Ericsson | Third quarter report 2026. October 15, 2026. | 1 |
Third quarter report 2026
Strategic highlights – executing well in a challenging environment
–Solid customer demand in strategic markets, combined with near-term commercial actions, supported organic growth of 7%*.
–Customer wins and deployments across network modernization, differentiated connectivity and mission-critical networks.
–Driving portfolio optimization, pricing and efficiency measures to help offset higher component costs and to strengthen competitiveness.
Financial highlights – sales growth and cost discipline
–Reported sales were SEK 59.5 (56.2) b. Organic* sales increased by 7%* YoY primarily driven by higher sales in Networks. Organic* sales
grew in three out of four market areas.
–Adjusted1 gross income increased to SEK 28.4 (27.0) b., driven by Mobile Networks. Reported gross income was SEK 28.0 (26.8) b.
–Adjusted1 gross margin was 47.7% (48.1%). Networks margin increased, supported by retroactive IPR revenues. Enterprise margin was
lower, due to the divestment of iconectiv. Cloud Software and Services margin was stable. Reported gross margin was 47.1% (47.6%).
–Adjusted1 EBITA was SEK 10.1 (15.8) b. with a 17.0% (28.1%) margin. Excluding the prior-year period capital gain of SEK 7.6 b., adjusted
EBITA increased. Operating expenses decreased YoY. Reported EBITA was SEK 9.2 (15.5) b., with a 15.5% (27.6%) margin.
–Net income was SEK 5.8 (11.3) b. and diluted EPS was SEK 1.77 (3.33). Prior-year EPS included a SEK 1.72 per share divestment gain.
–Free cash flow before M&A was SEK 4.9 (6.6) b.
–Capital returns to shareholders were SEK 4.8 b. of share repurchases.
Comment from Per Narvinger, President and CEO
We delivered strong third-quarter results, supported by focused execution, the strength of our portfolio, and the trust customers place
in Ericsson. During the quarter, I met with many of our customers. A consistent theme was the need for more intelligent and
autonomous networks to improve performance, efficiency, robustness and resilience. Ericsson is well positioned, and we are already
seeing the efficiency gains from AI-enabled features in our portfolio being deployed in customer networks.
Today, we also announced a simplification of our operating structure that will strengthen our customer focus and drive further
efficiencies over time. It will enable us to move faster, improve accountability and better support our customers in a changing market.
Ericsson has a proud history of shaping global connectivity, and I am excited to lead the company in this period of rapid technology
change.
Looking ahead, the RAN market is flat, geopolitical uncertainty remains elevated and component costs are a headwind to gross
margin next year. We will stay close to our customers, continue to prioritize technology leadership and take disciplined actions to
strengthen competitiveness. Ericsson remains well positioned to navigate these challenges and deliver profitable long-term growth,
with all segments contributing.
SEK b. | Q3 2026 | Q3 2025 | YoY change | Q2 2026 | QoQ change | Jan-Sep 2026 | Jan-Sep 2025 | YoY change |
Net sales | 59.5 | 56.2 | 6% | 52.7 | 13% | 161.5 | 167.4 | -4% |
Organic sales growth*²⁾ | - | - | 7% | - | - | - | - | 4% |
Gross income | 28.0 | 26.8 | 5% | 24.1 | 16% | 75.4 | 80.0 | -6% |
Gross margin²⁾ | 47.1% | 47.6% | - | 45.8% | - | 46.7% | 47.8% | - |
EBIT | 8.9 | 15.2 | -41% | 5.9 | 50% | 16.2 | 27.5 | -41% |
EBIT margin²⁾ | 14.9% | 26.9% | - | 11.2% | - | 10.0% | 16.4% | - |
EBITA²⁾ | 9.2 | 15.5 | -41% | 6.3 | 47% | 17.3 | 28.9 | -40% |
EBITA margin²⁾ | 15.5% | 27.6% | - | 11.9% | - | 10.7% | 17.3% | - |
Net income | 5.8 | 11.3 | -49% | 4.1 | 42% | 10.8 | 20.1 | -47% |
EPS diluted, SEK | 1.77 | 3.33 | -47% | 1.22 | 45% | 3.24 | 5.94 | -45% |
Free cash flow before M&A²⁾ | 4.9 | 6.6 | -26% | 0.4 | - | 11.2 | 11.9 | -6% |
Net cash, end of period²⁾ | 60.7 | 51.9 | 17% | 59.8 | 1% | 60.7 | 51.9 | 17% |
Adjusted financial measures¹⁾²⁾ | ||||||||
Adjusted gross income | 28.4 | 27.0 | 5% | 25.5 | 11% | 77.6 | 80.7 | -4% |
Adjusted gross margin | 47.7% | 48.1% | - | 48.4% | - | 48.0% | 48.2% | - |
Adjusted EBIT | 9.8 | 15.5 | -37% | 6.5 | 50% | 21.5 | 28.7 | -25% |
Adjusted EBIT margin | 16.4% | 27.5% | - | 12.4% | - | 13.3% | 17.2% | - |
Adjusted EBITA | 10.1 | 15.8 | -36% | 6.9 | 47% | 22.6 | 30.2 | -25% |
Adjusted EBITA margin | 17.0% | 28.1% | - | 13.1% | - | 14.0% | 18.0% | - |
* 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. |
Ericsson | Third quarter report 2026. October 15, 2026. | Group results | 2 |
Amounts marked with an ‘*’ in this document represent sales growth adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations, also named organic sales growth. These numbers present performance on a comparable basis to improve the comparability of results between periods. Organic sales growth figures are non-IFRS measures. ‘Adjusted’ metrics are adjusted to exclude restructuring charges and are non-IFRS measures. This is a change in nomenclature only. See ‘Financial statements and other information’ for Alternative performance measures. |
Group results
SEK b. | Q3 2026 | Q3 2025 | YoY change | Q2 2026 | QoQ change | Jan-Sep 2026 | Jan-Sep 2025 | YoY change |
Net sales | 59.5 | 56.2 | 6% | 52.7 | 13% | 161.5 | 167.4 | -4% |
Organic sales growth*¹⁾ | - | - | 7% | - | - | - | - | 4% |
Gross income | 28.0 | 26.8 | 5% | 24.1 | 16% | 75.4 | 80.0 | -6% |
Gross margin | 47.1% | 47.6% | - | 45.8% | - | 46.7% | 47.8% | - |
Research and development (R&D) expenses | -11.8 | -11.5 | 3% | -10.5 | 13% | -35.8 | -35.8 | 0% |
Selling and administrative expenses | -7.4 | -7.9 | -6% | -7.7 | -4% | -23.3 | -24.7 | -6% |
Impairment losses on trade receivables | 0.1 | 0.0 | 52% | 0.0 | - | -0.1 | 0.1 | - |
Other operating income and expenses | 0.1 | 7.7 | -99% | 0.1 | 4% | 0.2 | 7.8 | -97% |
Share of earnings/losses of associated companies | 0.0 | 0.0 | - | -0.1 | - | -0.2 | 0.1 | - |
EBIT | 8.9 | 15.2 | -41% | 5.9 | 50% | 16.2 | 27.5 | -41% |
EBIT margin¹⁾ | 14.9% | 26.9% | - | 11.2% | - | 10.0% | 16.4% | - |
EBITA¹⁾ | 9.2 | 15.5 | -41% | 6.3 | 47% | 17.3 | 28.9 | -40% |
EBITA margin¹⁾ | 15.5% | 27.6% | - | 11.9% | - | 10.7% | 17.3% | - |
Financial income and expenses, net | -0.9 | -0.2 | - | -0.2 | - | -1.3 | -0.3 | - |
Income tax | -2.2 | -3.6 | -41% | -1.7 | 30% | -4.2 | -7.1 | -41% |
Net income | 5.8 | 11.3 | -49% | 4.1 | 42% | 10.8 | 20.1 | -47% |
Restructuring charges | -0.9 | -0.3 | 195% | -0.6 | 49% | -5.3 | -1.2 | - |
Adjusted financial measures¹⁾ | ||||||||
Adjusted gross income | 28.4 | 27.0 | 5% | 25.5 | 11% | 77.6 | 80.7 | -4% |
Adjusted gross margin | 47.7% | 48.1% | - | 48.4% | - | 48.0% | 48.2% | - |
Adjusted EBIT | 9.8 | 15.5 | -37% | 6.5 | 50% | 21.5 | 28.7 | -25% |
Adjusted EBIT margin | 16.4% | 27.5% | - | 12.4% | - | 13.3% | 17.2% | - |
Adjusted EBITA | 10.1 | 15.8 | -36% | 6.9 | 47% | 22.6 | 30.2 | -25% |
Adjusted EBITA margin | 17.0% | 28.1% | - | 13.1% | - | 14.0% | 18.0% | - |
1) Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements.
Net sales
Reported sales increased by 6% YoY to SEK 59.5 (56.2) b.
Networks sales increased by 9% to SEK 38.7 b. Cloud Software
and Services sales increased by 3% to SEK 15.8 b. Enterprise
sales declined by -10% to SEK 4.6 b., reflecting the divestment of
iconectiv in Q3 2025. Sales in segment Other were stable at SEK
0.4 b.
Organic sales increased by 7%* YoY primarily driven by
increased Networks sales. Sales grew in market areas North
East Asia, South East Asia, Oceania and India and in market
area Europe, Middle East and Africa. Growth was partly offset by
a -1%* decline in market area Americas, reflecting lower sales in
Latin America. Networks sales increased by 9%* with growth in
three of the four market areas. Cloud Software and Services
sales grew by 3%*, with growth in three of the four market areas.
Sales in segment Enterprise increased by 1%*.
IPR licensing revenues increased to SEK 3.9 (3.1) b. The
increase was partly driven by retroactive revenue related to
previously unlicensed periods. 82% of IPR licensing revenues are
reported in segment Networks, with the remainder in Cloud
Software and Services.
Gross income and margin
Gross margin declined slightly to 47.1% (47.6%), reflecting higher
restructuring charges and the impact of the divestment of
iconectiv.
Gross income increased to SEK 28.0 (26.8) b. Higher gross
income in Networks and in Cloud Software and Services was
partly offset by lower gross income in Enterprise following the
divestment of iconectiv. Gross margin and gross income
benefited from higher IPR licensing revenues, in part reflecting
retroactive revenue related to previously unlicensed periods.
Adjusted gross income increased to SEK 28.4 (27.0) b., with a
margin of 47.7% (48.1%).
Research and development (R&D) expenses
R&D expenses increased to SEK -11.8 (-11.5) b., reflecting
higher restructuring charges of SEK -0.3 (0.0) b. Cost-reduction
actions offset salary increases.
Selling and administrative (SG&A) expenses
SG&A expenses were SEK -7.4 (-7.9) b., including restructuring
charges of SEK -0.3 (-0.1) b. SG&A expenses declined as a
result of cost-reduction actions, with the largest reduction in
Enterprise.
Other operating income and expenses
Other operating income and expenses were SEK 0.1 (7.7) b. The
prior-year period included a SEK 7.6 b. capital gain from the
divestment of iconectiv.
Restructuring charges
Restructuring charges were SEK -0.9 (-0.3) b. Gross income
included SEK -0.4 (-0.3) b. of restructuring charges, while
Ericsson | Third quarter report 2026. October 15, 2026. | Group results | 3 |
operating expenses included SEK -0.5 (0.0) b. of restructuring
charges.
EBITA
EBITA decreased to SEK 9.2 (15.5) b. reflecting a SEK 7.6 b.
capital gain in the prior-year period as well as higher restructuring
charges. Profitability improved excluding the capital gain. Gross
income improved by SEK 1.2 b. while operating expenses
decreased by SEK 0.2 b. YoY. The EBITA margin was 15.5%
(27.6%).
Adjusted EBITA decreased to SEK 10.1 (15.8) b. reflecting the
capital gain in the prior-year period. The adjusted EBITA margin
was 17.0% (28.1%).
EBIT
EBIT decreased to SEK 8.9 (15.2) b., reflecting the capital gain in
the prior-year period. The EBIT margin was 14.9% (26.9%).
Amortization was stable at SEK -0.4 (-0.4) b.
Adjusted EBIT decreased to SEK 9.8 (15.5) b. reflecting the
capital gain in the prior-year period. The adjusted EBIT margin
was 16.4% (27.5%).
Financial income and expenses, net
Financial income and expenses were SEK -0.9 (-0.2) b. Financial
net was negatively affected by provisions related to interest
expenses associated with the resolution of tax matters and a
currency hedge effect of SEK -0.2 (-0.1) b.
Income tax
Taxes were SEK -2.2 (-3.6) b. A tax rate of 28% is expected for
the full year, mainly reflecting the impact of elevated restructuring
costs and provisions for resolutions of tax matters. The effective
tax rate in 2025 was 25%.
Net income
Net income decreased to SEK 5.8 (11.3) b. Diluted EPS was
SEK 1.77 (3.33).
Employees
The number of employees on September 30, 2026, was 85,417
compared with 86,536 on June 30, 2026. On September 30,
2025, the number of employees was 89,898.
Financial highlights, year-to-date (Jan-Sep) development
Reported sales decreased by -4% to SEK 161.5 (167.4) b.
including a negative currency impact of SEK -9.6 b. Sales in
Networks declined by -2% to SEK 104.7 (106.8) b. Sales in Cloud
Software and Services declined by -1% to SEK 42.4 (42.7) b.
Sales in Enterprise declined by -20% to SEK 13.2 (16.5) b.,
including a SEK -2.7 b. impact from the divestment of iconectiv in
2025.
Organic sales increased by 4%*. Sales increased organically
in Networks by 4%*, in Cloud Software and Services by 4%* and
in Enterprise by 3%*.
Organic sales increased in three of the four market areas.
Sales in market area Americas declined slightly, reflecting high
deliveries in North America in the prior-year period. IPR licensing
revenues declined to SEK 10.4 (11.2) b., as the prior-year period
benefited from higher revenues related to previously unlicensed
periods.
Gross income decreased to SEK 75.4 (80.0) b. impacted by
lower net sales, a negative currency impact of SEK -4.7 b. and
restructuring charges of SEK -2.2 (-0.7) b. Gross margin was
46.7% (47.8%). Adjusted gross income decreased to SEK 77.6
(80.7) b., with a margin of 48.0% (48.2%). Adjusted gross margin
was stable in Networks and increased in Cloud Software and
Services. Gross margin in Enterprise declined YoY primarily as a
result of the divestment of iconectiv.
EBITA decreased to SEK 17.3 (28.9) b. with a margin of
10.7% (17.3%), impacted by lower net sales, increased
restructuring charges, the divestment of iconectiv, and a negative
currency impact of SEK -2.9 b. The prior-year period included a
SEK 7.6 b. capital gain from the divestment of iconectiv. Adjusted
EBITA decreased to
SEK 22.6 (30.2) b., with a margin of 14.0% (18.0%).
EBIT decreased to SEK 16.2 (27.5) b., with a margin of
10.0% (16.4%). Adjusted EBIT was SEK 21.5 (28.7) b., with a
margin of 13.3% (17.2%). Amortization of intangible assets was
SEK -1.1 (-1.5) b.
Net income decreased to SEK 10.8 (20.1) b. including
restructuring charges of SEK -5.3 (-1.2) b. Diluted EPS
decreased to SEK 3.24 (5.94).
Ericsson | Third quarter report 2026. October 15, 2026. | Market area sales | 4 |
Market area sales
SEK b. | Q3 2026 | Q3 2025 | YoY change | YoY organic growth | Q2 2026 | QoQ change | Jan-Sep 2026 | Jan-Sep 2025 | YoY change | YoY organic growth |
Americas | 19.8 | 19.8 | 0% | -1% | 18.8 | 5% | 55.7 | 60.5 | -8% | -1% |
Europe, Middle East and Africa | 17.5 | 16.7 | 4% | 4% | 16.3 | 7% | 48.0 | 47.4 | 1% | 5% |
South East Asia, Oceania and India | 8.8 | 7.1 | 24% | 25% | 5.4 | 63% | 21.1 | 19.8 | 7% | 14% |
North East Asia | 4.5 | 3.8 | 19% | 22% | 3.7 | 22% | 11.4 | 10.8 | 5% | 15% |
Other | 8.9 | 8.8 | 1% | 7% | 8.5 | 5% | 25.2 | 28.9 | -13% | 1% |
Of which IPR | 3.9 | 3.1 | 24% | - | 3.4 | 14% | 10.4 | 11.2 | -7% | - |
Total | 59.5 | 56.2 | 6% | 7% | 52.7 | 13% | 161.5 | 167.4 | -4% | 4% |
Market Area Americas
Sales decreased by -1%* YoY. Networks sales declined slightly,
with a slight increase in North America, supported by project
phasing, offset by lower sales in Latin America, mainly reflecting
timing of rollout services. Cloud Software and Services sales
increased due to acceleration of project deliverables. Reported
sales were stable YoY.
Market Area Europe, Middle East and Africa
Sales increased by 4%* YoY. Networks sales grew with
increased sales in the Middle East, supported by ongoing
network modernization and expansion projects. Sales in Europe
declined slightly following the gradual completion of
modernization projects. Cloud Software and Services sales
increased across Europe, Middle East and Africa, supported by
accelerated project deliverables. Reported sales increased by
4% YoY.
In the quarter, Ericsson announced a multi-year 5G expansion
agreement with stc in Saudi Arabia and began the rollout of a
next-generation 5G Core network with VodafoneThree in the UK
as part of its long-term partnership.
Market Area South East Asia, Oceania and India
Sales increased by 25%* YoY. Networks sales increased as a
result of the timing of project deliveries in South East Asia and
India. Cloud Software and Services sales declined due to project
phasing. Reported sales increased by 24% YoY.
In the quarter, Ericsson technology was selected for the first
stage of Queensland's next-generation rail communications
network, providing mission-critical private 5G capabilities for rail
operations.
Market Area North East Asia
Sales increased by 22%* YoY primarily driven by Japan,
supported by higher project deliveries in Networks and the timing
of project milestones in Cloud Software and Services. Reported
sales increased by 19% YoY.
In the quarter, NTT DOCOMO selected and began deploying
Ericsson's next-generation RAN Compute platform to support 5G
Advanced and future AI-driven network capabilities.
Market Area Other
Market area Other includes IPR licensing revenues and almost
all sales in segment Enterprise. Sales increased by 7%* YoY,
with sales growth in IPR licensing revenues, in part reflecting
retroactive revenue related to previously unlicensed periods, and
a positive hedge effect. Reported sales increased by 1% YoY,
impacted by the divestment of iconectiv in Q3 2025.
