STOCKHOLM, Oct. 15, 2026 /PRNewswire/ --
Strategic highlights -- executing well in a challenging environment
-- Solid customer demand in strategic markets, combined with near-term
commercial actions, supported organic growth of 7%*.
-- Customer wins and deployments across network modernization,
differentiated connectivity and mission-critical networks.
-- Driving portfolio optimization, pricing and efficiency measures to help
offset higher component costs and to strengthen competitiveness.
Financial highlights -- sales growth and cost discipline
-- Reported sales were SEK 59.5 (56.2) b. Organic* sales increased by 7%*
YoY primarily driven by higher sales in Networks. Organic* sales grew in
three out of four market areas.
-- Adjusted [1] gross income increased to SEK 28.4 (27.0) b., driven by
Mobile Networks. Reported gross income was SEK 28.0 (26.8) b.
-- Adjusted [1] gross margin was 47.7% (48.1%). Networks margin increased,
supported by retroactive IPR revenues. Enterprise margin was lower, due
to the divestment of iconectiv. Cloud Software and Services margin was
stable. Reported gross margin was 47.1% (47.6%).
-- Adjusted [1] EBITA was SEK 10.1 (15.8) b. with a 17.0% (28.1%) margin.
Excluding the prior-year period capital gain of SEK 7.6 b., adjusted
EBITA increased. Operating expenses decreased YoY. Reported EBITA was SEK
9.2 (15.5) b., with a 15.5% (27.6%) margin.
-- Net income was SEK 5.8 (11.3) b. and diluted EPS was SEK 1.77 (3.33).
Prior-year EPS included a SEK 1.72 per share divestment gain.
-- Free cash flow before M&A was SEK 4.9 (6.6) b.
-- Capital returns to shareholders were SEK 4.8 b. of share repurchases.
Comment from Per Narvinger, President and CEO: "We delivered strong third-quarter results, supported by focused execution, the strength of our portfolio, and the trust customers place in Ericsson. During the quarter, I met with many of our customers. A consistent theme was the need for more intelligent and autonomous networks to improve performance, efficiency, robustness and resilience. Ericsson is well positioned, and we are already seeing the efficiency gains from AI-enabled features in our portfolio being deployed in customer networks.
Today, we also announced a simplification of our operating structure that will strengthen our customer focus and drive further efficiencies over time. It will enable us to move faster, improve accountability and better support our customers in a changing market. Ericsson has a proud history of shaping global connectivity, and I am excited to lead the company in this period of rapid technology change.
Looking ahead, the RAN market is flat, geopolitical uncertainty remains elevated and component costs are a headwind to gross margin next year. We will stay close to our customers, continue to prioritize technology leadership and take disciplined actions to strengthen competitiveness. Ericsson remains well positioned to navigate these challenges and deliver profitable long-term growth, with all segments contributing."
Q3 Q3 YoY Q2 QoQ Jan-Sep Jan-Sep YoY
SEK b. 2026 2025 change 2026 change 2026 2025 change
--------------- ------ ------ ------ ------ ------ ------- ------- ------
Net sales 59.478 56.239 6 % 52.691 13 % 161.500 167.396 -4 %
--------------- ------ ------ ------ ------ ------ ------- ------- ------
Organic sales
growth*[2] - - 7 % - - - - 4 %
--------------- ------ ------ ------ ------ ------ ------- ------- ------
Gross income 27.990 26.777 5 % 24.122 16 % 75.411 79.963 -6 %
--------------- ------ ------ ------ ------ ------ ------- ------- ------
Gross margin[2] 47.1 % 47.6 % - 45.8 % - 46.7 % 47.8 % -
--------------- ------ ------ ------ ------ ------ ------- ------- ------
EBIT 8.864 15.151 -41 % 5.919 50 % 16.226 27.473 -41 %
--------------- ------ ------ ------ ------ ------ ------- ------- ------
