful representation of an

entity’s assets, liabilities, equity, income, and expenses. The new

standard’s biggest impact is on the statement of profit or loss

(income statement), where it includes more specific guidance on

how the statement of profit or loss shall be presented mandating

certain income and expense classification and subtotals to be

presented.

– Impact at transition: The standard is effective for the annual

periods beginning on or after January 1, 2027. The Company will

apply the new standard as from January 1, 2027. At transition,

the Company will apply the new presentation and disclosure

requirements retrospectively for all periods presented. As the

standard only impacts the presentation and disclosure

requirements, and not the measurement of any items presented

in the financial statements, there will be no effect on retained

earnings at transition date. The largest effect is on the

presentation of the income statement where certain items such

as foreign exchange differences will be classified differently within

the income statement. In addition, there will be new subtotals

introduced such as Operating profit. Accordingly, the information

for prior years will be restated. The transition note will include a

bridge between the IAS 1 presentation and the new IFRS 18

presentation when the standard is applied.

– The Company is still assessing the detailed impact that the

transition to IFRS 18 will have on the financial statements.

Other

Rounding differences may occur in the summation of amounts.

Ericsson  |  Third quarter report 2026. October 15, 2026. Accounting policies and Explanatory notes 25

Note 2 – Segment information

Net sales by segment by quarter

2026					2025
Isolated quarters, SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Networks	38,696	33,047	32,937		44,200	35,424	35,747	35,643
Of which Products	30,956	24,684	25,549		33,275	26,531	27,622	28,060
Of which Services	7,740	8,363	7,388		10,925	8,893	8,125	7,583
Cloud Software and Services	15,829	14,732	11,833		20,031	15,346	14,363	12,975
Of which Products	5,975	5,569	4,295		8,459	5,431	5,407	4,719
Of which Services	9,853	9,163	7,539		11,572	9,915	8,956	8,256
Enterprise	4,560	4,490	4,168		4,578	5,058	5,548	5,933
Other	393	422	393		476	411	474	474
Total	59,478	52,691	49,332		69,285	56,239	56,132	55,025

2026					2025
Sequential change, percent	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Networks	17%	0%	-25%		25%	-1%	0%	-24%
Of which Products	25%	-3%	-23%		25%	-4%	-2%	-23%
Of which Services	-7%	13%	-32%		23%	9%	7%	-26%
Cloud Software and Services	7%	25%	-41%		31%	7%	11%	-33%
Of which Products	7%	30%	-49%		56%	0%	15%	-40%
Of which Services	8%	22%	-35%		17%	11%	8%	-29%
Enterprise	2%	8%	-9%		-9%	-9%	-6%	-3%
Other	-7%	7%	-17%		16%	-13%	0%	-17%
Total	13%	7%	-29%		23%	0%	2%	-25%

2026					2025
Year over year change, percent	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Networks	9%	-8%	-8%		-6%	-11%	-5%	6%
Of which Products	17%	-11%	-9%		-9%	-15%	-3%	10%
Of which Services	-13%	3%	-3%		7%	1%	-11%	-9%
Cloud Software and Services	3%	3%	-9%		3%	3%	-5%	-1%
Of which Products	10%	3%	-9%		8%	4%	12%	4%
Of which Services	-1%	2%	-9%		-1%	2%	-14%	-3%
Enterprise	-10%	-19%	-30%		-25%	-20%	-14%	-1%
Other	-4%	-11%	-17%		-16%	-19%	-6%	-20%
Total	6%	-6%	-10%		-5%	-9%	-6%	3%

2026					2025
Year to date, SEK million	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Networks	104,680	65,984	32,937		151,014	106,814	71,390	35,643
Of which Products	81,189	50,233	25,549		115,488	82,213	55,682	28,060
Of which Services	23,491	15,751	7,388		35,526	24,601	15,708	7,583
Cloud Software and Services	42,394	26,566	11,833		62,715	42,684	27,338	12,975
Of which Products	15,839	9,863	4,295		24,016	15,557	10,126	4,719
Of which Services	26,556	16,702	7,539		38,699	27,127	17,212	8,256
Enterprise	13,219	8,658	4,168		21,117	16,539	11,481	5,933
Other	1,208	815	393		1,835	1,359	948	474
Total	161,500	102,022	49,332		236,681	167,396	111,157	55,025

2026					2025
Year over year change, percent	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Networks	-2%	-8%	-8%		-5%	-4%	0%	6%
Of which Products	-1%	-10%	-9%		-5%	-4%	3%	10%
Of which Services	-5%	0%	-3%		-2%	-6%	-10%	-9%
Cloud Software and Services	-1%	-3%	-9%		0%	-1%	-3%	-1%
Of which Products	2%	-3%	-9%		7%	7%	8%	4%
Of which Services	-2%	-3%	-9%		-4%	-5%	-9%	-3%
Enterprise	-20%	-25%	-30%		-15%	-12%	-8%	-1%
Other	-11%	-14%	-17%		-16%	-15%	-14%	-20%
Total	-4%	-8%	-10%		-5%	-4%	-2%	3%

Ericsson  |  Third quarter report 2026. October 15, 2026. Accounting policies and Explanatory notes 26

Gross income by segment by quarter

2026					2025
Isolated quarters, SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Networks	19,272	15,975	16,359		21,648	17,705	17,638	18,112
Cloud Software and Services	6,707	5,868	4,907		8,636	6,463	5,964	5,069
Enterprise	2,280	2,276	2,039		2,386	2,609	3,045	3,338
Other	-269	2	-6		35	0	2	18
Total	27,990	24,122	23,299		32,705	26,777	26,649	26,537

2026					2025
Year to date, SEK million	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Networks	51,606	32,334	16,359		75,103	53,455	35,750	18,112
Cloud Software and Services	17,483	10,776	4,907		26,132	17,496	11,033	5,069
Enterprise	6,595	4,315	2,039		11,378	8,992	6,383	3,338
Other	-273	-4	-6		55	20	20	18
Total	75,411	47,421	23,299		112,668	79,963	53,186	26,537

EBIT by segment by quarter

2026					2025
Isolated quarters, SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Networks	8,420	6,006	3,283		9,318	7,075	6,376	7,040
Cloud Software and Services	1,730	1,142	3		3,364	1,721	840	71
Enterprise	-966	-1,215	-1,844		-1,526	6,649	-870	-1,014
Other	-321	-14	1		5	-294	45	-166
Total	8,864	5,919	1,443		11,161	15,151	6,391	5,931

2026					2025
Year to date, SEK million	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Networks	17,710	9,290	3,283		29,809	20,491	13,416	7,040
Cloud Software and Services	2,875	1,146	3		5,996	2,632	911	71
Enterprise	-4,025	-3,059	-1,844		3,239	4,765	-1,884	-1,014
Other	-334	-14	1		-410	-415	-121	-166
Total	16,226	7,362	1,443		38,634	27,473	12,322	5,931

Ericsson  |  Third quarter report 2026. October 15, 2026. Accounting policies and Explanatory notes 27

Net sales by market area by quarter

2026					2025
Isolated quarters, SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Americas	19,817	18,821	17,077		22,928	19,837	19,809	20,859
Europe, Middle East and Africa¹⁾²⁾	17,452	16,261	14,298		23,350	16,730	16,193	14,475
South East Asia, Oceania and India	8,788	5,407	6,946		8,986	7,097	5,505	7,226
North East Asia	4,540	3,734	3,122		5,205	3,825	3,766	3,215
Other¹⁾²⁾	8,881	8,467	7,888		8,816	8,750	10,859	9,250
Total	59,478	52,691	49,332		69,285	56,239	56,132	55,025
¹⁾ Of which in Sweden	581	688	781		1,374	863	686	461
²⁾ Of which in EU	7,574	7,526	7,081		10,663	8,213	8,223	7,566