Ericsson | Third quarter report 2026. October 15, 2026. | Segment results | 5 |
Segment Results
Mobile Networks –
Segment Networks
SEK b. | Q3 2026 | Q3 2025 | YoY change | Q2 2026 |
Net sales | 38.7 | 35.4 | 9% | 33.0 |
Of which IPR licensing revenues | 3.2 | 2.6 | 24% | 2.8 |
Organic sales growth | - | - | 9% | - |
Gross income | 19.3 | 17.7 | 9% | 16.0 |
Gross margin | 49.8% | 50.0% | - | 48.3% |
EBIT | 8.4 | 7.1 | 19% | 6.0 |
EBIT margin | 21.8% | 20.0% | - | 18.2% |
EBITA | 8.4 | 7.1 | 19% | 6.0 |
EBITA margin | 21.8% | 20.0% | - | 18.3% |
Restructuring charges | -0.5 | -0.1 | - | 0.2 |
Adjusted financial measures | ||||
Adjusted gross income | 19.4 | 17.8 | 10% | 16.6 |
Adjusted gross margin | 50.3% | 50.1% | - | 50.4% |
Adjusted EBIT | 8.9 | 7.2 | 25% | 5.8 |
Adjusted EBIT margin | 23.1% | 20.2% | - | 17.6% |
Adjusted EBITA | 9.0 | 7.2 | 25% | 5.8 |
Adjusted EBITA margin | 23.1% | 20.3% | - | 17.7% |
Breakdown of sales into products, services and IPR licensing is available in
note 2.
Net sales
Sales increased by 9%* YoY. Organic sales growth was driven by
higher sales in market areas North East Asia, South East Asia,
Oceania and India and Europe, Middle East and Africa. Sales
declined slightly in market area Americas. Sales were also
supported by higher IPR licensing revenues, including retroactive
revenue related to previously unlicensed periods. Reported sales
increased by 9% to SEK 38.7 (35.4) b.
In North East Asia and South East Asia, Oceania and India,
growth was primarily driven by the timing of project deliveries in
Japan and India. Sales grew in Europe, Middle East and Africa,
supported by ongoing network modernization and expansion in
the Middle East, partly offset by a slight decline in Europe
following the gradual completion of modernization projects. Sales
in market area Americas declined slightly, with slight growth in
North America offset by lower sales in Latin America.
Gross income and margin
Adjusted gross income increased to SEK 19.4 (17.8) b.
Adjusted gross margin was 50.3% (50.1%), including a
positive impact from product mix and retroactive IPR licensing
revenues, partly offset by increased component costs.
EBITA
Adjusted EBITA increased to SEK 9.0 (7.2) b., driven by higher
sales. R&D expenses increased slightly to support the strategy to
build high-performance programmable networks, offset by lower
SG&A expenses. The adjusted EBITA margin was 23.1%
(20.3%).
For the rolling four quarters, net sales were SEK 148.9 b. and the
adjusted EBITA margin was 21.0%.
Mobile Networks –
Segment Cloud Software and Services
SEK b. | Q3 2026 | Q3 2025 | YoY change | Q2 2026 |
Net sales | 15.8 | 15.3 | 3% | 14.7 |
Of which IPR licensing revenues | 0.7 | 0.6 | 24% | 0.6 |
Organic sales growth | - | - | 3% | - |
Gross income | 6.7 | 6.5 | 4% | 5.9 |
Gross margin | 42.4% | 42.1% | - | 39.8% |
EBIT | 1.7 | 1.7 | 0% | 1.1 |
EBIT margin | 10.9% | 11.2% | - | 7.8% |
EBITA | 1.7 | 1.7 | 0% | 1.1 |
EBITA margin | 10.9% | 11.2% | - | 7.8% |
Restructuring charges | -0.3 | -0.2 | - | -0.7 |
Adjusted financial measures | ||||
Adjusted gross income | 6.9 | 6.7 | 3% | 6.5 |
Adjusted gross margin | 43.5% | 43.6% | - | 44.1% |
Adjusted EBIT | 2.0 | 1.9 | 6% | 1.8 |
Adjusted EBIT margin | 12.8% | 12.5% | - | 12.4% |
Adjusted EBITA | 2.0 | 1.9 | 6% | 1.8 |
Adjusted EBITA margin | 12.8% | 12.5% | - | 12.4% |
Breakdown of sales into products, services and IPR licensing is available in
note 2.
Net sales
Sales increased by 3%* YoY. Organic sales increased in market
areas Americas, in Europe, Middle East and Africa and in North
East Asia, while sales declined in South East Asia, Oceania and
India. Sales were supported by higher IPR licensing revenues,
including retroactive revenue related to previously unlicensed
periods. Reported sales increased by 3% to SEK 15.8 (15.3) b.
Services sales accounted for 62% (65%) of sales.
Sales increased in market areas Americas and Europe, Middle
East and Africa, driven by accelerated project deliverables. Sales
increased in market area North East Asia, reflecting the delivery
of project milestones in Japan. Sales in South East Asia, Oceania
and India declined due to project phasing.
Gross income and margin
Adjusted gross income increased to SEK 6.9 (6.7) b.
Adjusted gross margin was stable at 43.5% (43.6%), with
improvements in delivery performance.
EBITA
Adjusted EBITA was SEK 2.0 (1.9) b. EBITA was supported by
higher sales. Increased R&D investments were largely offset by
lower SG&A expenses. The adjusted EBITA margin was 12.8%
(12.5%).
For the rolling four quarters, net sales were SEK 62.4 b. and the
adjusted EBITA margin was 13.1%.
Ericsson | Third quarter report 2026. October 15, 2026. | Segment results | 6 |
Enterprise –
Segment Enterprise
SEK b. | Q3 2026 | Q3 2025 | YoY change | Q2 2026 |
Net sales | 4.6 | 5.1 | -10% | 4.5 |
Organic sales growth | - | - | 1% | - |
Gross income | 2.3 | 2.6 | -13% | 2.3 |
Gross margin | 50.0% | 51.6% | - | 50.7% |
EBIT | -1.0 | 6.6 | - | -1.2 |
EBIT margin | -21.2% | 131.5% | - | -27.1% |
EBITA | -0.6 | 7.0 | - | -0.9 |
EBITA margin | -13.9% | 138.1% | - | -19.8% |
Restructuring charges | -0.1 | 0.0 | - | -0.1 |
Adjusted financial measures | ||||
Adjusted gross income | 2.3 | 2.6 | -13% | 2.3 |
Adjusted gross margin | 50.0% | 51.6% | - | 50.9% |
Adjusted EBIT | -0.9 | 6.7 | - | -1.2 |
Adjusted EBIT margin | -19.3% | 132.0% | - | -25.9% |
Adjusted EBITA | -0.5 | 7.0 | - | -0.8 |
Adjusted EBITA margin | -12.1% | 138.7% | - | -18.7% |
Net sales
Sales increased by 1%* YoY, driven by growth in Technologies
and New Businesses. Reported sales decreased by -10% YoY to
SEK 4.6 (5.1) b., reflecting the divestment of iconectiv in Q3
2025.
Sales in Global Communications Platform were broadly stable as
sales growth in CPaaS and Network Powered Solutions largely
offset declines in legacy Applications. Sales in Enterprise
Wireless Solutions declined slightly, as continued subscriptions
growth was offset by customer hardware order phasing.
Gross income and margin
Adjusted gross income was SEK 2.3 (2.6) b., reflecting the
divestment of iconectiv in Q3 2025. The adjusted gross margin
was 50.0% (51.6%).
EBITA (loss)
Adjusted EBITA (loss) was SEK -0.5 (7.0) b., supported by
ongoing efficiency measures. The prior-year period included a
SEK 7.6 b. capital gain from the divestment of iconectiv. Adjusted
EBITA margin was -12.1% (138.7%).
For the rolling four quarters, net sales were SEK 17.8 b. and the
adjusted EBITA margin was -22.2%.
Segment Other
SEK b. | Q3 2026 | Q3 2025 | YoY change | Q2 2026 |
Net sales | 0.4 | 0.4 | -4% | 0.4 |
Organic sales growth | - | - | -5% | - |
Gross income | -0.3 | 0.0 | - | 0.0 |
Gross margin | -68.4% | 0.0% | - | 0.5% |
EBIT | -0.3 | -0.3 | - | 0.0 |
EBIT margin | -81.6% | -71.5% | - | -3.4% |
EBITA | -0.3 | -0.3 | - | 0.0 |
EBITA margin | -81.5% | -71.3% | - | -3.4% |
Restructuring charges | 0.0 | 0.0 | - | -0.1 |
Adjusted financial measures | ||||
Adjusted gross income | -0.3 | 0.0 | - | 0.1 |
Adjusted gross margin | -65.6% | 1.0% | 13.3% | |
Adjusted EBIT | -0.3 | -0.3 | - | 0.0 |
Adjusted EBIT margin | -78.8% | -70.6% | - | 10.9% |
Adjusted EBITA | -0.3 | -0.3 | - | 0.0 |
Adjusted EBITA margin | -78.8% | -70.3% | - | 10.9% |
Net sales
Reported sales were stable at SEK 0.4 (0.4) b.
Gross income and margin
Adjusted gross income was SEK -0.3 (0.0) b., reflecting a non-
cash impairment charge of SEK -0.3 b. related to Red Bee
Media.
EBITA (loss)
Adjusted EBITA (loss) was SEK -0.3 (-0.3) b. reflecting the
impairment charge. In the prior-year period EBITA was impacted
by a revaluation of the Ericsson Ventures portfolio.
For the rolling four quarters, net sales were SEK 1.7 b.
Ericsson | Third quarter report 2026. October 15, 2026. | Cash flow and financial position | 7 |
Cash flow and financial position
Free cash flow bridge, SEK b. | Q3 2026 | Q3 2025 | Q2 2026 | Jan-Sep 2026 | Jan-Sep 2025 |
Adjusted EBITA | 10.1 | 15.8 | 6.9 | 22.6 | 30.2 |
Depreciation and amortization of non-acquired assets | 1.8 | 1.8 | 1.6 | 5.1 | 5.6 |
Restructuring charges | -0.9 | -0.3 | -0.6 | -5.3 | -1.2 |
Changes in operating net assets | -3.7 | -0.5 | -4.4 | -2.5 | -6.0 |
Interest paid/received, taxes paid, and other | -0.8 | -8.9 | -1.6 | -4.0 | -12.1 |
Cash flow from operating activities | 6.5 | 7.9 | 1.9 | 15.8 | 16.4 |
Net capex and other investing activities | -1.1 | -0.8 | -1.0 | -3.2 | -2.9 |
Repayment of lease liabilities | -0.5 | -0.5 | -0.5 | -1.4 | -1.7 |
Free cash flow before M&A | 4.9 | 6.6 | 0.4 | 11.2 | 11.9 |
Cash flow from operating activities | 6.5 | 7.9 | 1.9 | 15.8 | 16.4 |
Cash flow from investing activities | 1.2 | 3.2 | -3.7 | -0.7 | -6.4 |
Cash flow from financing activities | 0.4 | -1.2 | -9.2 | -11.1 | -5.4 |
SEK b. | Sep 30 2026 | Sep 30 2025 | Jun 30 2026 |
Gross cash | 98.0 | 88.4 | 91.3 |
- Borrowings, current | 9.5 | 6.7 | 9.5 |
- Borrowings, non-current | 27.8 | 29.9 | 22.0 |
Net cash | 60.7 | 51.9 | 59.8 |
Equity | 111.3 | 102.5 | 104.8 |
Equity ratio (%) | 36.9% | 36.3% | 36.4% |
Capital turnover (times) | 1.4 | 1.5 | 1.4 |
Return on capital employed (%) | 16.5% | 22.5% | 20.7% |
Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements.
Cash flow
Cash flow from operating activities was SEK 6.5 (7.9) b. driven
by earnings and impacted by increased operating net assets.
Quarterly cash flow from operating activities decreased
compared to the prior-year period. Earnings decreased,
reflecting the contribution from the divestment of iconectiv in the
prior-year period. Working capital also increased, with higher
inventories, reflecting timing of project deliveries and higher
component prices.
Cash flow from investing activities was SEK 1.2 (3.2) b. driven
by purchases of interest-bearing securities. The prior-year period
had a one-time impact of the iconectiv divestment.
Cash flow from financing activities was SEK 0.4 (-1.2) b.
including SEK 4.5 b. of share repurchases and SEK 5.5 b. of
proceeds from new borrowings, reflecting a EUR 500 m. bond
issuance in September.
Financial position
Gross cash increased sequentially by SEK 6.7 b. to SEK 98.0 b.,
supported by free cash flow before M&A of SEK 4.9 b. and
proceeds from new borrowings, partly offset by share
repurchases.
Net cash increased sequentially by SEK 0.8 b. to SEK 60.7 b.
The average maturity of parent company borrowings was 2.9
years as of September 30, 2026, compared with 2.5 years as of
June 30, 2026.
Liabilities for post-employment benefits decreased
sequentially to SEK 14.3 b. from SEK 18.0 b. The Swedish
defined benefit obligation (DBO) was calculated using a discount
rate based on the yields of Swedish government bonds. If the
discount rate had been based on Swedish covered mortgage
bonds, the liability for post-employment benefits would have
been approximately SEK 6.6 b., which is SEK 7.7 b. lower than
current DBO.
Ericsson | Third quarter report 2026. October 15, 2026. | Key data points | 8 |
Key data points
Market
Dell’Oro estimates that the global RAN equipment market will
remain stable in 2026.
Source: Dell’Oro Mobile RAN Quarterly Report Q126, May 2026.
Ericsson
Net sales
Reported average seasonality last 3 years (2023–2025), %.
Q4 → Q1 | Q1 → Q2 | Q2 → Q3 | Q3 → Q4 | |
Networks | -25% | +4% | +1% | +17% |
Cloud Software and Services | -33% | +13% | +3% | +29% |
Net sales may show large variations between quarters, including
currency changes.
IPR licensing revenues
Annualized recurring IPR licensing revenues were
approximately SEK 13.5 b.
IPR licensing revenue growth opportunities remain in new
market segments. Optimizing the terms and value of new
agreements and renewals will remain a priority.
Currency exposure
Currency exposure may vary significantly from quarter to quarter.
In 2025, approximately half of net sales were USD-denominated,
over 15% of net sales were EUR-denominated, and five other
currencies (INR, JPY, GBP, CNY, AUD) contributed approximately
15% of net sales.
Further currency information is available at:
https://www.ericsson.com/en/investors/financial-reports-and-
presentations/foreign-exchange-rates
Amortization of intangible assets
Amortization of intangible assets is expected to be around
SEK -0.4 b. per quarter in segment Enterprise.
Restructuring charges
Restructuring charges for 2026 are expected to be at elevated
levels.
Segments
Increased uncertainty remains in the outlook and in the broader
macroeconomic and geopolitical environment.
The Q4 2026 outlook assumes currency rates of USD:SEK 10.0,
EUR:SEK 11.3.
Networks
Sales growth in Q4 2026 is expected to be broadly similar to 3-
year average seasonality.
Adjusted gross margin in Q4 2026 is expected to be in the range
of 49% to 51%.
Cloud Software and Services
Sales growth in Q4 2026 is expected to be broadly similar to 3-
year average seasonality.
Ericsson | Third quarter report 2026. October 15, 2026. | Parent Company | 9 |
Parent Company
Income after financial items January – September 2026, was
SEK 30.1 (28.9) b.
At the end of the quarter, gross cash (cash, cash equivalents plus
interest-bearing securities, current and non-current) amounted to
SEK 82.7 (76.3) b.
There was an increase in intercompany lending of SEK 1.0 b.
and an increase in intercompany borrowing of SEK 5.7 b. in the
quarter.
At the end of the quarter, non-restricted equity amounted to SEK
54.7 (41.1) b., and total equity amounted to SEK 103.0 (89.4) b.
During the quarter, Ericsson repurchased 49,225,701 Class B
shares for a total consideration of SEK 4.8 b. in accordance with
the AGM authorization. Repurchases year-to-date amounted to
78,761,682 Class B shares for SEK 8.1 b. Repurchased shares
are held as treasury shares and presented as a deduction from
equity.
As of September 30, 2026, Ericsson held 114,080,663 treasury
shares (38,002,276 as of Dec 31, 2025). Repurchased shares
are reflected as a reduction in the average number of shares
outstanding and in the calculation of earnings per share.
Ericsson | Third quarter report 2026. October 15, 2026. | Other Information | 10 |
Other information
Legal proceedings involving governmental authorities
In February 2022, Ericsson publicly disclosed that an internal
investigation in 2019 included a review of the conduct of
Ericsson employees, vendors and suppliers in Iraq during the
period between 2011 to 2019. The investigators could not
determine the ultimate recipients of any payments, nor identify
that any Ericsson employee was directly involved in financing
terrorist organizations. The Company’s 2019 internal Iraq
investigation did not conclude that Ericsson made or was
responsible for any payments to any terrorist organization.
The Company continues to fully cooperate with the US
Department of Justice (DOJ) in its investigation into matters
discussed in the 2019 internal Iraq investigation report and
related topics concerning historical conduct in jurisdictions
including Iraq and Syria and continues to be in discussion with
the government on these matters. As additional information
continues to be identified and evaluated in continued cooperation
with the DOJ during its ongoing investigation, it is expected that
there will not be any conclusive determinations on the outcome
until the investigation is completed. The scope and duration of
the investigation remain uncertain.
In April 2019, Ericsson was informed by China’s State
Administration for Market Regulation Anti-monopoly Bureau
(SAMR) that SAMR has initiated an investigation into Ericsson’s
patent licensing practices in China. Ericsson is cooperating with
the investigation, which is still in a fact-finding phase. The next
steps include continued fact-finding and meetings with SAMR in
order to facilitate the authority’s assessment and conclusions. In
case of adverse findings, SAMR has the power to impose
behavioral and financial remedies.
Legal proceedings not involving governmental authorities
In August 2022, a civil lawsuit was filed in the United States
District Court for the District of Columbia against
Telefonaktiebolaget LM Ericsson and Ericsson Inc. (collectively,
the “Ericsson defendants”). The lawsuit was brought by US
military service members, employees of US government
contractors and other civilians who were killed or injured in
terrorist attacks in Iraq, Afghanistan and Syria from 2005 to 2021,
as well as by their family members. The lawsuit asserts claims
against the Ericsson defendants under the U.S. Anti-Terrorism
Act alleging that the Ericsson defendants made payments that
ultimately aided the terrorist organizations that committed,
planned or authorized the attacks. In November 2022, the
Ericsson defendants filed a motion to dismiss the complaint. On
December 20, 2022, plaintiffs filed an amended complaint, which
added additional plaintiffs, including a plaintiff injured in Turkey,
and also named Ericsson AB (collectively with the Ericsson
defendants, the “Ericsson corporate defendants”), former CEO
Börje Ekholm and a former employee (who has not been served
with process) as additional defendants and also asserted
additional allegations and claims. In March 2023, the Ericsson
corporate defendants and Mr. Ekholm filed motions to dismiss
the amended complaint. Plaintiffs filed their oppositions to
defendants’ motions to dismiss the amended complaint in June
2023, and defendants filed reply briefs in support of their motions
to dismiss in July 2023. All briefing has been submitted, and
resolution of the matter is pending with the District Court. All
defendants will continue to vigorously defend this matter.
