STOCKHOLM, July 14, 2026 /PRNewswire/ --
Strategic highlights -- disciplined execution and margin resilience
-- Adjusted gross margin of 48.4%, supported by solid operational execution
and improved margins in Mobile Networks.
-- Strong net cash position supporting continued investments and capital
returns, with SEK 8.2 b. returned to shareholders in Q2.
-- Demonstrated AI-enabled drone sensing and tracking using existing cell
towers at a Texas stadium during a major global sporting event.
Financial highlights -- solid financial performance
-- Reported sales were SEK 52.7 (56.1) b. Organic* sales decreased by -1%*
YoY primarily due to lower IPR licensing revenues, reflecting a
non-recurring benefit from a partial settlement in the prior year period.
Organic* sales grew in three out of four market areas.
-- Adjusted[1] gross income was SEK 25.5 (27.0) b., with solid operational
execution partly offset by currency headwinds. Reported gross income was
SEK 24.1 (26.6) b.
-- Adjusted[1] gross margin was 48.4% (48.0%). Networks and Cloud Software
and Services adjusted gross margin increased. Reported gross margin was
45.8% (47.5%).
-- Adjusted[1] EBITA was SEK 6.9 (7.4) b. with a 13.1% (13.2%) margin,
benefiting from continued strong margin expansion in Cloud Software and
Services. Reported EBITA was SEK 6.3 (6.8) b., with an 11.9% (12.0%)
margin.
-- Net income was SEK 4.1 (4.6) b. EPS diluted was SEK 1.22 (1.37).
-- Free cash flow before M&A was SEK 0.4 (2.6) b.
-- Capital returns to shareholders were SEK 8.2 b. in Q2, including SEK 3.2
b. of share repurchases.
Comment from Börje Ekholm, President and CEO: "Our Q2 results underscore the strength of our portfolio and disciplined execution. Adjusted gross margin was 48%, up by 2 percentage points after normalizing for the one-off benefit of the IPR settlement last year.
In Q2, we took action to mitigate component cost inflation. As the impact builds in the coming quarters, we will continue to pursue internal measures and pricing actions to help offset the effect. We also expect some pressure on Networks adjusted gross margin in Q3 due to higher volumes of network rollout projects.
Ericsson enters the next phase from a position of strength. Over recent years, we have strengthened our portfolio to capture the next wave of AI-driven connectivity. Building on our technology leadership in mobile networks, we have expanded into attractive growth areas, positioning Ericsson to capitalize as AI increasingly moves into the physical world."
Q2 Q2 YoY Q1 QoQ Jan-Jun Jan-Jun YoY
SEK b. 2026 2025 change 2026 change 2026 2025 change
------------- ------ ------ ------ ------ ------- ------- ------- -------
Net sales 52.691 56.132 -6 % 49.332 7 % 102.022 111.157 -8 %
------------- ------ ------ ------ ------ ------- ------- ------- -------
Organic sales
growth*([2]) - - -1 % - - - - 2 %
------------- ------ ------ ------ ------ ------- ------- ------- -------
Gross income 24.122 26.649 -9 % 23.299 4 % 47.421 53.186 -11 %
------------- ------ ------ ------ ------ ------- ------- ------- -------
Gross
margin([2]) 45.8 % 47.5 % - 47.2 % - 46.5 % 47.8 % -
------------- ------ ------ ------ ------ ------- ------- ------- -------
EBIT 5.919 6.391 -7 % 1.443 - 7.362 12.322 -40 %
------------- ------ ------ ------ ------ ------- ------- ------- -------
EBIT
margin([2]) 11.2 % 11.4 % - 2.9 % - 7.2 % 11.1 % -
------------- ------ ------ ------ ------ ------- ------- ------- -------
EBITA([2]) 6.277 6.763 -7 % 1.788 - 8.065 13.415 -40 %
------------- ------ ------ ------ ------ ------- ------- ------- -------
EBITA
margin([2]) 11.9 % 12.0 % - 3.6 % - 7.9 % 12.1 % -