2026					2025
Sequential change, percent	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Americas	5%	10%	-26%		16%	0%	-5%	-19%
Europe, Middle East and Africa¹⁾²⁾	7%	14%	-39%		40%	3%	12%	-34%
South East Asia, Oceania and India	63%	-22%	-23%		27%	29%	-24%	-14%
North East Asia	22%	20%	-40%		36%	2%	17%	-55%
Other¹⁾²⁾	5%	7%	-11%		1%	-19%	17%	-4%
Total	13%	7%	-29%		23%	0%	2%	-25%
¹⁾ Of which in Sweden	-16%	-12%	-43%		59%	26%	49%	-23%
²⁾ Of which in EU	1%	6%	-34%		30%	0%	9%	-31%

2026					2025
Year over year change, percent	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Americas	0%	-5%	-18%		-11%	-16%	0%	26%
Europe, Middle East and Africa¹⁾²⁾	4%	0%	-1%		7%	-1%	-6%	-5%
South East Asia, Oceania and India	24%	-2%	-4%		6%	-8%	-28%	-16%
North East Asia	19%	-1%	-3%		-27%	4%	-17%	-6%
Other¹⁾²⁾	1%	-22%	-15%		-9%	-13%	4%	-3%
Total	6%	-6%	-10%		-5%	-9%	-6%	3%
¹⁾ Of which in Sweden	-33%	0%	69%		130%	100%	18%	-37%
²⁾ Of which in EU	-8%	-8%	-6%		-2%	1%	-4%	0%

2026					2025
Year to date, SEK million	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Americas	55,715	35,898	17,077		83,433	60,505	40,668	20,859
Europe, Middle East and Africa¹⁾²⁾	48,011	30,559	14,298		70,748	47,398	30,668	14,475
South East Asia, Oceania and India	21,141	12,352	6,946		28,814	19,828	12,731	7,226
North East Asia	11,396	6,856	3,122		16,011	10,806	6,981	3,215
Other¹⁾²⁾	25,237	16,356	7,888		37,675	28,859	20,109	9,250
Total	161,500	102,022	49,332		236,681	167,396	111,157	55,025
¹⁾ Of which in Sweden	2,050	1,469	781		3,384	2,010	1,147	461
²⁾ Of which in EU	22,181	14,607	7,081		34,665	24,002	15,789	7,566

2026					2025
Year to date, year over year change, percent	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Americas	-8%	-12%	-18%		-3%	1%	12%	26%
Europe, Middle East and Africa¹⁾²⁾	1%	0%	-1%		-1%	-4%	-6%	-5%
South East Asia, Oceania and India	7%	-3%	-4%		-11%	-17%	-22%	-16%
North East Asia	5%	-2%	-3%		-15%	-7%	-13%	-6%
Other¹⁾²⁾	-13%	-19%	-15%		-5%	-4%	1%	-3%
Total	-4%	-8%	-10%		-5%	-4%	-2%	3%
¹⁾ Of which in Sweden	2%	28%	69%		45%	15%	-13%	-37%
²⁾ Of which in EU	-8%	-7%	-6%		-2%	-1%	-2%	0%

Ericsson  |  Third quarter report 2026. October 15, 2026. Accounting policies and Explanatory notes 28

Net sales by market area by segment

	Q3 2026						Jan-Sep 2026
SEK million	Networks	Cloud Software and Services	Enterprise	Other	Total		Networks	Cloud Software and Services	Enterprise	Other	Total
Americas	14,998	4,769	49	0	19,817		42,827	12,724	164	0	55,715
Europe, Middle East and Africa	10,198	6,990	264	0	17,452		28,608	18,702	701	0	48,011
South East Asia, Oceania and India	6,482	2,299	7	0	8,788		15,024	6,087	30	0	21,141
North East Asia	3,615	924	1	0	4,540		8,848	2,544	4	0	11,396
Other¹⁾	3,403	846	4,239	393	8,881		9,372	2,337	12,320	1,207	25,237
Total	38,696	15,829	4,560	393	59,478		104,680	42,394	13,219	1,208	161,500
Share of total	65%	27%	8%	1%	100%		65%	26%	8%	1%	100%

1) Includes primarily IPR licensing revenues and a major part of segment Enterprise.

	Q3 2026
Sequential change, percent	Networks	Cloud Software and Services	Enterprise	Other	Total
Americas	6%	3%	-10%	-	5%
Europe, Middle East and Africa	8%	7%	3%	3%	7%
South East Asia, Oceania and India	87%	19%	-33%	-	63%
North East Asia	26%	6%	0%	-	22%
Other	10%	9%	2%	-7%	5%
Total	17%	7%	2%	-7%	13%

	Q3 2026						Jan-Sep 2026
Year over year change, percent	Networks	Cloud Software and Services	Enterprise	Other	Total		Networks	Cloud Software and Services	Enterprise	Other	Total
Americas	-1%	5%	-43%	-	0%		-10%	1%	-44%	-100%	-8%
Europe, Middle East and Africa	3%	5%	55%	-	4%		2%	0%	11%	-	1%
South East Asia, Oceania and India	46%	-13%	-30%	-100%	24%		13%	-6%	-18%	-100%	7%
North East Asia	19%	18%	-13%	-	19%		6%	5%	-59%	-	5%
Other	21%	15%	-11%	-4%	1%		-1%	-3%	-21%	-11%	-13%
Total	9%	3%	-10%	-4%	6%		-2%	-1%	-20%	-11%	-4%

Top 5 countries in sales

2026					2025
Country, percentage of net sales¹⁾	Q3	Q2	Q1		Q4	Q3	Q2	Q1
USA	38%	40%	39%		36%	40%	44%	45%
India	5%	4%	8%		5%	5%	4%	7%
United Kingdom	4%	5%	4%		4%	4%	4%	4%
Japan	5%	4%	4%		4%	3%	3%	3%
China	4%	4%	3%		3%	3%	4%	3%

2026					2025
Country, percentage of net sales¹⁾	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
USA	39%	40%	39%		41%	43%	44%	45%
India	6%	6%	8%		5%	5%	6%	7%
United Kingdom	4%	5%	4%		4%	4%	4%	4%
Japan	4%	4%	4%		4%	3%	3%	3%
China	3%	3%	3%		3%	4%	4%	3%

1) Based on Jan-Sep 2026. Includes IPR licensing revenues.

IPR licensing revenues by segment by quarter

2026					2025
Isolated quarters, SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Networks	3,191	2,796	2,569		2,733	2,569	3,987	2,606
Cloud Software and Services	700	614	564		600	564	875	572
Total	3,891	3,410	3,133		3,333	3,133	4,862	3,178

2026					2025
Year to date, SEK million	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Networks	8,556	5,365	2,569		11,895	9,162	6,593	2,606
Cloud Software and Services	1,878	1,178	564		2,611	2,011	1,447	572
Total	10,434	6,543	3,133		14,506	11,173	8,040	3,178

Ericsson  |  Third quarter report 2026. October 15, 2026. Accounting policies and Explanatory notes 29

Note 3 – Financial income and expenses, net

Financial income and expenses, net

2026					2025
Isolated quarters, SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Financial income	554	732	585		620	662	579	619
Financial expenses	-1,216	-680	-594		-580	-735	-927	-805
Net foreign exchange gains/losses	-248	-229	-184		-120	-139	382	112
Total	-910	-178	-193		-80	-212	34	-74

2026					2025
Year to date, SEK million	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Financial income	1,870	1,316	585		2,480	1,860	1,198	619
Financial expenses	-2,491	-1,274	-594		-3,047	-2,467	-1,732	-805
Net foreign exchange gains/losses	-661	-414	-184		235	355	494	112
Total	-1,282	-372	-193		-332	-252	-40	-74

Note 4 – Provisions

Provisions

2026					2025
Isolated quarters, SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Opening balance	11,163	11,803	8,684		7,823	8,652	9,093	11,715
Additions	2,093	1,265	6,016		3,005	847	1,830	1,055
Utilization	-1,153	-1,815	-2,898		-1,605	-1,311	-1,853	-3,009
Of which restructuring	-754	-1,064	-546		-721	-813	-837	-1,201
Reversal of excess amounts	-48	-217	-171		-357	-370	-273	-256
Reclassification, translation difference and other	-21	126	172		-182	5	-145	-412
Closing balance	12,034	11,163	11,803		8,684	7,823	8,652	9,093
Of which restructuring	3,915	4,017	4,956		1,889	1,710	2,429	2,720