In February 2024, a second civil lawsuit also alleging
violations of the U.S. Anti-Terrorism Act was filed in the United
States District Court for the District of Columbia. The lawsuit was
filed by the same law firm and involves substantially similar
factual allegations and claims as those made in the Anti-
Terrorism Act lawsuit originally filed in August 2022, and similarly
names the same Ericsson corporate defendants, former
President and CEO Börje Ekholm and a former employee as
defendants. The new lawsuit was brought by additional US
military service members, employees of US government
contractors and other civilians who were killed or injured in
terrorist attacks in Iraq, Afghanistan, Syria, Turkey, Niger, and
France from 2005 to 2021, as well as by their family members.
The District Court for the District of Columbia has stayed the
proceedings in this matter pending its decision on the motions to
dismiss in the earlier-filed suit. The defendants will vigorously
defend this matter.
In November 2025, a third civil lawsuit also alleging violations
of the US Anti-Terrorism Act was filed in the US District Court for
the District of Columbia. The lawsuit was filed by a law firm not
involved in the August 2022 and February 2024 lawsuits and
involves substantially similar factual allegations and claims to
those made in the Anti-Terrorism Act lawsuits filed in August
2022 and February 2024, and similarly names the same Ericsson
corporate defendants, former CEO Börje Ekholm and a former
employee as defendants. The new lawsuit was brought by
additional US military service members, employees of US
government contractors and other civilians who were killed or
injured in terrorist attacks in France, Afghanistan, and Belgium
from 2012 to 2018, as well as by their family members. The
District Court for the District of Columbia has stayed the
proceedings in this matter pending its decision on the motions to
dismiss in the earlier-filed suit. The defendants will vigorously
defend this matter.
In March 2026, a fourth civil lawsuit also alleging violations of
the US Anti-Terrorism Act was filed in the US District Court for
the District of Columbia. The lawsuit involves substantially similar
factual allegations and claims to those made in the Anti-Terrorism
Act lawsuits filed in August 2022, February 2024, and November
2025, and similarly names the same Ericsson corporate
defendants, former CEO Börje Ekholm and a former employee
as defendants. The new lawsuit was brought by additional US
military service members and civilians who were killed or injured
in terrorist attacks in Afghanistan, Iraq, Niger, Tajikistan and
Turkey from 2005 to 2018, as well as by their family members.
The District Court for the District of Columbia has stayed the
proceedings in this matter pending its decision on the motions to
dismiss in the earlier-filed suit. The defendants will vigorously
defend this matter.
In September 2026, a fifth civil lawsuit also alleging violations
of the US Anti-Terrorism Act was filed in the US District Court for
the District of Columbia. The lawsuit involves substantially similar
factual allegations and claims to those made in the Anti-Terrorism
Act lawsuits filed in August 2022, February 2024, November
2025, and March 2026, and similarly names the same Ericsson
corporate defendants, former CEO Börje Ekholm and a former
employee as defendants. The new lawsuit was brought by a new
set of plaintiffs. The defendants will vigorously defend this matter.
Beginning on August 4, 2023, a number of civil lawsuits have
been filed against Telefonaktiebolaget LM Ericsson in Solna
Ericsson | Third quarter report 2026. October 15, 2026. | Other Information | 11 |
District Court, Sweden. 93 claimants have filed suit, which are
coordinated and financed by a UK-based litigation funder. The
claimants consist of a group of non-Swedish funds and financial
institutions that allegedly are or have been shareholders of the
Company. Their damages claims are primarily based on alleged
inadequate disclosure of the contents of the Company’s 2019
internal Iraq investigation report. Ericsson filed its statement of
defense on March 15, 2024. On February 14, 2025, the District
Court ordered Ericsson to produce the 2019 internal Iraq
investigation report to the claimants’ external counsel. Ericsson
appealed the decision and on August 15, 2025, the Court of
Appeal overturned the District Court’s decision. The claimants
appealed, but on March 12, 2026, the Supreme Court refused
leave to appeal. Proceedings on the merits of the case have now
resumed in the District Court. Ericsson will continue to vigorously
defend this matter.
The Company actively manages its IPR portfolio and its need
for third-party licenses and is involved from time to time, in the
ordinary course of business, in litigation related thereto, as
plaintiff, defendant and other capacities.
In addition to the proceedings discussed above, the Company
is, and in the future may be, involved in various other regulatory
investigations, enforcement actions, lawsuits, claims (including
claims by third-parties the Company has indemnified against
infringement liability or provided guarantees to) and proceedings
incidental to the ordinary course of business and transactions.
PRESS RELEASES
July 21 2026 | Ericsson announces change to the Executive Team |
October 15 2026 | Ericsson announces simplification of Group structure and changes to the Executive Team |
Information on the share buyback program and related press
releases is available on the Ericsson investor website at:
Share buyback program
Ericsson | Third quarter report 2026. October 15, 2026. | Risk factors | 12 |
Risk factors
Ericsson is exposed to a number of risks in its activities. To
stimulate identification and support cross-functional treatment
within the Ericsson Group, risks are grouped in a number of
categories, including, for example, risks relating to technology,
IPR, compliance, project execution, operations, supply chain and
sourcing concentration, products and services, customer
concentration, treasury and accounting, the geopolitical
environment, M&A, cybersecurity and occupational health and
safety. Ericsson’s risk management is embedded into strategy
development and operational processes, and material Group
risks are regularly assessed and reviewed by executives as
required by Ericsson’s Material Group Risk Protocol to ensure
accountability, effectiveness, efficiency, business continuity and
compliance. Risks are defined in both a short-term and long-term
perspective and are related to long-term objectives and strategic
direction as well as to short-term objectives. Risk factors and
uncertainties of relevance to Ericsson are described in the
Ericsson Annual Report 2025 and in the Annual Report on Form
20-F for the year ended December 31, 2025 (in the following, the
“Annual Report 2025”). See also the risks set out in the section
titled “Forward-looking statements.”
Date for next report: January 22, 2027.
Ericsson | Third quarter report 2026. October 15, 2026. | Editor's note | 13 |
Editor’s note
Media and analyst briefing
Ericsson invites media, investors and analysts to a conference
call and live video webcast at 09:00 AM CEST on October 15,
2026.
Link to the webcast, dial-in to audio conference, supporting
material and replay will be available at:
www.ericsson.com/investors and
www.ericsson.com/newsroom
For further information, please contact:
Lars Sandström, Senior Vice President, Chief Financial Officer
Phone: +46 72 161 20 04
E-mail: investor.relations@ericsson.com
Peter Borsos, Vice President,
Head of Group Communications
Phone: +46 70 317 68 00
E-mail: media.relations@ericsson.com
Telefonaktiebolaget LM Ericsson
Org. number: 556016-0680
Torshamnsgatan 21
SE-164 83 Stockholm
Phone: +46 10 719 00 00
www.ericsson.com
Investors
Daniel Morris, Vice President,
Head of Investor Relations
Phone: +44 7386 657217
Lena Häggblom, Director,
Investor Relations
Phone: +46 72 593 27 78
Guido Carlo Ferrante
Investor Relations
Phone: +46 72 467 52 59
E-mail: investor.relations@ericsson.com
Media
Ralf Bagner, Head of Media Relations
Phone: +46 76 128 47 89
Corporate Communications
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com
Ericsson | Third quarter report 2026. October 15, 2026. | Forward-looking statements | 14 |
Forward-looking statements
This report includes forward-looking statements. All statements
other than statements of historical fact are forward-looking
statements. The words “believe,” “expect,” “foresee,” “anticipate,”
“assume,” “intend,” “likely,” “projects,” “may,” “could,” “plan,”
“estimate,” “forecast,” “will,” “should,” “would,” “predict,” “aim,”
“ambition,” “seek,” “potential,” “target,” “might,” “continue,” or, in
each case, their negative or variations, and similar words or
expressions are used to identify forward-looking statements.
These statements are subject to risks and uncertainties that
could cause actual results to differ materially and adversely from
those expressed in, or implied or projected by, the forward-
looking statements, including, in particular the following:
–Potential material additional liability resulting from past
conduct, including allegations of past conduct that remains
unresolved or unknown in multiple jurisdictions, including Iraq
and Syria, which remains the subject of ongoing investigations
by Ericsson and US governmental authorities
–Risks related to internal controls and governance, including
the potential to incur material liability in connection with
internal controls surrounding payments made to third parties in
connection with past conduct in multiple jurisdictions, including
Iraq, which remains the subject of ongoing investigations by
Ericsson and US governmental authorities
–The risk that the ongoing investigations by Ericsson and US
governmental authorities result in a conclusion by Ericsson or
US governmental authorities that the Company’s past conduct
included making or having responsibility for making payments
to a terrorist organization or other improper payments, which
could lead to material additional liability
–Risks related to the Company's ongoing compliance with
obligations under the National Security Agreement entered
into in connection with Ericsson’s acquisition of Vonage
Holdings Corp. (Vonage), which may adversely affect the
Vonage business and subject the Company to additional
liabilities
–Ericsson's goals, strategies, planning assumptions and
operational or financial performance expectations
–Macroeconomic conditions, including inflationary pressures
and effects on customer investments, market recovery and
growth
–Ongoing geopolitical and trade uncertainty, including
challenging global economic conditions, market trends and the
imposition of tariffs and sanctions
–Continued growth of mobile communications, the success of
Ericsson's existing and targeted customer base, and
Ericsson's ability to maintain technology leadership
–Success in implementing key strategies, including improving
profitability, leading in 6G, capturing 5G market opportunities,
capitalizing on network API and Enterprise opportunities,
incorporation of AI technologies into certain products, services
and processes and expected benefits from restructuring
activities
–Risks related to cybersecurity and privacy, security and data
localization
–Industry trends, future characteristics and development of the
markets in which Ericsson operates
–Risks of global operations, including legal and regulatory
requirements and uncertainties, and unfavorable lawsuits and
legal proceedings
–Ericsson's future liquidity, capital resources, capital
expenditures, cost savings and profitability, and risks related to
financial condition
–The expected demand for Ericsson's existing and new
products and services as well as plans to launch new products
and services including research and development
expenditures
–Ericsson's ability to deliver on future plans and achieve future
growth
–The expected operational or financial performance of strategic
cooperation activities and joint ventures
–Risks related to acquisitions and divestments that may be
disruptive and incur significant expenses, including Ericsson's
ability to successfully consummate such transactions, protect
the value of acquisitions during integration, or achieve the
value anticipated with an acquisition
–Trends related to Ericsson's industry, including Ericsson's
regulatory environment, competition and customer structure
–Intense competition from existing competitors, and new
entrants, including vendor consolidation
–Risks related to the supply chain and single-source or highly
concentrated third-party suppliers
–Large, multi-year agreements with limited number of key
customers, and operator consolidation
–Risks related to intellectual property, key employees, and
unforeseen risks and disruptions due to natural or man-made
events
–Risks related to environmental, social, governance, diversity,
equity and inclusion and business conduct
–Other factors included in Ericsson's filings with the US
Securities and Exchange Commission (SEC), including the
factors described throughout this report, included in the
section Risk factors, and in “Risk Factors” in the Annual
Report 2025, as updated by subsequent reports filed with the
SEC.
These forward-looking statements also represent Ericsson's
estimates, assumptions and expectations only as of the date that
they were made, and to the extent they represent third-party
data, Ericsson has not undertaken to independently verify such
third-party data and does not intend to do so. Given these risks
and uncertainties, readers are cautioned not to place undue
reliance on such forward-looking statements and are urged to
carefully review and consider the various disclosures made in
this report and in other documents Ericsson files from time to
time with Ericsson's regulators that disclose risks and
uncertainties that may affect Ericsson's business. Ericsson
expressly disclaims a duty to provide updates to these forward-
looking statements, and the estimates and assumptions
associated with them, after the date of this report, to reflect
events or changes in circumstances or changes in expectations
or the occurrence of anticipated events, whether as a result of
new information, future events or otherwise, except as required
by applicable law or stock exchange regulations.
Ericsson | Third quarter report 2026. October 15, 2026. | Auditors' Review Report | 15 |
Auditors’ Review Report
Introduction
We have reviewed the condensed interim financial information
(interim report) of Telefonaktiebolaget LM Ericsson (publ.) as of
September 30, 2026, and the nine months period then ended.
The Board of Directors and the CEO are responsible for the
preparation and presentation of this interim report in accordance
with IAS 34 and the Swedish Annual Accounts Act. Our
responsibility is to express a conclusion on this interim report
based on our review.
Scope of review
We conducted our review in accordance with the International
Standard on Review Engagements ISRE 2410, Review of Interim
Financial Information Performed by the Independent Auditor of
the Entity.
A review consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying
analytical and other review procedures. A review has a different
focus and is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing, ISA, and
other generally accepted auditing practices in Sweden. The
procedures performed in a review do not enable us to obtain a
level of assurance that would make us aware of all significant
matters that might be identified in an audit. Therefore, the
conclusion expressed based on a review does not give the same
level of assurance as a conclusion expressed based on an audit.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the interim report is not, in all material
respects, in accordance with IAS 34 and the Swedish Annual
Accounts Act, regarding the Group, and with the Swedish Annual
Accounts Act, regarding the Parent Company.
Stockholm, October 15, 2026
Deloitte AB
Jonas Ståhlberg
Authorized Public Accountant
Ericsson | Third quarter report 2026. October 15, 2026. | Financial statements and other information | 16 |
Financial
statements
and other
information
Contents
Ericsson | Third quarter report 2026. October 15, 2026. | Financial statements | 17 |
Financial statements (unaudited)
Condensed consolidated income statement
Q3 | Jan-Sep | ||||||
SEK million | Note | 2026 | 2025 | Change | 2026 | 2025 | |
Net sales | 2 | 59,478 | 56,239 | 6% | 161,500 | 167,396 | |
Cost of sales | -31,488 | -29,462 | 7% | -86,089 | -87,433 | ||
Gross income | 2 | 27,990 | 26,777 | 5% | 75,411 | 79,963 | |
Research and development expenses | -11,841 | -11,510 | 3% | -35,810 | -35,754 | ||
Selling and administrative expenses | -7,411 | -7,913 | -6% | -23,283 | -24,714 | ||
Impairment reversals/losses on trade receivables | 69 | 46 | 52% | -107 | 112 | ||
Operating expenses | -19,183 | -19,377 | -1% | -59,200 | -60,356 | ||
Other operating income and expenses¹⁾ | 93 | 7,715 | -99% | 206 | 7,790 | ||
Share of earnings/losses of associated companies | -37 | 36 | - | -192 | 76 | ||
Earnings before financial items and income tax (EBIT) | 2 | 8,864 | 15,151 | -41% | 16,226 | 27,473 | |
Financial income and expenses, net | 3 | -910 | -212 | - | -1,282 | -252 | |
Income after financial items | 7,954 | 14,939 | -47% | 14,944 | 27,221 | ||
Income tax | -2,157 | -3,639 | -41% | -4,184 | -7,078 | ||
Net income | 5,797 | 11,300 | -49% | 10,760 | 20,143 | ||
Net income attributable to: | |||||||
Owners of the Parent Company | 5,806 | 11,149 | 10,740 | 19,865 | |||
Non-controlling interests | -10 | 151 | 20 | 278 | |||
Other information | |||||||
Average number of shares, basic (million) | 8 | 3,269 | 3,333 | 3,305 | 3,333 | ||
Earnings per share, basic (SEK)²⁾ | 8 | 1.78 | 3.34 | 3.25 | 5.96 | ||
Earnings per share, diluted (SEK)²⁾³⁾ | 8 | 1.77 | 3.33 | 3.24 | 5.94 | ||
¹⁾ Jan-Sep 2025 and Q3 2025 includes a gain of SEK 7.6 billion due to the divestment of iconectiv.
²⁾ Based on net income attributable to owners of the Parent Company.
³⁾ Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.
