6-K
Ericsson Lm Telephone Co (ERIC)
Table of Contents
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
April 17, 2026
Commission File Number
000-12033
LM ERICSSON TELEPHONE COMPANY
(Translation of registrant’s name into English)
Torshamnsgatan 21, Kista
SE-164 83, Stockholm, Sweden
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F [x] **** Form 40-F [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):__
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):__
Announcement of LM Ericsson Telephone Company, April 17, 2026 regarding “First quarter report 2026”
Table of Contents
First quarter report 2026
Strategic highlights – Robust execution reflecting a more balanced global footprint
| ● | Strong organic sales growth of 6%*, led by Networks, as customer demand broadened across regions. |
|---|---|
| ● | AI-native radios announced at Mobile World Congress, extending technology leadership. |
| --- | --- |
| ● | Share buyback program up to SEK 15 b. approved and expected to commence on April 23, 2026. |
| --- | --- |
Financial highlights – Solid financial performance with broad-based contribution
| ● | Reported sales were SEK 49.3 (55.0) b. Organic* sales increased by 6%* YoY, with organic growth in all segments.<br> |
|---|---|
| ● | Adjusted^1^ gross income decreased to SEK 23.7 (26.7) b., reflecting<br>currency headwinds. Reported gross income was SEK 23.3 (26.5) b. |
| --- | --- |
| ● | Adjusted^1^ gross margin was 48.1% (48.5%). Cloud Software and Services<br>gross margin increased, while Networks margin decreased slightly. Reported gross margin was 47.2% (48.2%). |
| --- | --- |
| ● | Adjusted^1^ EBITA was SEK 5.6 (6.9) b., with a 11.3% (12.6%) margin,<br>mainly reflecting currency headwinds. EBITA was SEK 1.8 (6.7) b., impacted by -3.8 (-0.3) b. of restructuring charges. |
| --- | --- |
| ● | Net income was SEK 0.9 (4.2) b. reflecting restructuring charges and currency impacts. Diluted EPS was SEK 0.27 (1.24).<br> |
| --- | --- |
| ● | Free cash flow before M&A was SEK 5.9 (2.7) b., driven by increased operating cash flow. |
| --- | --- |
Börje Ekholm, President and CEO, said: “Our Q1 results demonstrate continued resilience in adynamic environment, with organic sales growth of 6%. Our healthy gross margins and strong cash flow reflect the progress we have made in recent years, reducing reliance on geographic mix and strengthening our foundations globally.
Our multi-year investments in building a resilient, diversified, supply chain have enabled us to deliver consistently for customers amidst geopolitical andmacroeconomic uncertainties. We are facing increasing input costs, especially in semiconductors, caused in part by AI demand. Our ambition is to offset these challenges, by working closely with customers and suppliers, and through productsubstitution and efficiency actions.
Looking ahead, while we continue to expect a flattish RAN market, our focused strategy, leading portfolio, andstrengthened positions in mission critical and Enterprise give us confidence in our ability to grow faster than the mobile networks market and drive long-term success.”
| SEK b. | Q1<br>2026 | Q1<br>2025 | YoY<br>change | Q4<br>2025 | QoQ<br>change | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Net sales | 49.3 | 55.0 | -10% | 69.3 | -29% | |||||
| Organic sales growth * ² | - | - | 6% | - | - | |||||
| Gross income | 23.3 | 26.5 | -12% | 32.7 | -29% | |||||
| Gross margin ² | 47.2% | 48.2% | - | 47.2% | - | |||||
| EBIT | 1.4 | 5.9 | -76% | 11.2 | -87% | |||||
| EBIT margin ² | 2.9% | 10.8% | - | 16.1% | - | |||||
| EBITA ² | 1.8 | 6.7 | -73% | 11.6 | -85% | |||||
| EBITA margin ² | 3.6% | 12.1% | - | 16.7% | - | |||||
| Net income | 0.9 | 4.2 | -79% | 8.6 | -90% | |||||
| EPS diluted, SEK | 0.27 | 1.24 | -78% | 2.57 | -89% | |||||
| Free cash flow before M&A ² | 5.9 | 2.7 | 119% | 14.9 | -60% | |||||
| Net cash, end of period ² | 68.1 | 38.6 | 76% | 61.2 | 11% | |||||
| Adjusted financial measures ¹ ² | ||||||||||
| Adjusted gross income | 23.7 | 26.7 | -11% | 33.2 | -29% | |||||
| Adjusted gross margin | 48.1% | 48.5% | - | 48.0% | - | |||||
| Adjusted EBIT | 5.2 | 6.2 | -16% | 12.3 | -57% | |||||
| Adjusted EBIT margin | 10.6% | 11.3% | - | 17.7% | - | |||||
| Adjusted EBITA | 5.6 | 6.9 | -20% | 12.7 | -56% | |||||
| Adjusted EBITA margin | 11.3% | 12.6% | - | 18.3% | - | |||||
| * | Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations.<br> | |||||||||
| --- | --- | |||||||||
| ^1^ | Adjusted metrics are adjusted to exclude restructuring charges. | |||||||||
| --- | --- | |||||||||
| ^2^ | Non-IFRS financial measures are reconciled at the end of this report to the most<br>directly reconcilable line items in the financial statement. | |||||||||
| --- | --- | |||||||||
| 1 Ericsson | First quarter report 2026. April 17, 2026. | |||||||||
| --- |
Table of Contents
Amounts marked with an ‘*’ in this document represent sales growth adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations, also named organic sales growth. These numbers present performance on a comparable basis to improve the comparability of results between periods. Organic sales growth figures are non-IFRS measures.
‘Adjusted’ metrics are adjusted to exclude restructuring charges and are non-IFRS measures. This is a change in nomenclature only.
See ‘Financial statements and other information’ for Alternative performance measures.
Group results
| Q1 | Q1 | YoY | Q4 | QoQ | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK b. | 2026 | 2025 | change | 2025 | change | |||||
| Net sales | **** | 49.3 | **** | 55.0 | **** | -10% | **** | 69.3 | **** | -29% |
| Organic sales growth * ¹ | - | - | 6% | - | - | |||||
| Gross income | **** | 23.3 | **** | 26.5 | **** | -12% | **** | 32.7 | **** | -29% |
| Gross margin | 47.2% | 48.2% | - | 47.2% | - | |||||
| Research and development (R&D) expenses | -13.5 | -12.0 | - | -13.1 | - | |||||
| Selling and administrative expenses | -8.1 | -8.6 | - | -9.0 | - | |||||
| Impairment losses on trade receivables | -0.2 | 0.0 | - | 0.1 | - | |||||
| Other operating income and expenses | 0.0 | 0.0 | - | 0.4 | -94% | |||||
| Share of earnings of associated companies | -0.1 | 0.0 | - | 0.0 | - | |||||
| EBIT | **** | 1.4 | **** | 5.9 | **** | -76% | **** | 11.2 | **** | -87% |
| EBIT margin ¹ | 2.9% | 10.8% | - | 16.1% | - | |||||
| EBITA ¹ | 1.8 | 6.7 | -73% | 11.6 | -85% | |||||
| EBITA margin ¹ | 3.6% | 12.1% | - | 16.7% | - | |||||
| Financial income and expenses, net | -0.2 | -0.1 | - | -0.1 | - | |||||
| Income tax | -0.4 | -1.6 | - | -2.5 | - | |||||
| Net income | **** | 0.9 | **** | 4.2 | **** | -79% | **** | 8.6 | **** | -90% |
| Restructuring charges | -3.8 | -0.3 | - | -1.1 | - | |||||
| Adjusted financial measures ¹ | ||||||||||
| Adjusted gross income | 23.7 | 26.7 | -11% | 33.2 | -29% | |||||
| Adjusted gross margin | 48.1% | 48.5% | - | 48.0% | - | |||||
| Adjusted EBIT | 5.2 | 6.2 | -16% | 12.3 | -57% | |||||
| Adjusted EBIT margin | 10.6% | 11.3% | - | 17.7% | - | |||||
| Adjusted EBITA | 5.6 | 6.9 | -20% | 12.7 | -56% | |||||
| Adjusted EBITA margin | 11.3% | 12.6% | - | 18.3% | - | |||||
| ^1^ | Non-IFRS financial measures are reconciled at the end of this report to the most<br>directly reconcilable line items in the financial statements. | |||||||||
| --- | --- |
Net sales
Reported sales decreased by -10% YoY to SEK 49.3 (55.0) b., including a SEK -7.8 b. currency impact. Networks sales declined by -8% to SEK 32.9 b. Cloud Software and Services sales decreased by -9% to SEK 11.8 b. Enterprise sales declined by -30% to SEK 4.2 b., mainly driven by a SEK -1.1 b. impact from the divestment of iconectiv in 2025. Sales in segment Other were stable at SEK 0.4 b.
Organic sales grew by 6%* YoY. Networks sales increased by 7%*, supported by growth in three of the four market areas. Cloud Software and Services sales grew by 4%*, with growth in three market areas. Sales in segment Enterprise grew by 4%*, driven by Global Communications Platform.
IPR licensing revenues were SEK 3.1 (3.2) b. as organic revenue growth was offset by negative currency impacts. 82% of IPR licensing revenues are reported in segment Networks, with the remainder in Cloud Software and Services.
Gross income and margin
Gross margin decreased to 47.2% (48.2%). Networks gross margin decreased, mainly reflecting actions to enhance supply chain resilience. Gross margin in Cloud Software and Services increased, benefiting from product mix and improved delivery efficiency. Gross margin declined in Enterprise primarily due to the impact of the divestment of iconectiv and a change in business mix in Global Communications Platform.
Gross income decreased to SEK 23.3 (26.5) b., impacted by lower net sales and lower gross margin, and including a negative currency impact of SEK -3.8 b. Gross income was also impacted by restructuring charges of SEK -0.4 (-0.2) b.
Adjusted gross income decreased to SEK 23.7 (26.7) b., with a margin of 48.1% (48.5%).
Research and development (R&D) expenses
R&D expenses increased to SEK -13.5 (-12.0) b., including restructuring charges of SEK -2.6 (-0.0) b. and a positive currency impact of SEK 0.7 b. Excluding restructuring and currency impacts, R&D expenses decreased by SEK -0.4 b., as investments in technology leadership were more than offset by savings from cost-reduction actions, primarily in Cloud Software and Services.
Selling and administrative (SG&A) expenses
SG&A expenses were SEK -8.1 (-8.6) b., including restructuring charges of SEK -0.7 (-0.1) b. and a currency benefit of SEK 0.9 b. Excluding restructuring and currency impacts, SG&A expenses declined by SEK -0.2 b., primarily reflecting the divestment of iconectiv.
| 2 Ericsson | First quarter report 2026. April 17, 2026. | Group results |
|---|
Table of Contents
Restructuring charges
Restructuring charges were SEK -3.8 (-0.3) b., driven by announced headcount reduction plans in Sweden. Gross income included SEK -0.4 (-0.2) b. of restructuring charges, while restructuring charges in operating expenses were SEK -3.3 (-0.1) b.
EBITA
EBITA decreased to SEK 1.8 (6.7) b., mainly due to increased restructuring charges of SEK -3.8 (-0.3) b., lower gross income, and a SEK -0.5 b. impact from the revaluation of cash settled long-term variable compensation programs due to the increase in the share price. This was partly offset by lower operating expenses from cost-reduction actions. EBITA included a negative YoY currency impact of SEK -2.2 b. The EBITA margin was 3.6% (12.1%).
Adjusted EBITA decreased to SEK 5.6 (6.9) b. The adjusted EBITA margin was 11.3% (12.6%).
EBIT
EBIT decreased to SEK 1.4 (5.9) b. with a margin of 2.9% (10.8%). Amortization impacted EBIT by SEK -0.3 (-0.7) b.
Adjusted EBIT decreased to SEK 5.2 (6.2) b. with a margin of 10.6% (11.3%).
Financial income and expenses, net
Financial income and expenses were SEK -0.2 (-0.1) b. Financial net decreased as lower interest expense was offset by a SEK -0.1 (0.2) b. negative currency hedge effect.
Income tax
Taxes were SEK -0.4 (-1.6) b. A tax rate of 29% (25%) is expected for the full year, mainly reflecting restructuring initiatives in various markets.
Net income
Net income decreased to SEK 0.9 (4.2) b.
Diluted EPS was SEK 0.27 (1.24).
Employees
The number of employees on March 31, 2026, was 87,521 compared with 88,826 on December 31, 2025.
| 3 Ericsson | First quarter report 2026. April 17, 2026. | Group results |
|---|
Table of Contents
Market area sales
| SEK b. | Q1<br>2026 | Q1<br>2025 | YoY<br>change | YoY<br>organic<br>growth | Q4<br>2025 | QoQ<br>change |
|---|---|---|---|---|---|---|
| Americas | 17.1 | 20.9 | -18% | -2% | 22.9 | -26% |
| Europe, Middle East and Africa | 14.3 | 14.5 | -1% | 10% | 23.4 | -39% |
| South East Asia, Oceania and India | 6.9 | 7.2 | -4% | 12% | 9.0 | -23% |
| North East Asia | 3.1 | 3.2 | -3% | 15% | 5.2 | -40% |
| Other | 7.9 | 9.3 | -15% | 12% | 8.8 | -11% |
| Of which IPR | 3.1 | 3.2 | -1% | - | 3.3 | -6% |
| Total | 49.3 | 55.0 | -10% | 6% | 69.3 | -29% |
Market Area Americas
Sales decreased by -2%* YoY, with strong growth in Latin America partly offset by lower sales in North America. Networks sales declined in North America, primarily reflecting accelerated network investments in the prior-year period, in part due to tariff uncertainty, as well as a short-term reallocation of customer spend following mobile network operator consolidation announced last year. Cloud Software and Services sales increased, driven by timing of project deliverables in core networks as well as North America managed services growth. Reported sales decreased by -18% YoY.