2026					2025
Year to date, SEK million	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Opening balance	8,684	8,684	8,684		11,715	11,715	11,715	11,715
Additions	9,374	7,281	6,016		6,737	3,732	2,885	1,055
Utilization	-5,865	-4,713	-2,898		-7,778	-6,173	-4,862	-3,009
Of which restructuring	-2,364	-1,610	-546		-3,572	-2,851	-2,038	-1,201
Reversal of excess amounts	-436	-388	-171		-1,256	-899	-529	-256
Reclassification, translation difference and other	277	298	172		-734	-552	-557	-412
Closing balance	12,034	11,163	11,803		8,684	7,823	8,652	9,093
Of which restructuring	3,915	4,017	4,956		1,889	1,710	2,429	2,720

Ericsson  |  Third quarter report 2026. October 15, 2026. Accounting policies and Explanatory notes 30

Note 5 – Financial risk management

There have been no changes to the fair value hierarchy categorization from that presented in the latest Annual Report. Where Level 2

and Level 3 fair value hierarchies apply, the inputs and valuation methods used remained unchanged. The book values and fair values

of financial instruments are as follows:

Financial instruments

SEK billion	Sep 30 2026					Dec 31 2025
	Fair value hierarchy level					Fair value hierarchy level
	Carrying value	Level 1	Level 2	Level 3		Carrying value	Level 1	Level 2	Level 3
Assets at fair value through profit or loss
Customer finance¹⁾	1.9			1.9		1.1	–	–	1.1
Interest-bearing securities	46.7	42.2	4.5	–		49.9	45.4	4.5	–
Cash equivalents²⁾	33.2	–	33.2	–		25.3	–	25.3	–
Other financial assets	2.2	0.1	–	2.1		1.9	–	–	1.9
Other current assets	0.3	–	0.3	–		2.9	–	2.9	–
Assets at fair value through OCI
Trade receivables	38.8	–	–	38.8		40.3	–	–	40.3
Assets at amortized costs
Interest-bearing securities	0.2	–	–	–		0.1	–	–	–
Other financial assets	0.0	–	–	–		0.1	–	–	–
Total financial assets	123.3					121.6
Financial liabilities at designated FVTPL
Parent company borrowings	-36.8	-19.5	-17.3	–		-29.6	-18.8	-10.8	–
Financial liabilities at FVTPL
Other current liabilities	-0.7	–	-0.7	–		-0.2	–	-0.2	–
Liabilities at amortized cost
Trade payables	-30.4	–	–	–		-26.3	–	–	–
Borrowings	-0.5	–	–	–		-3.1	–	–	–
Total financial liabilities	-68.4					-59.2

1) Year to date movements of customer finance receivables are as follows: additions of SEK 17.1 billion, disposals and repayments of SEK 16.4 billion. No material revaluation impact in the

current period (< SEK 0.1 billion).

2) Total Cash and cash equivalent is SEK 51.1 (43.9 on Dec 31, 2025) billion, of which SEK 33.2 (SEK 25.3 on Dec 31, 2025) billion relating to Cash equivalents are presented in the table

above.

Exchange rates used in the consolidation

	Jan-Sep			Jan-Dec
Closing rates to SEK	2026	2025		2025
EUR	11.33	11.06		10.82
USD	9.97	9.42		9.19

Ericsson  |  Third quarter report 2026. October 15, 2026. Accounting policies and Explanatory notes 31

Note 6 – Cash flow

Information on investments

Investments in assets subject to depreciation, amortization, impairment and write-downs

2026					2025
Isolated quarters, SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Additions
Property, plant and equipment	846	637	620		849	491	561	729
Capitalized development expenses	291	384	378		352	286	193	307
IPR, brands and other intangible assets	52	36	35		48	81	301	57
Total	1,190	1,058	1,033		1,249	858	1,055	1,093
Depreciation, amortization and impairment losses
Property, plant and equipment	824	698	735		814	812	826	1,029
Capitalized development expenses	452	426	436		446	449	451	444
Goodwill, IPR, brands and other intangible assets	364	358	344		439	365	373	721
Right-of-use assets	515	506	471		486	503	527	556
Total	2,155	1,988	1,986		2,185	2,129	2,177	2,750

2026					2025
Year to date, SEK million	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Additions
Property, plant and equipment	2,104	1,257	620		2,630	1,781	1,290	729
Capitalized development expenses	1,053	762	378		1,138	786	500	307
IPR, brands and other intangible assets	124	72	35		487	439	358	57
Total	3,281	2,091	1,033		4,255	3,006	2,148	1,093
Depreciation, amortization and impairment losses
Property, plant and equipment	2,257	1,433	735		3,481	2,667	1,855	1,029
Capitalized development expenses	1,314	862	436		1,790	1,344	895	444
Goodwill, IPR, brands and other intangible assets	1,066	702	344		1,898	1,459	1,094	721
Right-of-use assets	1,493	978	471		2,072	1,586	1,083	556
Total	6,130	3,975	1,986		9,241	7,056	4,927	2,750

Note 7 – Contingent liabilities and Assets pledged as collateral

Contingent liabilities and Assets pledged as collateral

SEK million	Sep 30 2026	Dec 31 2025
Contingent liabilities	4,344	4,091
Assets pledged as collateral	8,966	8,695

Ericsson  |  Third quarter report 2026. October 15, 2026. Accounting policies and Explanatory notes 32

Note 8 – Share information

Number of shares and earnings per share

	Q3			Jan-Sep
	2026	2025		2026	2025
Number of shares, end of period (million)	3,371	3,371		3,371	3,371
Of which class A-shares (million)	262	262		262	262
Of which class B-shares (million)	3,110	3,110		3,110	3,110
Number of treasury shares, end of period (million)	114	38		114	38
Number of shares outstanding, basic, end of period (million)	3,257	3,333		3,257	3,333
Numbers of shares outstanding, diluted, end of period (million)	3,267	3,342		3,267	3,342
Average number of treasury shares (million)	103	38		65	28
Average number of shares outstanding, basic (million)	3,269	3,333		3,305	3,333
Average number of shares outstanding, diluted (million)¹⁾	3,278	3,342		3,314	3,342
Earnings per share, basic (SEK)²⁾	1.78	3.34		3.25	5.96
Earnings per share, diluted (SEK)¹⁾²⁾	1.77	3.33		3.24	5.94

1) Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.

2) Based on net income attributable to owners of the Parent Company.

The proposed dividend for 2025 of SEK 3.00 per share was

approved by the AGM on March 31, 2026. The first of two equal

dividend payments of SEK 1.50 per share was made on April 9,

2026, and the second was made on October 2, 2026.

The AGM resolved to approve the Board of Directors'

proposal on authorization for the Board of Directors to, on one or

several occasions prior to the AGM 2027, decide on the

repurchase of the Company's own shares of series B. The

number of shares purchased must at no time result in the

Company's holding exceeding 10 percent of all the shares in the

Company.

During the quarter, Ericsson repurchased 49,225,701 Class B

shares for a total consideration of SEK 4.8 b. in accordance with

the AGM authorization. Repurchases year-to-date amounted to

78,761,682 Class B shares for SEK 8.1 b. Repurchased shares

are held as treasury shares and presented as a deduction from

equity.

As of September 30, 2026, Ericsson held 114,080,663

treasury shares (38,002,276 as of Dec 31, 2025). Repurchased

shares are reflected as a reduction in the average number of

shares outstanding and in the calculation of earnings per share.

