Ericsson reports 7% sales growth for Q3 2026, net income declines
Ericsson's third-quarter sales grew organically by 7%, reaching SEK 59.5 billion. The company reported a significant year-over-year decrease in net income and EBITA margin.
Swedish telecommunications technology firm Ericsson has announced its third-quarter 2026 results, reporting a 7% organic sales growth amidst a challenging market environment. The company's reported sales increased to SEK 59.5 billion, up from SEK 56.2 billion in the prior year. This growth was primarily driven by the Networks segment, with organic sales increasing in three out of four market areas.
However, earnings before interest, taxes, and amortization (EBITA) saw a notable decline, falling to SEK 10.1 billion with a margin of 17.0%, compared to SEK 15.8 billion and a 28.1% margin in the same period last year. This decrease is attributed partly to a large capital gain in the prior year's comparable period, though operating expenses were reduced year-over-year.
President and CEO Per Narvinger stated that Ericsson's customer demand and strategic market execution supported the results. He highlighted the increasing need for intelligent and autonomous networks and noted efficiency gains from AI-enabled features in their portfolio. Narvinger also announced a simplification of the company's operating structure aimed at enhancing customer focus and driving efficiencies.
Looking ahead, the company anticipates a flat RAN market, persistent geopolitical uncertainty, and headwinds from component costs affecting gross margins next year. Ericsson plans to maintain close customer relationships, prioritize technology leadership, and implement disciplined actions to strengthen competitiveness for long-term profitable growth.