In the quarter, a successful live proof of concept was conducted at Ericsson’s US headquarters in Plano, Texas, demonstrating sensing technology for unmanned aerial vehicle (UAV) detection and airspace monitoring using massive-MIMO radios.
Market Area Europe, Middle East and Africa
Sales grew by 10%* YoY. Networks sales in Europe increased, supported by the timing of project deliverables, partly offset by the completion of modernization projects. Networks sales in Middle East and Africa also increased, driven by 5G network investments. Cloud Software and Services sales declined due to timing of project deliverables as well as exits and descoping of managed services contracts. Reported sales decreased by -1% YoY.
In the quarter, a five-year partnership extension was agreed with Virgin Media O2 in the UK to become its primary Radio Access Network (RAN) partner, powering the majority of its nationwide mobile network and providing advanced 5G capabilities.
Market Area South East Asia, Oceania and India
Sales increased by 12%* YoY. Networks sales increased, primarily driven by higher deliveries in India. Cloud Software and Services sales increased, reflecting timing of project deliverables. Reported sales declined by -4% YoY.
Market Area North East Asia
Sales increased by 15%* YoY. Networks and Cloud Software and Services sales increased, reflecting the timing of project deliverables predominantly in Japan. Reported sales declined by -3% YoY.
In the quarter, a multi-year agreement was signed with Softbank to deploy next generation core network solutions. A multi-year agreement was signed with Far EasTone to modernize its RAN and core, with AI native, 5G advanced, and 6G ready networks.
MarketArea Other
Market area Other primarily includes IPR licensing revenues and almost all sales in segment Enterprise. Sales increased by 12%* YoY with growth in Enterprise and a favorable currency hedge effect. Reported sales decreased by -15% YoY, mainly reflecting the divestment of iconectiv in Q3 2025.
| 4 Ericsson | First quarter report 2026. April 17, 2026. | Market area sales |
|---|
Table of Contents
Segment results
Mobile Networks –
Segment Networks
| SEK b. | Q1<br>2026 | Q1<br>2025 | YoY<br>change | Q4<br>2025 | ||||
|---|---|---|---|---|---|---|---|---|
| Net sales | 32.9 | 35.6 | -8% | 44.2 | ||||
| Of which IPR licensing revenues | 2.6 | 2.6 | -1% | 2.7 | ||||
| Organic sales growth | - | - | 7% | - | ||||
| Gross income | 16.4 | 18.1 | -10% | 21.6 | ||||
| Gross margin | 49.7% | 50.8% | - | 49.0% | ||||
| EBIT | 3.3 | 7.0 | -53% | 9.3 | ||||
| EBIT margin | 10.0% | 19.8% | - | 21.1% | ||||
| EBITA | 3.3 | 7.4 | -55% | 9.3 | ||||
| EBITA margin | 10.1% | 20.7% | - | 21.1% | ||||
| Restructuring charges | -3.1 | -0.1 | - | -0.7 | ||||
| Adjusted financial measures | ||||||||
| Adjusted gross income | 16.6 | 18.2 | -9% | 21.9 | ||||
| Adjusted gross margin | 50.4% | 51.0% | - | 49.6% | ||||
| Adjusted EBIT | 6.3 | 7.1 | -11% | 10.0 | ||||
| Adjusted EBIT margin | 19.2% | 20.1% | - | 22.7% | ||||
| Adjusted EBITA | 6.4 | 7.5 | -15% | 10.1 | ||||
| Adjusted EBITA margin | 19.3% | 21.0% | - | 22.8% |
Breakdown of sales into products, services and IPR licensing is available in note 3.
Net sales
Sales increased by 7%* YoY, with growth in three of the four market areas. Reported sales decreased by -8% YoY to SEK 32.9 (35.6) b. including a currency impact of SEK -5.2 b.
Sales grew across the market area Europe, Middle East and Africa driven by network modernizations as well as 5G launches and rollouts. Sales in market area South East Asia, Oceania and India increased primarily due to higher deliveries in India. Sales in market area North East Asia also increased, reflecting the timing of project deliverables predominantly in Japan. Sales in market area Americas declined reflecting accelerated network investments in the prior-year period in North America, as well as a short-term reallocation of customer spend following mobile network operator consolidation in 2025. The decline was partly offset by higher sales in Latin America.
Gross income and margin
Adjusted gross margin decreased slightly to 50.4% (51.0%), mainly reflecting actions to enhance supply chain resilience. Adjusted gross income decreased to SEK 16.6 (18.2) b., impacted by lower gross margin, lower sales and a currency impact of SEK -2.7 b.
EBITA
Adjusted EBITA was SEK 6.4 (7.5) b. Lower gross income was partly offset by lower operating expenses. Operating expenses benefitted from continued efficiency improvements and positive currency impacts. R&D investments remained stable, supporting the strategy of building the best high-performing, AI-native, programmable networks, and maintaining technology leadership. Adjusted EBITA included a SEK -2.0 b. currency impact.
The adjusted EBITA margin was 19.3% (21.0%).
Net sales rolling four quarters were SEK 148.3 b. and the adjusted EBITA margin rolling four quarters was 20.3%.
Mobile Networks –
Segment Cloud Software and Services
| SEK b. | Q1<br>2026 | Q1<br>2025 | YoY<br>change | Q4<br>2025 | ||||
|---|---|---|---|---|---|---|---|---|
| Net sales | 11.8 | 13.0 | -9% | 20.0 | ||||
| Of which IPR licensing revenues | 0.6 | 0.6 | -1% | 0.6 | ||||
| Organic sales growth | - | - | 4% | - | ||||
| Gross income | 4.9 | 5.1 | -3% | 8.6 | ||||
| Gross margin | 41.5% | 39.1% | - | 43.1% | ||||
| EBIT | 0.0 | 0.1 | -96% | 3.4 | ||||
| EBIT margin | 0.0% | 0.5% | - | 16.8% | ||||
| EBITA | 0.0 | 0.1 | -88% | 3.4 | ||||
| EBITA margin | 0.1% | 0.6% | - | 16.8% | ||||
| Restructuring charges | -0.6 | -0.1 | - | -0.3 | ||||
| Adjusted financial measures | ||||||||
| Adjusted gross income | 5.1 | 5.2 | -1% | 8.9 | ||||
| Adjusted gross margin | 43.2% | 39.9% | - | 44.3% | ||||
| Adjusted EBIT | 0.6 | 0.1 | - | 3.7 | ||||
| Adjusted EBIT margin | 5.3% | 1.1% | - | 18.5% | ||||
| Adjusted EBITA | 0.6 | 0.2 | - | 3.7 | ||||
| Adjusted EBITA margin | 5.3% | 1.2% | - | 18.6% |
Breakdown of sales into products, services and IPR licensing is available in note 3.
Net sales
Sales increased by 4%* YoY, with growth in three of the four market areas and growth in core networks. Reported sales declined by -9% to SEK 11.8 (13.0) b., including a currency impact of SEK -1.6 b. Services sales accounted for 64% (64%) of sales.
Sales grew in Americas, driven primarily by core networks. Sales in market areas South East Asia, Oceania and India and in North East Asia increased, driven by timing of project deliverables. In market area Europe, Middle East and Africa, sales declined across the region, mainly due to lower services sales.
Gross income and margin
Adjusted gross margin increased to 43.2% (39.9%), supported by strong strategy execution with improved delivery efficiency and a favorable shift in product mix. Adjusted gross income decreased slightly to SEK 5.1 (5.2) b., impacted by a negative currency impact of SEK -0.6 b.
EBITA
Adjusted EBITA increased to SEK 0.6 (0.2) b. Lower gross income was offset by lower operating expenses. Operating expenses benefitted from continued efficiency improvements and positive currency impacts. Adjusted EBITA included a SEK -0.3 b. currency impact. The adjusted EBITA margin was 5.3% (1.2%).
Net sales rolling four quarters were SEK 61.6 b. and the adjusted EBITA margin rolling four quarters was 12.4%.
| 5 Ericsson | First quarter report 2026. April 17, 2026. | Segment results |
|---|
Table of Contents
Enterprise –
Segment Enterprise
| SEK b. | Q1<br>2026 | Q1<br>2025 | YoY<br>change | Q4<br>2025 | ||||
|---|---|---|---|---|---|---|---|---|
| Net sales | 4.2 | 5.9 | -30% | 4.6 | ||||
| Organic sales growth | - | - | 4% | - | ||||
| Gross income | 2.0 | 3.3 | -39% | 2.4 | ||||
| Gross margin | 48.9% | 56.3% | - | 52.1% | ||||
| EBIT (loss) | -1.8 | -1.0 | - | -1.5 | ||||
| EBIT margin | -44.2% | -17.1% | - | -33.3% | ||||
| EBITA (loss) | -1.5 | -0.6 | - | -1.1 | ||||
| EBITA margin | -36.9% | -10.5% | - | -24.5% | ||||
| Restructuring charges | -0.1 | -0.1 | - | 0.0 | ||||
| Adjusted financial measures | ||||||||
| Adjusted gross income | 2.0 | 3.3 | -39% | 2.4 | ||||
| Adjusted gross margin | 49.0% | 56.2% | - | 52.1% | ||||
| Adjusted EBIT (loss) | -1.7 | -0.9 | - | -1.5 | ||||
| Adjusted EBIT margin | -41.9% | -15.5% | - | -33.2% | ||||
| Adjusted EBITA (loss) | -1.4 | -0.5 | - | -1.1 | ||||
| Adjusted EBITA margin | -34.6% | -8.9% | - | -24.4% |
Net sales
Sales increased by 4%* YoY, primarily driven by Global Communications Platform, with slight growth in Enterprise Wireless Solutions. Reported sales decreased by -30% YoY to SEK 4.2 (5.9) b., reflecting the divestment of iconectiv in Q3 2025 and a SEK -0.8 b. currency impact.
Sales growth in Global Communications Platform was driven by higher sales in CPaaS and in network API powered solutions. Sales in Enterprise Wireless Solutions benefited from growth in WWAN solutions.
Grossincome and margin
Adjusted gross margin decreased to 49.0% (56.2%), reflecting the impact of the divestment of iconectiv in Q3 2025 and a change in business mix in Global Communications Platform. Adjusted gross income was SEK 2.0 (3.3) b., reflecting the divestment of iconectiv in Q3 2025 and a negative currency impact of SEK -0.4 b.
EBITA (loss)
Adjusted EBITA (loss) was SEK -1.4 (-0.5) b., reflecting the divestment of iconectiv in Q3 2025 and SEK -0.3 b. of non-recurring costs in the current quarter, including the impact of a revaluation of cash settled long-term variable compensation programs due to the increase in the share price. The currency impact was SEK -0.1 b. Adjusted EBITA margin was -34.6% (-8.9%).
Net sales rolling four quarters were SEK 19.4 b. and the adjusted EBITA margin rolling four quarters was 20.4%, including a 39.1 percentage point benefit from the iconectiv gain in Q3 2025.
Segment Other
| SEK b. | Q1<br>2026 | Q1<br>2025 | YoY<br>change | Q4<br>2025 | ||||
|---|---|---|---|---|---|---|---|---|
| Net sales | 0.4 | 0.5 | -17% | 0.5 | ||||
| Organic sales growth | - | - | -2% | - | ||||
| Gross income | 0.0 | 0.0 | -133% | 0.0 | ||||
| Gross margin | -1.5% | 3.8% | - | 7.4% | ||||
| EBIT (loss) | 0.0 | -0.2 | - | 0.0 | ||||
| EBIT margin | 0.3% | -35.0% | - | 1.1% | ||||
| EBITA (loss) | 0.0 | -0.2 | - | 0.0 | ||||
| EBITA margin | 0.3% | -35.0% | - | 1.1% | ||||
| Restructuring charges | - | 0.0 | - | 0.0 | ||||
| Adjusted financial measures | ||||||||
| Adjusted gross income | 0.0 | 0.0 | -130% | 0.1 | ||||
| Adjusted gross margin | -1.5% | 4.2% | - | 13.0% | ||||
| Adjusted EBIT (loss) | 0.0 | -0.2 | - | 0.0 | ||||
| Adjusted EBIT margin | 0.3% | -34.6% | - | 8.0% | ||||
| Adjusted EBITA (loss) | 0.0 | -0.2 | - | 0.0 | ||||
| Adjusted EBITA margin | 0.3% | -34.6% | - | 8.0% |
Net sales
Reported sales were SEK 0.4 (0.5) b.
Gross income and margin
Adjusted gross income was SEK 0.0 (0.0) b. Adjusted gross margin was -1.5% (4.2%).
EBITA (loss)
Adjusted EBITA (loss) was SEK 0.0 (-0.2) b.