Note 9 – Employee information

Number of employees

2026					2025
End of period	Sep 30	Jun 30	Mar 31		Dec 31	Sep 30	Jun 30	Mar 31
Americas	13,815	14,136	14,537		15,050	15,346	15,926	15,857
Europe, Middle East and Africa¹⁾	37,744	38,308	38,548		39,045	39,489	40,413	40,677
South East Asia, Oceania and India	24,923	25,050	25,100		25,189	25,358	25,591	25,991
North East Asia	8,935	9,042	9,336		9,542	9,705	10,007	10,341
Total	85,417	86,536	87,521		88,826	89,898	91,937	92,866
¹⁾ Of which in Sweden	12,634	13,013	12,615		12,806	12,967	13,476	13,222

Ericsson  |  Third quarter report 2026. October 15, 2026. Alternative performance measures 33

Alternative performance measures (unaudited)

In this section, the Company presents its Alternative Performance

Measures (APMs), which are not recognized measures of

financial performance under IFRS Accounting Standards. The

presentation of APMs has limitations as analytical tools and

should not be considered in isolation or as a substitute for related

financial measures prepared in accordance with IFRS Accounting

Standards.

APMs are presented to enhance an investor’s evaluation of

ongoing operating results, to aid in forecasting future periods and

to facilitate meaningful comparison of results between periods.

Management uses these APMs to, among other things,

evaluate ongoing operations in relation to historical results, for

internal planning and forecasting purposes and in the calculation

of certain performance-based compensation. APMs should not be

viewed as substitutes for income statement or cash flow items

computed in accordance with IFRS Accounting Standards.

This section also includes a reconciliation of the APMs to the

most directly reconcilable line items in the financial statements.

For more information about non-IFRS key operating measures,

see Ericsson Annual Report 2025.

Sales growth adjusted for comparable units and currency

Sales growth adjusted for the impact of acquisitions and divestments as well as the effects of foreign currency fluctuations. Also

named organic sales growth.

2026					2025
Isolated quarters, year over year change, SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Reported net sales	59,478	52,691	49,332		69,285	56,239	56,132	55,025
Acquired business	–	–	–		–	–	–	–
Net FX impact	-4	1,821	7,755		6,801	4,213	4,672	-1,817
Current period net sales, excluding acquired business & FX impact	59,474	54,511	57,087		76,086	60,452	60,804	53,208
Prior year period net sales adjusted for acquired & divested business	55,682	55,121	53,903		71,474	61,794	59,848	53,325
Organic sales growth (%)	7%	-1%	6%		6%	-2%	2%	0%

2026					2025
Year to date, year over year change, SEK million	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Reported net sales	161,500	102,022	49,332		236,681	167,396	111,157	55,025
Acquired business	–	–	–		–	–	–	–
Net FX impact	9,572	9,576	7,755		13,869	7,068	2,855	-1,817
Current period net sales, excluding acquired business & FX impact	171,073	111,598	57,087		250,550	174,464	114,012	53,208
Prior year period net sales adjusted for acquired & divested business	164,705	109,024	53,903		246,441	174,967	113,173	53,325
Organic sales growth (%)	4%	2%	6%		2%	0%	1%	0%

Ericsson  |  Third quarter report 2026. October 15, 2026. Alternative performance measures 34

Items excluding restructuring charges and impairments of goodwill and intangible assets

Gross income, operating expenses, and EBIT are presented excluding restructuring charges, and for certain measures, as a

percentage of net sales. EBIT is also presented excluding restructuring charges and impairments of goodwill and intangible assets.

2026					2025
Isolated quarters, SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Gross income	27,990	24,122	23,299		32,705	26,777	26,649	26,537
Net sales	59,478	52,691	49,332		69,285	56,239	56,132	55,025
Gross margin (%)	47.1%	45.8%	47.2%		47.2%	47.6%	47.5%	48.2%
Gross income	27,990	24,122	23,299		32,705	26,777	26,649	26,537
Restructuring charges included in cost of sales	361	1,359	435		538	271	310	158
Adjusted gross income	28,351	25,481	23,734		33,243	27,048	26,959	26,695
Net sales	59,478	52,691	49,332		69,285	56,239	56,132	55,025
Adjusted gross margin (%)	47.7%	48.4%	48.1%		48.0%	48.1%	48.0%	48.5%
Operating expenses	-19,183	-18,237	-21,781		-21,942	-19,377	-20,358	-20,621
Restructuring charges included in R&D expenses	281	-882	2,595		300	-41	300	20
Restructuring charges included in selling and administrative expenses	251	124	738		259	73	46	103
Operating expenses excluding restructuring charges	-18,651	-18,995	-18,995		-21,383	-19,345	-20,012	-20,498
EBIT	8,864	5,919	1,443		11,161	15,151	6,391	5,931
Net sales	59,478	52,691	49,332		69,285	56,239	56,132	55,025
EBIT margin (%)	14.9%	11.2%	2.9%		16.1%	26.9%	11.4%	10.8%
EBIT	8,864	5,919	1,443		11,161	15,151	6,391	5,931
Total restructuring charges	893	601	3,768		1,097	303	656	281
Adjusted EBIT	9,757	6,520	5,211		12,258	15,454	7,047	6,212
Net sales	59,478	52,691	49,332		69,285	56,239	56,132	55,025
Adjusted EBIT margin (%)	16.4%	12.4%	10.6%		17.7%	27.5%	12.6%	11.3%
Adjusted EBIT	9,757	6,520	5,211		12,258	15,454	7,047	6,212
Impairment of goodwill and intangible assets	–	2	–		–	–	–	–
Adjusted EBIT excluding impairments of goodwill and intangible assets	9,757	6,521	5,211		12,258	15,454	7,047	6,212
Net sales	59,478	52,691	49,332		69,285	56,239	56,132	55,025
Adjusted EBIT margin excluding impairments of goodwill and intangible assets (%)	16.4%	12.4%	10.6%		17.7%	27.5%	12.6%	11.3%

2026					2025
Year to date, SEK million	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Gross income	75,411	47,421	23,299		112,668	79,963	53,186	26,537
Net sales	161,500	102,022	49,332		236,681	167,396	111,157	55,025
Gross margin (%)	46.7%	46.5%	47.2%		47.6%	47.8%	47.8%	48.2%
Gross income	75,411	47,421	23,299		112,668	79,963	53,186	26,537
Restructuring charges included in cost of sales	2,156	1,794	435		1,277	739	468	158
Adjusted gross income	77,567	49,216	23,734		113,945	80,702	53,654	26,695
Net sales	161,500	102,022	49,332		236,681	167,396	111,157	55,025
Adjusted gross margin (%)	48.0%	48.2%	48.1%		48.1%	48.2%	48.3%	48.5%
Operating expenses	-59,200	-40,017	-21,781		-82,298	-60,356	-40,979	-20,621
Restructuring charges included in R&D expenses	1,994	1,713	2,595		579	279	320	20
Restructuring charges included in selling and administrative expenses	1,112	861	738		481	222	149	103
Operating expenses excluding restructuring charges	-56,094	-37,443	-18,448		-81,238	-59,855	-40,510	-20,498
EBIT	16,226	7,362	1,443		38,634	27,473	12,322	5,931
Net sales	161,500	102,022	49,332		236,681	167,396	111,157	55,025
EBIT margin (%)	10.0%	7.2%	2.9%		16.3%	16.4%	11.1%	10.8%
EBIT	16,226	7,362	1,443		38,634	27,473	12,322	5,931
Total restructuring charges	5,262	4,369	3,768		2,337	1,240	937	281
Adjusted EBIT	21,488	11,731	5,211		40,971	28,713	13,259	6,212
Net sales	161,500	102,022	49,332		236,681	167,396	111,157	55,025
Adjusted EBIT margin (%)	13.3%	11.5%	10.6%		17.3%	17.2%	11.9%	11.3%
Adjusted EBIT	21,488	11,731	5,211		40,971	28,713	13,259	6,212
Impairment of goodwill and intangible assets	2	2	–		–	–	–	–
Adjusted EBIT excluding impairments of goodwill and intangible assets	21,490	11,733	5,211		40,971	28,713	13,259	6,212
Net sales	161,500	102,022	49,332		236,681	167,396	111,157	55,025
Adjusted EBIT margin excluding impairments of goodwill and intangible assets (%)	13.3%	11.5%	10.6%		17.3%	17.2%	11.9%	11.3%

Ericsson  |  Third quarter report 2026. October 15, 2026. Alternative performance measures 35

EBITA and EBITA margin / Adjusted EBITA and Adjusted EBITA margin

Earnings before interest, income tax, amortizations and write-downs of acquired intangibles (including goodwill) also expressed as a

percentage of net sales.

