Ericsson grows in third quarter despite cost pressures
The Swedish network supplier saw revenue rise but warned that components could weigh on margins next year.
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Ericsson posted higher revenue in the third quarter than a year earlier. The Swedish network supplier benefited from growth in network activities, while higher component costs and a lower earnings base tempered the outlook.
Ericsson reported revenue of 59.5 billion Swedish kronor for the third quarter, compared with 56.2 billion kronor a year earlier. Organic revenue growth was 7 per cent, according to the company. The Networks division made the largest contribution to growth.
Adjusted gross profit rose from 27.0 billion to 28.4 billion kronor. Adjusted gross margin, however, fell slightly, from 48.1 to 47.7 per cent. Ericsson said pricing measures, efficiency and stronger demand helped offset higher component costs.
Adjusted EBITA came to 10.1 billion kronor, against 15.8 billion kronor a year earlier. That appears to be a sharp deterioration, but the comparison quarter included a one-off book gain of 7.6 billion kronor from the sale of a business. Excluding that gain, adjusted EBITA increased, according to Ericsson.
Net profit did fall, from 11.3 billion to 5.8 billion kronor. Earnings per share also declined. The company also said it had bought back 4.8 billion kronor worth of its own shares. The figures therefore show revenue growth alongside lower reported profit.
Chief executive Per Narvinger described market demand as solid but warned of geopolitical uncertainty and higher component costs. Those costs could put pressure on gross margin, particularly next year. The company expects the radio access network market to remain broadly flat.
Investors responded positively to the results because earnings performance was better than analysts feared, according to Reuters. That is a market reaction, not proof that Ericsson has solved its cost problems. For telecoms providers and their customers, the key question remains how higher network and component costs will feed into contracts and investment plans.
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This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The revenue, margin and profit figures were checked directly against Ericsson's quarterly report. Reuters additionally confirmed the description of the market reaction and the warning about costs.
- confirmed Ericsson reported revenue of 59.5 billion Swedish kronor in the third quarter. — The company's report gives the figure as 59.478 billion kronor. source
- confirmed Organic revenue growth was 7 per cent. — Ericsson reports 7 per cent organic growth. source
- confirmed Adjusted EBITA was 10.1 billion kronor, compared with 15.8 billion a year earlier. — The figures appear in Ericsson's financial table. source
- confirmed The comparison quarter included a book gain of 7.6 billion kronor. — Ericsson links the earlier profit to the sale of iconectiv. source
- confirmed Investors responded positively to the figures. — Reuters reported a clear rise in the share price. source
Editor's note
The financial figures come from Ericsson's quarterly report. The positive market reaction and comparison with analysts' expectations are based on Reuters.Sources
- Ericsson reports third quarter results 2026 — Ericsson
- Ericsson übertrifft Markterwartungen - warnt aber vor steigenden Kosten — Reuters via MarketScreener
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