Condensed consolidated statement of comprehensive income
Q3 | Jan-Sep | ||||
SEK million | 2026 | 2025 | 2026 | 2025 | |
Net income | 5,797 | 11,300 | 10,760 | 20,143 | |
Other comprehensive income | |||||
Items that will not be reclassified to profit or loss | |||||
Remeasurements of defined benefit pension plans | 4,531 | 5,698 | 5,141 | 4,881 | |
Revaluation of credit risk on borrowings | 34 | -93 | 21 | -2 | |
Tax on items that will not be reclassified to profit or loss | -793 | -1,143 | -921 | -1,130 | |
Items that have been or may be reclassified to profit or loss | |||||
Cash flow hedge reserve | |||||
Gains/losses arising during the period | -186 | 29 | -607 | 4,684 | |
Reclassification adjustments on gains/losses included in profit or loss | -455 | -59 | -1,587 | 263 | |
Translation reserves | |||||
Changes in translation reserves | 2,096 | -1,029 | 5,558 | -10,927 | |
Reclassification to profit or loss | – | 1,304 | -10 | 1,358 | |
Share of other comprehensive income of associated companies | 10 | -8 | 116 | -64 | |
Tax on items that have been or may be reclassified to profit or loss | 132 | 6 | 452 | -1,019 | |
Total other comprehensive income, net of tax | 5,369 | 4,705 | 8,163 | -1,956 | |
Total comprehensive income | 11,166 | 16,005 | 18,922 | 18,187 | |
Total comprehensive income attributable to: | |||||
Owners of the Parent Company | 11,110 | 15,872 | 18,841 | 17,758 | |
Non-controlling interests | 55 | 133 | 81 | 429 | |
Ericsson | Third quarter report 2026. October 15, 2026. | Financial statements | 18 |
Condensed consolidated balance sheet
SEK million | Note | Sep 30 2026 | Dec 31 2025 |
Assets | |||
Non-current assets | |||
Intangible assets | |||
Capitalized development expenses | 3,611 | 3,866 | |
Goodwill | 50,647 | 46,882 | |
Customer relationships, IPR and other intangible assets | 5,032 | 5,631 | |
Property, plant and equipment | 8,889 | 8,789 | |
Right-of-use assets | 7,123 | 6,738 | |
Financial assets | |||
Investments in associated companies | 1,387 | 1,507 | |
Other investments in shares and participations | 5 | 2,166 | 1,909 |
Customer finance, non-current | 5 | 6 | 238 |
Interest-bearing securities, non-current | 5 | 39,175 | 37,298 |
Other financial assets, non-current | 5 | 7,338 | 5,960 |
Deferred tax assets | 18,514 | 16,851 | |
143,887 | 135,669 | ||
Current assets | |||
Inventories | 35,404 | 23,451 | |
Contracts assets | 8,855 | 7,333 | |
Trade receivables | 5 | 38,846 | 40,327 |
Customer finance, current | 5 | 1,913 | 852 |
Current tax assets | 5,466 | 5,030 | |
Other current receivables | 8,347 | 9,920 | |
Interest-bearing securities, current | 5 | 7,697 | 12,715 |
Cash and cash equivalents | 5 | 51,087 | 43,926 |
157,614 | 143,554 | ||
Total assets | 301,501 | 279,223 | |
Equity and liabilities | |||
Equity | |||
Stockholders' equity | 110,482 | 109,535 | |
Non-controlling interest in equity of subsidiaries | 773 | 729 | |
111,255 | 110,264 | ||
Non-current liabilities | |||
Post-employment benefits | 14,277 | 18,648 | |
Provisions, non-current | 4 | 4,253 | 2,993 |
Deferred tax liabilities | 240 | 152 | |
Borrowings, non-current | 5 | 27,816 | 29,165 |
Lease liabilities, non-current | 6,268 | 5,772 | |
Other non-current liabilities | 1,396 | 1,292 | |
54,251 | 58,022 | ||
Current liabilities | |||
Provisions, current | 4 | 7,781 | 5,691 |
Borrowings, current | 5 | 9,455 | 3,538 |
Lease liabilities, current | 1,795 | 1,789 | |
Contract liabilities | 40,548 | 36,867 | |
Trade payables | 5 | 30,380 | 26,335 |
Current tax liabilities | 6,276 | 2,679 | |
Other current liabilities | 39,760 | 34,038 | |
135,995 | 110,937 | ||
Total equity and liabilities | 301,501 | 279,223 |
Ericsson | Third quarter report 2026. October 15, 2026. | Financial statements | 19 |
Condensed consolidated statement of cash flows
Q3 | Jan-Sep | ||||||
SEK million | Note | 2026 | 2025 | 2026 | 2025 | ||
Operating activities | |||||||
Net income | 5,797 | 11,300 | 10,760 | 20,143 | |||
Adjustments for | |||||||
Taxes | 2,459 | 3,647 | 4,463 | 7,350 | |||
Earnings/dividends in associated companies | 140 | 50 | 373 | 30 | |||
Depreciation, amortization and impairment losses | 6 | 2,155 | 2,129 | 6,130 | 7,056 | ||
Other | -135 | -7,549 | -1,213 | -7,844 | |||
10,415 | 9,577 | 20,512 | 26,735 | ||||
Changes in operating net assets | |||||||
Inventories | -4,086 | -680 | -10,438 | -2,738 | |||
Customer finance, current and non-current | -192 | 372 | -719 | 2,627 | |||
Trade receivables and contract assets | -355 | -889 | 3,444 | -1,013 | |||
Trade payables | 613 | 1,102 | 1,809 | -1,106 | |||
Provisions and post-employment benefits | 770 | -565 | 2,637 | -3,178 | |||
Contract liabilities | -5,399 | -2,869 | 1,302 | 4,398 | |||
Other operating assets and liabilities, net | 4,922 | 3,047 | -558 | -4,970 | |||
-3,728 | -482 | -2,524 | -5,980 | ||||
Interest received | 687 | 433 | 1,956 | 1,567 | |||
Interest paid | -273 | -328 | -1,438 | -1,798 | |||
Taxes paid | -632 | -1,261 | -2,701 | -4,077 | |||
Cash flow from operating activities | 6,469 | 7,939 | 15,805 | 16,447 | |||
Investing activities | |||||||
Investments in property, plant and equipment | 6 | -846 | -491 | -2,104 | -1,781 | ||
Sales of property, plant and equipment | 84 | 57 | 117 | 136 | |||
Acquisitions/divestments of subsidiaries and other operations, net | 6 | 10,064 | -304 | 10,201 | |||
Product development | 6 | -291 | -286 | -1,053 | -786 | ||
Purchase of interest-bearing securities | -9,370 | -9,633 | -29,311 | -28,448 | |||
Sales of interest-bearing securities | 12,843 | 3,549 | 33,545 | 11,821 | |||
Other investing activities | -1,216 | -106 | -1,543 | 2,454 | |||
Cash flow from investing activities | 1,209 | 3,154 | -652 | -6,403 | |||
Financing activities | |||||||
Proceeds from issuance of borrowings | 5,505 | – | 5,633 | 198 | |||
Repayment of borrowings | – | -26 | -207 | -537 | |||
Dividends paid | 0 | -1 | -5,037 | -4,811 | |||
Repayment of lease liabilities | -461 | -507 | -1,433 | -1,654 | |||
Repurchase of own shares | -4,526 | – | -7,760 | -116 | |||
Other financing activities | -161 | -643 | -2,333 | 1,540 | |||
Cash flow from financing activities | 357 | -1,177 | -11,137 | -5,380 | |||
Effect of exchange rate changes on cash | 1,361 | -841 | 3,144 | -5,854 | |||
Net change in cash and cash equivalents | 9,396 | 9,075 | 7,160 | -1,190 | |||
Cash and cash equivalents, beginning of period | 41,691 | 33,620 | 43,926 | 43,885 | |||
Cash and cash equivalents, end of period | 51,087 | 42,695 | 51,087 | 42,695 | |||
Ericsson | Third quarter report 2026. October 15, 2026. | Financial statements | 20 |
Condensed consolidated statement of changes in equity
Jan-Sep | |||
SEK million | 2026 | 2025 | |
Opening balance | 110,264 | 92,983 | |
Total comprehensive income | 18,922 | 18,187 | |
Sale/repurchase of own shares | -8,045 | -116 | |
Share issue, net | – | 116 | |
Long-term variable compensation plans | 155 | 115 | |
Dividends to shareholders¹⁾ | -10,042 | -9,545 | |
Transactions with non-controlling interests | – | 754 | |
Closing balance | 111,255 | 102,494 | |
¹⁾ Jan-Sep includes SEK 5,004 (4,769) million of dividend approved by the Annual General Meeting on March 31, 2026, which was paid out on October 2 2026.
Condensed consolidated income statement – isolated quarters
2026 | 2025 | |||||||
Isolated quarters, SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Net sales | 59,478 | 52,691 | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | |
Cost of sales | -31,488 | -28,568 | -26,033 | -36,580 | -29,462 | -29,483 | -28,488 | |
Gross income | 27,990 | 24,122 | 23,299 | 32,705 | 26,777 | 26,649 | 26,537 | |
Research and development expenses | -11,841 | -10,480 | -13,489 | -13,098 | -11,510 | -12,212 | -12,032 | |
Selling and administrative expenses | -7,411 | -7,736 | -8,135 | -8,971 | -7,913 | -8,180 | -8,621 | |
Impairment reversals/losses on trade receivables | 69 | -20 | -156 | 127 | 46 | 34 | 32 | |
Operating expenses | -19,183 | -18,237 | -21,781 | -21,942 | -19,377 | -20,358 | -20,621 | |
Other operating income and expenses¹⁾ | 93 | 90 | 24 | 420 | 7,715 | 67 | 8 | |
Share of earnings/losses of associated companies | -37 | -56 | -99 | -22 | 36 | 33 | 7 | |
Earnings before financial items and income tax (EBIT) | 8,864 | 5,919 | 1,443 | 11,161 | 15,151 | 6,391 | 5,931 | |
Financial income and expenses, net | -910 | -178 | -193 | -80 | -212 | 34 | -74 | |
Income after financial items | 7,954 | 5,741 | 1,250 | 11,081 | 14,939 | 6,425 | 5,857 | |
Income tax | -2,157 | -1,665 | -362 | -2,510 | -3,639 | -1,799 | -1,640 | |
Net income | 5,797 | 4,076 | 887 | 8,571 | 11,300 | 4,626 | 4,217 | |
Net income attributable to: | ||||||||
Owners of the Parent Company | 5,806 | 4,046 | 888 | 8,563 | 11,149 | 4,567 | 4,149 | |
Non-controlling interests | -10 | 30 | 0 | 8 | 151 | 59 | 68 | |
Other information | ||||||||
Average number of shares, basic (million) | 3,269 | 3,313 | 3,333 | 3,333 | 3,333 | 3,333 | 3,333 | |
Earnings per share, basic (SEK)²⁾ | 1.78 | 1.22 | 0.27 | 2.57 | 3.34 | 1.37 | 1.25 | |
Earnings per share, diluted (SEK)²⁾³⁾ | 1.77 | 1.22 | 0.27 | 2.57 | 3.33 | 1.37 | 1.24 | |
¹⁾ Q3 2025 includes a gain of SEK 7.6 billion due to the divestment of iconectiv.
²⁾ Based on net income attributable to owners of the Parent Company.
³⁾ Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.
Ericsson | Third quarter report 2026. October 15, 2026. | Financial statements | 21 |
Condensed consolidated statement of cash flows – isolated quarters
2026 | 2025 | |||||||
Isolated quarters, SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Operating activities | ||||||||
Net income | 5,797 | 4,076 | 887 | 8,571 | 11,300 | 4,626 | 4,217 | |
Adjustments for | ||||||||
Taxes | 2,459 | 1,652 | 353 | 2,724 | 3,647 | 1,949 | 1,754 | |
Earnings/dividends in associated companies | 140 | 64 | 169 | 27 | 50 | -22 | 2 | |
Depreciation, amortization and impairment losses | 2,155 | 1,988 | 1,987 | 2,185 | 2,129 | 2,177 | 2,750 | |
Other | -135 | -531 | -547 | -735 | -7,549 | -410 | 115 | |
10,415 | 7,249 | 2,849 | 12,772 | 9,577 | 8,320 | 8,838 | ||
Changes in operating net assets | ||||||||
Inventories | -4,086 | -4,622 | -1,730 | 3,667 | -680 | 210 | -2,268 | |
Customer finance, current and non-current | -192 | 94 | -622 | 406 | 372 | 391 | 1,864 | |
Trade receivables and contract assets | -355 | 2,516 | 1,283 | -3,288 | -889 | 188 | -312 | |
Trade payables | 613 | 1,667 | -471 | 1,568 | 1,102 | -636 | -1,572 | |
Provisions and post-employment benefits | 770 | -690 | 2,557 | 1,743 | -565 | -298 | -2,315 | |
Contract liabilities | -5,399 | -1,376 | 8,077 | -2,913 | -2,869 | -1,329 | 8,596 | |
Other operating assets and liabilities, net | 4,922 | -1,985 | -3,494 | 5,175 | 3,047 | -1,187 | -6,830 | |
-3,728 | -4,397 | 5,600 | 6,358 | -482 | -2,661 | -2,837 | ||
Interest received | 687 | 739 | 531 | 716 | 433 | 458 | 676 | |
Interest paid | -273 | -631 | -534 | -407 | -328 | -699 | -771 | |
Taxes paid | -632 | -1,028 | -1,042 | -2,932 | -1,261 | -1,268 | -1,548 | |
Cash flow from operating activities | 6,469 | 1,932 | 7,403 | 16,507 | 7,939 | 4,150 | 4,358 | |
Investing activities | ||||||||
Investments in property, plant and equipment | -846 | -637 | -620 | -849 | -491 | -561 | -729 | |
Sales of property, plant and equipment | 84 | 23 | 10 | 56 | 57 | 40 | 39 | |
Acquisitions/divestments of subs. and other operations, net | 6 | -238 | -72 | 338 | 10,064 | 141 | -4 | |
Product development | -291 | -384 | -378 | -352 | -286 | -193 | -307 | |
Purchase of interest-bearing securities | -9,370 | -13,548 | -6,393 | -10,310 | -9,633 | -12,295 | -6,520 | |
Sales of interest-bearing securities | 12,843 | 11,988 | 8,714 | 4,867 | 3,549 | 2,568 | 5,704 | |
Other investing activities | -1,216 | -926 | 599 | 1,216 | -106 | -562 | 3,122 | |
Cash flow from investing activities | 1,209 | -3,721 | 1,860 | -5,034 | 3,154 | -10,862 | 1,305 | |
Financing activities | ||||||||
Proceeds from issuance of borrowings | 5,505 | 128 | – | 200 | – | 198 | – | |
Repayment of borrowings | – | -207 | – | -3,001 | -26 | -432 | -79 | |
Dividends paid | 0 | -5,037 | – | -4,734 | -1 | -4,810 | – | |
Repayment of lease liabilities | -461 | -513 | -459 | -461 | -507 | -554 | -593 | |
Repurchase of own shares | -4,526 | -3,224 | -10 | -6 | – | -116 | – | |
Other financing activities | -161 | -362 | -1,809 | -841 | -643 | 2,243 | -60 | |
Cash flow from financing activities | 357 | -9,216 | -2,278 | -8,843 | -1,177 | -3,471 | -732 | |
Effect of exchange rate changes on cash | 1,361 | 381 | 1,403 | -1,399 | -841 | -787 | -4,226 | |
Net change in cash and cash equivalents | 9,396 | -10,624 | 8,388 | 1,231 | 9,075 | -10,970 | 705 | |
Cash and cash equivalents, beginning of period | 41,691 | 52,315 | 43,926 | 42,695 | 33,620 | 44,590 | 43,885 | |
Cash and cash equivalents, end of period | 51,087 | 41,691 | 52,315 | 43,926 | 42,695 | 33,620 | 44,590 | |
Ericsson | Third quarter report 2026. October 15, 2026. | Financial statements | 22 |
Condensed Parent Company income statement
Q3 | Jan-Sep | |||||
SEK million | 2026 | 2025 | 2026 | 2025 | ||
Net sales | – | – | – | – | ||
Cost of sales | – | – | – | – | ||
Gross income | – | – | – | – | ||
Operating expenses | -192 | -371 | -733 | -1,237 | ||
Other operating income and expenses | 688 | 640 | 2,137 | 1,956 | ||
EBIT | 496 | 269 | 1,404 | 719 | ||
Financial net | 637 | 9,295 | 28,741 | 28,149 | ||
Income after financial items | 1,133 | 9,564 | 30,145 | 28,868 | ||
Transfers to (-) / from untaxed reserves | – | – | – | – | ||
Income tax | -88 | -335 | -522 | -514 | ||
Net income | 1,045 | 9,229 | 29,623 | 28,354 | ||
Condensed Parent Company statement of comprehensive income
Q3 | Jan-Sep | |||||
SEK million | 2026 | 2025 | 2026 | 2025 | ||
Net income | 1,045 | 9,229 | 29,623 | 28,354 | ||
Other comprehensive income, net of tax | – | – | – | – | ||
Total comprehensive income | 1,045 | 9,229 | 29,623 | 28,354 | ||
Ericsson | Third quarter report 2026. October 15, 2026. | Financial statements | 23 |
Condensed Parent Company balance sheet
SEK million | Sep 30 2026 | Dec 31 2025 |
Assets | ||
Fixed assets | ||
Intangible assets | 135 | 151 |
Tangible assets | 315 | 300 |
Financial assets¹⁾ | 137,950 | 135,029 |
138,400 | 135,480 | |
Current assets | ||
Receivables | 18,991 | 19,323 |
Short-term investments | 7,510 | 12,651 |
Cash and cash equivalents | 36,040 | 27,807 |
62,541 | 59,781 | |
Total assets | 200,941 | 195,261 |
Stockholders' equity, provisions and liabilities | ||
Equity | ||
Restricted equity | 48,351 | 48,351 |
Non-restricted equity | 54,672 | 43,051 |
103,023 | 91,402 | |
Provisions | 121 | 60 |
Non-current liabilities | 27,838 | 29,164 |
Current liabilities | 69,959 | 74,635 |
Total stockholders' equity, provisions and liabilities | 200,941 | 195,261 |
¹⁾ Of which interest-bearing securities, non-current | 39,175 | 37,298 |
Ericsson | Third quarter report 2026. October 15, 2026. | Accounting policies and Explanatory notes | 24 |
Accounting policies and
Explanatory notes (unaudited)
Note 1 – Accounting policies and other
information
Accounting policies for the Group
This condensed consolidated interim financial report for the
reporting period ended September 30, 2026, has been prepared
in accordance with International Accounting Standard IAS 34
“Interim Financial Reporting”. The term “IFRS Accounting
Standards” used in this document refers to IFRS® Accounting
standards as issued by the International Accounting Standards
Board (IASB) as well as interpretations of these standards as
issued by IASB’s Standards Interpretation Committee (SIC) and
IFRS Interpretations Committee (IFRIC). The accounting policies
adopted are consistent with those of the annual report for the
year ended December 31, 2025, and should be read in
conjunction with that annual report. Amendments to IFRS
Accounting Standards that became effective during 2026 do not
have a material impact on the result and financial position of the
Company.
New accounting standards and interpretations
IASB has issued the following new standard with effective date of
January 1, 2027:
– In April 2024, IASB issued a new standard, IFRS 18 that will
replace IAS 1 Presentation of Financial Statements. The standard
sets out the requirements for the presentation and disclosure of
information in the financial statements to ensure better
comparability, consistency and faithful representation of an
entity’s assets, liabilities, equity, income, and expenses. The new
standard’s biggest impact is on the statement of profit or loss
(income statement), where it includes more specific guidance on
how the statement of profit or loss shall be presented mandating
certain income and expense classification and subtotals to be
presented.
– Impact at transition: The standard is effective for the annual
periods beginning on or after January 1, 2027. The Company will
apply the new standard as from January 1, 2027. At transition,
the Company will apply the new presentation and disclosure
requirements retrospectively for all periods presented. As the
standard only impacts the presentation and disclosure
requirements, and not the measurement of any items presented
in the financial statements, there will be no effect on retained
earnings at transition date. The largest effect is on the
presentation of the income statement where certain items such
as foreign exchange differences will be classified differently within
the income statement. In addition, there will be new subtotals
introduced such as Operating profit. Accordingly, the information
for prior years will be restated. The transition note will include a
bridge between the IAS 1 presentation and the new IFRS 18
presentation when the standard is applied.
– The Company is still assessing the detailed impact that the
transition to IFRS 18 will have on the financial statements.
Other
Rounding differences may occur in the summation of amounts.
