Newscasts - Ericsson's shares soar after profit beat, shrugs off tariffs

Telefonaktiebolaget LM Ericsson

14/10/2025 10:31

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Source: 'Reuters - Business videos'

Description: Shares in Ericsson surged more than 14% on Tuesday after the Swedish telecoms equipment maker exceeded expectations for quarterly earnings growth and played down the impact of U.S. tariffs. Francis Maguire reports.

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Video Transcript:

Ericsson shares soared more than 14% in early morning trade Tuesday. Investors bought in after the firm reported a better-than-expected rise in quarterly earnings. Income before tax and interest hit $1.62 billion, almost a tenth higher than analysts' forecasts. The number also excluded restructuring charges at the Swedish telecoms equipment maker. Cost savings and a dominant position in North America have helped Ericsson stay ahead of Nordic rival Nokia in the 5G race. The group has also outperformed rivals in winning US contracts, mainly a $14 billion deal with AT&T. Ericsson also played down the impact of US tariffs. While the firm warned no company is immune to the duties, they currently don't see more impact from it going forward. Third-quarter net sales were 9% down from a year ago at just under $5.9 billion but came in above analyst expectations. However, sales in the Americas slowed down by 8% from last year. Ericsson completed the sale of its iconectiv business in August, which led to a one-off profit gain of almost $800 million. The company also announced a five-year partnership with Vodafone Tuesday. The plan is to modernize the operator's programmable networks. Financial details of the deal weren't disclosed.