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Ericsson reports second quarter results 2026
Strategic highlights - disciplined execution and margin resilience
- Adjusted gross margin of 48.4%, supported by solid operational execution and improved margins in Mobile Networks.
- Strong net cash position supporting continued investments and capital returns, with SEK 8.2 b. returned to shareholders in Q2.
- Demonstrated AI-enabled drone sensing and tracking using existing cell towers at a Texas stadium during a major global sporting event.
Financial highlights - solid financial performance
- Reported sales were SEK 52.7 (56.1) b. Organic* sales decreased by -1%* YoY primarily due to lower IPR licensing revenues, reflecting a non-recurring benefit from a partial settlement in the prior year period. Organic* sales grew in three out of four market areas.
- Adjusted [1] gross income was SEK 25.5 (27.0) b., with solid operational execution partly offset by currency headwinds. Reported gross income was SEK 24.1 (26.6) b.
- Adjusted [1] gross margin was 48.4% (48.0%). Networks and Cloud Software and Services adjusted gross margin increased. Reported gross margin was 45.8% (47.5%).
- Adjusted [1] EBITA was SEK 6.9 (7.4) b. with a 13.1% (13.2%) margin, benefiting from continued strong margin expansion in Cloud Software and Services. Reported EBITA was SEK 6.3 (6.8) b., with an 11.9% (12.0%) margin.
- Net income was SEK 4.1 (4.6) b. EPS diluted was SEK 1.22 (1.37).
- Free cash flow before M&A was SEK 0.4 (2.6) b.
- Capital returns to shareholders were SEK 8.2 b. in Q2, including SEK 3.2 b. of share repurchases
Comment from Börje Ekholm, President and CEO: "Our Q2 results underscore the strength of our portfolio and disciplined execution. Adjusted gross margin was 48%, up by 2 percentage points after normalizing for the one-off benefit of the IPR settlement last year.
In Q2, we took action to mitigate component cost inflation. As the impact builds in the coming quarters, we will continue to pursue internal measures and pricing actions to help offset the effect. We also expect some pressure on Networks adjusted gross margin in Q3 due to higher volumes of network rollout projects.
Ericsson enters the next phase from a position of strength. Over recent years, we have strengthened our portfolio to capture the next wave of AI-driven connectivity. Building on our technology leadership in mobile networks, we have expanded into attractive growth areas, positioning Ericsson to capitalize as AI increasingly moves into the physical world."
| SEK b. | Q2 2026 | Q2 2025 | YoY change | Q1 2026 | QoQ change | Jan-Jun 2026 | Jan-Jun 2025 | YoY change |
| Net sales | 52.691 | 56.132 | -6% | 49.332 | 7% | 102.022 | 111.157 | -8% |
| Organic sales growth*[2] | - | - | -1% | - | - | - | - | 2% |
| Gross income | 24.122 | 26.649 | -9% | 23.299 | 4% | 47.421 | 53.186 | -11% |
| Gross margin[2] | 45.8% | 47.5% | - | 47.2% | - | 46.5% | 47.8% | - |
| EBIT | 5.919 | 6.391 | -7% | 1.443 | - | 7.362 | 12.322 | -40% |
| EBIT margin[2] | 11.2% | 11.4% | - | 2.9% | - | 7.2% | 11.1% | - |
| EBITA[2] | 6.277 | 6.763 | -7% | 1.788 | - | 8.065 | 13.415 | -40% |
| EBITA margin[2] | 11.9% | 12.0% | - | 3.6% | - | 7.9% | 12.1% | - |
| Net income | 4.076 | 4.626 | -12% | 0.887 | - | 4.963 | 8.843 | -44% |
| EPS diluted, SEK | 1.22 | 1.37 | -11% | 0.27 | - | 1.48 | 2.61 | -43% |
| Free cash flow before M&A[2] | 0.385 | 2.581 | -85% | 5.921 | -93% | 6.306 | 5.285 | 19% |
| Net cash, end of period[2] | 59.839 | 36.040 | 66% | 68.141 | -12% | 59.839 | 36.040 | 66% |
Adjusted financial measures[1][2] | ||||||||
| Adjusted gross income | 25.481 | 26.958 | -5% | 23.734 | 7% | 49.216 | 53.653 | -8% |
| Adjusted gross margin | 48.4% | 48.0% | - | 48.1% | - | 48.2% | 48.3% | - |
| Adjusted EBIT | 6.520 | 7.048 | -7% | 5.211 | 25% | 11.731 | 13.259 | -12% |
| Adjusted EBIT margin | 12.4% | 12.6% | - | 10.6% | - | 11.5% | 11.9% | - |
| Adjusted EBITA | 6.878 | 7.419 | -7% | 5.556 | 24% | 12.433 | 14.352 | -13% |
| Adjusted EBITA margin | 13.1% | 13.2% | - | 11.3% | - | 12.2% | 12.9% | - |
*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.
NOTES TO EDITORS
You find the complete report with tables in the attached PDF or on https://www.ericsson.com/en/investors/financial-reports/interim-reports
Video webcast for analysts, investors and journalists
President and CEO Börje Ekholm and CFO Lars Sandström will comment on the report and take questions at a video webcast at 9:00 AM CEST (8:00 AM BST London, 3:00 AM EDT New York).
Join the webcast or please go to www.ericsson.com/investors
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FOR FURTHER INFORMATION, PLEASE CONTACT
Investors
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E-mail: investor.relations@ericsson.com
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Alan Ganson, Director, Investor Relations
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E-mail: alan.ganson@ericsson.com
Media
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This is information that Telefonaktiebolaget LM Ericsson is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 CEST on July 14, 2026.