Adjusted EBITA also expressed as a percentage of net sales.

2026					2025
Isolated quarters, SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Net income	5,797	4,076	887		8,571	11,300	4,626	4,217
Income tax	2,157	1,665	362		2,510	3,639	1,799	1,640
Financial income and expenses, net	910	178	193		80	212	-34	74
Amortizations and write-downs of acquired intangibles	364	358	344		440	365	372	721
Of which segment Enterprise	333	327	307		406	338	346	389
EBITA	9,228	6,277	1,788		11,601	15,516	6,763	6,652
Net sales	59,478	52,691	49,332		69,285	56,239	56,132	55,025
EBITA margin (%)	15.5%	11.9%	3.6%		16.7%	27.6%	12.0%	12.1%
Restructuring charges	893	601	3,768		1,097	303	656	281
Adjusted EBITA	10,121	6,878	5,556		12,698	15,819	7,419	6,933
Adjusted EBITA margin (%)	17.0%	13.1%	11.3%		18.3%	28.1%	13.2%	12.6%

2026					2025
Year to date, SEK million	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Net income	10,760	4,963	887		28,714	20,143	8,843	4,217
Income tax	4,184	2,027	362		9,588	7,078	3,439	1,640
Financial income and expenses, net	1,282	372	193		332	252	40	74
Amortizations and write-downs of acquired intangibles	1,066	702	344		1,898	1,458	1,093	721
Of which segment Enterprise	966	634	307		1,479	1,073	735	389
EBITA	17,292	8,065	1,788		40,532	28,931	13,415	6,652
Net sales	161,500	102,022	49,332		236,681	167,396	111,157	55,025
EBITA margin (%)	10.7%	7.9%	3.6%		17.1%	17.3%	12.1%	12.1%
Restructuring charges	5,262	4,369	3,768		2,337	1,240	937	281
Adjusted EBITA	22,554	12,433	5,556		42,869	30,171	14,352	6,933
Adjusted EBITA margin (%)	14.0%	12.2%	11.3%		18.1%	18.0%	12.9%	12.6%

Additionally, Ericsson provides forward-looking targets for

adjusted EBITA margin and Free cash flow before M&A as a

percentage of net sales, which are non-IFRS financial measures.

Ericsson has not provided quantitative reconciliation of these

targets to the most directly comparable IFRS measures because

certain information needed to reconcile these non-IFRS financial

measures to the most comparable IFRS financial measures are

dependent on specific items or impacts that are not yet

determined, are subject to incarcerating and variability in timing

and amount due to their nature, are outside of Ericsson’s control

or cannot be predicted, including items and impacts such as

currency exchange rate changes, acquisitions and disposals, and

charges such as impairments or acquisition related charges.

Accordingly, reconciliation of these non-IFRS forward-looking

financial measures are not available without unreasonable efforts.

Such unavailable reconciling items could significantly impact our

results of operations and financial condition.

Rolling four quarters of net sales and adjusted EBITA margin (%)

Net sales, EBITA margin and restructuring charges as a sum of last four quarters.

2026					2025
Rolling four quarters, SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Net sales	230,785	227,546	230,988		236,681	240,309	245,864	249,580
EBITA	28,893	35,182	35,668		40,532	37,554	28,241	23,904
Restructuring charges	6,359	5,769	5,824		2,337	2,866	4,116	5,088
Adjusted EBITA	35,253	40,950	41,492		42,869	40,420	32,357	28,992
Adjusted EBITA margin (%)	15.3%	18.0%	18.0%		18.1%	16.8%	13.2%	11.6%

Ericsson  |  Third quarter report 2026. October 15, 2026. Alternative performance measures 36

Gross cash and net cash, end of period

Gross cash: Cash and cash equivalents plus interest-bearing securities (current and non-current).

Net cash: Cash and cash equivalents plus interest-bearing securities (current and non-current) less borrowings (current and non-

current).

2026					2025
SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Cash and cash equivalents	51,087	41,691	52,315		43,926	42,695	33,620	44,590
+ Interest-bearing securities, current	7,697	12,413	10,775		12,715	8,345	6,790	5,147
+ Interest-bearing securities, non-current	39,175	37,193	36,457		37,298	37,370	32,859	24,436
Gross cash, end of period	97,958	91,297	99,547		93,939	88,410	73,269	74,173
- Borrowings, current	9,455	9,468	9,865		3,538	6,680	7,285	5,597
- Borrowings, non-current	27,816	21,990	21,541		29,165	29,872	29,944	29,929
Net cash, end of period	60,687	59,839	68,141		61,236	51,858	36,040	38,647

Capital employed

Total assets less non-interest-bearing provisions and liabilities (which includes non-current provisions, deferred tax liabilities, contract

liabilities, other non-current liabilities, current provisions, trade payables, current tax liabilities and other current liabilities).

2026					2025
SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Total assets	301,501	287,899	290,393		279,223	282,476	270,555	277,978
Less: Non-interest-bearing provisions and liabilities
Provisions, non-current	-4,253	-4,037	-4,822		-2,993	-2,478	-2,365	-2,541
Deferred tax liabilities	-240	-173	-175		-152	-1,349	-1,390	-1,365
Other non-current liabilities	-1,396	-1,355	-1,327		-1,292	-899	-870	-888
Provisions, current	-7,781	-7,126	-6,981		-5,691	-5,345	-6,287	-6,552
Contract liabilities	-40,548	-45,133	-46,008		-36,867	-40,642	-44,370	-46,757
Trade payables	-30,380	-28,925	-26,719		-26,335	-25,352	-24,804	-26,450
Current tax liabilities	-6,276	-4,669	-3,386		-2,679	-6,069	-3,609	-2,664
Other current liabilities	-39,760	-34,231	-40,327		-34,038	-34,605	-32,521	-41,655
Capital employed	170,866	162,250	160,647		169,176	165,737	154,339	149,106

Capital turnover

Rolling four quarters of net sales divided by five-point average for capital employed.

2026					2025
SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Net sales, rolling four quarters	230,785	227,546	230,988		236,681	240,309	245,864	249,580
Average capital employed, rolling five quarters
Capital employed at end of period -4	165,737	154,339	149,106		162,967	153,610	156,496	177,181
Capital employed at end of period -3	169,176	165,737	154,339		149,106	162,967	153,610	156,496
Capital employed at end of period -2	160,647	169,176	165,737		154,339	149,106	162,967	153,610
Capital employed at end of period -1	162,250	160,647	169,176		165,737	154,339	149,106	162,967
Capital employed at end of period	170,866	162,250	160,647		169,176	165,737	154,339	149,106
Average capital employed, rolling five quarters	165,735	162,430	159,801		160,265	157,152	155,304	159,872
Capital turnover (times)	1.4	1.4	1.4		1.5	1.5	1.6	1.6

Return on capital employed

Rolling four quarters of EBIT divided by five-point average for capital employed.

2026					2025
SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
EBIT, rolling four quarters	27,387	33,675	34,146		38,634	35,431	26,054	6,144
Average capital employed, rolling five quarters
Capital employed at end of period -4	165,737	154,339	149,106		162,967	153,610	156,496	177,181
Capital employed at end of period -3	169,176	165,737	154,339		149,106	162,967	153,610	156,496
Capital employed at end of period -2	160,647	169,176	165,737		154,339	149,106	162,967	153,610
Capital employed at end of period -1	162,250	160,647	169,176		165,737	154,339	149,106	162,967
Capital employed at end of period	170,866	162,250	160,647		169,176	165,737	154,339	149,106
Average capital employed, rolling five quarters	165,735	162,430	159,801		160,265	157,152	155,304	159,872
Return on capital employed (%)	16.5%	20.7%	21.4%		24.1%	22.5%	16.8%	3.8%

Ericsson  |  Third quarter report 2026. October 15, 2026. Alternative performance measures 37

Equity ratio

Equity expressed as a percentage of total assets.

