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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The webcast will be available on-demand after the event and can be viewed at www.ericsson.com/investors.

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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.