Sweden's Ericsson Q3 sales rise 6% on Networks unit strength

Telefonaktiebolaget LM Ericsson

15/10/2026 06:10

Overview
Sweden telecom equipment maker's Q3 net sales rose 6% yr/yr, driven by Networks segment
Adjusted EBITA and net income declined yr/yr, reflecting absence of prior-year capital gain
Company repurchased SEK 4.8 bln of shares during the quarter

Outlook
Ericsson says the RAN market is flat and geopolitical uncertainty remains elevated
Company expects component costs to be a headwind to gross margin next year
Ericsson aims to drive further efficiencies through a simplified operating structure

Result Drivers
NETWORKS SEGMENT - Co said organic sales growth was primarily driven by higher sales in Networks
PORTFOLIO OPTIMIZATION - Co said pricing and efficiency measures helped offset higher component costs and strengthen competitiveness
AI-ENABLED FEATURES - CEO said efficiency gains from AI-enabled features are being deployed in customer networks

Company press release: ID:nWkr6J6tnF

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Net Sales
 
SEK 59.48 bln
 
Q3 EPS
 
SEK 1.77
 
Q3 Net Income
 
SEK 5.8 bln
 
Q3 Gross Margin
 
47.1%
 
Q3 Adjusted EBIT
 
SEK 9.76 bln
 
Q3 Adjusted Gross Margin
 
47.7%
 
Q3 EBIT
 
SEK 8.86 bln
 
Q3 EBITA
 
SEK 9.23 bln
 
Q3 EBITA Margin
 
15.5%
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 8 "hold" and 8 "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 SEK98.00, about 0.9% above its October 14 closing price of SEK97.10
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 16 three months ago

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Oct 14 - Sweden's SEB must hold more capital, shares fall 4%

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(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.)