Net sales rolling four quarters were SEK 1.8 b.
| 6 Ericsson | First quarter report 2026. April 17, 2026. | Segment results |
|---|
Table of Contents
Cash flow and financial position
| Free cash flow bridge, SEK b. | Q1<br>2026 | Q1<br>2025 | Q4<br>2025 | |||
|---|---|---|---|---|---|---|
| Adjusted EBITA | **** | 5.6 | **** | 6.9 | **** | 12.7 |
| Depreciation and amortization of<br>non-acquired assets | 1.6 | 2.0 | 1.7 | |||
| Restructuring charges | -3.8 | -0.3 | -1.1 | |||
| Changes in operating net assets | 5.6 | -2.8 | 6.4 | |||
| Interest paid/received, taxes paid, and other | -1.6 | -1.5 | -3.2 | |||
| Cash flow from operating activities | **** | 7.4 | **** | 4.4 | **** | 16.5 |
| Net capex and other investing activities | -1.0 | -1.1 | -1.2 | |||
| Repayment of lease liabilities | -0.5 | -0.6 | -0.5 | |||
| Free cash flow before M&A | **** | 5.9 | **** | 2.7 | **** | 14.9 |
| Cash flow from operating activities | 7.4 | 4.4 | 16.5 | |||
| Cash flow from investing activities | 1.9 | 1.3 | -5.0 | |||
| Cash flow from financing activities | -2.3 | -0.7 | -8.8 | |||
| SEK b. | Mar 31<br>2026 | Mar 31<br>2025 | Dec 31<br>2025 | |||
| Gross cash | **** | 99.5 | **** | 74.2 | **** | 93.9 |
| - Borrowings, current | 9.9 | 5.6 | 3.5 | |||
| - Borrowings,<br>non-current | 21.5 | 29.9 | 29.2 | |||
| Net cash | **** | 68.1 | **** | 38.6 | **** | 61.2 |
| Equity | 103.1 | 84.9 | 110.3 | |||
| Equity ratio (%) | 35.5% | 30.5% | 39.5% | |||
| Capital turnover (times) | 1.4 | 1.6 | 1.5 | |||
| Return on capital employed (%) | 21.4% | 3.8% | 24.1% |
Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements.
Cash flow
Cash flow from operating activities was SEK 7.4 (4.4) b. Operating cash flow in the quarter was driven by earnings and a reduction in operating net assets. Operating net assets decreased driven by annual IPR payments received in the quarter.
Cash flow from operating activities increased compared to the prior year period, reflecting solid underlying earnings and positive cash flow from currency hedges.
Cash flow from investing activities was SEK 1.9 (1.3) b. Investing cash flow in the quarter was driven by the sale of interest-bearing securities.
Cash flow from financing activities was SEK -2.3 (-0.7) b. Financing cash flow in the quarter was driven by collateral on derivatives.
Financial position
Gross cash increased sequentially by SEK 5.6 b. to SEK 99.5 b., driven by positive free cash flow before M&A and a positive exchange rate effect on cash and cash equivalents.
Net cash increased SEK 6.9 b. sequentially to SEK 68.1 b.
The average maturity of parent company borrowings was 2.7 years as of March 31, 2026, compared with 3.5 years as of March 31, 2025.
Liabilities for post-employment benefits decreased to SEK 18.2 b. from SEK 18.6 b. The Swedish defined benefit obligation (DBO) was calculated using a discount rate based on the yields of Swedish government bonds. If the discount rate had been based on Swedish covered mortgage bonds, the liability for post-employment benefits would have been approximately SEK 9.9 b., which is SEK 8.3 b. lower than current DBO.
| 7 Ericsson | First quarter report 2026. April 17, 2026. | Cash flow and financial position |
|---|
Table of Contents
Key data points
Market
Dell’Oro estimates that the global RAN equipment market will be broadly stable in 2026.
Source: Dell’Oro Mobile RAN Quarterly Report Q425, Feb 2026.
Ericsson
Net sales
Reported average seasonality last 3 years (2023–2025), %.
| Q4èQ1 | Q1èQ2 | Q2èQ3 | Q3èQ4 | |
|---|---|---|---|---|
| Networks | -25% | +4% | +1% | +17% |
| Cloud Software and<br>Services | -33% | +13% | +3% | +29% |
Net sales may show large variations between quarters, including currency changes.
IPR licensing revenues
IPR licensing revenue growth opportunities remain in new market segments and from increased penetration of the smartphone market.
At the end of Q1 2026, recurring annual IPR licensing revenues were approximately SEK 13 b.
Currency exposure
Currency exposure can vary significantly from quarter to quarter. In 2025, approximately half of net sales were USD denominated, over 15% of net sales were EUR denominated, and five other currencies (INR, JPY, GBP, CNY, AUD) contributed approximately 15% of net sales.
Further currency information is available at:
https://www.ericsson.com/en/investors/financial-reports-and- presentations/foreign-exchange-rates
Amortization ofintangible assets
Amortization of intangible assets is expected to be around SEK -0.3 b. per quarter in segment Enterprise.
Restructuring charges
Restructuring charges for 2026 are expected to be at elevated levels.
Segments
Increased uncertainty remains in the outlook and in the broader macroeconomic and geopolitical environment.
The Q2 outlook assumes currency rates of USD:SEK 9.2, EUR:SEK 10.8.
Networks
Sales growth in Q2 2026 is expected to be broadly similar to 3-year average seasonality.
Adjusted gross margin in Q2 2026 is expected to be in the range of 49% to 51%.
Cloud Software and Services
Sales growth in Q2 2026 is expected to be above 3-year average seasonality.
| 8 Ericsson | First quarter report 2026. April 17, 2026. | Key data points |
|---|
Table of Contents
Parent Company
Income after financial items January – March 2026, was SEK 0.8 (0.3) b.
At the end of the quarter, gross cash (cash, cash equivalents plus interest-bearing securities, current and non-current) amounted to SEK 86.3 (61.2) b.
There was an increase in intercompany lending of SEK 1.1 b. and a decrease in intercompany borrowing of SEK 1.1 b. in the quarter.
At the end of the quarter, non-restricted equity amounted to SEK 33.8 (13.0) billion, and total equity amounted to SEK 82.1 (61.3) b.
The proposed dividend for 2025 of SEK 3.00 per share was approved by the Annual General Meeting on March 31, 2026 (‘‘the AGM’’). The first of two equal dividend payments of SEK 1.50 per share was made on April 9, 2026, and the second will be made with a record date of September 29, 2026, with an expected payment date of October 2, 2026.
The AGM resolved to authorize the Board of Directors to decide on the purchase of the Company’s ordinary Class B shares. The number of shares purchased must at no time result in the Company’s holding exceeding 10 percent of all the shares in the Company.
On April 16, 2026, it was announced that the Board of Directors had resolved to utilize the authorization granted by the AGM to initiate a share buyback program relating to Ericsson’s ordinary Class B shares on Nasdaq Stockholm up to a maximum consideration of SEK 15 billion. The acquisitions are expected to commence on April 23, 2026, at the earliest, and to end no later than March 31, 2027.
The holding of treasury stock on March 31, 2026, was 38,002,276 Class B shares.
| 9 Ericsson | First quarter report 2026. April 17, 2026. | Parent Company |
|---|
Table of Contents
Other information
Legal proceedings involving governmental authorities
In February 2022, Ericsson publicly disclosed that an internal investigation in 2019 included a review of the conduct of Ericsson employees, vendors and suppliers in Iraq during the period between 2011 to 2019. The investigators could not determine the ultimate recipients of any payments, nor identify that any Ericsson employee was directly involved in financing terrorist organizations. The Company’s 2019 internal Iraq investigation did not conclude that Ericsson made or was responsible for any payments to any terrorist organization.
The Company continues to fully cooperate with the US Department of Justice (DOJ) in its investigation into matters discussed in the 2019 internal Iraq investigation report and related topics concerning jurisdictions including Iraq. As additional information continues to be identified and evaluated in continued cooperation with the DOJ during its ongoing investigation, it is expected that there will not be any conclusive determinations on the outcome until the investigation is completed. The scope and duration of the investigation remain uncertain.
In April 2019, Ericsson was informed by China’s State Administration for Market Regulation Anti-monopoly Bureau (SAMR) that SAMR has initiated an investigation into Ericsson’s patent licensing practices in China. Ericsson is cooperating with the investigation, which is still in a fact-finding phase. The next steps include continued fact-finding and meetings with SAMR in order to facilitate the authority’s assessment and conclusions. In case of adverse findings, SAMR has the power to impose behavioral and financial remedies.
Legal proceedings not involving governmental authorities
In August 2022, a civil lawsuit was filed in the United States District Court for the District of Columbia against Telefonaktiebolaget LM Ericsson and Ericsson Inc. (collectively, the “Ericsson defendants”). The lawsuit was brought by US military service members, employees of US government contractors and other civilians who were killed or injured in terrorist attacks in Iraq, Afghanistan and Syria from 2005 to 2021, as well as by their family members. The lawsuit asserts claims against the Ericsson defendants under the U.S. Anti-Terrorism Act alleging that the Ericsson defendants made payments that ultimately aided the terrorist organizations that committed, planned or authorized the attacks. In November 2022, the Ericsson defendants filed a motion to dismiss the complaint. On December 20, 2022, plaintiffs filed an amended complaint, which added additional plaintiffs, including a plaintiff injured in Turkey, and also named Ericsson AB (collectively with the Ericsson defendants, the “Ericsson corporate defendants”), President and CEO Börje Ekholm and a former employee (who has not been served with process) as additional defendants and also asserted additional allegations and claims. In March 2023, the Ericsson corporate defendants and Mr. Ekholm filed motions to dismiss the amended complaint. Plaintiffs filed their oppositions to defendants’ motions to dismiss the amended complaint in June 2023, and defendants filed reply briefs in support of their motions to dismiss in July 2023. All briefing has been submitted, and resolution of the matter is pending with the District Court. All defendants will continue to vigorously defend this matter.
In February 2024, a second civil lawsuit also alleging violations of the U.S. Anti-Terrorism Act was filed in the United States District Court for the District of Columbia. The lawsuit was filed by the same
law firm and involves substantially similar factual allegations and claims as those made in the Anti-Terrorism Act lawsuit originally filed in August 2022, and similarly names the same Ericsson corporate defendants, President and CEO Börje Ekholm and a former employee as defendants. The new lawsuit was brought by additional US military service members, employees of US government contractors and other civilians who were killed or injured in terrorist attacks in Iraq, Afghanistan, Syria, Turkey, Niger, and France from 2005 to 2021, as well as by their family members. The District Court for the District of Columbia has stayed the proceedings in this matter pending its decision on the motions to dismiss in the earlier-filed suit. The defendants will vigorously defend this matter.
In November 2025, a third civil lawsuit also alleging violations of the US Anti-Terrorism Act was filed in the US District Court for the District of Columbia. The lawsuit was filed by a law firm not involved in the August 2022 and February 2024 lawsuits and involves substantially similar factual allegations and claims to those made in the Anti-Terrorism Act lawsuits filed in August 2022 and February 2024, and similarly names the same Ericsson corporate defendants, CEO Börje Ekholm and a former employee as defendants. The new lawsuit was brought by additional US military service members, employees of US government contractors and other civilians who were killed or injured in terrorist attacks in France, Afghanistan, and Belgium from 2012 to 2018, as well as by their family members. The District Court for the District of Columbia has stayed the proceedings in this matter pending its decision on the motions to dismiss in the earlier-filed suit. The defendants will vigorously defend this matter.
In March 2026, a fourth civil lawsuit also alleging violations of the US Anti-Terrorism Act was filed in the US District Court for the District of Columbia. The lawsuit involves substantially similar factual allegations and claims to those made in the Anti-Terrorism Act lawsuits filed in August 2022, February 2024, and November 2025, and similarly names the same Ericsson corporate defendants, CEO Börje Ekholm and a former employee as defendants. The new lawsuit was brought by additional US military service members and civilians who were killed or injured in terrorist attacks in Afghanistan, Iraq, Niger, Tajikistan and Turkey from 2005 to 2018, as well as by their family members. The District Court for the District of Columbia has stayed the proceedings in this matter pending its decision on the motions to dismiss in the earlier-filed suit. The defendants will vigorously defend this matter.
Beginning on August 4, 2023, a number of civil lawsuits have been filed against Telefonaktiebolaget LM Ericsson in Solna District Court, Sweden. 93 claimants have filed suit, which are coordinated and financed by a UK-based litigation funder. The claimants consist of a group of non-Swedish funds and financial institutions that allegedly are or have been shareholders of the Company. Their damages claims are primarily based on alleged inadequate disclosure of the contents of the Company’s 2019 internal Iraq investigation report. Ericsson filed its statement of defense on March 15, 2024. On February 14, 2025, the District Court ordered Ericsson to produce the 2019 internal Iraq investigation report to the claimants’ external counsel. Ericsson appealed the decision and on August 15, 2025, the Court of Appeal overturned the District Court’s decision. The claimants appealed, but on March 12, 2026,
| 10 Ericsson | First quarter report 2026. April 17, 2026. | Other information |
|---|
Table of Contents
the Supreme Court refused leave to appeal. Proceedings on the merits of the case will now continue in the District Court. Ericsson will continue to vigorously defend this matter.
