Ericsson reports second quarter results
Ericsson announced its second quarter results, showing an adjusted gross margin of 48.4%. The company's net sales decreased year-over-year, primarily driven by lower IPR licensing revenues.
Stockholm, Sweden – Ericsson reported its second quarter 2026 financial results on July 14, 2026. The company's reported net sales decreased by 6% to SEK 52.7 billion compared to the same period in the previous year. This decline was attributed partly to lower IPR licensing revenues, reflecting a non-recurring benefit from a partial settlement in the prior year.
The reported adjusted gross margin stood at 48.4%, an increase from 48.0% in the second quarter of 2025. CEO Börje Ekholm highlighted the results as evidence of portfolio strength and disciplined execution, noting actions taken to mitigate component cost inflation. He cautioned that the "Networks" segment might experience some pressure on its adjusted gross margin in the third quarter due to increased network rollout projects.
Ericsson also showcased technological advancements, including a demonstration of AI-enabled drone sensing and tracking using existing cell towers at a major sporting event in Texas. This initiative aligns with the company's strategy to leverage its infrastructure for new AI-driven applications.
The company maintained a strong net cash position and returned SEK 8.2 billion to shareholders in the second quarter, which included SEK 3.2 billion in share repurchases. Ericsson continues its strategic focus on investing in AI and related connectivity technologies to capitalize on future market trends.