Ericsson | Third quarter report 2026. October 15, 2026. | Accounting policies and Explanatory notes | 25 |
Note 2 – Segment information
Net sales by segment by quarter
2026 | 2025 | |||||||
Isolated quarters, SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Networks | 38,696 | 33,047 | 32,937 | 44,200 | 35,424 | 35,747 | 35,643 | |
Of which Products | 30,956 | 24,684 | 25,549 | 33,275 | 26,531 | 27,622 | 28,060 | |
Of which Services | 7,740 | 8,363 | 7,388 | 10,925 | 8,893 | 8,125 | 7,583 | |
Cloud Software and Services | 15,829 | 14,732 | 11,833 | 20,031 | 15,346 | 14,363 | 12,975 | |
Of which Products | 5,975 | 5,569 | 4,295 | 8,459 | 5,431 | 5,407 | 4,719 | |
Of which Services | 9,853 | 9,163 | 7,539 | 11,572 | 9,915 | 8,956 | 8,256 | |
Enterprise | 4,560 | 4,490 | 4,168 | 4,578 | 5,058 | 5,548 | 5,933 | |
Other | 393 | 422 | 393 | 476 | 411 | 474 | 474 | |
Total | 59,478 | 52,691 | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | |
2026 | 2025 | |||||||
Sequential change, percent | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Networks | 17% | 0% | -25% | 25% | -1% | 0% | -24% | |
Of which Products | 25% | -3% | -23% | 25% | -4% | -2% | -23% | |
Of which Services | -7% | 13% | -32% | 23% | 9% | 7% | -26% | |
Cloud Software and Services | 7% | 25% | -41% | 31% | 7% | 11% | -33% | |
Of which Products | 7% | 30% | -49% | 56% | 0% | 15% | -40% | |
Of which Services | 8% | 22% | -35% | 17% | 11% | 8% | -29% | |
Enterprise | 2% | 8% | -9% | -9% | -9% | -6% | -3% | |
Other | -7% | 7% | -17% | 16% | -13% | 0% | -17% | |
Total | 13% | 7% | -29% | 23% | 0% | 2% | -25% | |
2026 | 2025 | |||||||
Year over year change, percent | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Networks | 9% | -8% | -8% | -6% | -11% | -5% | 6% | |
Of which Products | 17% | -11% | -9% | -9% | -15% | -3% | 10% | |
Of which Services | -13% | 3% | -3% | 7% | 1% | -11% | -9% | |
Cloud Software and Services | 3% | 3% | -9% | 3% | 3% | -5% | -1% | |
Of which Products | 10% | 3% | -9% | 8% | 4% | 12% | 4% | |
Of which Services | -1% | 2% | -9% | -1% | 2% | -14% | -3% | |
Enterprise | -10% | -19% | -30% | -25% | -20% | -14% | -1% | |
Other | -4% | -11% | -17% | -16% | -19% | -6% | -20% | |
Total | 6% | -6% | -10% | -5% | -9% | -6% | 3% | |
2026 | 2025 | |||||||
Year to date, SEK million | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Networks | 104,680 | 65,984 | 32,937 | 151,014 | 106,814 | 71,390 | 35,643 | |
Of which Products | 81,189 | 50,233 | 25,549 | 115,488 | 82,213 | 55,682 | 28,060 | |
Of which Services | 23,491 | 15,751 | 7,388 | 35,526 | 24,601 | 15,708 | 7,583 | |
Cloud Software and Services | 42,394 | 26,566 | 11,833 | 62,715 | 42,684 | 27,338 | 12,975 | |
Of which Products | 15,839 | 9,863 | 4,295 | 24,016 | 15,557 | 10,126 | 4,719 | |
Of which Services | 26,556 | 16,702 | 7,539 | 38,699 | 27,127 | 17,212 | 8,256 | |
Enterprise | 13,219 | 8,658 | 4,168 | 21,117 | 16,539 | 11,481 | 5,933 | |
Other | 1,208 | 815 | 393 | 1,835 | 1,359 | 948 | 474 | |
Total | 161,500 | 102,022 | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | |
2026 | 2025 | |||||||
Year over year change, percent | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Networks | -2% | -8% | -8% | -5% | -4% | 0% | 6% | |
Of which Products | -1% | -10% | -9% | -5% | -4% | 3% | 10% | |
Of which Services | -5% | 0% | -3% | -2% | -6% | -10% | -9% | |
Cloud Software and Services | -1% | -3% | -9% | 0% | -1% | -3% | -1% | |
Of which Products | 2% | -3% | -9% | 7% | 7% | 8% | 4% | |
Of which Services | -2% | -3% | -9% | -4% | -5% | -9% | -3% | |
Enterprise | -20% | -25% | -30% | -15% | -12% | -8% | -1% | |
Other | -11% | -14% | -17% | -16% | -15% | -14% | -20% | |
Total | -4% | -8% | -10% | -5% | -4% | -2% | 3% | |
Ericsson | Third quarter report 2026. October 15, 2026. | Accounting policies and Explanatory notes | 26 |
Gross income by segment by quarter
2026 | 2025 | |||||||
Isolated quarters, SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Networks | 19,272 | 15,975 | 16,359 | 21,648 | 17,705 | 17,638 | 18,112 | |
Cloud Software and Services | 6,707 | 5,868 | 4,907 | 8,636 | 6,463 | 5,964 | 5,069 | |
Enterprise | 2,280 | 2,276 | 2,039 | 2,386 | 2,609 | 3,045 | 3,338 | |
Other | -269 | 2 | -6 | 35 | 0 | 2 | 18 | |
Total | 27,990 | 24,122 | 23,299 | 32,705 | 26,777 | 26,649 | 26,537 | |
2026 | 2025 | |||||||
Year to date, SEK million | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Networks | 51,606 | 32,334 | 16,359 | 75,103 | 53,455 | 35,750 | 18,112 | |
Cloud Software and Services | 17,483 | 10,776 | 4,907 | 26,132 | 17,496 | 11,033 | 5,069 | |
Enterprise | 6,595 | 4,315 | 2,039 | 11,378 | 8,992 | 6,383 | 3,338 | |
Other | -273 | -4 | -6 | 55 | 20 | 20 | 18 | |
Total | 75,411 | 47,421 | 23,299 | 112,668 | 79,963 | 53,186 | 26,537 | |
EBIT by segment by quarter
2026 | 2025 | |||||||
Isolated quarters, SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Networks | 8,420 | 6,006 | 3,283 | 9,318 | 7,075 | 6,376 | 7,040 | |
Cloud Software and Services | 1,730 | 1,142 | 3 | 3,364 | 1,721 | 840 | 71 | |
Enterprise | -966 | -1,215 | -1,844 | -1,526 | 6,649 | -870 | -1,014 | |
Other | -321 | -14 | 1 | 5 | -294 | 45 | -166 | |
Total | 8,864 | 5,919 | 1,443 | 11,161 | 15,151 | 6,391 | 5,931 | |
2026 | 2025 | |||||||
Year to date, SEK million | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Networks | 17,710 | 9,290 | 3,283 | 29,809 | 20,491 | 13,416 | 7,040 | |
Cloud Software and Services | 2,875 | 1,146 | 3 | 5,996 | 2,632 | 911 | 71 | |
Enterprise | -4,025 | -3,059 | -1,844 | 3,239 | 4,765 | -1,884 | -1,014 | |
Other | -334 | -14 | 1 | -410 | -415 | -121 | -166 | |
Total | 16,226 | 7,362 | 1,443 | 38,634 | 27,473 | 12,322 | 5,931 | |
Ericsson | Third quarter report 2026. October 15, 2026. | Accounting policies and Explanatory notes | 27 |
Net sales by market area by quarter
2026 | 2025 | |||||||
Isolated quarters, SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Americas | 19,817 | 18,821 | 17,077 | 22,928 | 19,837 | 19,809 | 20,859 | |
Europe, Middle East and Africa¹⁾²⁾ | 17,452 | 16,261 | 14,298 | 23,350 | 16,730 | 16,193 | 14,475 | |
South East Asia, Oceania and India | 8,788 | 5,407 | 6,946 | 8,986 | 7,097 | 5,505 | 7,226 | |
North East Asia | 4,540 | 3,734 | 3,122 | 5,205 | 3,825 | 3,766 | 3,215 | |
Other¹⁾²⁾ | 8,881 | 8,467 | 7,888 | 8,816 | 8,750 | 10,859 | 9,250 | |
Total | 59,478 | 52,691 | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | |
¹⁾ Of which in Sweden | 581 | 688 | 781 | 1,374 | 863 | 686 | 461 | |
²⁾ Of which in EU | 7,574 | 7,526 | 7,081 | 10,663 | 8,213 | 8,223 | 7,566 | |
2026 | 2025 | |||||||
Sequential change, percent | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Americas | 5% | 10% | -26% | 16% | 0% | -5% | -19% | |
Europe, Middle East and Africa¹⁾²⁾ | 7% | 14% | -39% | 40% | 3% | 12% | -34% | |
South East Asia, Oceania and India | 63% | -22% | -23% | 27% | 29% | -24% | -14% | |
North East Asia | 22% | 20% | -40% | 36% | 2% | 17% | -55% | |
Other¹⁾²⁾ | 5% | 7% | -11% | 1% | -19% | 17% | -4% | |
Total | 13% | 7% | -29% | 23% | 0% | 2% | -25% | |
¹⁾ Of which in Sweden | -16% | -12% | -43% | 59% | 26% | 49% | -23% | |
²⁾ Of which in EU | 1% | 6% | -34% | 30% | 0% | 9% | -31% | |
2026 | 2025 | |||||||
Year over year change, percent | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Americas | 0% | -5% | -18% | -11% | -16% | 0% | 26% | |
Europe, Middle East and Africa¹⁾²⁾ | 4% | 0% | -1% | 7% | -1% | -6% | -5% | |
South East Asia, Oceania and India | 24% | -2% | -4% | 6% | -8% | -28% | -16% | |
North East Asia | 19% | -1% | -3% | -27% | 4% | -17% | -6% | |
Other¹⁾²⁾ | 1% | -22% | -15% | -9% | -13% | 4% | -3% | |
Total | 6% | -6% | -10% | -5% | -9% | -6% | 3% | |
¹⁾ Of which in Sweden | -33% | 0% | 69% | 130% | 100% | 18% | -37% | |
²⁾ Of which in EU | -8% | -8% | -6% | -2% | 1% | -4% | 0% | |
2026 | 2025 | |||||||
Year to date, SEK million | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Americas | 55,715 | 35,898 | 17,077 | 83,433 | 60,505 | 40,668 | 20,859 | |
Europe, Middle East and Africa¹⁾²⁾ | 48,011 | 30,559 | 14,298 | 70,748 | 47,398 | 30,668 | 14,475 | |
South East Asia, Oceania and India | 21,141 | 12,352 | 6,946 | 28,814 | 19,828 | 12,731 | 7,226 | |
North East Asia | 11,396 | 6,856 | 3,122 | 16,011 | 10,806 | 6,981 | 3,215 | |
Other¹⁾²⁾ | 25,237 | 16,356 | 7,888 | 37,675 | 28,859 | 20,109 | 9,250 | |
Total | 161,500 | 102,022 | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | |
¹⁾ Of which in Sweden | 2,050 | 1,469 | 781 | 3,384 | 2,010 | 1,147 | 461 | |
²⁾ Of which in EU | 22,181 | 14,607 | 7,081 | 34,665 | 24,002 | 15,789 | 7,566 | |
2026 | 2025 | |||||||
Year to date, year over year change, percent | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Americas | -8% | -12% | -18% | -3% | 1% | 12% | 26% | |
Europe, Middle East and Africa¹⁾²⁾ | 1% | 0% | -1% | -1% | -4% | -6% | -5% | |
South East Asia, Oceania and India | 7% | -3% | -4% | -11% | -17% | -22% | -16% | |
North East Asia | 5% | -2% | -3% | -15% | -7% | -13% | -6% | |
Other¹⁾²⁾ | -13% | -19% | -15% | -5% | -4% | 1% | -3% | |
Total | -4% | -8% | -10% | -5% | -4% | -2% | 3% | |
¹⁾ Of which in Sweden | 2% | 28% | 69% | 45% | 15% | -13% | -37% | |
²⁾ Of which in EU | -8% | -7% | -6% | -2% | -1% | -2% | 0% | |
Ericsson | Third quarter report 2026. October 15, 2026. | Accounting policies and Explanatory notes | 28 |
Net sales by market area by segment
Q3 2026 | Jan-Sep 2026 | ||||||||||
SEK million | Networks | Cloud Software and Services | Enterprise | Other | Total | Networks | Cloud Software and Services | Enterprise | Other | Total | |
Americas | 14,998 | 4,769 | 49 | 0 | 19,817 | 42,827 | 12,724 | 164 | 0 | 55,715 | |
Europe, Middle East and Africa | 10,198 | 6,990 | 264 | 0 | 17,452 | 28,608 | 18,702 | 701 | 0 | 48,011 | |
South East Asia, Oceania and India | 6,482 | 2,299 | 7 | 0 | 8,788 | 15,024 | 6,087 | 30 | 0 | 21,141 | |
North East Asia | 3,615 | 924 | 1 | 0 | 4,540 | 8,848 | 2,544 | 4 | 0 | 11,396 | |
Other¹⁾ | 3,403 | 846 | 4,239 | 393 | 8,881 | 9,372 | 2,337 | 12,320 | 1,207 | 25,237 | |
Total | 38,696 | 15,829 | 4,560 | 393 | 59,478 | 104,680 | 42,394 | 13,219 | 1,208 | 161,500 | |
Share of total | 65% | 27% | 8% | 1% | 100% | 65% | 26% | 8% | 1% | 100% | |
1) Includes primarily IPR licensing revenues and a major part of segment Enterprise.
Q3 2026 | |||||
Sequential change, percent | Networks | Cloud Software and Services | Enterprise | Other | Total |
Americas | 6% | 3% | -10% | - | 5% |
Europe, Middle East and Africa | 8% | 7% | 3% | 3% | 7% |
South East Asia, Oceania and India | 87% | 19% | -33% | - | 63% |
North East Asia | 26% | 6% | 0% | - | 22% |
Other | 10% | 9% | 2% | -7% | 5% |
Total | 17% | 7% | 2% | -7% | 13% |
Q3 2026 | Jan-Sep 2026 | ||||||||||
Year over year change, percent | Networks | Cloud Software and Services | Enterprise | Other | Total | Networks | Cloud Software and Services | Enterprise | Other | Total | |
Americas | -1% | 5% | -43% | - | 0% | -10% | 1% | -44% | -100% | -8% | |
Europe, Middle East and Africa | 3% | 5% | 55% | - | 4% | 2% | 0% | 11% | - | 1% | |
South East Asia, Oceania and India | 46% | -13% | -30% | -100% | 24% | 13% | -6% | -18% | -100% | 7% | |
North East Asia | 19% | 18% | -13% | - | 19% | 6% | 5% | -59% | - | 5% | |
Other | 21% | 15% | -11% | -4% | 1% | -1% | -3% | -21% | -11% | -13% | |
Total | 9% | 3% | -10% | -4% | 6% | -2% | -1% | -20% | -11% | -4% | |
Top 5 countries in sales
2026 | 2025 | |||||||
Country, percentage of net sales¹⁾ | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
USA | 38% | 40% | 39% | 36% | 40% | 44% | 45% | |
India | 5% | 4% | 8% | 5% | 5% | 4% | 7% | |
United Kingdom | 4% | 5% | 4% | 4% | 4% | 4% | 4% | |
Japan | 5% | 4% | 4% | 4% | 3% | 3% | 3% | |
China | 4% | 4% | 3% | 3% | 3% | 4% | 3% | |
2026 | 2025 | |||||||
Country, percentage of net sales¹⁾ | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
USA | 39% | 40% | 39% | 41% | 43% | 44% | 45% | |
India | 6% | 6% | 8% | 5% | 5% | 6% | 7% | |
United Kingdom | 4% | 5% | 4% | 4% | 4% | 4% | 4% | |
Japan | 4% | 4% | 4% | 4% | 3% | 3% | 3% | |
China | 3% | 3% | 3% | 3% | 4% | 4% | 3% | |
1) Based on Jan-Sep 2026. Includes IPR licensing revenues.
IPR licensing revenues by segment by quarter
2026 | 2025 | |||||||
Isolated quarters, SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Networks | 3,191 | 2,796 | 2,569 | 2,733 | 2,569 | 3,987 | 2,606 | |
Cloud Software and Services | 700 | 614 | 564 | 600 | 564 | 875 | 572 | |
Total | 3,891 | 3,410 | 3,133 | 3,333 | 3,133 | 4,862 | 3,178 | |
2026 | 2025 | |||||||
Year to date, SEK million | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Networks | 8,556 | 5,365 | 2,569 | 11,895 | 9,162 | 6,593 | 2,606 | |
Cloud Software and Services | 1,878 | 1,178 | 564 | 2,611 | 2,011 | 1,447 | 572 | |
Total | 10,434 | 6,543 | 3,133 | 14,506 | 11,173 | 8,040 | 3,178 | |
Ericsson | Third quarter report 2026. October 15, 2026. | Accounting policies and Explanatory notes | 29 |
Note 3 – Financial income and expenses, net
Financial income and expenses, net
2026 | 2025 | |||||||
Isolated quarters, SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Financial income | 554 | 732 | 585 | 620 | 662 | 579 | 619 | |
Financial expenses | -1,216 | -680 | -594 | -580 | -735 | -927 | -805 | |
Net foreign exchange gains/losses | -248 | -229 | -184 | -120 | -139 | 382 | 112 | |
Total | -910 | -178 | -193 | -80 | -212 | 34 | -74 | |
2026 | 2025 | |||||||
Year to date, SEK million | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Financial income | 1,870 | 1,316 | 585 | 2,480 | 1,860 | 1,198 | 619 | |
Financial expenses | -2,491 | -1,274 | -594 | -3,047 | -2,467 | -1,732 | -805 | |
Net foreign exchange gains/losses | -661 | -414 | -184 | 235 | 355 | 494 | 112 | |
Total | -1,282 | -372 | -193 | -332 | -252 | -40 | -74 | |
Note 4 – Provisions
Provisions
2026 | 2025 | |||||||
Isolated quarters, SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Opening balance | 11,163 | 11,803 | 8,684 | 7,823 | 8,652 | 9,093 | 11,715 | |
Additions | 2,093 | 1,265 | 6,016 | 3,005 | 847 | 1,830 | 1,055 | |
Utilization | -1,153 | -1,815 | -2,898 | -1,605 | -1,311 | -1,853 | -3,009 | |
Of which restructuring | -754 | -1,064 | -546 | -721 | -813 | -837 | -1,201 | |
Reversal of excess amounts | -48 | -217 | -171 | -357 | -370 | -273 | -256 | |
Reclassification, translation difference and other | -21 | 126 | 172 | -182 | 5 | -145 | -412 | |
Closing balance | 12,034 | 11,163 | 11,803 | 8,684 | 7,823 | 8,652 | 9,093 | |
Of which restructuring | 3,915 | 4,017 | 4,956 | 1,889 | 1,710 | 2,429 | 2,720 | |
2026 | 2025 | |||||||
Year to date, SEK million | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Opening balance | 8,684 | 8,684 | 8,684 | 11,715 | 11,715 | 11,715 | 11,715 | |
Additions | 9,374 | 7,281 | 6,016 | 6,737 | 3,732 | 2,885 | 1,055 | |
Utilization | -5,865 | -4,713 | -2,898 | -7,778 | -6,173 | -4,862 | -3,009 | |
Of which restructuring | -2,364 | -1,610 | -546 | -3,572 | -2,851 | -2,038 | -1,201 | |
Reversal of excess amounts | -436 | -388 | -171 | -1,256 | -899 | -529 | -256 | |
Reclassification, translation difference and other | 277 | 298 | 172 | -734 | -552 | -557 | -412 | |
Closing balance | 12,034 | 11,163 | 11,803 | 8,684 | 7,823 | 8,652 | 9,093 | |
Of which restructuring | 3,915 | 4,017 | 4,956 | 1,889 | 1,710 | 2,429 | 2,720 | |
Ericsson | Third quarter report 2026. October 15, 2026. | Accounting policies and Explanatory notes | 30 |
Note 5 – Financial risk management
There have been no changes to the fair value hierarchy categorization from that presented in the latest Annual Report. Where Level 2
and Level 3 fair value hierarchies apply, the inputs and valuation methods used remained unchanged. The book values and fair values
of financial instruments are as follows:
Financial instruments
SEK billion | Sep 30 2026 | Dec 31 2025 | |||||||
Fair value hierarchy level | Fair value hierarchy level | ||||||||
Carrying value | Level 1 | Level 2 | Level 3 | Carrying value | Level 1 | Level 2 | Level 3 | ||
Assets at fair value through profit or loss | |||||||||
Customer finance¹⁾ | 1.9 | 1.9 | 1.1 | – | – | 1.1 | |||
Interest-bearing securities | 46.7 | 42.2 | 4.5 | – | 49.9 | 45.4 | 4.5 | – | |
Cash equivalents²⁾ | 33.2 | – | 33.2 | – | 25.3 | – | 25.3 | – | |
Other financial assets | 2.2 | 0.1 | – | 2.1 | 1.9 | – | – | 1.9 | |
Other current assets | 0.3 | – | 0.3 | – | 2.9 | – | 2.9 | – | |
Assets at fair value through OCI | |||||||||
Trade receivables | 38.8 | – | – | 38.8 | 40.3 | – | – | 40.3 | |
Assets at amortized costs | |||||||||
Interest-bearing securities | 0.2 | – | – | – | 0.1 | – | – | – | |
Other financial assets | 0.0 | – | – | – | 0.1 | – | – | – | |
Total financial assets | 123.3 | 121.6 | |||||||
Financial liabilities at designated FVTPL | |||||||||
Parent company borrowings | -36.8 | -19.5 | -17.3 | – | -29.6 | -18.8 | -10.8 | – | |
Financial liabilities at FVTPL | |||||||||
Other current liabilities | -0.7 | – | -0.7 | – | -0.2 | – | -0.2 | – | |
Liabilities at amortized cost | |||||||||
Trade payables | -30.4 | – | – | – | -26.3 | – | – | – | |
Borrowings | -0.5 | – | – | – | -3.1 | – | – | – | |
Total financial liabilities | -68.4 | -59.2 | |||||||
1) Year to date movements of customer finance receivables are as follows: additions of SEK 17.1 billion, disposals and repayments of SEK 16.4 billion. No material revaluation impact in the
current period (< SEK 0.1 billion).