2026					2025
SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Total equity	111,255	104,764	103,133		110,264	102,494	85,699	84,858
Total assets	301,501	287,899	290,393		279,223	282,476	270,555	277,978
Equity ratio (%)	36.9%	36.4%	35.5%		39.5%	36.3%	31.7%	30.5%

Return on equity

Annualized net income attributable to owners of the Parent Company as a percentage of average stockholders’ equity.

Annualization factor of four is used for isolated quarter.

Annualization factor of four is used for Jan-Mar, two is used for Jan-Jun, 4/3 is used for Jan-Sep and one is used for Jan-Dec.

2026					2025
Isolated quarters, SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Net income attributable to owners of the Parent Company	5,806	4,046	888		8,563	11,149	4,567	4,149
Annualized	23,225	16,182	3,551		34,252	44,596	18,268	16,596
Average stockholders' equity
Stockholders' equity, beginning of period	104,047	102,440	109,535		102,658	86,748	86,039	94,284
Stockholders' equity, end of period	110,482	104,047	102,440		109,535	102,658	86,748	86,039
Average stockholders' equity	107,264	103,243	105,988		106,097	94,703	86,394	90,162
Return on equity (%)	21.7%	15.7%	3.4%		32.3%	47.1%	21.1%	18.4%

2026					2025
Year to date, SEK million	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Net income attributable to owners of the Parent Company	10,740	4,933	888		28,428	19,865	8,716	4,149
Annualized	14,319	9,867	3,551		28,428	26,487	17,432	16,596
Average stockholders' equity
Stockholders' equity, beginning of period	109,535	109,535	109,535		94,284	94,284	94,284	94,284
Stockholders' equity, end of period	110,482	104,047	102,440		109,535	102,658	86,748	86,039
Average stockholders' equity	110,008	106,791	105,988		101,910	98,471	90,516	90,162
Return on equity (%)	13.0%	9.2%	3.4%		27.9%	26.9%	19.3%	18.4%

Operating working capital

Inventories, contract assets, trade receivables, customer finance (current and non-current), advances to suppliers and prepaid

expenses less contract liabilities and trade payables.

2026					2025
SEK million	Sep 30	Jun 30	Mar 31		Dec 31	Sep 30	Jun 30	Mar 31
Inventories	35,404	30,718	25,732		23,451	27,519	27,068	27,649
Contract assets	8,855	8,225	8,526		7,333	7,494	6,618	5,735
Trade receivables	38,846	37,921	39,345		40,327	38,136	39,107	41,428
Customer finance, current	1,913	1,657	1,582		852	1,290	1,879	2,396
Customer finance, non-current	6	26	190		238	242	78	27
Advance payments to suppliers¹⁾	43	39	44		46	39	41	46
Prepaid expenses¹⁾	2,508	2,868	3,015		2,390	2,443	3,025	3,749
Less: Contract liabilities	-40,548	-45,133	-46,008		-36,867	-40,642	-44,370	-46,757
Less: Trade payables	-30,380	-28,925	-26,719		-26,335	-25,352	-24,804	-26,450
Operating working capital	16,646	7,398	5,709		11,435	11,169	8,642	7,823

1) Part of Other current receivables in the consolidated balance sheet.

Ericsson  |  Third quarter report 2026. October 15, 2026. Alternative performance measures 38

Free cash flow before M&A / Free cash flow after M&A / Free cash flow before M&A (% of net

sales)

Free cash flow before M&A: Cash flow from operating activities less net capital expenditures, other investments (excluding M&A) and

repayment of lease liabilities.

Free cash flow after M&A: Cash flow from operating activities less net capital expenditures, other investments and repayment of lease

liabilities.

Free cash flow before M&A (% of net sales): Free cash flow before M&A as a percentage of net sales.

2026					2025
Isolated quarters, SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Cash flow from operating activities	6,469	1,932	7,403		16,507	7,939	4,150	4,358
Net capital expenditures and other investments (excl. M&A)
Investments in property, plant and equipment	-846	-637	-620		-849	-491	-561	-729
Sales of property, plant and equipment	84	23	10		56	57	40	39
Product development	-291	-384	-378		-352	-286	-193	-307
Other investments¹⁾	-52	-36	-36		-47	-81	-301	-64
Repayment of lease liabilities	-461	-513	-459		-462	-507	-554	-593
Free cash flow before M&A	4,902	385	5,921		14,853	6,631	2,581	2,704
Acquisitions/divestments of subs and other operations, net	6	-238	-72		338	10,064	141	-4
Free cash flow after M&A	4,908	147	5,849		15,191	16,695	2,722	2,700
Net sales	59,478	52,691	49,332		69,285	56,239	56,132	55,025
Free cash flow before M&A (% of net sales)	8.2%	0.7%	12.0%		21.4%	11.8%	4.6%	4.9%

2026					2025
Year to date, SEK million	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Cash flow from operating activities	15,805	9,336	7,403		32,954	16,447	8,508	4,358
Net capital expenditures and other investments (excl. M&A)
Investments in property, plant and equipment	-2,104	-1,257	-620		-2,630	-1,781	-1,290	-729
Sales of property, plant and equipment	117	33	10		192	136	79	39
Product development	-1,053	-762	-378		-1,138	-786	-500	-307
Other investments¹⁾	-124	-72	-36		-493	-446	-365	-64
Repayment of lease liabilities	-1,433	-971	-459		-2,116	-1,654	-1,147	-593
Free cash flow before M&A	11,207	6,306	5,921		26,769	11,916	5,285	2,704
Acquisitions/divestments of subs and other operations, net	-304	-309	-72		10,539	10,201	137	-4
Free cash flow after M&A	10,904	5,996	5,849		37,308	22,117	5,422	2,700
Net sales	161,500	102,022	49,332		236,681	167,396	111,157	55,025
Free cash flow before M&A (% of net sales)	6.9%	6.2%	12.0%		11.3%	7.1%	4.8%	4.9%

1) Other investments is part of the line item Other investing activities in the Consolidated cash flow statement. The differences are movements in other interest-bearing assets, which are not to

be part of the definition of Free cash flow.

Sales growth by segment adjusted for comparable units and currency

2026					2025
Isolated quarter, year over year change, percent	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Networks	9%	-4%	7%		4%	-5%	3%	3%
Cloud Software and Services	3%	5%	4%		12%	9%	1%	-3%
Enterprise	1%	3%	4%		2%	-7%	-6%	-7%
Other	-5%	-6%	-2%		-10%	-15%	-1%	-23%
Total	7%	-1%	6%		6%	-2%	2%	0%

2026					2025
Year to date, year over year change, percent	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Networks	4%	1%	7%		1%	0%	3%	3%
Cloud Software and Services	4%	5%	4%		6%	2%	-1%	-3%
Enterprise	3%	4%	4%		-5%	-7%	-6%	-7%
Other	-4%	-4%	-2%		-13%	-14%	-13%	-23%
Total	4%	2%	6%		2%	0%	1%	0%

Ericsson  |  Third quarter report 2026. October 15, 2026. Alternative performance measures 39

Sales growth by market area adjusted for comparable units and currency

2026					2025
Isolated quarter, year over year change, percent	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Americas	-1%	-1%	-2%		-1%	-8%	10%	20%
Europe, Middle East and Africa	4%	2%	10%		13%	3%	-1%	-7%
South East Asia, Oceania and India	25%	4%	12%		19%	1%	-22%	-17%
North East Asia	22%	8%	15%		-16%	10%	-15%	-8%
Other	7%	-12%	12%		13%	-2%	15%	-6%
Total	7%	-1%	6%		6%	-2%	2%	0%

2026					2025
Year to date, year over year change, percent	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Americas	-1%	-2%	-2%		4%	6%	14%	20%
Europe, Middle East and Africa	5%	6%	10%		3%	-2%	-4%	-7%
South East Asia, Oceania and India	14%	8%	12%		-4%	-13%	-19%	-17%
North East Asia	15%	11%	15%		-9%	-5%	-12%	-8%
Other	1%	-1%	12%		5%	3%	5%	-6%
Total	4%	2%	6%		2%	0%	1%	0%