The Company actively manages its IPR portfolio and its need for third-party licenses and is involved from time to time, in the ordinary course of business, in litigation related thereto, as plaintiff, defendant and other capacities.
In addition to the proceedings discussed above, the Company is, and in the future may be, involved in various other regulatory investigations, enforcement actions, lawsuits, claims (including claims by third-parties the Company has indemnified against infringement liability or provided guarantees to) and proceedings incidental to the ordinary course of business and transactions.
PRESS RELEASES
| March 31, 2026 | Ericsson’s Annual General Meeting 2026 - Ericsson | |
|---|---|---|
| April 16, 2026 | Ericsson Initiates Share Buyback Program | |
| 11 Ericsson | First quarter report 2026. April 17, 2026. | Other information |
| --- | --- |
Table of Contents
Risk factors
Ericsson is exposed to a number of risks in its activities. To stimulate identification and support cross-functional treatment within the Ericsson Group, risks are grouped in a number of categories, including, for example, risks relating to technology, IPR, compliance, project execution, operations, supply chain and sourcing concentration, products and services, customer concentration, treasury and accounting, the geopolitical environment, M&A, cybersecurity and occupational health and safety. Ericsson’s risk management is embedded into strategy development and operational processes, and material Group risks are regularly assessed and reviewed by executives as required by Ericsson’s Material Group Risk Protocol to ensure accountability, effectiveness, efficiency, business continuity and compliance. Risks are defined in both a short-term and long-term perspective and are related to long-term objectives and strategic direction as well as to short-term objectives. Risk factors and uncertainties of relevance to Ericsson are described in the Ericsson Annual Report 2025 and in the Annual Report on Form 20-F for the year ended December 31, 2025 (in the following, the “Annual Report 2025”). See also the risks set out in the section titled “Forward-looking statements.”
Stockholm, April 17, 2026
Telefonaktiebolaget LM Ericsson
Börje Ekholm, President and CEO
Org. No. 556016-0680
Date for next report: July 14, 2026
| 12 Ericsson | First quarter report 2026. April 17, 2026. | Risk factors |
|---|
Table of Contents
Editor’s note
| Media and analyst briefing | Investors | |
|---|---|---|
| Ericsson invites media, investors and analysts to a conference call and | Daniel Morris, Vice President, | |
| live video webcast at 09:00 AM CEST on April 17, 2026. | Head of Investor Relations | |
| Phone: +44 7386 657217 | ||
| Link to the webcast, dial-in to audio conference, supporting material | E-mail: investor.relations@ericsson.com | |
| and replay will be available at: | ||
| www.ericsson.com/investors and | Lena Häggblom, Director, | |
| www.ericsson.com/newsroom | Investor Relations | |
| Phone: +46 72 593 27 78 | ||
| For further information, please contact: | E-mail: investor.relations@ericsson.com | |
| Lars Sandström, Senior Vice President, Chief Financial Officer | Alan Ganson, Director, | |
| Phone: +46 72 161 20 04 | Investor Relations | |
| E-mail: investor.relations@ericsson.com | Phone: +46 70 267 27 30 | |
| E-mail: investor.relations@ericsson.com | ||
| Peter Borsos, Vice President, | ||
| Head of Group Communications | Media | |
| Phone: +46 70 317 68 00 | Ralf Bagner, Head of Media Relations | |
| E-mail: media.relations@ericsson.com | Phone: +46 76 128 47 89 | |
| E-mail: media.relations@ericsson.com | ||
| Telefonaktiebolaget LM Ericsson | ||
| Org. number: 556016-0680 | Corporate Communications | |
| Torshamnsgatan 21 | Phone: +46 10 719 69 92 | |
| SE-164 83 Stockholm | E-mail: media.relations@ericsson.com | |
| Phone: +46 10 719 00 00 | ||
| www.ericsson.com | ||
| 13 Ericsson | First quarter report 2026. April 17, 2026. | Editor’s note |
| --- | --- |
Table of Contents
Forward-looking statements
This report includes forward-looking statements. All statements other than statements of historical fact are forward-looking statements. The words “believe,” “expect,” “foresee,” “anticipate,” “assume,” “intend,” “likely,” “projects,” “may,” “could,” “plan,” “estimate,” “forecast,” “will,” “should,” “would,” “predict,” “aim,” “ambition,” “seek,” “potential,” “target,” “might,” “continue,” or, in each case, their negative or variations, and similar words or expressions are used to identify forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking statements, including, in particular the following:
| – | Potential material additional liability resulting from past conduct, including allegations of past conduct that remains<br>unresolved or unknown in multiple jurisdictions, including Iraq, which remains the subject of ongoing investigations by Ericsson and US governmental authorities |
|---|---|
| – | Risks related to internal controls and governance, including the potential to incur material liability in connection<br>with internal controls surrounding payments made to third parties in connection with past conduct in multiple jurisdictions, including Iraq, which remains the subject of ongoing investigations by Ericsson and US governmental authorities<br> |
| --- | --- |
| – | The risk that the ongoing investigations by Ericsson and US governmental authorities result in a conclusion by Ericsson<br>or US governmental authorities that the Company’s past conduct included making or having responsibility for making payments to a terrorist organization or other improper payments, which could lead to material additional liability<br> |
| --- | --- |
| – | Risks related to the Company’s ongoing compliance with obligations under the National Security Agreement entered<br>into in connection with Ericsson’s acquisition of Vonage Holdings Corp. (Vonage), which may adversely affect the Vonage business and subject the Company to additional liabilities |
| --- | --- |
| – | Ericsson’s goals, strategies, planning assumptions and operational or financial performance expectations<br> |
| --- | --- |
| – | Macroeconomic conditions, including inflationary pressures and effects on customer investments, market recovery and<br>growth |
| --- | --- |
| – | Ongoing geopolitical and trade uncertainty, including challenging global economic conditions, market trends and the<br>imposition of tariffs and sanctions |
| --- | --- |
| – | Continued growth of mobile communications, the success of Ericsson’s existing and targeted customer base, and<br>Ericsson’s ability to maintain technology leadership |
| --- | --- |
| – | Success in implementing key strategies, including improving profitability, leading in 6G, capturing 5G market<br>opportunities, capitalizing on network API and Enterprise opportunities, incorporation of AI technologies into certain products, services and processes, and expected benefits from restructuring activities |
| --- | --- |
| – | Risks related to cybersecurity and privacy, security and data localization |
| --- | --- |
| – | Industry trends, future characteristics and development of the markets in which Ericsson operates<br> |
| --- | --- |
| – | Risks of global operations, including legal and regulatory requirements and uncertainties, and unfavorable lawsuits and<br>legal proceedings |
| --- | --- |
| – | Ericsson’s future liquidity, capital resources, capital expenditures, cost savings and profitability, and risks<br>related to financial condition |
| --- | --- |
| – | The expected demand for Ericsson’s existing and new products and services as well as plans to launch new products<br>and services, including research and development expenditures |
| --- | --- |
| – | Ericsson’s ability to deliver on future plans and achieve future growth |
| --- | --- |
| – | The expected operational or financial performance of strategic cooperation activities and joint ventures<br> |
| --- | --- |
| – | Risks related to acquisitions and divestments that may be disruptive and incur significant expenses, including<br>Ericsson’s ability to successfully consummate such transactions, protect the value of acquisitions during integration, or achieve the value anticipated with an acquisition |
| --- | --- |
| – | Trends related to Ericsson’s industry, including Ericsson’s regulatory environment, competition and customer<br>structure |
| --- | --- |
| – | Intense competition from existing competitors, and new entrants, including vendor consolidation |
| --- | --- |
| – | Risks related to the supply chain and single-source or highly concentrated third-party suppliers |
| --- | --- |
| – | Large, multi-year agreements with limited number of key customers, and operator consolidation |
| --- | --- |
| – | Risks related to intellectual property, key employees, and unforeseen risks and disruptions due to natural or man- made events |
| --- | --- |
| – | Risks related to environmental, social, governance, diversity, equity and inclusion and business conduct<br> |
| --- | --- |
| – | Other factors included in Ericsson’s filings with the US Securities and Exchange Commission (SEC), including the<br>factors described throughout this report, included in the section Risk factors, and in “Risk Factors” in the Annual Report 2025, as updated by subsequent reports filed with the SEC. |
| --- | --- |
These forward-looking statements also represent Ericsson’s estimates, assumptions and expectations only as of the date that they were made, and to the extent they represent third-party data, Ericsson has not undertaken to independently verify such third-party data and does not intend to do so. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements and are urged to carefully review and consider the various disclosures made in this report and in other documents Ericsson files from time to time with Ericsson’s regulators that disclose risks and uncertainties that may affect Ericsson’s business. Ericsson expressly disclaims a duty to provide updates to these forward-looking statements, and the estimates and assumptions associated with them, after the date of this report, to reflect events or changes in circumstances or changes in expectations or the occurrence of anticipated events, whether as a result of new information, future events or otherwise, except as required by applicable law or stock exchange regulations.
| 14 Ericsson | First quarter report 2026. April 17, 2026. | Forward-looking statements |
|---|
Table of Contents
Financial statements and other information
| Contents | ||
|---|---|---|
| Financial statements (unaudited) | 16 | |
| Condensed consolidated income statement | 16 | |
| Condensed statement of comprehensive income | 16 | |
| Condensed consolidated balance sheet | 17 | |
| Condensed consolidated statement of cash flows | 18 | |
| Condensed consolidated statement of changes in equity | 19 | |
| Condensed consolidated income statement – isolated quarters | 19 | |
| Condensed consolidated statement of cash flows – isolated quarters | 20 | |
| Condensed Parent Company income statement | 21 | |
| Condensed Parent Company statement of comprehensive income | 21 | |
| Condensed Parent Company balance sheet | 22 | |
| Accounting policies and Explanatory notes (unaudited) | 23 | |
| Note 1 – Accounting policies and other information | 23 | |
| Note 2 – Segment information | 24 | |
| Note 3 – Financial income and expenses, net | 28 | |
| Note 4 – Provisions | 29 | |
| Note 5 – Financial risk management | 30 | |
| Note 6 – Cash flow | 31 | |
| Note 7 – Contingent liabilities and Assets pledged as collateral | 31 | |
| Note 8 – Share information | 32 | |
| Note 9 – Employee information | 32 | |
| Alternative performance measures (unaudited) | 33 | |
| Sales growth adjusted for comparable units and currency | 33 | |
| Items excluding restructuring charges and impairments of goodwill and intangible assets | 34 | |
| EBITA and EBITA margin / Adjusted EBITA and Adjusted EBITA margin | 35 | |
| Rolling four quarters of net sales and adjusted EBITA margin (%) | 35 | |
| Gross cash and net cash, end of period | 36 | |
| Capital employed | 36 | |
| Capital turnover | 36 | |
| Return on capital employed | 37 | |