2) Total Cash and cash equivalent is SEK 51.1 (43.9 on Dec 31, 2025) billion, of which SEK 33.2 (SEK 25.3 on Dec 31, 2025) billion relating to Cash equivalents are presented in the table
above.
Exchange rates used in the consolidation
Jan-Sep | Jan-Dec | |||
Closing rates to SEK | 2026 | 2025 | 2025 | |
EUR | 11.33 | 11.06 | 10.82 | |
USD | 9.97 | 9.42 | 9.19 | |
Ericsson | Third quarter report 2026. October 15, 2026. | Accounting policies and Explanatory notes | 31 |
Note 6 – Cash flow
Information on investments
Investments in assets subject to depreciation, amortization, impairment and write-downs
2026 | 2025 | |||||||
Isolated quarters, SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Additions | ||||||||
Property, plant and equipment | 846 | 637 | 620 | 849 | 491 | 561 | 729 | |
Capitalized development expenses | 291 | 384 | 378 | 352 | 286 | 193 | 307 | |
IPR, brands and other intangible assets | 52 | 36 | 35 | 48 | 81 | 301 | 57 | |
Total | 1,190 | 1,058 | 1,033 | 1,249 | 858 | 1,055 | 1,093 | |
Depreciation, amortization and impairment losses | ||||||||
Property, plant and equipment | 824 | 698 | 735 | 814 | 812 | 826 | 1,029 | |
Capitalized development expenses | 452 | 426 | 436 | 446 | 449 | 451 | 444 | |
Goodwill, IPR, brands and other intangible assets | 364 | 358 | 344 | 439 | 365 | 373 | 721 | |
Right-of-use assets | 515 | 506 | 471 | 486 | 503 | 527 | 556 | |
Total | 2,155 | 1,988 | 1,986 | 2,185 | 2,129 | 2,177 | 2,750 | |
2026 | 2025 | |||||||
Year to date, SEK million | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Additions | ||||||||
Property, plant and equipment | 2,104 | 1,257 | 620 | 2,630 | 1,781 | 1,290 | 729 | |
Capitalized development expenses | 1,053 | 762 | 378 | 1,138 | 786 | 500 | 307 | |
IPR, brands and other intangible assets | 124 | 72 | 35 | 487 | 439 | 358 | 57 | |
Total | 3,281 | 2,091 | 1,033 | 4,255 | 3,006 | 2,148 | 1,093 | |
Depreciation, amortization and impairment losses | ||||||||
Property, plant and equipment | 2,257 | 1,433 | 735 | 3,481 | 2,667 | 1,855 | 1,029 | |
Capitalized development expenses | 1,314 | 862 | 436 | 1,790 | 1,344 | 895 | 444 | |
Goodwill, IPR, brands and other intangible assets | 1,066 | 702 | 344 | 1,898 | 1,459 | 1,094 | 721 | |
Right-of-use assets | 1,493 | 978 | 471 | 2,072 | 1,586 | 1,083 | 556 | |
Total | 6,130 | 3,975 | 1,986 | 9,241 | 7,056 | 4,927 | 2,750 | |
Note 7 – Contingent liabilities and Assets pledged as collateral
Contingent liabilities and Assets pledged as collateral
SEK million | Sep 30 2026 | Dec 31 2025 |
Contingent liabilities | 4,344 | 4,091 |
Assets pledged as collateral | 8,966 | 8,695 |
Ericsson | Third quarter report 2026. October 15, 2026. | Accounting policies and Explanatory notes | 32 |
Note 8 – Share information
Number of shares and earnings per share
Q3 | Jan-Sep | ||||
2026 | 2025 | 2026 | 2025 | ||
Number of shares, end of period (million) | 3,371 | 3,371 | 3,371 | 3,371 | |
Of which class A-shares (million) | 262 | 262 | 262 | 262 | |
Of which class B-shares (million) | 3,110 | 3,110 | 3,110 | 3,110 | |
Number of treasury shares, end of period (million) | 114 | 38 | 114 | 38 | |
Number of shares outstanding, basic, end of period (million) | 3,257 | 3,333 | 3,257 | 3,333 | |
Numbers of shares outstanding, diluted, end of period (million) | 3,267 | 3,342 | 3,267 | 3,342 | |
Average number of treasury shares (million) | 103 | 38 | 65 | 28 | |
Average number of shares outstanding, basic (million) | 3,269 | 3,333 | 3,305 | 3,333 | |
Average number of shares outstanding, diluted (million)¹⁾ | 3,278 | 3,342 | 3,314 | 3,342 | |
Earnings per share, basic (SEK)²⁾ | 1.78 | 3.34 | 3.25 | 5.96 | |
Earnings per share, diluted (SEK)¹⁾²⁾ | 1.77 | 3.33 | 3.24 | 5.94 | |
1) Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.
2) Based on net income attributable to owners of the Parent Company.
The proposed dividend for 2025 of SEK 3.00 per share was
approved by the AGM on March 31, 2026. The first of two equal
dividend payments of SEK 1.50 per share was made on April 9,
2026, and the second was made on October 2, 2026.
The AGM resolved to approve the Board of Directors'
proposal on authorization for the Board of Directors to, on one or
several occasions prior to the AGM 2027, decide on the
repurchase of the Company's own shares of series B. The
number of shares purchased must at no time result in the
Company's holding exceeding 10 percent of all the shares in the
Company.
During the quarter, Ericsson repurchased 49,225,701 Class B
shares for a total consideration of SEK 4.8 b. in accordance with
the AGM authorization. Repurchases year-to-date amounted to
78,761,682 Class B shares for SEK 8.1 b. Repurchased shares
are held as treasury shares and presented as a deduction from
equity.
As of September 30, 2026, Ericsson held 114,080,663
treasury shares (38,002,276 as of Dec 31, 2025). Repurchased
shares are reflected as a reduction in the average number of
shares outstanding and in the calculation of earnings per share.
Note 9 – Employee information
Number of employees
2026 | 2025 | |||||||
End of period | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |
Americas | 13,815 | 14,136 | 14,537 | 15,050 | 15,346 | 15,926 | 15,857 | |
Europe, Middle East and Africa¹⁾ | 37,744 | 38,308 | 38,548 | 39,045 | 39,489 | 40,413 | 40,677 | |
South East Asia, Oceania and India | 24,923 | 25,050 | 25,100 | 25,189 | 25,358 | 25,591 | 25,991 | |
North East Asia | 8,935 | 9,042 | 9,336 | 9,542 | 9,705 | 10,007 | 10,341 | |
Total | 85,417 | 86,536 | 87,521 | 88,826 | 89,898 | 91,937 | 92,866 | |
¹⁾ Of which in Sweden | 12,634 | 13,013 | 12,615 | 12,806 | 12,967 | 13,476 | 13,222 | |
Ericsson | Third quarter report 2026. October 15, 2026. | Alternative performance measures | 33 |
Alternative performance measures (unaudited)
In this section, the Company presents its Alternative Performance
Measures (APMs), which are not recognized measures of
financial performance under IFRS Accounting Standards. The
presentation of APMs has limitations as analytical tools and
should not be considered in isolation or as a substitute for related
financial measures prepared in accordance with IFRS Accounting
Standards.
APMs are presented to enhance an investor’s evaluation of
ongoing operating results, to aid in forecasting future periods and
to facilitate meaningful comparison of results between periods.
Management uses these APMs to, among other things,
evaluate ongoing operations in relation to historical results, for
internal planning and forecasting purposes and in the calculation
of certain performance-based compensation. APMs should not be
viewed as substitutes for income statement or cash flow items
computed in accordance with IFRS Accounting Standards.
This section also includes a reconciliation of the APMs to the
most directly reconcilable line items in the financial statements.
For more information about non-IFRS key operating measures,
see Ericsson Annual Report 2025.
Sales growth adjusted for comparable units and currency
Sales growth adjusted for the impact of acquisitions and divestments as well as the effects of foreign currency fluctuations. Also
named organic sales growth.
2026 | 2025 | |||||||
Isolated quarters, year over year change, SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Reported net sales | 59,478 | 52,691 | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | |
Acquired business | – | – | – | – | – | – | – | |
Net FX impact | -4 | 1,821 | 7,755 | 6,801 | 4,213 | 4,672 | -1,817 | |
Current period net sales, excluding acquired business & FX impact | 59,474 | 54,511 | 57,087 | 76,086 | 60,452 | 60,804 | 53,208 | |
Prior year period net sales adjusted for acquired & divested business | 55,682 | 55,121 | 53,903 | 71,474 | 61,794 | 59,848 | 53,325 | |
Organic sales growth (%) | 7% | -1% | 6% | 6% | -2% | 2% | 0% | |
2026 | 2025 | |||||||
Year to date, year over year change, SEK million | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Reported net sales | 161,500 | 102,022 | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | |
Acquired business | – | – | – | – | – | – | – | |
Net FX impact | 9,572 | 9,576 | 7,755 | 13,869 | 7,068 | 2,855 | -1,817 | |
Current period net sales, excluding acquired business & FX impact | 171,073 | 111,598 | 57,087 | 250,550 | 174,464 | 114,012 | 53,208 | |
Prior year period net sales adjusted for acquired & divested business | 164,705 | 109,024 | 53,903 | 246,441 | 174,967 | 113,173 | 53,325 | |
Organic sales growth (%) | 4% | 2% | 6% | 2% | 0% | 1% | 0% | |
Ericsson | Third quarter report 2026. October 15, 2026. | Alternative performance measures | 34 |
Items excluding restructuring charges and impairments of goodwill and intangible assets
Gross income, operating expenses, and EBIT are presented excluding restructuring charges, and for certain measures, as a
percentage of net sales. EBIT is also presented excluding restructuring charges and impairments of goodwill and intangible assets.
2026 | 2025 | |||||||
Isolated quarters, SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Gross income | 27,990 | 24,122 | 23,299 | 32,705 | 26,777 | 26,649 | 26,537 | |
Net sales | 59,478 | 52,691 | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | |
Gross margin (%) | 47.1% | 45.8% | 47.2% | 47.2% | 47.6% | 47.5% | 48.2% | |
Gross income | 27,990 | 24,122 | 23,299 | 32,705 | 26,777 | 26,649 | 26,537 | |
Restructuring charges included in cost of sales | 361 | 1,359 | 435 | 538 | 271 | 310 | 158 | |
Adjusted gross income | 28,351 | 25,481 | 23,734 | 33,243 | 27,048 | 26,959 | 26,695 | |
Net sales | 59,478 | 52,691 | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | |
Adjusted gross margin (%) | 47.7% | 48.4% | 48.1% | 48.0% | 48.1% | 48.0% | 48.5% | |
Operating expenses | -19,183 | -18,237 | -21,781 | -21,942 | -19,377 | -20,358 | -20,621 | |
Restructuring charges included in R&D expenses | 281 | -882 | 2,595 | 300 | -41 | 300 | 20 | |
Restructuring charges included in selling and administrative expenses | 251 | 124 | 738 | 259 | 73 | 46 | 103 | |
Operating expenses excluding restructuring charges | -18,651 | -18,995 | -18,995 | -21,383 | -19,345 | -20,012 | -20,498 | |
EBIT | 8,864 | 5,919 | 1,443 | 11,161 | 15,151 | 6,391 | 5,931 | |
Net sales | 59,478 | 52,691 | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | |
EBIT margin (%) | 14.9% | 11.2% | 2.9% | 16.1% | 26.9% | 11.4% | 10.8% | |
EBIT | 8,864 | 5,919 | 1,443 | 11,161 | 15,151 | 6,391 | 5,931 | |
Total restructuring charges | 893 | 601 | 3,768 | 1,097 | 303 | 656 | 281 | |
Adjusted EBIT | 9,757 | 6,520 | 5,211 | 12,258 | 15,454 | 7,047 | 6,212 | |
Net sales | 59,478 | 52,691 | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | |
Adjusted EBIT margin (%) | 16.4% | 12.4% | 10.6% | 17.7% | 27.5% | 12.6% | 11.3% | |
Adjusted EBIT | 9,757 | 6,520 | 5,211 | 12,258 | 15,454 | 7,047 | 6,212 | |
Impairment of goodwill and intangible assets | – | 2 | – | – | – | – | – | |
Adjusted EBIT excluding impairments of goodwill and intangible assets | 9,757 | 6,521 | 5,211 | 12,258 | 15,454 | 7,047 | 6,212 | |
Net sales | 59,478 | 52,691 | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | |
Adjusted EBIT margin excluding impairments of goodwill and intangible assets (%) | 16.4% | 12.4% | 10.6% | 17.7% | 27.5% | 12.6% | 11.3% | |
2026 | 2025 | |||||||
Year to date, SEK million | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Gross income | 75,411 | 47,421 | 23,299 | 112,668 | 79,963 | 53,186 | 26,537 | |
Net sales | 161,500 | 102,022 | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | |
Gross margin (%) | 46.7% | 46.5% | 47.2% | 47.6% | 47.8% | 47.8% | 48.2% | |
Gross income | 75,411 | 47,421 | 23,299 | 112,668 | 79,963 | 53,186 | 26,537 | |
Restructuring charges included in cost of sales | 2,156 | 1,794 | 435 | 1,277 | 739 | 468 | 158 | |
Adjusted gross income | 77,567 | 49,216 | 23,734 | 113,945 | 80,702 | 53,654 | 26,695 | |
Net sales | 161,500 | 102,022 | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | |
Adjusted gross margin (%) | 48.0% | 48.2% | 48.1% | 48.1% | 48.2% | 48.3% | 48.5% | |
Operating expenses | -59,200 | -40,017 | -21,781 | -82,298 | -60,356 | -40,979 | -20,621 | |
Restructuring charges included in R&D expenses | 1,994 | 1,713 | 2,595 | 579 | 279 | 320 | 20 | |
Restructuring charges included in selling and administrative expenses | 1,112 | 861 | 738 | 481 | 222 | 149 | 103 | |
Operating expenses excluding restructuring charges | -56,094 | -37,443 | -18,448 | -81,238 | -59,855 | -40,510 | -20,498 | |
EBIT | 16,226 | 7,362 | 1,443 | 38,634 | 27,473 | 12,322 | 5,931 | |
Net sales | 161,500 | 102,022 | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | |
EBIT margin (%) | 10.0% | 7.2% | 2.9% | 16.3% | 16.4% | 11.1% | 10.8% | |
EBIT | 16,226 | 7,362 | 1,443 | 38,634 | 27,473 | 12,322 | 5,931 | |
Total restructuring charges | 5,262 | 4,369 | 3,768 | 2,337 | 1,240 | 937 | 281 | |
Adjusted EBIT | 21,488 | 11,731 | 5,211 | 40,971 | 28,713 | 13,259 | 6,212 | |
Net sales | 161,500 | 102,022 | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | |
Adjusted EBIT margin (%) | 13.3% | 11.5% | 10.6% | 17.3% | 17.2% | 11.9% | 11.3% | |
Adjusted EBIT | 21,488 | 11,731 | 5,211 | 40,971 | 28,713 | 13,259 | 6,212 | |
Impairment of goodwill and intangible assets | 2 | 2 | – | – | – | – | – | |
Adjusted EBIT excluding impairments of goodwill and intangible assets | 21,490 | 11,733 | 5,211 | 40,971 | 28,713 | 13,259 | 6,212 | |
Net sales | 161,500 | 102,022 | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | |
Adjusted EBIT margin excluding impairments of goodwill and intangible assets (%) | 13.3% | 11.5% | 10.6% | 17.3% | 17.2% | 11.9% | 11.3% | |
Ericsson | Third quarter report 2026. October 15, 2026. | Alternative performance measures | 35 |
EBITA and EBITA margin / Adjusted EBITA and Adjusted EBITA margin
Earnings before interest, income tax, amortizations and write-downs of acquired intangibles (including goodwill) also expressed as a
percentage of net sales.
Adjusted EBITA also expressed as a percentage of net sales.
2026 | 2025 | |||||||
Isolated quarters, SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Net income | 5,797 | 4,076 | 887 | 8,571 | 11,300 | 4,626 | 4,217 | |
Income tax | 2,157 | 1,665 | 362 | 2,510 | 3,639 | 1,799 | 1,640 | |
Financial income and expenses, net | 910 | 178 | 193 | 80 | 212 | -34 | 74 | |
Amortizations and write-downs of acquired intangibles | 364 | 358 | 344 | 440 | 365 | 372 | 721 | |
Of which segment Enterprise | 333 | 327 | 307 | 406 | 338 | 346 | 389 | |
EBITA | 9,228 | 6,277 | 1,788 | 11,601 | 15,516 | 6,763 | 6,652 | |
Net sales | 59,478 | 52,691 | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | |
EBITA margin (%) | 15.5% | 11.9% | 3.6% | 16.7% | 27.6% | 12.0% | 12.1% | |
Restructuring charges | 893 | 601 | 3,768 | 1,097 | 303 | 656 | 281 | |
Adjusted EBITA | 10,121 | 6,878 | 5,556 | 12,698 | 15,819 | 7,419 | 6,933 | |
Adjusted EBITA margin (%) | 17.0% | 13.1% | 11.3% | 18.3% | 28.1% | 13.2% | 12.6% | |
2026 | 2025 | |||||||
Year to date, SEK million | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Net income | 10,760 | 4,963 | 887 | 28,714 | 20,143 | 8,843 | 4,217 | |
Income tax | 4,184 | 2,027 | 362 | 9,588 | 7,078 | 3,439 | 1,640 | |
Financial income and expenses, net | 1,282 | 372 | 193 | 332 | 252 | 40 | 74 | |
Amortizations and write-downs of acquired intangibles | 1,066 | 702 | 344 | 1,898 | 1,458 | 1,093 | 721 | |
Of which segment Enterprise | 966 | 634 | 307 | 1,479 | 1,073 | 735 | 389 | |
EBITA | 17,292 | 8,065 | 1,788 | 40,532 | 28,931 | 13,415 | 6,652 | |
Net sales | 161,500 | 102,022 | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | |
EBITA margin (%) | 10.7% | 7.9% | 3.6% | 17.1% | 17.3% | 12.1% | 12.1% | |
Restructuring charges | 5,262 | 4,369 | 3,768 | 2,337 | 1,240 | 937 | 281 | |
Adjusted EBITA | 22,554 | 12,433 | 5,556 | 42,869 | 30,171 | 14,352 | 6,933 | |
Adjusted EBITA margin (%) | 14.0% | 12.2% | 11.3% | 18.1% | 18.0% | 12.9% | 12.6% | |
Additionally, Ericsson provides forward-looking targets for
adjusted EBITA margin and Free cash flow before M&A as a
percentage of net sales, which are non-IFRS financial measures.
