Telecommunications giant Ericsson has reported a resilient start to 2026, delivering solid financial results for the first quarter despite currency pressures and ongoing global uncertainties. The company’s performance reflects a more geographically balanced business and continued demand across its core network infrastructure segment.
Organic sales grew by 6% year-on-year, driven largely by the Networks division, as customer activity strengthened across multiple regions. This broader demand signals a shift away from reliance on a few key markets toward a more diversified global footprint. Reinforcing its technological edge, Ericsson also unveiled AI-native radios at Mobile World Congress 2026, highlighting its continued investment in next-generation network capabilities.
In a move aimed at enhancing shareholder value, the company approved a share buyback program of up to SEK 15 billion, with implementation expected to begin on April 23, 2026.
Financially, Ericsson recorded reported sales of SEK 49.3 billion, down from SEK 55.0 billion in the same period last year, though organic growth remained positive across all business segments. Gross income declined to SEK 23.3 billion, reflecting unfavorable currency movements, while adjusted gross income stood slightly higher at SEK 23.7 billion.
Profitability showed mixed trends. The adjusted gross margin came in at 48.1%, marginally below last year’s 48.5%. Gains in the Cloud Software and Services segment helped offset a slight decline in Networks margins. However, restructuring costs weighed heavily on earnings, with EBITA dropping to SEK 1.8 billion from SEK 6.7 billion a year earlier. On an adjusted basis, EBITA reached SEK 5.6 billion, translating to an 11.3% margin.
Net income fell to SEK 0.9 billion, compared to SEK 4.2 billion in the prior year, largely due to restructuring charges and currency headwinds. Diluted earnings per share similarly declined to SEK 0.27 from SEK 1.24. Despite this, cash generation remained a bright spot, with free cash flow before mergers and acquisitions rising significantly to SEK 5.9 billion, supported by stronger operating cash flow.
President and CEO Börje Ekholm noted that the company’s performance underscores its resilience in a volatile environment. He emphasized that long-term investments in supply chain diversification have enabled Ericsson to maintain consistent delivery despite geopolitical and macroeconomic challenges.
The company is also navigating rising input costs, particularly in semiconductors—an issue partly driven by increasing global demand for AI technologies. Ericsson plans to mitigate these pressures through closer collaboration with suppliers and customers, alongside efficiency improvements and product adjustments.
Looking ahead, Ericsson expects the global radio access network (RAN) market to remain relatively flat. Nevertheless, the company remains optimistic about outperforming the broader mobile networks market, supported by its strategic focus, expanding enterprise presence, and strengthened position in mission-critical communications.
Overall, the first quarter results reflect a company balancing near-term pressures with long-term strategic execution, positioning itself for sustainable growth in an evolving telecommunications landscape.
* Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations.
[1] Adjusted metrics are adjusted to exclude restructuring charges.
[2] Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statement.