| Equity ratio | 37 | |
| Return on equity | 37 | |
| Operating working capital | 38 | |
| Free cash flow before M&A / Free cash flow after M&A / Free cash flow before M&A (% of net sales) | 38 | |
| Sales growth by segment adjusted for comparable units and currency | 39 | |
| Sales growth by market area adjusted for comparable units and currency * | 39 | |
| Rolling four quarters of net sales by segment | 39 | |
| Gross margin by segment by quarter | 40 | |
| EBIT margin by segment by quarter | 40 | |
| EBITA and EBITA margin by segment by quarter | 41 | |
| Restructuring charges by function | 42 | |
| Restructuring charges by segment | 42 | |
| Adjusted gross income and Adjusted gross margin by segment | 43 | |
| Adjusted EBIT (loss) and Adjusted EBIT margin by segment | 44 | |
| Rolling four quarters of adjusted EBITA margin by segment (%) | 44 | |
| Adjusted EBITA and Adjusted EBITA margin by segment | 45 | |
| Operating working capital days | 45 | |
| 15 Ericsson | First quarter report 2026. April 17, 2026. | Financial statements and other information |
| --- | --- |
Table of Contents
Financial statements (unaudited)
Condensed consolidated income statement
| Q1 | |||||||
|---|---|---|---|---|---|---|---|
| SEK million | Note | 2026 | 2025 | Change | |||
| Net sales | 2 | 49,332 | 55,025 | -10% | |||
| Cost of sales | -26,033 | -28,488 | -9% | ||||
| Gross income | 2 | **** | 23,299 | **** | 26,537 | **** | -12% |
| Research and development expenses | -13,489 | -12,032 | 12% | ||||
| Selling and administrative expenses | -8,135 | -8,621 | -6% | ||||
| Impairment reversals/losses on trade receivables | -156 | 32 | - | ||||
| Operating expenses | **** | -21,781 | **** | -20,621 | **** | 6% | |
| Other operating income and expenses | 24 | 8 | 200% | ||||
| Share of earnings of associated companies | -99 | 7 | - | ||||
| Earnings before financial items and income tax (EBIT) | 2 | **** | 1,443 | **** | 5,931 | **** | -76% |
| Financial income and expenses, net | 3 | -193 | -74 | 161% | |||
| Income after financial items | **** | 1,250 | **** | 5,857 | **** | -79% | |
| Income tax | -362 | -1,640 | -78% | ||||
| Net income | **** | 887 | **** | 4,217 | **** | -79% | |
| Net income attributable to: | |||||||
| Owners of the Parent Company | 888 | 4,149 | |||||
| Non-controlling interests | 0 | 68 | |||||
| Other information | |||||||
| Average number of shares, basic (million) | 8 | 3,333 | 3,333 | ||||
| Earnings per share, basic (SEK) ¹^)^ | 8 | 0.27 | 1.25 | ||||
| Earnings per share, diluted (SEK) ¹^)^ ²^)^ | 8 | 0.27 | 1.24 | ||||
| ^1)^ | Based on net income attributable to owners of the Parent Company. | ||||||
| --- | --- | ||||||
| ^2)^ | Potential ordinary shares are not considered when their conversion to ordinary shares would improve earnings per share.<br> | ||||||
| --- | --- |
Condensed statement of comprehensive income
| Q1 | ||||
|---|---|---|---|---|
| SEK million | 2026 | 2025 | ||
| Net income | **** | 887 | **** | 4,217 |
| Other comprehensive income | ||||
| Items that will not be reclassified to profit orloss | ||||
| Remeasurements of defined benefit pension plans | 173 | 2,711 | ||
| Revaluation of credit risk on borrowings | 108 | 28 | ||
| Tax on items that will not be reclassified to profit or loss | -75 | -476 | ||
| Items that have been or may be reclassified to profit orloss | ||||
| Cash flow hedge reserve | ||||
| Gains/losses arising during the period | -344 | 2,929 | ||
| Reclassification adjustments on gains/losses included in profit or<br>loss | -564 | 293 | ||
| Translation reserves | ||||
| Changes in translation reserves | 2,477 | -7,616 | ||
| Reclassification to profit or loss | -10 | - | ||
| Share of other comprehensive income of associated companies | 29 | -50 | ||
| Tax on items that have been or may be reclassified to profit or<br>loss | 187 | -664 | ||
| Total other comprehensive income, net of tax | **** | 1,981 | **** | -2,845 |
| Total comprehensive income | **** | 2,868 | **** | 1,372 |
| Total comprehensive income attributable to: | ||||
| Owners of the Parent Company | 2,873 | 1,215 | ||
| Non-controlling interests | -5 | 157 | ||
| 16 Ericsson | First quarter report 2026. April 17, 2026. | Financial statements | ||
| --- | --- |
Table of Contents
Condensed consolidated balance sheet
| SEK million | Note | Mar 31<br><br><br>2026 | Dec 31<br><br><br>2025 | ||
|---|---|---|---|---|---|
| Assets | |||||
| Non-current assets | |||||
| Intangible assets | |||||
| Capitalized development expenses | 3,813 | 3,866 | |||
| Goodwill | 48,627 | 46,882 | |||
| Customer relationships, IPR and other intangible assets | 5,474 | 5,631 | |||
| Property, plant and equipment | 8,797 | 8,789 | |||
| Right-of-use assets | 7,023 | 6,738 | |||
| Financial assets | |||||
| Investments in associated companies | 1,415 | 1,507 | |||
| Other investments in shares and participations | 5 | 2,071 | 1,909 | ||
| Customer finance, non-current | 5 | 190 | 238 | ||
| Interest-bearing securities, non-current | 5 | 36,457 | 37,298 | ||
| Other financial assets, non-current | 5 | 6,383 | 5,960 | ||
| Deferred tax assets | 18,707 | 16,851 | |||
| **** | 138,958 | **** | 135,669 | ||
| Current assets | |||||
| Inventories | 25,732 | 23,451 | |||
| Contract assets | 8,526 | 7,333 | |||
| Trade receivables | 5 | 39,345 | 40,327 | ||
| Customer finance, current | 5 | 1,582 | 852 | ||
| Current tax assets | 5,007 | 5,030 | |||
| Other current receivables | 8,153 | 9,920 | |||
| Interest-bearing securities, current | 5 | 10,775 | 12,715 | ||
| Cash and cash equivalents | 5 | 52,315 | 43,926 | ||
| **** | 151,435 | **** | 143,554 | ||
| Total assets | **** | 290,393 | **** | 279,223 | |
| Equity and liabilities | |||||
| Equity | |||||
| Stockholders’ equity | 102,440 | 109,535 | |||
| Non-controlling interest in equity of subsidiaries | 692 | 729 | |||
| **** | 103,133 | **** | 110,264 | ||
| Non-current liabilities | |||||
| Post-employment benefits | 18,224 | 18,648 | |||
| Provisions, non-current | 4 | 4,822 | 2,993 | ||
| Deferred tax liabilities | 175 | 152 | |||
| Borrowings, non-current | 5 | 21,541 | 29,165 | ||
| Lease liabilities, non-current | 6,107 | 5,772 | |||
| Other non-current liabilities | 1,327 | 1,292 | |||
| **** | 52,196 | **** | 58,022 | ||
| Current liabilities | |||||
| Provisions, current | 4 | 6,981 | 5,691 | ||
| Borrowings, current | 5 | 9,865 | 3,538 | ||
| Lease liabilities, current | 1,777 | 1,789 | |||
| Contract liabilities | 46,008 | 36,867 | |||
| Trade payables | 5 | 26,719 | 26,335 | ||
| Current tax liabilities | 3,386 | 2,679 | |||
| Other current liabilities | 40,327 | 34,038 | |||
| **** | 135,063 | **** | 110,937 | ||
| Total equity and liabilities | **** | 290,393 | **** | 279,223 | |
| 17 Ericsson | First quarter report 2026. April 17, 2026. | Financial statements | |||
| --- | --- |
Table of Contents
Condensed consolidated statement of cash flows
| Q1 | Jan-Dec | ||||||
|---|---|---|---|---|---|---|---|
| SEK million | Note | 2026 | 2025 | 2025 | |||
| Operating activities | **** | ||||||
| Net income | 887 | 4,217 | 28,714 | ||||
| Adjustments for | |||||||
| Taxes | 353 | 1,754 | 10,074 | ||||
| Earnings/dividends in associated companies | 169 | 2 | 57 | ||||
| Depreciation, amortization and impairment losses | 6 | 1,987 | 2,750 | 9,241 | |||
| Other | -547 | 115 | -8,579 | ||||
| **** | 2,849 | **** | 8,838 | **** | 39,507 | ||
| Changes in operating net assets | |||||||
| Inventories | -1,730 | -2,268 | 929 | ||||
| Customer finance, current and non-current | -622 | 1,864 | 3,033 | ||||
| Trade receivables and contract assets | 1,283 | -312 | -4,301 | ||||
| Trade payables | -471 | -1,572 | 462 | ||||
| Provisions and post-employment benefits | 2,557 | -2,315 | -1,435 | ||||
| Contract liabilities | 8,077 | 8,596 | 1,485 | ||||
| Other operating assets and liabilities, net | -3,494 | -6,830 | 205 | ||||
| **** | 5,600 | **** | -2,837 | **** | 378 | ||
| Interest received | 531 | 676 | 2,283 | ||||
| Interest paid | -534 | -771 | -2,205 | ||||
| Taxes paid | -1,042 | -1,548 | -7,009 | ||||
| Cash flow from operating activities | **** | 7,403 | **** | 4,358 | **** | 32,954 | |
| Investing activities | |||||||
| Investments in property, plant and equipment | 6 | -620 | -729 | -2,630 | |||
| Sales of property, plant and equipment | 10 | 39 | 192 | ||||
| Acquisitions/divestments of subsidiaries and other operations, net | -72 | -4 | 10,539 | ||||
| Product development | 6 | -378 | -307 | -1,138 | |||
| Purchase of interest-bearing securities | -6,393 | -6,520 | -38,758 | ||||
| Sales of interest-bearing securities | 8,714 | 5,704 | 16,688 | ||||
| Other investing activities | 599 | 3,122 | 3,670 | ||||
| Cash flow from investing activities | **** | 1,860 | **** | 1,305 | **** | -11,437 | |
| Financing activities | |||||||
| Proceeds from issuance of borrowings | - | - | 398 | ||||
| Repayment of borrowings | - | -79 | -3,538 | ||||
| Dividends paid | - | - | -9,545 | ||||
| Repayment of lease liabilities | -459 | -593 | -2,115 | ||||
| Other financing activities | -1,819 | -60 | 577 | ||||
| Cash flow from financing activities | **** | -2,278 | **** | -732 | **** | -14,223 | |
| Effect of exchange rate changes on cash | 1,403 | -4,226 | -7,253 | ||||
| Net change in cash and cash equivalents | **** | 8,388 | **** | 705 | **** | 41 | |
| Cash and cash equivalents, beginning of period | **** | 43,926 | **** | 43,885 | **** | 43,885 | |
| Cash and cash equivalents, end of period | **** | 52,315 | **** | 44,590 | **** | 43,926 | |
| 18 Ericsson | First quarter report 2026. April 17, 2026. | Financial statements | |||||
| --- | --- |
Table of Contents
| Condensed consolidated statement of changes in equity | |||||||
|---|---|---|---|---|---|---|---|
| Jan-Mar | Jan-Dec | ||||||
| SEK million | 2026 | 2025 | 2025 | ||||
| Opening balance | 110,264 | 92,983 | 92,983 | ||||
| Total comprehensive income | 2,868 | 1,372 | 26,523 | ||||
| Sale/repurchase of own shares | -10 | - | -116 | ||||
| Share issue, net | - | - | 116 | ||||
| Long-term variable compensation plans | 43 | 38 | 179 | ||||
| Dividends to shareholders | -10,031 | -9,535 | -9,545 | ||||
| Transactions with non-controlling interests | - | - | 124 | ||||
| Closing balance | **** | 103,133 | 84,858 | **** | 110,264 | ||
| Condensed consolidatedincome statement – isolated quarters | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| 2026 | 2025 | ||||||
| Isolated quarters, SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | ||
| Net sales | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | ||
| Cost of sales | -26,033 | -36,580 | -29,462 | -29,483 | -28,488 | ||
| Gross income | **** | 23,299 | **** | 32,705 | 26,777 | 26,649 | 26,537 |
| Research and development expenses | -13,489 | -13,098 | -11,510 | -12,212 | -12,032 | ||
| Selling and administrative expenses | -8,135 | -8,971 | -7,913 | -8,180 | -8,621 | ||
| Impairment reversals/losses on trade receivables | -156 | 127 | 46 | 34 | 32 | ||
| Operating expenses | **** | -21,781 | **** | -21,942 | -19,377 | -20,358 | -20,621 |
| Other operating income and expenses | 24 | 420 | 7,715 | 67 | 8 | ||
| Share of earnings of associated companies | -99 | -22 | 36 | 33 | 7 | ||
| Earnings before financial items and income tax (EBIT) | **** | 1,443 | **** | 11,161 | 15,151 | 6,391 | 5,931 |
| Financial income and expenses, net | -193 | -80 | -212 | 34 | -74 | ||
| Income after financial items | **** | 1,250 | **** | 11,081 | 14,939 | 6,425 | 5,857 |
| Income tax | -362 | -2,510 | -3,639 | -1,799 | -1,640 | ||
| Net income | **** | 887 | **** | 8,571 | 11,300 | 4,626 | 4,217 |
| Net income attributable to: | |||||||
| Owners of the Parent Company | 888 | 8,563 | 11,149 | 4,567 | 4,149 | ||
| Non-controlling interests | - | 8 | 151 | 59 | 68 | ||
| Other information | |||||||
| Average number of shares, basic (million) | 3,333 | 3,333 | 3,333 | 3,333 | 3,333 | ||
| Earnings per share, basic (SEK) ¹^)^ | 0.27 | 2.57 | 3.34 | 1.37 | 1.25 | ||
| Earnings per share, diluted (SEK) ¹^)^ ²^)^ | 0.27 | 2.57 | 3.33 | 1.37 | 1.24 | ||
| ^1)^ | Based on net income attributable to owners of the Parent Company. | ||||||
| --- | --- | ||||||