Ericsson has not provided quantitative reconciliation of these
targets to the most directly comparable IFRS measures because
certain information needed to reconcile these non-IFRS financial
measures to the most comparable IFRS financial measures are
dependent on specific items or impacts that are not yet
determined, are subject to incarcerating and variability in timing
and amount due to their nature, are outside of Ericsson’s control
or cannot be predicted, including items and impacts such as
currency exchange rate changes, acquisitions and disposals, and
charges such as impairments or acquisition related charges.
Accordingly, reconciliation of these non-IFRS forward-looking
financial measures are not available without unreasonable efforts.
Such unavailable reconciling items could significantly impact our
results of operations and financial condition.
Rolling four quarters of net sales and adjusted EBITA margin (%)
Net sales, EBITA margin and restructuring charges as a sum of last four quarters.
2026 | 2025 | |||||||
Rolling four quarters, SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Net sales | 230,785 | 227,546 | 230,988 | 236,681 | 240,309 | 245,864 | 249,580 | |
EBITA | 28,893 | 35,182 | 35,668 | 40,532 | 37,554 | 28,241 | 23,904 | |
Restructuring charges | 6,359 | 5,769 | 5,824 | 2,337 | 2,866 | 4,116 | 5,088 | |
Adjusted EBITA | 35,253 | 40,950 | 41,492 | 42,869 | 40,420 | 32,357 | 28,992 | |
Adjusted EBITA margin (%) | 15.3% | 18.0% | 18.0% | 18.1% | 16.8% | 13.2% | 11.6% | |
Ericsson | Third quarter report 2026. October 15, 2026. | Alternative performance measures | 36 |
Gross cash and net cash, end of period
Gross cash: Cash and cash equivalents plus interest-bearing securities (current and non-current).
Net cash: Cash and cash equivalents plus interest-bearing securities (current and non-current) less borrowings (current and non-
current).
2026 | 2025 | |||||||
SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Cash and cash equivalents | 51,087 | 41,691 | 52,315 | 43,926 | 42,695 | 33,620 | 44,590 | |
+ Interest-bearing securities, current | 7,697 | 12,413 | 10,775 | 12,715 | 8,345 | 6,790 | 5,147 | |
+ Interest-bearing securities, non-current | 39,175 | 37,193 | 36,457 | 37,298 | 37,370 | 32,859 | 24,436 | |
Gross cash, end of period | 97,958 | 91,297 | 99,547 | 93,939 | 88,410 | 73,269 | 74,173 | |
- Borrowings, current | 9,455 | 9,468 | 9,865 | 3,538 | 6,680 | 7,285 | 5,597 | |
- Borrowings, non-current | 27,816 | 21,990 | 21,541 | 29,165 | 29,872 | 29,944 | 29,929 | |
Net cash, end of period | 60,687 | 59,839 | 68,141 | 61,236 | 51,858 | 36,040 | 38,647 | |
Capital employed
Total assets less non-interest-bearing provisions and liabilities (which includes non-current provisions, deferred tax liabilities, contract
liabilities, other non-current liabilities, current provisions, trade payables, current tax liabilities and other current liabilities).
2026 | 2025 | |||||||
SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Total assets | 301,501 | 287,899 | 290,393 | 279,223 | 282,476 | 270,555 | 277,978 | |
Less: Non-interest-bearing provisions and liabilities | ||||||||
Provisions, non-current | -4,253 | -4,037 | -4,822 | -2,993 | -2,478 | -2,365 | -2,541 | |
Deferred tax liabilities | -240 | -173 | -175 | -152 | -1,349 | -1,390 | -1,365 | |
Other non-current liabilities | -1,396 | -1,355 | -1,327 | -1,292 | -899 | -870 | -888 | |
Provisions, current | -7,781 | -7,126 | -6,981 | -5,691 | -5,345 | -6,287 | -6,552 | |
Contract liabilities | -40,548 | -45,133 | -46,008 | -36,867 | -40,642 | -44,370 | -46,757 | |
Trade payables | -30,380 | -28,925 | -26,719 | -26,335 | -25,352 | -24,804 | -26,450 | |
Current tax liabilities | -6,276 | -4,669 | -3,386 | -2,679 | -6,069 | -3,609 | -2,664 | |
Other current liabilities | -39,760 | -34,231 | -40,327 | -34,038 | -34,605 | -32,521 | -41,655 | |
Capital employed | 170,866 | 162,250 | 160,647 | 169,176 | 165,737 | 154,339 | 149,106 | |
Capital turnover
Rolling four quarters of net sales divided by five-point average for capital employed.
2026 | 2025 | |||||||
SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Net sales, rolling four quarters | 230,785 | 227,546 | 230,988 | 236,681 | 240,309 | 245,864 | 249,580 | |
Average capital employed, rolling five quarters | ||||||||
Capital employed at end of period -4 | 165,737 | 154,339 | 149,106 | 162,967 | 153,610 | 156,496 | 177,181 | |
Capital employed at end of period -3 | 169,176 | 165,737 | 154,339 | 149,106 | 162,967 | 153,610 | 156,496 | |
Capital employed at end of period -2 | 160,647 | 169,176 | 165,737 | 154,339 | 149,106 | 162,967 | 153,610 | |
Capital employed at end of period -1 | 162,250 | 160,647 | 169,176 | 165,737 | 154,339 | 149,106 | 162,967 | |
Capital employed at end of period | 170,866 | 162,250 | 160,647 | 169,176 | 165,737 | 154,339 | 149,106 | |
Average capital employed, rolling five quarters | 165,735 | 162,430 | 159,801 | 160,265 | 157,152 | 155,304 | 159,872 | |
Capital turnover (times) | 1.4 | 1.4 | 1.4 | 1.5 | 1.5 | 1.6 | 1.6 | |
Return on capital employed
Rolling four quarters of EBIT divided by five-point average for capital employed.
2026 | 2025 | |||||||
SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
EBIT, rolling four quarters | 27,387 | 33,675 | 34,146 | 38,634 | 35,431 | 26,054 | 6,144 | |
Average capital employed, rolling five quarters | ||||||||
Capital employed at end of period -4 | 165,737 | 154,339 | 149,106 | 162,967 | 153,610 | 156,496 | 177,181 | |
Capital employed at end of period -3 | 169,176 | 165,737 | 154,339 | 149,106 | 162,967 | 153,610 | 156,496 | |
Capital employed at end of period -2 | 160,647 | 169,176 | 165,737 | 154,339 | 149,106 | 162,967 | 153,610 | |
Capital employed at end of period -1 | 162,250 | 160,647 | 169,176 | 165,737 | 154,339 | 149,106 | 162,967 | |
Capital employed at end of period | 170,866 | 162,250 | 160,647 | 169,176 | 165,737 | 154,339 | 149,106 | |
Average capital employed, rolling five quarters | 165,735 | 162,430 | 159,801 | 160,265 | 157,152 | 155,304 | 159,872 | |
Return on capital employed (%) | 16.5% | 20.7% | 21.4% | 24.1% | 22.5% | 16.8% | 3.8% | |
Ericsson | Third quarter report 2026. October 15, 2026. | Alternative performance measures | 37 |
Equity ratio
Equity expressed as a percentage of total assets.
2026 | 2025 | |||||||
SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Total equity | 111,255 | 104,764 | 103,133 | 110,264 | 102,494 | 85,699 | 84,858 | |
Total assets | 301,501 | 287,899 | 290,393 | 279,223 | 282,476 | 270,555 | 277,978 | |
Equity ratio (%) | 36.9% | 36.4% | 35.5% | 39.5% | 36.3% | 31.7% | 30.5% | |
Return on equity
Annualized net income attributable to owners of the Parent Company as a percentage of average stockholders’ equity.
Annualization factor of four is used for isolated quarter.
Annualization factor of four is used for Jan-Mar, two is used for Jan-Jun, 4/3 is used for Jan-Sep and one is used for Jan-Dec.
2026 | 2025 | |||||||
Isolated quarters, SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Net income attributable to owners of the Parent Company | 5,806 | 4,046 | 888 | 8,563 | 11,149 | 4,567 | 4,149 | |
Annualized | 23,225 | 16,182 | 3,551 | 34,252 | 44,596 | 18,268 | 16,596 | |
Average stockholders' equity | ||||||||
Stockholders' equity, beginning of period | 104,047 | 102,440 | 109,535 | 102,658 | 86,748 | 86,039 | 94,284 | |
Stockholders' equity, end of period | 110,482 | 104,047 | 102,440 | 109,535 | 102,658 | 86,748 | 86,039 | |
Average stockholders' equity | 107,264 | 103,243 | 105,988 | 106,097 | 94,703 | 86,394 | 90,162 | |
Return on equity (%) | 21.7% | 15.7% | 3.4% | 32.3% | 47.1% | 21.1% | 18.4% | |
2026 | 2025 | |||||||
Year to date, SEK million | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Net income attributable to owners of the Parent Company | 10,740 | 4,933 | 888 | 28,428 | 19,865 | 8,716 | 4,149 | |
Annualized | 14,319 | 9,867 | 3,551 | 28,428 | 26,487 | 17,432 | 16,596 | |
Average stockholders' equity | ||||||||
Stockholders' equity, beginning of period | 109,535 | 109,535 | 109,535 | 94,284 | 94,284 | 94,284 | 94,284 | |
Stockholders' equity, end of period | 110,482 | 104,047 | 102,440 | 109,535 | 102,658 | 86,748 | 86,039 | |
Average stockholders' equity | 110,008 | 106,791 | 105,988 | 101,910 | 98,471 | 90,516 | 90,162 | |
Return on equity (%) | 13.0% | 9.2% | 3.4% | 27.9% | 26.9% | 19.3% | 18.4% | |
Operating working capital
Inventories, contract assets, trade receivables, customer finance (current and non-current), advances to suppliers and prepaid
expenses less contract liabilities and trade payables.
2026 | 2025 | |||||||
SEK million | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |
Inventories | 35,404 | 30,718 | 25,732 | 23,451 | 27,519 | 27,068 | 27,649 | |
Contract assets | 8,855 | 8,225 | 8,526 | 7,333 | 7,494 | 6,618 | 5,735 | |
Trade receivables | 38,846 | 37,921 | 39,345 | 40,327 | 38,136 | 39,107 | 41,428 | |
Customer finance, current | 1,913 | 1,657 | 1,582 | 852 | 1,290 | 1,879 | 2,396 | |
Customer finance, non-current | 6 | 26 | 190 | 238 | 242 | 78 | 27 | |
Advance payments to suppliers¹⁾ | 43 | 39 | 44 | 46 | 39 | 41 | 46 | |
Prepaid expenses¹⁾ | 2,508 | 2,868 | 3,015 | 2,390 | 2,443 | 3,025 | 3,749 | |
Less: Contract liabilities | -40,548 | -45,133 | -46,008 | -36,867 | -40,642 | -44,370 | -46,757 | |
Less: Trade payables | -30,380 | -28,925 | -26,719 | -26,335 | -25,352 | -24,804 | -26,450 | |
Operating working capital | 16,646 | 7,398 | 5,709 | 11,435 | 11,169 | 8,642 | 7,823 | |
1) Part of Other current receivables in the consolidated balance sheet.
Ericsson | Third quarter report 2026. October 15, 2026. | Alternative performance measures | 38 |
Free cash flow before M&A / Free cash flow after M&A / Free cash flow before M&A (% of net
sales)
Free cash flow before M&A: Cash flow from operating activities less net capital expenditures, other investments (excluding M&A) and
repayment of lease liabilities.
Free cash flow after M&A: Cash flow from operating activities less net capital expenditures, other investments and repayment of lease
liabilities.
Free cash flow before M&A (% of net sales): Free cash flow before M&A as a percentage of net sales.
2026 | 2025 | |||||||
Isolated quarters, SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Cash flow from operating activities | 6,469 | 1,932 | 7,403 | 16,507 | 7,939 | 4,150 | 4,358 | |
Net capital expenditures and other investments (excl. M&A) | ||||||||
Investments in property, plant and equipment | -846 | -637 | -620 | -849 | -491 | -561 | -729 | |
Sales of property, plant and equipment | 84 | 23 | 10 | 56 | 57 | 40 | 39 | |
Product development | -291 | -384 | -378 | -352 | -286 | -193 | -307 | |
Other investments¹⁾ | -52 | -36 | -36 | -47 | -81 | -301 | -64 | |
Repayment of lease liabilities | -461 | -513 | -459 | -462 | -507 | -554 | -593 | |
Free cash flow before M&A | 4,902 | 385 | 5,921 | 14,853 | 6,631 | 2,581 | 2,704 | |
Acquisitions/divestments of subs and other operations, net | 6 | -238 | -72 | 338 | 10,064 | 141 | -4 | |
Free cash flow after M&A | 4,908 | 147 | 5,849 | 15,191 | 16,695 | 2,722 | 2,700 | |
Net sales | 59,478 | 52,691 | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | |
Free cash flow before M&A (% of net sales) | 8.2% | 0.7% | 12.0% | 21.4% | 11.8% | 4.6% | 4.9% | |
2026 | 2025 | |||||||
Year to date, SEK million | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Cash flow from operating activities | 15,805 | 9,336 | 7,403 | 32,954 | 16,447 | 8,508 | 4,358 | |
Net capital expenditures and other investments (excl. M&A) | ||||||||
Investments in property, plant and equipment | -2,104 | -1,257 | -620 | -2,630 | -1,781 | -1,290 | -729 | |
Sales of property, plant and equipment | 117 | 33 | 10 | 192 | 136 | 79 | 39 | |
Product development | -1,053 | -762 | -378 | -1,138 | -786 | -500 | -307 | |
Other investments¹⁾ | -124 | -72 | -36 | -493 | -446 | -365 | -64 | |
Repayment of lease liabilities | -1,433 | -971 | -459 | -2,116 | -1,654 | -1,147 | -593 | |
Free cash flow before M&A | 11,207 | 6,306 | 5,921 | 26,769 | 11,916 | 5,285 | 2,704 | |
Acquisitions/divestments of subs and other operations, net | -304 | -309 | -72 | 10,539 | 10,201 | 137 | -4 | |
Free cash flow after M&A | 10,904 | 5,996 | 5,849 | 37,308 | 22,117 | 5,422 | 2,700 | |
Net sales | 161,500 | 102,022 | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | |
Free cash flow before M&A (% of net sales) | 6.9% | 6.2% | 12.0% | 11.3% | 7.1% | 4.8% | 4.9% | |
1) Other investments is part of the line item Other investing activities in the Consolidated cash flow statement. The differences are movements in other interest-bearing assets, which are not to
be part of the definition of Free cash flow.
