Ericsson Reports Second Quarter 2026 Results
Ericsson reported its second quarter 2026 results, with sales declining year-over-year primarily due to lower IPR licensing revenues.
Ericsson reported a decrease in sales for its second quarter of 2026 compared to the previous year, primarily driven by a decline in IPR licensing revenues. Reported sales were SEK 52.7 billion, down 6% year-over-year.
Adjusted gross income stood at SEK 25.5 billion, with an adjusted gross margin of 48.4%, reflecting solid operational execution. However, reported gross income saw a larger decrease of 9% to SEK 24.1 billion. The company's adjusted EBITA was SEK 6.9 billion, with a margin of 13.1%.
During the quarter, Ericsson demonstrated AI-enabled drone sensing and tracking technology using existing cell towers at a major sporting event in Texas. This showcases the company's ongoing efforts to integrate AI into connectivity solutions.
The company noted that it is taking actions to mitigate component cost inflation, which is expected to impact results in coming quarters. Ericsson also anticipates some pressure on Network segment margins in the third quarter due to increased network rollout projects. Capital returns to shareholders totaled SEK 8.2 billion in Q2.