| ^2)^ | Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.<br> | ||||||
| --- | --- | ||||||
| 19 Ericsson | First quarter report 2026. April 17, 2026. | Financial statements | |||||
| --- | --- |
Table of Contents
| Condensed consolidated statement of cash flows – isolatedquarters | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | |||||||||
| Isolated quarters, SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Operating activities | ||||||||||
| Net income | 887 | 8,571 | 11,300 | 4,626 | 4,217 | |||||
| Adjustments for | ||||||||||
| Taxes | 353 | 2,724 | 3,647 | 1,949 | 1,754 | |||||
| Earnings/dividends in associated companies | 169 | 27 | 50 | -22 | 2 | |||||
| Depreciation, amortization and impairment losses | 1,987 | 2,185 | 2,129 | 2,177 | 2,750 | |||||
| Other | -547 | -735 | -7,549 | -410 | 115 | |||||
| 2,849 | 12,772 | 9,577 | 8,320 | 8,838 | ||||||
| Changes in operating net assets | ||||||||||
| Inventories | -1,730 | 3,667 | -680 | 210 | -2,268 | |||||
| Customer finance, current and non-current | -622 | 406 | 372 | 391 | 1,864 | |||||
| Trade receivables and contract assets | 1,283 | -3,288 | -889 | 188 | -312 | |||||
| Trade payables | -471 | 1,568 | 1,102 | -636 | -1,572 | |||||
| Provisions and post-employment benefits | 2,557 | 1,743 | -565 | -298 | -2,315 | |||||
| Contract liabilities | 8,077 | -2,913 | -2,869 | -1,329 | 8,596 | |||||
| Other operating assets and liabilities, net | -3,494 | 5,175 | 3,047 | -1,187 | -6,830 | |||||
| 5,600 | 6,358 | -482 | -2,661 | -2,837 | ||||||
| Interest received | 531 | 716 | 433 | 458 | 676 | |||||
| Interest paid | -534 | -407 | -328 | -699 | -771 | |||||
| Taxes paid | -1,042 | -2,932 | -1,261 | -1,268 | -1,548 | |||||
| Cash flow from operating activities | 7,403 | 16,507 | 7,939 | 4,150 | 4,358 | |||||
| Investing activities | ||||||||||
| Investments in property, plant and equipment | -620 | -849 | -491 | -561 | -729 | |||||
| Sales of property, plant and equipment | 10 | 56 | 57 | 40 | 39 | |||||
| Acquisitions/divestments of subs. and other operations, net | -72 | 338 | 10,064 | 141 | -4 | |||||
| Product development | -378 | -352 | -286 | -193 | -307 | |||||
| Purchase of interest-bearing securities | -6,393 | -10,310 | -9,633 | -12,295 | -6,520 | |||||
| Sales of interest-bearing securities | 8,714 | 4,867 | 3,549 | 2,568 | 5,704 | |||||
| Other investing activities | 599 | 1,216 | -106 | -562 | 3,122 | |||||
| Cash flow from investing activities | 1,860 | -5,034 | 3,154 | -10,862 | 1,305 | |||||
| Financing activities | ||||||||||
| Proceeds from issuance of borrowings | - | 200 | - | 198 | - | |||||
| Repayment of borrowings | - | -3,001 | -26 | -432 | -79 | |||||
| Dividends paid | - | -4,734 | -1 | -4,810 | - | |||||
| Repayment of lease liabilities | -459 | -461 | -507 | -554 | -593 | |||||
| Other financing activities | -1,819 | -847 | -643 | 2,127 | -60 | |||||
| Cash flow from financing activities | **** | -2,278 | **** | -8,843 | **** | -1,177 | **** | -3,471 | **** | -732 |
| Effect of exchange rate changes on cash | 1,403 | -1,399 | -841 | -787 | -4,226 | |||||
| Net change in cash and cash equivalents | 8,388 | 1,231 | 9,075 | -10,970 | 705 | |||||
| Cash and cash equivalents, beginning of period | 43,926 | 42,695 | 33,620 | 44,590 | 43,885 | |||||
| Cash and cash equivalents, end of period | 52,315 | 43,926 | 42,695 | 33,620 | 44,590 | |||||
| 20 Ericsson | First quarter report 2026. April 17, 2026. | Financial statements | ||||||||
| --- | --- |
Table of Contents
| Condensed Parent Company income statement | ||||||
|---|---|---|---|---|---|---|
| Q1 | Jan-Dec | |||||
| SEK million | 2026 | 2025 | 2025 | |||
| Net sales | - | - | - | |||
| Cost of sales | - | - | - | |||
| G r o s s i n c o m e | - | - | - | |||
| Operating expenses | -243 | -437 | -1,692 | |||
| Other operating income and expenses | 685 | 657 | 2,600 | |||
| EBIT | **** | 442 | **** | 220 | 908 | |
| Financial net | 374 | 62 | 30,408 | |||
| Income after financial items | **** | 816 | **** | 282 | 3 1 , 316 | |
| Transfers to (-) / from untaxed reserves | - | - | -528 | |||
| Income tax | -110 | -69 | -499 | |||
| Net income | **** | 706 | **** | 213 | 3 0 , 289 | |
| Condensed ParentCompany statement of comprehensive income | ||||||
| Q1 | Jan-Dec | |||||
| SEK million | 2026 | 2025 | 2025 | |||
| N e t i n c o m e | **** | 706 | **** | 213 | 3 0 , 289 | |
| O t h e r c o m p r e h e n s i v e i n c o m e , n e t o f t ax | **** | - | **** | - | - | |
| T o t a l c o m p r e h e n s i v e i n c o m e | **** | 706 | **** | 213 | 3 0 , 289 | |
| 21 Ericsson | First quarter report 2026. April 17, 2026. | Financial Statements | ||||
| --- | --- |
Table of Contents
| Condensed Parent Company balance sheet | ||||
|---|---|---|---|---|
| SEK million | Mar 31<br>2026 | Dec 31<br>2025 | ||
| Assets | ||||
| Fixed assets | ||||
| Intangible assets | 146 | 151 | ||
| Tangible assets | 297 | 300 | ||
| Financial assets ¹^)^ | 134,496 | 135,029 | ||
| 134,939 | 135,480 | |||
| Current assets | ||||
| Receivables | 16,060 | 19,323 | ||
| Short-term investments | 10,649 | 12,651 | ||
| Cash and cash equivalents | 39,174 | 27,807 | ||
| 65,883 | 59,781 | |||
| Total assets | **** | 200,822 | **** | 195,261 |
| Stockholders’ equity, provisions andliabilities | ||||
| Equity | ||||
| Restricted equity | 48,351 | 48,351 | ||
| Non-restricted equity | 33,770 | 43,051 | ||
| 82,121 | 91,402 | |||
| Provisions | 57 | 60 | ||
| Non-current liabilities | 21,537 | 29,164 | ||
| Current liabilities | 97,107 | 74,635 | ||
| Total stockholders’ equity, provisions andliabilities | **** | 200,822 | **** | 195,261 |
| ¹^)^ Ofwhich interest-bearing securities, non-current | 36,457 | 37,298 | ||
| 22 Ericsson | First quarter report 2026. April 17, 2026. | Financial statements | ||
| --- | --- |
Table of Contents
Accounting policies and Explanatory notes
(unaudited)
Note 1 – Accounting policies and other information
The Group
This condensed consolidated interim financial report for the reporting period ended March 31, 2026, has been prepared in accordance with International Accounting Standard IAS 34 “Interim Financial Reporting”. The term “IFRS Accounting Standards” used in this document refers to IFRS^®^ Accounting standards as issued by the International Accounting Standards Board (IASB) as well as interpretations of these standards as issued by IASB’s Standards Interpretation Committee (SIC) and IFRS Interpretations Committee (IFRIC). The accounting policies adopted are consistent with those of the annual report for the year ended December 31, 2025, and should be read in conjunction with that annual report. Amendments to IFRS Accounting Standards that became effective during 2026 do not have a material impact on the result and financial position of the Company.
Other
Rounding differences may occur in the summation of amounts.
| 23 Ericsson | First quarter report 2026. April 17, 2026. | Accounting policies and Explanatory notes |
|---|
Table of Contents
Note 2 – Segment information
Net sales by segment by quarter
| 2026 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Networks | 32,937 | 44,200 | 35,424 | 35,747 | 35,643 | |||||
| Of which Products | 25,549 | 33,275 | 26,531 | 27,622 | 28,060 | |||||
| Of which Services | 7,388 | 10,925 | 8,893 | 8,125 | 7,583 | |||||
| Cloud Software and Services | 11,833 | 20,031 | 15,346 | 14,363 | 12,975 | |||||
| Of which Products | 4,295 | 8,459 | 5,431 | 5,407 | 4,719 | |||||
| Of which Services | 7,539 | 11,572 | 9,915 | 8,956 | 8,256 | |||||
| Enterprise | 4,168 | 4,578 | 5,058 | 5,548 | 5,933 | |||||
| Other | 393 | 476 | 411 | 474 | 474 | |||||
| Total | **** | 49,332 | **** | 69,285 | **** | 56,239 | **** | 56,132 | **** | 55,025 |
| 2026 | 2025 | |||||||||
| Sequential change, percent | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Networks | -25% | 25% | -1% | 0% | -24% | |||||
| Of which Products | -23% | 25% | -4% | -2% | -23% | |||||
| Of which Services | -32% | 23% | 9% | 7% | -26% | |||||
| Cloud Software and Services | -41% | 31% | 7% | 11% | -33% | |||||
| Of which Products | -49% | 56% | 0% | 15% | -40% | |||||
| Of which Services | -35% | 17% | 11% | 8% | -29% | |||||
| Enterprise | -9% | -9% | -9% | -6% | -3% | |||||
| Other | -17% | 16% | -13% | 0% | -17% | |||||
| Total | **** | -29% | **** | 23% | **** | 0% | **** | 2% | **** | -25% |
| 2026 | 2025 | |||||||||
| Year over year change, percent | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Networks | -8% | -6% | -11% | -5% | 6% | |||||
| Of which Products | -9% | -9% | -15% | -3% | 10% | |||||
| Of which Services | -3% | 7% | 1% | -11% | -9% | |||||
| Cloud Software and Services | -9% | 3% | 3% | -5% | -1% | |||||
| Of which Products | -9% | 8% | 4% | 12% | 4% | |||||
| Of which Services | -9% | -1% | 2% | -14% | -3% | |||||
| Enterprise | -30% | -25% | -20% | -14% | -1% | |||||
| Other | -17% | -16% | -19% | -6% | -20% | |||||
| Total | **** | -10% | **** | -5% | **** | -9% | **** | -6% | **** | 3% |
| 2026 | 2025 | |||||||||
| Year to date, SEK million | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Networks | 32,937 | 151,014 | 106,814 | 71,390 | 35,643 | |||||
| Of which Products | 25,549 | 115,488 | 82,213 | 55,682 | 28,060 | |||||
| Of which Services | 7,388 | 35,526 | 24,601 | 15,708 | 7,583 | |||||
| Cloud Software and Services | 11,833 | 62,715 | 42,684 | 27,338 | 12,975 | |||||
| Of which Products | 4,295 | 24,016 | 15,557 | 10,126 | 4,719 | |||||
| Of which Services | 7,539 | 38,699 | 27,127 | 17,212 | 8,256 | |||||
| Enterprise | 4,168 | 21,117 | 16,539 | 11,481 | 5,933 | |||||
| Other | 393 | 1,835 | 1,359 | 948 | 474 | |||||
| Total | **** | 49,332 | **** | 236,681 | **** | 167,396 | **** | 111,157 | **** | 55,025 |
| 2026 | 2025 | |||||||||
| Year over year change, percent | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Networks | -8% | -5% | -4% | 0% | 6% | |||||
| Of which Products | -9% | -5% | -4% | 3% | 10% | |||||
| Of which Services | -3% | -2% | -6% | -10% | -9% | |||||
| Cloud Software and Services | -9% | 0% | -1% | -3% | -1% | |||||
| Of which Products | -9% | 7% | 7% | 8% | 4% | |||||
| Of which Services | -9% | -4% | -5% | -9% | -3% | |||||
| Enterprise | -30% | -15% | -12% | -8% | -1% | |||||
| Other | -17% | -16% | -15% | -14% | -20% | |||||
| Total | **** | -10% | **** | -5% | **** | -4% | **** | -2% | **** | 3% |
| 24 Ericsson | First quarter report 2026. April 17, 2026. | Accounting policies and Explanatory notes | ||||||||
| --- | --- |
Table of Contents
| Gross income by segment by quarter | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | |||||||||
| Isolated quarters, SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Networks | 16,359 | 21,648 | 17,705 | 17,638 | 18,112 | |||||
| Cloud Software and Services | 4,907 | 8,636 | 6,463 | 5,964 | 5,069 | |||||
| Enterprise | 2,039 | 2,386 | 2,609 | 3,045 | 3,338 | |||||
| Other | -6 | 35 | 0 | 2 | 18 | |||||
| Total | **** | 23,299 | **** | 32,705 | **** | 26,777 | **** | 26,649 | **** | 26,537 |
| 2026 | 2025 | |||||||||
| Year to date, SEK million | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Networks | 16,359 | 75,103 | 53,455 | 35,750 | 18,112 | |||||
| Cloud Software and Services | 4,907 | 26,132 | 17,496 | 11,033 | 5,069 | |||||
| Enterprise | 2,039 | 11,378 | 8,992 | 6,383 | 3,338 | |||||
| Other | -6 | 55 | 20 | 20 | 18 | |||||
| Total | **** | 23,299 | **** | 112,668 | **** | 79,963 | **** | 53,186 | **** | 26,537 |
| EBIT (loss) by segment by quarter | ||||||||||
| 2026 | 2025 | |||||||||
| Isolated quarters, SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Networks | 3,283 | 9,318 | 7,075 | 6,376 | 7,040 | |||||
| Cloud Software and Services | 3 | 3,364 | 1,721 | 840 | 71 | |||||
| Enterprise | -1,844 | -1,526 | 6,649 | -870 | -1,014 | |||||
| Other | 1 | 5 | -294 | 45 | -166 | |||||
| Total | **** | 1,443 | **** | 11,161 | **** | 15,151 | **** | 6,391 | **** | 5,931 |
| 2026 | 2025 | |||||||||
| Year to date, SEK million | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Networks | 3,283 | 29,809 | 20,491 | 13,416 | 7,040 | |||||
| Cloud Software and Services | 3 | 5,996 | 2,632 | 911 | 71 | |||||
| Enterprise | -1,844 | 3,239 | 4,765 | -1,884 | -1,014 | |||||