Sales growth by segment adjusted for comparable units and currency
2026 | 2025 | |||||||
Isolated quarter, year over year change, percent | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Networks | 9% | -4% | 7% | 4% | -5% | 3% | 3% | |
Cloud Software and Services | 3% | 5% | 4% | 12% | 9% | 1% | -3% | |
Enterprise | 1% | 3% | 4% | 2% | -7% | -6% | -7% | |
Other | -5% | -6% | -2% | -10% | -15% | -1% | -23% | |
Total | 7% | -1% | 6% | 6% | -2% | 2% | 0% | |
2026 | 2025 | |||||||
Year to date, year over year change, percent | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Networks | 4% | 1% | 7% | 1% | 0% | 3% | 3% | |
Cloud Software and Services | 4% | 5% | 4% | 6% | 2% | -1% | -3% | |
Enterprise | 3% | 4% | 4% | -5% | -7% | -6% | -7% | |
Other | -4% | -4% | -2% | -13% | -14% | -13% | -23% | |
Total | 4% | 2% | 6% | 2% | 0% | 1% | 0% | |
Ericsson | Third quarter report 2026. October 15, 2026. | Alternative performance measures | 39 |
Sales growth by market area adjusted for comparable units and currency
2026 | 2025 | |||||||
Isolated quarter, year over year change, percent | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Americas | -1% | -1% | -2% | -1% | -8% | 10% | 20% | |
Europe, Middle East and Africa | 4% | 2% | 10% | 13% | 3% | -1% | -7% | |
South East Asia, Oceania and India | 25% | 4% | 12% | 19% | 1% | -22% | -17% | |
North East Asia | 22% | 8% | 15% | -16% | 10% | -15% | -8% | |
Other | 7% | -12% | 12% | 13% | -2% | 15% | -6% | |
Total | 7% | -1% | 6% | 6% | -2% | 2% | 0% | |
2026 | 2025 | |||||||
Year to date, year over year change, percent | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Americas | -1% | -2% | -2% | 4% | 6% | 14% | 20% | |
Europe, Middle East and Africa | 5% | 6% | 10% | 3% | -2% | -4% | -7% | |
South East Asia, Oceania and India | 14% | 8% | 12% | -4% | -13% | -19% | -17% | |
North East Asia | 15% | 11% | 15% | -9% | -5% | -12% | -8% | |
Other | 1% | -1% | 12% | 5% | 3% | 5% | -6% | |
Total | 4% | 2% | 6% | 2% | 0% | 1% | 0% | |
Rolling four quarters of net sales by segment
2026 | 2025 | |||||||
Rolling four quarters, SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Networks | 148,880 | 145,608 | 148,308 | 151,014 | 153,611 | 158,203 | 160,135 | |
Cloud Software and Services | 62,425 | 61,943 | 61,573 | 62,715 | 62,141 | 61,748 | 62,565 | |
Enterprise | 17,796 | 18,294 | 19,352 | 21,117 | 22,629 | 23,890 | 24,826 | |
Other | 1,684 | 1,702 | 1,754 | 1,835 | 1,928 | 2,023 | 2,054 | |
Total | 230,785 | 227,546 | 230,988 | 236,681 | 240,309 | 245,864 | 249,580 | |
Gross margin by segment by quarter
2026 | 2025 | |||||||
Isolated quarters, as percentage of net sales | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Networks | 49.8% | 48.3% | 49.7% | 49.0% | 50.0% | 49.3% | 50.8% | |
Cloud Software and Services | 42.4% | 39.8% | 41.5% | 43.1% | 42.1% | 41.5% | 39.1% | |
Enterprise | 50.0% | 50.7% | 48.9% | 52.1% | 51.6% | 54.9% | 56.3% | |
Other | -68.4% | 0.5% | -1.5% | 7.4% | 0.0% | 0.4% | 3.8% | |
Total | 47.1% | 45.8% | 47.2% | 47.2% | 47.6% | 47.5% | 48.2% | |
2026 | 2025 | |||||||
Year to date, as percentage of net sales | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Networks | 49.3% | 49.0% | 49.7% | 49.7% | 50.0% | 50.1% | 50.8% | |
Cloud Software and Services | 41.2% | 40.6% | 41.5% | 41.7% | 41.0% | 40.4% | 39.1% | |
Enterprise | 49.9% | 49.8% | 48.9% | 53.9% | 54.4% | 55.6% | 56.3% | |
Other | -22.6% | -0.5% | -1.5% | 3.0% | 1.5% | 2.1% | 3.8% | |
Total | 46.7% | 46.5% | 47.2% | 47.6% | 47.8% | 47.8% | 48.2% | |
EBIT margin by segment by quarter
2026 | 2025 | |||||||
Isolated quarters, as percentage of net sales | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Networks | 21.8% | 18.2% | 10.0% | 21.1% | 20.0% | 17.8% | 19.8% | |
Cloud Software and Services | 10.9% | 7.8% | 0.0% | 16.8% | 11.2% | 5.8% | 0.5% | |
Enterprise | -21.2% | -27.1% | -44.2% | -33.3% | 131.5% | -15.7% | -17.1% | |
Other | -81.6% | -3.4% | 0.3% | 1.1% | -71.5% | 9.5% | -35.0% | |
Total | 14.9% | 11.2% | 2.9% | 16.1% | 26.9% | 11.4% | 10.8% | |
2026 | 2025 | |||||||
Year to date, as percentage of net sales | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Networks | 16.9% | 14.1% | 10.0% | 19.7% | 19.2% | 18.8% | 19.8% | |
Cloud Software and Services | 6.8% | 4.3% | 0.0% | 9.6% | 6.2% | 3.3% | 0.5% | |
Enterprise | -30.4% | -35.3% | -44.2% | 15.3% | 28.8% | -16.4% | -17.1% | |
Other | -27.7% | -1.7% | 0.3% | -22.3% | -30.5% | -12.8% | -35.0% | |
Total | 10.0% | 7.2% | 2.9% | 16.3% | 16.4% | 11.1% | 10.8% | |
Ericsson | Third quarter report 2026. October 15, 2026. | Alternative performance measures | 40 |
EBITA and EBITA margin by segment by quarter
2026 | 2025 | |||||||
Isolated quarters, SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Networks | 8,449 | 6,034 | 3,315 | 9,348 | 7,096 | 6,397 | 7,367 | |
Cloud Software and Services | 1,732 | 1,146 | 9 | 3,368 | 1,726 | 845 | 76 | |
Enterprise | -633 | -888 | -1,537 | -1,120 | 6,987 | -524 | -625 | |
Other | -320 | -14 | 1 | 5 | -293 | 45 | -166 | |
Total | 9,228 | 6,277 | 1,788 | 11,601 | 15,516 | 6,763 | 6,652 | |
2026 | 2025 | |||||||
Isolated quarters, as percentage of net sales | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Networks | 21.8% | 18.3% | 10.1% | 21.1% | 20.0% | 17.9% | 20.7% | |
Cloud Software and Services | 10.9% | 7.8% | 0.1% | 16.8% | 11.2% | 5.9% | 0.6% | |
Enterprise | -13.9% | -19.8% | -36.9% | -24.5% | 138.1% | -9.4% | -10.5% | |
Other | -81.5% | -3.4% | 0.3% | 1.1% | -71.3% | 9.5% | -35.0% | |
Total | 15.5% | 11.9% | 3.6% | 16.7% | 27.6% | 12.0% | 12.1% | |
2026 | 2025 | |||||||
Year to date, SEK million | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Networks | 17,798 | 9,349 | 3,315 | 30,208 | 20,860 | 13,764 | 7,367 | |
Cloud Software and Services | 2,886 | 1,154 | 9 | 6,015 | 2,647 | 921 | 76 | |
Enterprise | -3,059 | -2,425 | -1,537 | 4,718 | 5,838 | -1,149 | -625 | |
Other | -334 | -13 | 1 | -409 | -414 | -121 | -166 | |
Total | 17,292 | 8,065 | 1,788 | 40,532 | 28,931 | 13,415 | 6,652 | |
2026 | 2025 | |||||||
Year to date, as percentage of net sales | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Networks | 17.0% | 14.2% | 10.1% | 20.0% | 19.5% | 19.3% | 20.7% | |
Cloud Software and Services | 6.8% | 4.3% | 0.1% | 9.6% | 6.2% | 3.4% | 0.6% | |
Enterprise | -23.1% | -28.0% | -36.9% | 22.3% | 35.3% | -10.0% | -10.5% | |
Other | -27.6% | -1.6% | 0.3% | -22.3% | -30.5% | -12.8% | -35.0% | |
Total | 10.7% | 7.9% | 3.6% | 17.1% | 17.3% | 12.1% | 12.1% | |
Restructuring charges by function
2026 | 2025 | |||||||
Isolated quarters, SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Cost of sales | -361 | -1,359 | -435 | -538 | -271 | -310 | -158 | |
Research and development expenses | -281 | 882 | -2,595 | -300 | 41 | -300 | -20 | |
Selling and administrative expenses | -251 | -124 | -738 | -259 | -73 | -46 | -103 | |
Total | -893 | -601 | -3,768 | -1,097 | -303 | -656 | -281 | |
2026 | 2025 | |||||||
Year to date, SEK million | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Cost of sales | -2,156 | -1,794 | -435 | -1,277 | -739 | -468 | -158 | |
Research and development expenses | -1,994 | -1,713 | -2,595 | -579 | -279 | -320 | -20 | |
Selling and administrative expenses | -1,112 | -861 | -738 | -481 | -222 | -149 | -103 | |
Total | -5,262 | -4,369 | -3,768 | -2,337 | -1,240 | -937 | -281 | |
Ericsson | Third quarter report 2026. October 15, 2026. | Alternative performance measures | 41 |
Restructuring charges by segment
2026 | 2025 | |||||||
Isolated quarters, SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Networks | -502 | 198 | -3,052 | -710 | -79 | -109 | -108 | |
of which cost of sales | -176 | -671 | -226 | -270 | -45 | -67 | -55 | |
of which operating expenses | -326 | 869 | -2,826 | -440 | -34 | -42 | -53 | |
Cloud Software and Services | -297 | -688 | -620 | -349 | -193 | -538 | -74 | |
of which cost of sales | -174 | -626 | -205 | -240 | -222 | -243 | -102 | |
of which operating expenses | -123 | -62 | -415 | -109 | 29 | -295 | 28 | |
Enterprise | -83 | -50 | -96 | -5 | -27 | -9 | -97 | |
of which cost of sales | -1 | -8 | -5 | -1 | 0 | 0 | 1 | |
of which operating expenses | -83 | -43 | -91 | -4 | -27 | -9 | -98 | |
Other | -11 | -60 | 0 | -33 | -4 | 0 | -2 | |
of which cost of sales | -11 | -54 | 0 | -27 | -4 | 0 | -2 | |
of which operating expenses | 0 | -6 | 0 | -6 | 0 | 0 | 0 | |
Total | -893 | -601 | -3,768 | -1,097 | -303 | -656 | -281 | |
2026 | 2025 | |||||||
Year to date, SEK million | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Networks | -3,356 | -2,854 | -3,052 | -1,006 | -296 | -217 | -108 | |
of which cost of sales | -1,073 | -897 | -226 | -437 | -167 | -122 | -55 | |
of which operating expenses | -2,283 | -1,957 | -2,826 | -569 | -129 | -95 | -53 | |
Cloud Software and Services | -1,605 | -1,308 | -620 | -1,154 | -805 | -612 | -74 | |
of which cost of sales | -1,005 | -831 | -205 | -807 | -567 | -345 | -102 | |
of which operating expenses | -600 | -477 | -415 | -347 | -238 | -267 | 28 | |
Enterprise | -230 | -147 | -96 | -138 | -133 | -106 | -97 | |
of which cost of sales | -13 | -13 | -5 | 0 | 1 | 1 | 1 | |
of which operating expenses | -217 | -134 | -91 | -138 | -134 | -107 | -98 | |
Other | -71 | -60 | 0 | -39 | -6 | -2 | -2 | |
of which cost of sales | -65 | -54 | 0 | -33 | -6 | -2 | -2 | |
of which operating expenses | -6 | -6 | 0 | -6 | 0 | 0 | 0 | |
Total | -5,262 | -4,369 | -3,768 | -2,337 | -1,240 | -937 | -281 | |
Adjusted gross income and Adjusted gross margin by segment
2026 | 2025 | |||||||
Isolated quarters, SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Networks | 19,447 | 16,647 | 16,585 | 21,918 | 17,750 | 17,705 | 18,167 | |
Cloud Software and Services | 6,881 | 6,494 | 5,112 | 8,876 | 6,685 | 6,207 | 5,171 | |
Enterprise | 2,281 | 2,284 | 2,044 | 2,387 | 2,609 | 3,045 | 3,337 | |
Other | -258 | 56 | -6 | 62 | 4 | 2 | 20 | |
Total | 28,351 | 25,481 | 23,734 | 33,243 | 27,048 | 26,959 | 26,695 | |
2026 | 2025 | |||||||
Isolated quarters, as percentage of net sales | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Networks | 50.3% | 50.4% | 50.4% | 49.6% | 50.1% | 49.5% | 51.0% | |
Cloud Software and Services | 43.5% | 44.1% | 43.2% | 44.3% | 43.6% | 43.2% | 39.9% | |
Enterprise | 50.0% | 50.9% | 49.0% | 52.1% | 51.6% | 54.9% | 56.2% | |
Other | -65.6% | 13.3% | -1.5% | 13.0% | 1.0% | 0.4% | 4.2% | |
Total | 47.7% | 48.4% | 48.1% | 48.0% | 48.1% | 48.0% | 48.5% | |
2026 | 2025 | |||||||
Year to date, SEK million | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Networks | 52,679 | 33,231 | 16,585 | 75,540 | 53,622 | 35,872 | 18,167 | |
Cloud Software and Services | 18,488 | 11,607 | 5,112 | 26,939 | 18,063 | 11,378 | 5,171 | |
Enterprise | 6,608 | 4,328 | 2,044 | 11,378 | 8,991 | 6,382 | 3,337 | |
Other | -208 | 50 | -6 | 88 | 26 | 22 | 20 | |
Total | 77,567 | 49,216 | 23,734 | 113,945 | 80,702 | 53,654 | 26,695 | |
2026 | 2025 | |||||||
Year to date, as percentage of net sales | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Networks | 50.3% | 50.4% | 50.4% | 50.0% | 50.2% | 50.2% | 51.0% | |
Cloud Software and Services | 43.6% | 43.7% | 43.2% | 43.0% | 42.3% | 41.6% | 39.9% | |
Enterprise | 50.0% | 50.0% | 49.0% | 53.9% | 54.4% | 55.6% | 56.2% | |
Other | -17.2% | 6.1% | -1.5% | 4.8% | 1.9% | 2.3% | 4.2% | |
Total | 48.0% | 48.2% | 48.1% | 48.1% | 48.2% | 48.3% | 48.5% | |
Ericsson | Third quarter report 2026. October 15, 2026. | Alternative performance measures | 42 |
Adjusted EBIT and Adjusted EBIT margin by segment
2026 | 2025 | |||||||
Isolated quarters, SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Networks | 8,922 | 5,808 | 6,335 | 10,028 | 7,154 | 6,485 | 7,148 | |
Cloud Software and Services | 2,027 | 1,830 | 623 | 3,713 | 1,914 | 1,378 | 145 | |
Enterprise | -882 | -1,165 | -1,748 | -1,521 | 6,676 | -861 | -917 | |
Other | -310 | 46 | 1 | 38 | -290 | 45 | -164 | |
Total | 9,757 | 6,520 | 5,211 | 12,258 | 15,454 | 7,047 | 6,212 | |
2026 | 2025 | |||||||
Isolated quarters, as percentage of net sales | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Networks | 23.1% | 17.6% | 19.2% | 22.7% | 20.2% | 18.1% | 20.1% | |
Cloud Software and Services | 12.8% | 12.4% | 5.3% | 18.5% | 12.5% | 9.6% | 1.1% | |
Enterprise | -19.3% | -25.9% | -41.9% | -33.2% | 132.0% | -15.5% | -15.5% | |
Other | -78.8% | 10.9% | 0.3% | 8.0% | -70.6% | 9.5% | -34.6% | |
Total | 16.4% | 12.4% | 10.6% | 17.7% | 27.5% | 12.6% | 11.3% | |
2026 | 2025 | |||||||
Year to date, SEK million | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Networks | 21,065 | 12,143 | 6,335 | 30,815 | 20,787 | 13,633 | 7,148 | |
Cloud Software and Services | 4,480 | 2,454 | 623 | 7,150 | 3,437 | 1,523 | 145 | |
Enterprise | -3,795 | -2,912 | -1,748 | 3,377 | 4,898 | -1,778 | -917 | |
Other | -263 | 47 | 1 | -371 | -409 | -119 | -164 | |
Total | 21,488 | 11,731 | 5,211 | 40,971 | 28,713 | 13,259 | 6,212 | |
2026 | 2025 | |||||||
Year to date, as percentage of net sales | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Networks | 20.1% | 18.4% | 19.2% | 20.4% | 19.5% | 19.1% | 20.1% | |
Cloud Software and Services | 10.6% | 9.2% | 5.3% | 11.4% | 8.1% | 5.6% | 1.1% | |
Enterprise | -28.7% | -33.6% | -41.9% | 16.0% | 29.6% | -15.5% | -15.5% | |
Other | -21.8% | 5.7% | 0.3% | -20.2% | -30.1% | -12.6% | -34.6% | |
Total | 13.3% | 11.5% | 10.6% | 17.3% | 17.2% | 11.9% | 11.3% | |
Rolling four quarters of adjusted EBITA margin by segment (%)
2026 | 2025 | |||||||
Rolling four quarters, as percentage of net sales | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Networks | 21.0% | 20.2% | 20.3% | 20.7% | 20.4% | 20.4% | 19.3% | |
Cloud Software and Services | 13.1% | 13.1% | 12.4% | 11.4% | 8.5% | 6.1% | 4.0% | |
Enterprise | -22.2% | 19.8% | 20.4% | 23.0% | 21.2% | -12.6% | -15.0% | |
Other | -13.3% | -12.0% | -11.7% | -20.2% | -46.5% | -30.4% | -35.5% | |
Total | 15.3% | 18.0% | 18.0% | 18.1% | 16.8% | 13.2% | 11.6% | |
Ericsson | Third quarter report 2026. October 15, 2026. | Alternative performance measures | 43 |
Adjusted EBITA and Adjusted EBITA margin by segment
2026 | 2025 | |||||||
Isolated quarters, SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Networks | 8,951 | 5,836 | 6,367 | 10,058 | 7,175 | 6,506 | 7,475 | |
Cloud Software and Services | 2,029 | 1,834 | 629 | 3,717 | 1,919 | 1,383 | 150 | |
Enterprise | -550 | -838 | -1,441 | -1,115 | 7,014 | -515 | -528 | |
Other | -309 | 46 | 1 | 38 | -289 | 45 | -164 | |
Total | 10,121 | 6,878 | 5,556 | 12,698 | 15,819 | 7,419 | 6,933 | |
2026 | 2025 | |||||||
Isolated quarters, as percentage of net sales | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Networks | 23.1% | 17.7% | 19.3% | 22.8% | 20.3% | 18.2% | 21.0% | |
Cloud Software and Services | 12.8% | 12.4% | 5.3% | 18.6% | 12.5% | 9.6% | 1.2% | |
Enterprise | -12.1% | -18.7% | -34.6% | -24.4% | 138.7% | -9.3% | -8.9% | |
Other | -78.8% | 10.9% | 0.3% | 8.0% | -70.3% | 9.5% | -34.6% | |
Total | 17.0% | 13.1% | 11.3% | 18.3% | 28.1% | 13.2% | 12.6% | |
2026 | 2025 | |||||||
Year to date, SEK million | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Networks | 21,154 | 12,202 | 6,367 | 31,214 | 21,156 | 13,981 | 7,475 | |
Cloud Software and Services | 4,491 | 2,463 | 629 | 7,169 | 3,452 | 1,533 | 150 | |
Enterprise | -2,828 | -2,279 | -1,441 | 4,856 | 5,971 | -1,043 | -528 | |
Other | -263 | 47 | 1 | -370 | -408 | -119 | -164 | |
Total | 22,554 | 12,433 | 5,556 | 42,869 | 30,171 | 14,352 | 6,933 | |
2026 | 2025 | |||||||
Year to date, as percentage of net sales | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |
Networks | 20.2% | 18.5% | 19.3% | 20.7% | 19.8% | 19.6% | 21.0% | |
Cloud Software and Services | 10.6% | 9.3% | 5.3% | 11.4% | 8.1% | 5.6% | 1.2% | |
Enterprise | -21.4% | -26.3% | -34.6% | 23.0% | 36.1% | -9.1% | -8.9% | |
Other | -21.7% | 5.8% | 0.3% | -20.2% | -30.0% | -12.6% | -34.6% | |
Total | 14.0% | 12.2% | 11.3% | 18.1% | 18.0% | 12.9% | 12.6% | |
Operating working capital days
Inventory turnover days (ITO): Five quarter average inventory
divided by four quarter rolling absolute value of cost of sales
excluding restructuring charges multiplied by 365, expressed as
number of days.
Days sales outstanding (DSO): Five quarter average of
contract assets, trade receivables and customer finance (current
and non-current) less contract liabilities divided by four quarter
rolling net sales multiplied by 365, expressed as number of days.
Days payables outstanding (DPO): Five quarter average of
advances to suppliers and prepaid expenses less trade payables
divided by four quarter rolling absolute value of cost of sales
excluding restructuring charges multiplied by 365, expressed as
number of days.
Operating working capital days: ITO plus DSO less DPO
2026 | 2025 | |||||||
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||
Inventory turnover days (ITO) | 87 | 83 | 80 | 79 | 80 | 80 | 81 | |
Days sales outstanding (DSO) | 11 | 9 | 9 | 12 | 11 | 14 | 17 | |
Less: Days payables outstanding (DPO) | -76 | -73 | -70 | -71 | -68 | -66 | -64 | |
Operating working capital days | 22 | 19 | 19 | 20 | 23 | 28 | 34 | |