Rolling four quarters of net sales by segment

2026					2025
Rolling four quarters, SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Networks	148,880	145,608	148,308		151,014	153,611	158,203	160,135
Cloud Software and Services	62,425	61,943	61,573		62,715	62,141	61,748	62,565
Enterprise	17,796	18,294	19,352		21,117	22,629	23,890	24,826
Other	1,684	1,702	1,754		1,835	1,928	2,023	2,054
Total	230,785	227,546	230,988		236,681	240,309	245,864	249,580

Gross margin by segment by quarter

2026					2025
Isolated quarters, as percentage of net sales	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Networks	49.8%	48.3%	49.7%		49.0%	50.0%	49.3%	50.8%
Cloud Software and Services	42.4%	39.8%	41.5%		43.1%	42.1%	41.5%	39.1%
Enterprise	50.0%	50.7%	48.9%		52.1%	51.6%	54.9%	56.3%
Other	-68.4%	0.5%	-1.5%		7.4%	0.0%	0.4%	3.8%
Total	47.1%	45.8%	47.2%		47.2%	47.6%	47.5%	48.2%

2026					2025
Year to date, as percentage of net sales	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Networks	49.3%	49.0%	49.7%		49.7%	50.0%	50.1%	50.8%
Cloud Software and Services	41.2%	40.6%	41.5%		41.7%	41.0%	40.4%	39.1%
Enterprise	49.9%	49.8%	48.9%		53.9%	54.4%	55.6%	56.3%
Other	-22.6%	-0.5%	-1.5%		3.0%	1.5%	2.1%	3.8%
Total	46.7%	46.5%	47.2%		47.6%	47.8%	47.8%	48.2%

EBIT margin by segment by quarter

2026					2025
Isolated quarters, as percentage of net sales	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Networks	21.8%	18.2%	10.0%		21.1%	20.0%	17.8%	19.8%
Cloud Software and Services	10.9%	7.8%	0.0%		16.8%	11.2%	5.8%	0.5%
Enterprise	-21.2%	-27.1%	-44.2%		-33.3%	131.5%	-15.7%	-17.1%
Other	-81.6%	-3.4%	0.3%		1.1%	-71.5%	9.5%	-35.0%
Total	14.9%	11.2%	2.9%		16.1%	26.9%	11.4%	10.8%

2026					2025
Year to date, as percentage of net sales	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Networks	16.9%	14.1%	10.0%		19.7%	19.2%	18.8%	19.8%
Cloud Software and Services	6.8%	4.3%	0.0%		9.6%	6.2%	3.3%	0.5%
Enterprise	-30.4%	-35.3%	-44.2%		15.3%	28.8%	-16.4%	-17.1%
Other	-27.7%	-1.7%	0.3%		-22.3%	-30.5%	-12.8%	-35.0%
Total	10.0%	7.2%	2.9%		16.3%	16.4%	11.1%	10.8%

Ericsson  |  Third quarter report 2026. October 15, 2026. Alternative performance measures 40

EBITA and EBITA margin by segment by quarter

2026					2025
Isolated quarters, SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Networks	8,449	6,034	3,315		9,348	7,096	6,397	7,367
Cloud Software and Services	1,732	1,146	9		3,368	1,726	845	76
Enterprise	-633	-888	-1,537		-1,120	6,987	-524	-625
Other	-320	-14	1		5	-293	45	-166
Total	9,228	6,277	1,788		11,601	15,516	6,763	6,652

2026					2025
Isolated quarters, as percentage of net sales	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Networks	21.8%	18.3%	10.1%		21.1%	20.0%	17.9%	20.7%
Cloud Software and Services	10.9%	7.8%	0.1%		16.8%	11.2%	5.9%	0.6%
Enterprise	-13.9%	-19.8%	-36.9%		-24.5%	138.1%	-9.4%	-10.5%
Other	-81.5%	-3.4%	0.3%		1.1%	-71.3%	9.5%	-35.0%
Total	15.5%	11.9%	3.6%		16.7%	27.6%	12.0%	12.1%

2026					2025
Year to date, SEK million	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Networks	17,798	9,349	3,315		30,208	20,860	13,764	7,367
Cloud Software and Services	2,886	1,154	9		6,015	2,647	921	76
Enterprise	-3,059	-2,425	-1,537		4,718	5,838	-1,149	-625
Other	-334	-13	1		-409	-414	-121	-166
Total	17,292	8,065	1,788		40,532	28,931	13,415	6,652

2026					2025
Year to date, as percentage of net sales	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Networks	17.0%	14.2%	10.1%		20.0%	19.5%	19.3%	20.7%
Cloud Software and Services	6.8%	4.3%	0.1%		9.6%	6.2%	3.4%	0.6%
Enterprise	-23.1%	-28.0%	-36.9%		22.3%	35.3%	-10.0%	-10.5%
Other	-27.6%	-1.6%	0.3%		-22.3%	-30.5%	-12.8%	-35.0%
Total	10.7%	7.9%	3.6%		17.1%	17.3%	12.1%	12.1%

Restructuring charges by function

2026					2025
Isolated quarters, SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Cost of sales	-361	-1,359	-435		-538	-271	-310	-158
Research and development expenses	-281	882	-2,595		-300	41	-300	-20
Selling and administrative expenses	-251	-124	-738		-259	-73	-46	-103
Total	-893	-601	-3,768		-1,097	-303	-656	-281

2026					2025
Year to date, SEK million	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Cost of sales	-2,156	-1,794	-435		-1,277	-739	-468	-158
Research and development expenses	-1,994	-1,713	-2,595		-579	-279	-320	-20
Selling and administrative expenses	-1,112	-861	-738		-481	-222	-149	-103
Total	-5,262	-4,369	-3,768		-2,337	-1,240	-937	-281

Ericsson  |  Third quarter report 2026. October 15, 2026. Alternative performance measures 41

Restructuring charges by segment

2026					2025
Isolated quarters, SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Networks	-502	198	-3,052		-710	-79	-109	-108
of which cost of sales	-176	-671	-226		-270	-45	-67	-55
of which operating expenses	-326	869	-2,826		-440	-34	-42	-53
Cloud Software and Services	-297	-688	-620		-349	-193	-538	-74
of which cost of sales	-174	-626	-205		-240	-222	-243	-102
of which operating expenses	-123	-62	-415		-109	29	-295	28
Enterprise	-83	-50	-96		-5	-27	-9	-97
of which cost of sales	-1	-8	-5		-1	0	0	1
of which operating expenses	-83	-43	-91		-4	-27	-9	-98
Other	-11	-60	0		-33	-4	0	-2
of which cost of sales	-11	-54	0		-27	-4	0	-2
of which operating expenses	0	-6	0		-6	0	0	0
Total	-893	-601	-3,768		-1,097	-303	-656	-281

2026					2025
Year to date, SEK million	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Networks	-3,356	-2,854	-3,052		-1,006	-296	-217	-108
of which cost of sales	-1,073	-897	-226		-437	-167	-122	-55
of which operating expenses	-2,283	-1,957	-2,826		-569	-129	-95	-53
Cloud Software and Services	-1,605	-1,308	-620		-1,154	-805	-612	-74
of which cost of sales	-1,005	-831	-205		-807	-567	-345	-102
of which operating expenses	-600	-477	-415		-347	-238	-267	28
Enterprise	-230	-147	-96		-138	-133	-106	-97
of which cost of sales	-13	-13	-5		0	1	1	1
of which operating expenses	-217	-134	-91		-138	-134	-107	-98
Other	-71	-60	0		-39	-6	-2	-2
of which cost of sales	-65	-54	0		-33	-6	-2	-2
of which operating expenses	-6	-6	0		-6	0	0	0
Total	-5,262	-4,369	-3,768		-2,337	-1,240	-937	-281