| Other | 1 | -410 | -415 | -121 | -166 | |||||
| Total | **** | 1,443 | **** | 38,634 | **** | 27,473 | **** | 12,322 | **** | 5,931 |
| 25 Ericsson | First quarter report 2026. April 17, 2026. | Accounting policies and Explanatory notes | ||||||||
| --- | --- |
Table of Contents
| Net sales by market area by quarter * | |||||||
|---|---|---|---|---|---|---|---|
| 2026 | 2025 | ||||||
| Isolated quarters, SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | ||
| Americas | 17,077 | 22,928 | 19,837 | 19,809 | 20,859 | ||
| Europe, Middle East and Africa^1)^ ^2)^ | 14,298 | 23,350 | 16,730 | 16,193 | 14,475 | ||
| South East Asia, Oceania and India | 6,946 | 8,986 | 7,097 | 5,505 | 7,226 | ||
| North East Asia | 3,122 | 5,205 | 3,825 | 3,766 | 3,215 | ||
| Other ^1)2)^ | 7,888 | 8,816 | 8,750 | 10,859 | 9,250 | ||
| Total | **** | 49,332 | **** | 69,285 | 56,239 | 56,132 | 55,025 |
| ^1)^ Of whichin Sweden | 781 | 1,374 | 863 | 686 | 461 | ||
| ^2)^ Of whichin EU | 7,081 | 10,663 | 8,213 | 8,223 | 7,566 | ||
| 2026 | 2025 | ||||||
| Sequential change, percent | Q1 | Q4 | Q3 | Q2 | Q1 | ||
| Americas | -26% | 16% | 0% | -5% | -19% | ||
| Europe, Middle East and Africa ¹ ² | -39% | 40% | 3% | 12% | -34% | ||
| South East Asia, Oceania and India | -23% | 27% | 29% | -24% | -14% | ||
| North East Asia | -40% | 36% | 2% | 17% | -55% | ||
| Other ¹ ² | -11% | 1% | -19% | 17% | -4% | ||
| Total | **** | -29% | **** | 23% | 0% | 2% | -25% |
| ¹ Of which in Sweden | -43% | 59% | 26% | 49% | -23% | ||
| ² Of which in EU | -34% | 30% | 0% | 9% | -31% | ||
| 2026 | 2025 | ||||||
| Year over year change, percent | Q1 | Q4 | Q3 | Q2 | Q1 | ||
| Americas | -18% | -11% | -16% | 0% | 26% | ||
| Europe, Middle East and Africa^1) 2)^ | -1% | 7% | -1% | -6% | -5% | ||
| South East Asia, Oceania and India | -4% | 6% | -8% | -28% | -16% | ||
| North East Asia | -3% | -27% | 4% | -17% | -6% | ||
| Other ^1)2)^ | -15% | -9% | -13% | 4% | -3% | ||
| Total | **** | -10% | **** | -5% | -9% | -6% | 3% |
| ^1)^Of whichin Sweden | 69% | 130% | 100% | 18% | -37% | ||
| ^2)^Of whichin EU | -6% | -2% | 1% | -4% | 0% | ||
| 2026 | 2025 | ||||||
| Year to date, SEK million | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||
| Americas | 17,077 | 83,433 | 60,505 | 40,668 | 20,859 | ||
| Europe, Middle East and Africa ^1) 2)^ | 14,298 | 70,748 | 47,398 | 30,668 | 14,475 | ||
| South East Asia, Oceania and India | 6,946 | 28,814 | 19,828 | 12,731 | 7,226 | ||
| North East Asia | 3,122 | 16,011 | 10,806 | 6,981 | 3,215 | ||
| Other ^1)2)^ | 7,888 | 37,675 | 28,859 | 20,109 | 9,250 | ||
| Total | **** | 49,332 | **** | 236,681 | 167,396 | 111,157 | 55,025 |
| ^1)^ Of whichin Sweden | 781 | 3,384 | 2,010 | 1,147 | 461 | ||
| ^2)^ Of whichin EU | 7,081 | 34,665 | 24,002 | 15,789 | 7,566 | ||
| 2026 | 2025 | ||||||
| Year to date, year over year change, percent | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||
| Americas | -18% | -3% | 1% | 12% | 26% | ||
| Europe, Middle East and Africa ^1) 2)^ | -1% | -1% | -4% | -6% | -5% | ||
| South East Asia, Oceania and India | -4% | -11% | -17% | -22% | -16% | ||
| North East Asia | -3% | -15% | -7% | -13% | -6% | ||
| Other ^1)2)^ | -15% | -5% | -4% | 1% | -3% | ||
| Total | **** | -10% | **** | -5% | -4% | -2% | 3% |
| ^1^) Of whichin Sweden | 69% | 45% | 15% | -13% | -37% | ||
| ^2)^ Of whichin EU | -6% | -2% | -1% | -2% | 0% | ||
| * | Q1-Q3 2025 have been restated to reflect changes in the market area structure. On<br>February 25, 2025, the new market area structure was announced, and during Q4 2025 one additional country was added to Americas. | ||||||
| --- | --- | ||||||
| 26 Ericsson | First quarter report 2026. April 17, 2026. | Accounting policies and Explanatory notes | |||||
| --- | --- |
Table of Contents
Net sales by market area by segment
| Q1 2026 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK million | Networks | Cloud Software<br>and Services | Enterprise | Other | Total | |||||
| Americas | 13,682 | 3,335 | 60 | 0 | 17,077 | |||||
| Europe, Middle East and Africa | 8,942 | 5,175 | 181 | 0 | 14,298 | |||||
| South East Asia, Oceania and India | 5,074 | 1,858 | 13 | 0 | 6,946 | |||||
| North East Asia | 2,370 | 751 | 1 | 0 | 3,122 | |||||
| Other<br>^1)^ | 2,868 | 713 | 3,914 | 393 | 7,888 | |||||
| Total | **** | 32,937 | **** | 11,833 | **** | 4,168 | **** | 393 | **** | 49,332 |
| Share of total | 67% | 24% | 8% | 1% | 100% | |||||
| ^1)^ Includes primarily IPR licensing revenues and a major part of segment Enterprise. | ||||||||||
| Q1 2026 | ||||||||||
| Sequential change, percent | Networks | Cloud Software<br>and Services | Enterprise | Other | Total | |||||
| Americas | -20% | -41% | -69% | -100% | -26% | |||||
| Europe, Middle East and Africa | -38% | -40% | -26% | - | -39% | |||||
| South East Asia, Oceania and India | -15% | -38% | 30% | - | -23% | |||||
| North East Asia | -29% | -60% | -50% | - | -40% | |||||
| Other | -15% | -17% | -5% | -18% | -11% | |||||
| Total | **** | -25% | **** | -41% | **** | -9% | **** | -17% | **** | -29% |
| Q1 2026 | ||||||||||
| Year over year change, percent | Networks | Cloud Software<br>and Services | Enterprise | Other | Total | |||||
| Americas | -21% | -5% | -52% | - | -18% | |||||
| Europe, Middle East and Africa | 8% | -13% | -25% | - | -1% | |||||
| South East Asia, Oceania and India | -3% | -7% | 86% | - | -4% | |||||
| North East Asia | 1% | -13% | -86% | - | -3% | |||||
| Other | 12% | 9% | -30% | -17% | -15% | |||||
| Total | **** | -8% | **** | -9% | **** | -30% | **** | -17% | **** | -10% |
| 27 Ericsson | First quarter report 2026. April 17, 2026. | Accounting policies and Explanatory notes | ||||||||
| --- | --- |
Table of Contents
| Top 5 countries in sales | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | |||||||||
| Country, percentage of net sales^¹)^ | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| United States | 39% | 36% | 40% | 44% | 45% | |||||
| India | 8% | 5% | 5% | 4% | 7% | |||||
| United Kingdom | 4% | 4% | 4% | 4% | 4% | |||||
| Japan | 4% | 4% | 3% | 3% | 3% | |||||
| China | 3% | 3% | 3% | 4% | 3% | |||||
| 2026 | 2025 | |||||||||
| Country, percentage of net sales^¹)^ | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| United States | 39% | 41% | 43% | 44% | 45% | |||||
| India | 8% | 5% | 5% | 6% | 7% | |||||
| United Kingdom | 4% | 4% | 4% | 4% | 4% | |||||
| Japan | 4% | 4% | 3% | 3% | 3% | |||||
| China | 3% | 3% | 4% | 4% | 3% | |||||
| ^1)^Based on Jan-Mar 2026. Includes IPR licensing revenues. | ||||||||||
| IPR licensing revenues by segment by quarter | ||||||||||
| 2026 | 2025 | |||||||||
| Isolated quarters, SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Networks | 2,569 | 2,733 | 2,569 | 3,987 | 2,606 | |||||
| Cloud Software and Services | 564 | 600 | 564 | 875 | 572 | |||||
| Total | **** | 3,133 | **** | 3,333 | **** | 3,133 | **** | 4,862 | **** | 3,178 |
| 2026 | 2025 | |||||||||
| Year to date, SEK million | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Networks | 2,569 | 11,895 | 9,162 | 6,593 | 2,606 | |||||
| Cloud Software and Services | 564 | 2,611 | 2,011 | 1,447 | 572 | |||||
| Total | **** | 3,133 | **** | 14,506 | **** | 11,173 | **** | 8,040 | **** | 3,178 |
| Note 3 – Financial income and expenses,<br>net | ||||||||||
| Financial income and expenses, net | ||||||||||
| 2026 | 2025 | |||||||||
| Isolated quarters, SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Financial income | 585 | 620 | 662 | 579 | 619 | |||||
| Financial expenses | -594 | -580 | -735 | -927 | -805 | |||||
| Net foreign exchange gains/losses | -184 | -120 | -139 | 382 | 112 | |||||
| Total | **** | -193 | **** | -80 | **** | -212 | **** | 34 | **** | -74 |
| 2026 | 2025 | |||||||||
| Year to date, SEK million | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Financial income | 585 | 2,480 | 1,860 | 1,198 | 619 | |||||
| Financial expenses | -594 | -3,047 | -2,467 | -1,732 | -805 | |||||
| Net foreign exchange gains/losses | -184 | 235 | 355 | 494 | 112 | |||||
| Total | **** | -193 | **** | -332 | **** | -252 | **** | -40 | **** | -74 |
| 28 Ericsson | First quarter report 2026. April 17, 2026. | Accounting policies and Explanatory notes | ||||||||
| --- | --- |
Table of Contents
| Note 4 – Provisions | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Provisions | ||||||||||
| 2026 | 2025 | |||||||||
| Isolated quarters, SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Opening balance | 8,684 | 7,823 | 8,652 | 9,093 | 11,715 | |||||
| Additions | 6,016 | 3,005 | 847 | 1,830 | 1,055 | |||||
| Utilization | -2,898 | -1,605 | -1,311 | -1,853 | -3,009 | |||||
| Of which restructuring | -546 | -721 | -813 | -837 | -1,201 | |||||
| Reversal of excess amounts | -171 | -357 | -370 | -273 | -256 | |||||
| Reclassification, translation difference and other | 172 | -182 | 5 | -145 | -412 | |||||
| Closing balance | **** | 11,803 | **** | 8,684 | **** | 7,823 | **** | 8,652 | **** | 9,093 |
| Of which restructuring | 4,956 | 1,889 | 1,710 | 2,429 | 2,720 | |||||
| 2026 | 2025 | |||||||||
| Year to date, SEK million | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Opening balance | 8,684 | 11,715 | 11,715 | 11,715 | 11,715 | |||||
| Additions | 6,016 | 6,737 | 3,732 | 2,885 | 1,055 | |||||
| Utilization | -2,898 | -7,778 | -6,173 | -4,862 | -3,009 | |||||
| Of which restructuring | -546 | -3,572 | -2,851 | -2,038 | -1,201 | |||||
| Reversal of excess amounts | -171 | -1,256 | -899 | -529 | -256 | |||||
| Reclassification, translation difference and other | 172 | -734 | -552 | -557 | -412 | |||||
| Closing balance | **** | 11,803 | **** | 8,684 | **** | 7,823 | **** | 8,652 | **** | 9,093 |
| Of which restructuring | 4,956 | 1,889 | 1,710 | 2,429 | 2,720 | |||||
| 29 Ericsson | First quarter report 2026. April 17, 2026. | Accounting policies and Explanatory notes | ||||||||
| --- | --- |
Table of Contents
Note 5 – Financial risk management
There have been no changes to the fair value hierarchy categorization from that presented in the latest Annual Report. Where Level 2 and Level 3 fair value hierarchies apply, the inputs and valuation methods used remained unchanged. The book values and fair values of financial instruments are as follows:
| Financial instruments | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SEK billion | Mar 31<br><br><br><br> <br>2026 | Dec 31<br><br><br><br> <br>2025 | ||||||||||||||
| Fair value hierarchy level | Fair value hierarchy level | |||||||||||||||
| Carrying<br>value | Level 1 | Level 2 | Level 3 | Carrying<br>value | Level 1 | Level 2 | Level 3 | |||||||||
| Assets at fair value through profit or loss | ||||||||||||||||
| Customer finance<br>¹^)^ | 1.8 | - | - | 1.8 | 1.1 | - | - | 1.1 | ||||||||
| Interest-bearing securities | 47.1 | 43.8 | 3.3 | - | 49.9 | 45.4 | 4.5 | - | ||||||||
| Cash equivalents<br>²^)^ | 33.6 | - | 33.6 | - | 25.3 | - | 25.3 | - | ||||||||
| Other financial assets | 2.1 | - | - | 2.1 | 1.9 | - | - | 1.9 | ||||||||
| Other current assets | 1.2 | - | 1.2 | 2.9 | - | 2.9 | - | |||||||||
| Assets at fair value through OCI | ||||||||||||||||
| Trade receivables | 39.3 | - | - | 39.3 | 40.3 | - | - | 40.3 | ||||||||
| Assets at amortized costs | ||||||||||||||||
| Interest-bearing securities | 0.1 | - | - | - | 0.1 | - | - | - | ||||||||
| Other financial assets | 0.1 | - | - | - | 0.1 | - | - | - | ||||||||
| Total financial assets | **** | 125.3 | **** | 121.6 | ||||||||||||
| Financial liabilities at designated FVTPL | ||||||||||||||||
| Parent company borrowings | -30.1 | -18.8 | -11.3 | - | -29.6 | -18.8 | -10.8 | - | ||||||||
| Financial liabilities at FVTPL | ||||||||||||||||
| Other current liabilities | -0.4 | - | -0.4 | - | -0.2 | - | -0.2 | - | ||||||||
| Liabilities at amortized cost | ||||||||||||||||
| Trade payables | -26.7 | - | - | - | -26.3 | - | - | - | ||||||||
| Borrowings | -1.3 | - | - | - | -3.1 | - | - | - | ||||||||
| Total financial liabilities | **** | -58.5 | **** | -59.2 |
^1)^ Year to date movements of customer finance receivables are as follows: additions of SEK 5.9 billion, disposals and repayments of SEK 5.2 billion. No material revaluation impact in the current period (< SEK 0.1 billion).
