Ericsson Posts 7% Organic Sales Growth in Q3 2026 as Revenue Reaches SEK 59.5 Billion
Telecom equipment maker Telefonaktiebolaget LM Ericsson (OMXSTO:ERIC_A) reported third-quarter 2026 net sales of SEK 59.5 billion, up from SEK 56.2 billion in the same period last year. Organic revenue grew by 7% year-over-year, propelled by strong demand in its main Networks business segment and growth across three of its four market regions. Reported net income totaled SEK 5.8 billion, down from SEK 11.3 billion a year earlier, which had benefited from a major divestment gain.
Adjusted EBITA came in at SEK 10.1 billion, or a 17.0% margin. When excluding the previous year's SEK 7.6 billion capital gain, underlying operational profit expanded alongside lower operating expenses. Adjusted gross margin stood at 47.7%, supported by retroactive intellectual property rights revenues in the Networks division. To maintain competitiveness and accelerate decision-making, the company announced plans to simplify its organizational structure.
Looking ahead, management highlighted a flat market for radio access networks, persistent geopolitical risks, and rising component expenses that could pressure gross margins in the coming year. Investors will be monitoring how effectively the company's cost measures and AI-enabled network features offset higher input prices and stagnant industry spending.
Key points
- Q3 2026 reported sales reached SEK 59.5 billion, representing 7% organic growth year-over-year.
- Net income stood at SEK 5.8 billion, with diluted earnings per share at SEK 1.77.
- Adjusted gross margin reached 47.7%, supported by higher retroactive IPR revenues in Networks.
- Ericsson announced a simplified operating structure to boost efficiency and customer focus.
- Management expects higher component costs to remain a margin headwind in the coming year.
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How we writeDisclaimerQuestions and answers
What were Ericsson's Q3 2026 sales results?
Reported net sales were SEK 59.5 billion in Q3 2026, representing a 7% organic increase year-over-year, driven primarily by strong performance in the Networks segment.
Why did Ericsson's net income decline in Q3 2026?
Net income fell to SEK 5.8 billion from SEK 11.3 billion a year earlier because the prior-year period included a SEK 7.6 billion capital gain from a business divestment.
What is Ericsson's outlook for the RAN market and costs?
Ericsson expects the Radio Access Network (RAN) market to remain flat, while elevated component costs are projected to act as a headwind to gross margins next year.