EBIT margin[2] 14.9 % 26.9 % - 11.2 % - 10.0 % 16.4 % -
--------------- ------ ------ ------ ------ ------ ------- ------- ------
EBITA[2] 9.228 15.516 -41 % 6.277 47 % 17.292 28.931 -40 %
--------------- ------ ------ ------ ------ ------ ------- ------- ------
EBITA margin[2] 15.5 % 27.6 % - 11.9 % - 10.7 % 17.3 % -
--------------- ------ ------ ------ ------ ------ ------- ------- ------
Net income 5.797 11.300 -49 % 4.076 42 % 10.760 20.143 -47 %
--------------- ------ ------ ------ ------ ------ ------- ------- ------
EPS diluted,
SEK 1.770 3.330 -47 % 1.220 45 % 3.240 5.940 -45 %
--------------- ------ ------ ------ ------ ------ ------- ------- ------
Free cash flow
before M&A[2] 4.902 6.631 -26 % 0.385 - 11.207 11.916 -6 %
--------------- ------ ------ ------ ------ ------ ------- ------- ------
Net cash, end
of period[2] 60.687 51.858 17 % 59.839 1 % 60.687 51.858 17 %
--------------- ------ ------ ------ ------ ------ ------- ------- ------
Adjusted
financial
measures[1][2]
--------------- ------ ------ ------ ------ ------ ------- ------- ------
Adjusted gross
income 28.351 27.047 5 % 25.481 11 % 77.567 80.703 -4 %
--------------- ------ ------ ------ ------ ------ ------- ------- ------
Adjusted gross
margin 47.7 % 48.1 % - 48.4 % - 48.0 % 48.2 % -
--------------- ------ ------ ------ ------ ------ ------- ------- ------
Adjusted EBIT 9.757 15.454 -37 % 6.520 50 % 21.488 28.713 -25 %
--------------- ------ ------ ------ ------ ------ ------- ------- ------
Adjusted EBIT
margin 16.4 % 27.5 % - 12.4 % - 13.3 % 17.2 % -
--------------- ------ ------ ------ ------ ------ ------- ------- ------
Adjusted EBITA 10.121 15.819 -36 % 6.878 47 % 22.554 30.171 -25 %
--------------- ------ ------ ------ ------ ------ ------- ------- ------
Adjusted EBITA
margin 17.0 % 28.1 % - 13.1 % - 14.0 % 18.0 % -
--------------- ------ ------ ------ ------ ------ ------- ------- ------
*Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations.
[1] Adjusted metrics are adjusted to exclude restructuring charges.
[2] Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statement.
NOTES TO EDITORS
You find the complete report with tables in the attached PDF or on https://www.ericsson.com/en/investors/financial-reports/interim-reports
Video webcast for analysts, investors and journalists
President and CEO Per Narvinger and CFO Lars Sandström will comment on the report and take questions at a video webcast at 9:00 AM CEST (8:00 AM BST London, 3:00 AM EDT New York).
Join the webcast or please go to www.ericsson.com/investors
To ask a question: Access dial-in information here
The webcast will be available on-demand after the event and can be viewed at www.ericsson.com/investors.
FOR FURTHER INFORMATION, PLEASE CONTACT
Investors
Daniel Morris, Head of Investor Relations
Phone: +44 7386657217
E-mail: investor.relations@ericsson.com
Lena Häggblom, Director, Investor Relations
Phone: +46 72 593 27 78
E-mail: lena.haggblom@ericsson.com
Media
Ralf Bagner, Head of Media Relations
Phone: +46 76 128 47 89
E-mail: ralf.bagner@ericsson.com
Media relations
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com
This is information that Telefonaktiebolaget LM Ericsson is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 CEST on October 15, 2026.
This information was brought to you by Cision http://news.cision.com
https://news.cision.com/ericsson/r/ericsson-reports-third-quarter-results-2026,c4409101
The following files are available for download:
https://mb.cision.com/Main/15448/4409101/4319119.pdf Ericsson Q3 2026 ENG https://mb.cision.com/Public/15448/4409101/a2ce6f0c7 2026 Q3 Financial tables 987fd03.xlsx
View original content:https://www.prnewswire.com/news-releases/ericsson-reports-third-quarter-results-2026-302909526.html
SOURCE Ericsson
Comments