Ericsson Q1 profit falls on currency headwinds, restructuring charges

Telefonaktiebolaget LM Ericsson

17/04/2026 06:09

Overview

Sweden telecom equipment maker's Q1 organic sales grew 6% yr/yr, led by Networks segment

Adjusted EBIT and net income declined, reflecting restructuring charges and currency headwinds

Company approved SEK 15 bln share buyback program to commence in April 2026

Outlook

Ericsson expects a flattish RAN market ahead

Company aims to grow faster than the mobile networks market

Ericsson sees increasing input costs, especially in semiconductors, due to AI demand

Result Drivers

BROAD-BASED DEMAND - Co said organic sales growth was driven by increased customer demand across regions and segments

CURRENCY AND RESTRUCTURING IMPACT - Co said lower adjusted EBIT and net income mainly reflected currency headwinds and restructuring charges

HIGHER INPUT COSTS - Co said input costs, especially in semiconductors, increased due to AI demand

Company press release: ID:nWkrKp1jM

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Sales
SEK 49.33 bln
Q1 EPS
SEK 0.27
Q1 Net Income
SEK 887 mln
Q1 Gross Margin
47.20%
Q1 Adjusted EBIT
SEK 5.21 bln
Q1 Adjusted Gross Margin
48.10%
Q1 EBIT
SEK 1.44 bln
Q1 EBITA
SEK 1.79 bln
Q1 EBITA Margin
3.60%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 12 "hold" and 7 "sell" or "strong sell"

The average consensus recommendation for the communications & networking peer group is "buy."

Wall Street's median 12-month price target for Telefonaktiebolaget LM Ericsson is SEK95.00, about 13.8% below its April 16 closing price of SEK110.25

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)