Ericsson has announced its financial results for first quarter (Q1) of 2026. The company’s net sales stood at SEK 49.3 billion as compared to SEK 55 billion in Q1 2025, a year-on-year (YoY) decrease of 10 per cent. Meanwhile, adjusted gross income decreased to SEK 23.7 billion, reflecting currency headwinds. Reported gross income was SEK 23.3 billion. Adjusted gross margin was 48.1 per cent supported by increase in cloud software and services gross margin increased, while networks margin decreased slightly. Further, reported gross margin stood at 47.2 per cent.
Furthermore, the company’s adjusted earnings before interest, tax and amortisation (EBITA) decreased to SEK 1.8 billion as compared to SEK 6.7 billion in Q1 2025. with a 11.3 per cent margin, mainly reflecting currency headwinds. EBITA was SEK 6.6 (4.9) billion.
Moreover, the company’s net income decreased to SEK 0.9 billion from SEK 4.2 billion in the reported period, reflecting restructuring charges and currency impacts. Meanwhile, earnings per share (EPS) diluted decreased to SEK 0.27 from SEK 1.24 in the reported period.
Commenting on the results, president and chief executive officer, Ericsson, said, “Our Q1 results demonstrate continued resilience in a dynamic environment, with organic sales growth of 6 per cent. Our healthy gross margins and strong cash flow reflect the progress we have made in recent years, reducing reliance on geographic mix and strengthening our foundations globally. Our multi-year investments in building a resilient, diversified, supply chain have enabled us to deliver consistently for customers amidst geopolitical and macroeconomic uncertainties. We are facing increasing input costs, especially in semiconductors, caused in part by artificial intelligence demand. Our ambition is to offset these challenges, by working closely with customers and suppliers, and through product substitution and efficiency actions. Looking ahead, while we continue to expect a flattish radio access network market, our focused strategy, leading portfolio, and strengthened positions in mission critical and enterprise give us confidence in our ability to grow faster than the mobile networks market and drive long-term success.”