------------- ------ ------ ------ ------ ------- ------- ------- -------
Net income 4.076 4.626 -12 % 0.887 - 4.963 8.843 -44 %
------------- ------ ------ ------ ------ ------- ------- ------- -------
EPS diluted,
SEK 1.22 1.37 -11 % 0.27 - 1.48 2.61 -43 %
------------- ------ ------ ------ ------ ------- ------- ------- -------
Free cash
flow before
M&A([2]) 0.385 2.581 -85 % 5.921 -93 % 6.306 5.285 19 %
------------- ------ ------ ------ ------ ------- ------- ------- -------
Net cash, end
of
period([2]) 59.839 36.040 66 % 68.141 -12 % 59.839 36.040 66 %
------------- ------ ------ ------ ------ ------- ------- ------- -------
Adjusted financial measures([1][2])
---------------------------------------------------------------------------------
Adjusted
gross
income 25.481 26.958 -5 % 23.734 7 % 49.216 53.653 -8 %
------------- ------ ------ ------ ------ ------- ------- ------- -------
Adjusted
gross
margin 48.4 % 48.0 % - 48.1 % - 48.2 % 48.3 % -
------------- ------ ------ ------ ------ ------- ------- ------- -------
Adjusted EBIT 6.520 7.048 -7 % 5.211 25 % 11.731 13.259 -12 %
------------- ------ ------ ------ ------ ------- ------- ------- -------
Adjusted EBIT
margin 12.4 % 12.6 % - 10.6 % - 11.5 % 11.9 % -
------------- ------ ------ ------ ------ ------- ------- ------- -------
Adjusted
EBITA 6.878 7.419 -7 % 5.556 24 % 12.433 14.352 -13 %
------------- ------ ------ ------ ------ ------- ------- ------- -------
Adjusted
EBITA
margin 13.1 % 13.2 % - 11.3 % - 12.2 % 12.9 % -
------------- ------ ------ ------ ------ ------- ------- ------- -------
*Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations.
([1]) Adjusted metrics are adjusted to exclude restructuring charges.
([2]) Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statement.
NOTES TO EDITORS
You find the complete report with tables in the attached PDF or on https://www.ericsson.com/en/investors/financial-reports/interim-reports
Video webcast for analysts, investors and journalists
President and CEO Börje Ekholm and CFO Lars Sandström will comment on the report and take questions at a video webcast at 9:00 AM CEST (8:00 AM BST London, 3:00 AM EDT New York).
Join the webcast or please go to www.ericsson.com/investors
To ask a question: Access dial-in information here
The webcast will be available on-demand after the event and can be viewed at www.ericsson.com/investors.
FOR FURTHER INFORMATION, PLEASE CONTACT
Investors
Daniel Morris, Head of Investor Relations
Phone: +44 7386657217
E-mail: investor.relations@ericsson.com
Lena Häggblom, Director, Investor Relations
Phone: +46 72 593 27 78
E-mail: lena.haggblom@ericsson.com
Alan Ganson, Director, Investor Relations
Phone: +46 70 267 27 30
E-mail: alan.ganson@ericsson.com
Media
Ralf Bagner, Head of Media Relations
Phone: +46 76 128 47 89
E-mail: ralf.bagner@ericsson.com
Media relations
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com
This is information that Telefonaktiebolaget LM Ericsson is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 CEST on July 14, 2026.
This information was brought to you by Cision http://news.cision.com.
https://news.cision.com/ericsson/r/ericsson-reports-second-quarter-results-2026,c4374341
The following files are available for download:
https://mb.cision.com/Main/15448/4374341/4191838.pdf Ericsson Q2 2020 ENG https://mb.cision.com/Public/15448/4374341/8762cf79e 2026 Q2 Financial tables a66e711.xlsx
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SOURCE Ericsson
(END) Dow Jones Newswires
July 14, 2026 01:38 ET
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