Adjusted gross income and Adjusted gross margin by segment

2026					2025
Isolated quarters, SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Networks	19,447	16,647	16,585		21,918	17,750	17,705	18,167
Cloud Software and Services	6,881	6,494	5,112		8,876	6,685	6,207	5,171
Enterprise	2,281	2,284	2,044		2,387	2,609	3,045	3,337
Other	-258	56	-6		62	4	2	20
Total	28,351	25,481	23,734		33,243	27,048	26,959	26,695

2026					2025
Isolated quarters, as percentage of net sales	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Networks	50.3%	50.4%	50.4%		49.6%	50.1%	49.5%	51.0%
Cloud Software and Services	43.5%	44.1%	43.2%		44.3%	43.6%	43.2%	39.9%
Enterprise	50.0%	50.9%	49.0%		52.1%	51.6%	54.9%	56.2%
Other	-65.6%	13.3%	-1.5%		13.0%	1.0%	0.4%	4.2%
Total	47.7%	48.4%	48.1%		48.0%	48.1%	48.0%	48.5%

2026					2025
Year to date, SEK million	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Networks	52,679	33,231	16,585		75,540	53,622	35,872	18,167
Cloud Software and Services	18,488	11,607	5,112		26,939	18,063	11,378	5,171
Enterprise	6,608	4,328	2,044		11,378	8,991	6,382	3,337
Other	-208	50	-6		88	26	22	20
Total	77,567	49,216	23,734		113,945	80,702	53,654	26,695

2026					2025
Year to date, as percentage of net sales	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Networks	50.3%	50.4%	50.4%		50.0%	50.2%	50.2%	51.0%
Cloud Software and Services	43.6%	43.7%	43.2%		43.0%	42.3%	41.6%	39.9%
Enterprise	50.0%	50.0%	49.0%		53.9%	54.4%	55.6%	56.2%
Other	-17.2%	6.1%	-1.5%		4.8%	1.9%	2.3%	4.2%
Total	48.0%	48.2%	48.1%		48.1%	48.2%	48.3%	48.5%

Ericsson  |  Third quarter report 2026. October 15, 2026. Alternative performance measures 42

Adjusted EBIT and Adjusted EBIT margin by segment

2026					2025
Isolated quarters, SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Networks	8,922	5,808	6,335		10,028	7,154	6,485	7,148
Cloud Software and Services	2,027	1,830	623		3,713	1,914	1,378	145
Enterprise	-882	-1,165	-1,748		-1,521	6,676	-861	-917
Other	-310	46	1		38	-290	45	-164
Total	9,757	6,520	5,211		12,258	15,454	7,047	6,212

2026					2025
Isolated quarters, as percentage of net sales	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Networks	23.1%	17.6%	19.2%		22.7%	20.2%	18.1%	20.1%
Cloud Software and Services	12.8%	12.4%	5.3%		18.5%	12.5%	9.6%	1.1%
Enterprise	-19.3%	-25.9%	-41.9%		-33.2%	132.0%	-15.5%	-15.5%
Other	-78.8%	10.9%	0.3%		8.0%	-70.6%	9.5%	-34.6%
Total	16.4%	12.4%	10.6%		17.7%	27.5%	12.6%	11.3%

2026					2025
Year to date, SEK million	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Networks	21,065	12,143	6,335		30,815	20,787	13,633	7,148
Cloud Software and Services	4,480	2,454	623		7,150	3,437	1,523	145
Enterprise	-3,795	-2,912	-1,748		3,377	4,898	-1,778	-917
Other	-263	47	1		-371	-409	-119	-164
Total	21,488	11,731	5,211		40,971	28,713	13,259	6,212

2026					2025
Year to date, as percentage of net sales	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Networks	20.1%	18.4%	19.2%		20.4%	19.5%	19.1%	20.1%
Cloud Software and Services	10.6%	9.2%	5.3%		11.4%	8.1%	5.6%	1.1%
Enterprise	-28.7%	-33.6%	-41.9%		16.0%	29.6%	-15.5%	-15.5%
Other	-21.8%	5.7%	0.3%		-20.2%	-30.1%	-12.6%	-34.6%
Total	13.3%	11.5%	10.6%		17.3%	17.2%	11.9%	11.3%

Rolling four quarters of adjusted EBITA margin by segment (%)

2026					2025
Rolling four quarters, as percentage of net sales	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Networks	21.0%	20.2%	20.3%		20.7%	20.4%	20.4%	19.3%
Cloud Software and Services	13.1%	13.1%	12.4%		11.4%	8.5%	6.1%	4.0%
Enterprise	-22.2%	19.8%	20.4%		23.0%	21.2%	-12.6%	-15.0%
Other	-13.3%	-12.0%	-11.7%		-20.2%	-46.5%	-30.4%	-35.5%
Total	15.3%	18.0%	18.0%		18.1%	16.8%	13.2%	11.6%

Ericsson  |  Third quarter report 2026. October 15, 2026. Alternative performance measures 43

Adjusted EBITA and Adjusted EBITA margin by segment

2026					2025
Isolated quarters, SEK million	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Networks	8,951	5,836	6,367		10,058	7,175	6,506	7,475
Cloud Software and Services	2,029	1,834	629		3,717	1,919	1,383	150
Enterprise	-550	-838	-1,441		-1,115	7,014	-515	-528
Other	-309	46	1		38	-289	45	-164
Total	10,121	6,878	5,556		12,698	15,819	7,419	6,933

2026					2025
Isolated quarters, as percentage of net sales	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Networks	23.1%	17.7%	19.3%		22.8%	20.3%	18.2%	21.0%
Cloud Software and Services	12.8%	12.4%	5.3%		18.6%	12.5%	9.6%	1.2%
Enterprise	-12.1%	-18.7%	-34.6%		-24.4%	138.7%	-9.3%	-8.9%
Other	-78.8%	10.9%	0.3%		8.0%	-70.3%	9.5%	-34.6%
Total	17.0%	13.1%	11.3%		18.3%	28.1%	13.2%	12.6%

2026					2025
Year to date, SEK million	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Networks	21,154	12,202	6,367		31,214	21,156	13,981	7,475
Cloud Software and Services	4,491	2,463	629		7,169	3,452	1,533	150
Enterprise	-2,828	-2,279	-1,441		4,856	5,971	-1,043	-528
Other	-263	47	1		-370	-408	-119	-164
Total	22,554	12,433	5,556		42,869	30,171	14,352	6,933

2026					2025
Year to date, as percentage of net sales	Jan-Sep	Jan-Jun	Jan-Mar		Jan-Dec	Jan-Sep	Jan-Jun	Jan-Mar
Networks	20.2%	18.5%	19.3%		20.7%	19.8%	19.6%	21.0%
Cloud Software and Services	10.6%	9.3%	5.3%		11.4%	8.1%	5.6%	1.2%
Enterprise	-21.4%	-26.3%	-34.6%		23.0%	36.1%	-9.1%	-8.9%
Other	-21.7%	5.8%	0.3%		-20.2%	-30.0%	-12.6%	-34.6%
Total	14.0%	12.2%	11.3%		18.1%	18.0%	12.9%	12.6%

Operating working capital days

Inventory turnover days (ITO): Five quarter average inventory

divided by four quarter rolling absolute value of cost of sales

excluding restructuring charges multiplied by 365, expressed as

number of days.

Days sales outstanding (DSO): Five quarter average of

contract assets, trade receivables and customer finance (current

and non-current) less contract liabilities divided by four quarter

rolling net sales multiplied by 365, expressed as number of days.

Days payables outstanding (DPO): Five quarter average of

advances to suppliers and prepaid expenses less trade payables

divided by four quarter rolling absolute value of cost of sales

excluding restructuring charges multiplied by 365, expressed as

number of days.

Operating working capital days: ITO plus DSO less DPO

2026					2025
	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Inventory turnover days (ITO)	87	83	80		79	80	80	81
Days sales outstanding (DSO)	11	9	9		12	11	14	17
Less: Days payables outstanding (DPO)	-76	-73	-70		-71	-68	-66	-64
Operating working capital days	22	19	19		20	23	28	34

Filing Exhibits & Attachments

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Press Releases

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