Ericsson Reports Strong Third-Quarter Sales and Profit Growth

STOCKHOLM, Oct. 15, 2026 /CourierPR/ -- Ericsson, a leading provider of telecommunications equipment and services, reported solid third-quarter results for 2026, highlighting strong organic growth and strategic customer wins. The company's third-quarter sales, adjusted for acquisitions, divestments, and foreign currency fluctuations, increased by 7% to SEK 59.5 billion, up from SEK 56.2 billion in the same period last year. This growth was primarily driven by higher sales in the Networks segment.

Narvinger noted that the company has seen significant customer wins and deployments across network modernization, differentiated connectivity, and mission-critical networks. These wins are expected to drive future growth and competitiveness.

In terms of financial performance, Ericsson's adjusted gross income increased to SEK 28.4 billion, up from SEK 27.0 billion in the previous year. The company's reported gross income was SEK 28.0 billion. The adjusted gross margin was 47.7%, up from 48.1% in the previous year, with the Networks margin increasing due to retroactive IPR revenues. The Enterprise margin was lower, reflecting the divestment of iconectiv, while the Cloud Software and Services margin remained stable. The reported gross margin was 47.1%, down from 47.6% in the previous year.

Ericsson's adjusted EBITA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was SEK 10.1 billion, with a margin of 17.0%, down from 28.1% in the previous year. Excluding a capital gain of SEK 7.6 billion from the prior year, the adjusted EBITA increased. The reported EBITA was SEK 9.2 billion, with a margin of 15.5%, down from 27.6% in the previous year. Net income for the quarter was SEK 5.8 billion, and the diluted earnings per share (EPS) was SEK 1.77, down from SEK 3.33 in the previous year, which included a SEK 1.72 per share divestment gain.

The company's free cash flow before M&A was SEK 4.9 billion, down from SEK 6.6 billion in the previous year. Ericsson also announced a simplification of its operating structure aimed at strengthening its customer focus and driving further efficiencies. The company will continue to prioritize technology leadership and take disciplined actions to strengthen competitiveness, despite challenges such as a flat RAN market, geopolitical uncertainty, and higher component costs.

Ericsson will host a video webcast at 9:00 AM CEST (8:00 AM BST London, 3:00 AM EDT New York) on October 15, 2026, where President and CEO Per Narvinger and CFO Lars Sandström will provide further details and answer questions. The webcast will be available on-demand after the event.