^2)^ Total Cash and cash equivalent is SEK 52.3 (43.9 on Dec 31, 2025) billion, of which SEK 33.6 (25.3 on Dec 31, 2025) billion relating to Cash equivalents are presented in the table above.
| Exchange rates used in the<br>consolidation | ||
| Jan-Dec | ||
| 2025 | 2025 | |
| SEK/ - closing rate | ||
| SEK/ - closing rate |
All values are in Euros.
| 30 Ericsson | First quarter report 2026. April 17, 2026. | Accounting policies and Explanatory notes |
|---|
Table of Contents
Note 6 – Cash flow
| Information oninvestments<br> <br><br> <br>Investments in assets subject to depreciation, amortization, impairment and<br>write-downs | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | |||||||||
| Isolated quarters, SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Additions | ||||||||||
| Property, plant and equipment | 620 | 849 | 491 | 561 | 729 | |||||
| Capitalized development expenses | 378 | 352 | 286 | 193 | 307 | |||||
| IPR, brands and other intangible assets | 35 | 48 | 81 | 301 | 57 | |||||
| Total | **** | 1,033 | **** | 1,249 | **** | 858 | **** | 1,055 | **** | 1,093 |
| Depreciation, amortization and impairment losses | ||||||||||
| Property, plant and equipment | 735 | 814 | 812 | 826 | 1,029 | |||||
| Capitalized development expenses | 436 | 446 | 449 | 451 | 444 | |||||
| Goodwill, IPR, brands and other intangible assets | 344 | 439 | 365 | 373 | 721 | |||||
| Right-of-use assets | 471 | 486 | 503 | 527 | 556 | |||||
| Total | **** | 1,986 | **** | 2,185 | **** | 2,129 | **** | 2,177 | **** | 2,750 |
| 2026 | 2025 | |||||||||
| Year to date, SEK million | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Additions | ||||||||||
| Property, plant and equipment | 620 | 2,630 | 1,781 | 1,290 | 729 | |||||
| Capitalized development expenses | 378 | 1,138 | 786 | 500 | 307 | |||||
| IPR, brands and other intangible assets | 35 | 487 | 439 | 358 | 57 | |||||
| Total | **** | 1,033 | **** | 4,255 | **** | 3,006 | **** | 2,148 | **** | 1,093 |
| Depreciation, amortization and impairment losses | ||||||||||
| Property, plant and equipment | 735 | 3,481 | 2,667 | 1,855 | 1,029 | |||||
| Capitalized development expenses | 436 | 1,790 | 1,344 | 895 | 444 | |||||
| Goodwill, IPR, brands and other intangible assets | 344 | 1,898 | 1,459 | 1,094 | 721 | |||||
| Right-of-use assets | 471 | 2,072 | 1,586 | 1,083 | 556 | |||||
| Total | **** | 1,986 | **** | 9,241 | **** | 7,056 | **** | 4,927 | **** | 2,750 |
Note 7 – Contingent liabilities and Assets pledged as collateral
| Contingent liabilities and Assets pledged ascollateral | ||||
|---|---|---|---|---|
| Mar 31 | Dec 31 | |||
| SEK million | 2026 | 2025 | ||
| Contingent liabilities | 4,223 | 4,091 | ||
| Assets pledged as collateral | 8,812 | 8,695 | ||
| 31 Ericsson | First quarter report 2026. April 17, 2026. | Accounting policies and Explanatory notes | ||
| --- | --- |
Table of Contents
Note 8 – Share information
| Number of shares and earnings pershare | |||||
|---|---|---|---|---|---|
| Q1 | Jan-Dec | ||||
| 2026 | 2025 | 2025 | |||
| Number of shares, end of period (million) | 3,371 | 3,348 | 3,371 | ||
| Of which class A-shares<br>(million) | 262 | 262 | 262 | ||
| Of which class B-shares<br>(million) | 3,110 | 3,086 | 3,110 | ||
| Number of treasury shares, end of period (million) | 38 | 16 | 38 | ||
| Number of shares outstanding, basic, end of period (million) | 3,333 | 3,333 | 3,333 | ||
| Numbers of shares outstanding, diluted, end of period<br>(million) | 3,343 | 3,340 | 3,342 | ||
| Average number of treasury shares (million) | 38 | 16 | 31 | ||
| Average number of shares outstanding, basic (million) | 3,333 | 3,333 | 3,333 | ||
| Average number of shares outstanding, diluted (million) ¹^)^ | 3,343 | 3,340 | 3,342 | ||
| Earnings per share, basic (SEK) ²^)^ | 0.27 | 1.25 | 8.53 | ||
| Earnings per share, diluted (SEK) ¹^)^ | 0.27 | 1.24 | 8.51 |
^1)^ Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.
^2)^ Based on net income attributable to owners of the Parent Company.
The proposed dividend for 2025 of SEK 3.00 per share was approved by the AGM 31 March 2026. The first of two equal dividend payments of SEK 1.50 per share was made on 9 April 2026, and the second will be made with a record date of 29 September 2026, with an expected payment date of 2 October 2026.
The AGM resolved to approve the Board of Directors’ proposal on authorization for the Board of Directors to, on one or several occasions prior to the AGM 2027, decide on the purchase of the Company’s own shares of series B. The number of shares purchased must at no time result in the Company’s holding exceeding 10 percent of all the shares in the Company.
Note 9 – Employee information
| Number of employees | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | |||||||||
| End of period | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |||||
| Americas | 14,537 | 15,050 | 15,346 | 15,926 | 15,857 | |||||
| Europe, Middle East and Africa ¹^)^ | 38,548 | 39,045 | 39,489 | 40,413 | 40,677 | |||||
| South East Asia, Oceania and India | 25,100 | 25,189 | 25,358 | 25,591 | 25,991 | |||||
| North East Asia | 9,336 | 9,542 | 9,705 | 10,007 | 10,341 | |||||
| Total | **** | 87,521 | **** | 88,826 | **** | 89,898 | **** | 91,937 | **** | 92,866 |
| ¹^)^ Ofwhich in Sweden | 12,615 | 12,806 | 12,967 | 13,476 | 13,222 | |||||
| 32 Ericsson | First quarter report 2026. April 17, 2026. | Accounting policies and Explanatory notes | ||||||||
| --- | --- |
Table of Contents
Alternative performance measures (unaudited)
In this section, the Company presents its Alternative Performance Measures (APMs), which are not recognized measures of financial performance under IFRS. The presentation of APMs has limitations as analytical tools and should not be considered in isolation or as a substitute for related financial measures prepared in accordance with IFRS.
APMs are presented to enhance an investor’s evaluation of ongoing operating results, to aid in forecasting future periods and to facilitate meaningful comparison of results between periods.
Management uses these APMs to, among other things, evaluate ongoing operations in relation to historical results, for internal planning and forecasting purposes and in the calculation of certain performance-based compensation. APMs should not be viewed as substitutes for income statement or cash flow items computed in accordance with IFRS.
This section also includes a reconciliation of the APMs to the most directly reconcilable line items in the financial statements. For more information about non-IFRS key operating measures, see Ericsson Annual Report 2025.
Sales growth adjusted for comparable units and currency
Sales growth adjusted for the impact of acquisitions and divestments as well as the effects of foreign currency fluctuations. Also named organic sales growth.
| 2026 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, year over year change, SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Reported net sales | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | |||||
| Acquired business | - | - | - | - | - | |||||
| Net FX impact | 7,755 | 6,801 | 4,213 | 4,672 | -1,817 | |||||
| Current period net sales, excluding acquired business & FX<br>impact | 57,087 | 76,086 | 60,452 | 60,804 | 53,208 | |||||
| Prior year period net sales adjusted for acquired & divested<br>business | 53,903 | 71,474 | 61,794 | 59,848 | 53,325 | |||||
| Organic sales growth (%) | 6% | 6% | -2% | 2% | 0% | |||||
| 2026 | 2025 | |||||||||
| Year to date, year over year change, SEK million | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Reported net sales | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | |||||
| Acquired business | - | - | - | - | - | |||||
| Net FX impact | 7,755 | 13,869 | 7,068 | 2,855 | -1,817 | |||||
| Current period net sales, excluding acquired business & FX<br>impact | 57,087 | 250,550 | 174,464 | 114,012 | 53,208 | |||||
| Prior year period net sales adjusted for acquired & divested<br>business | 53,903 | 246,441 | 174,967 | 113,173 | 53,325 | |||||
| Organic sales growth (%) | 6% | 2% | 0% | 1% | 0% | |||||
| 33 Ericsson | First quarter report 2026. April 17, 2026. | Alternative performance measures | ||||||||
| --- | --- |
Table of Contents
Items excluding restructuring charges and impairments of goodwill and intangible assets
Gross income, operating expenses, and EBIT are presented excluding restructuring charges, and for certain measures, as a percentage of net sales. EBIT is also presented excluding restructuring charges and impairments of goodwill and intangible assets.
| 2026 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Gross income | 23,299 | 32,705 | 26,777 | 26,649 | 26,537 | |||||
| Net sales | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | |||||
| Gross margin (%) | 47.2% | 47.2% | 47.6% | 47.5% | 48.2% | |||||
| Gross income | 23,299 | 32,705 | 26,777 | 26,649 | 26,537 | |||||
| Restructuring charges included in cost of sales | 435 | 538 | 271 | 310 | 158 | |||||
| Adjusted gross income | 23,734 | 33,243 | 27,048 | 26,959 | 26,695 | |||||
| Net sales | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | |||||
| Adjusted gross margin (%) | 48.1% | 48.0% | 48.1% | 48.0% | 48.5% | |||||
| Operating expenses | -21,781 | -21,942 | -19,377 | -20,358 | -20,621 | |||||
| Restructuring charges included in R&D expenses | 2,595 | 300 | -41 | 300 | 20 | |||||
| Restructuring charges included in selling and administrative<br>expenses | 738 | 259 | 73 | 46 | 103 | |||||
| Operating expenses excluding restructuring charges | -18,448 | -21,383 | -19,345 | -20,012 | -20,498 | |||||
| EBIT | 1,443 | 11,161 | 15,151 | 6,391 | 5,931 | |||||
| Net sales | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | |||||
| EBIT margin (%) | 2.9% | 16.1% | 26.9% | 11.4% | 10.8% | |||||
| EBIT | 1,443 | 11,161 | 15,151 | 6,391 | 5,931 | |||||
| Total restructuring charges | 3,768 | 1,097 | 303 | 656 | 281 | |||||
| Adjusted EBIT | 5,211 | 12,258 | 15,454 | 7,047 | 6,212 | |||||
| Net sales | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | |||||
| Adjusted EBIT margin (%) | 10.6% | 17.7% | 27.5% | 12.6% | 11.3% | |||||
| Adjusted EBIT | 5,211 | 12,258 | 15,454 | 7,047 | 6,212 | |||||
| Impairment of goodwill and intangible assets | - | - | - | - | - | |||||
| Adjusted EBIT excluding impairments of goodwill and intangible<br>assets | 5,211 | 12,258 | 15,454 | 7,047 | 6,212 | |||||
| Net sales | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | |||||
| Adjusted EBIT margin excluding impairments of goodwill and intangible<br>assets (%) | 10.6% | 17.7% | 27.5% | 12.6% | 11.3% | |||||
| 2026 | 2025 | |||||||||
| Year to date, SEK million | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Gross income | 23,299 | 112,668 | 79,963 | 53,186 | 26,537 | |||||
| Net sales | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | |||||
| Gross margin (%) | 47.2% | 47.6% | 47.8% | 47.8% | 48.2% | |||||
| Gross income | 23,299 | 112,668 | 79,963 | 53,186 | 26,537 | |||||
| Restructuring charges included in cost of sales | 435 | 1,277 | 739 | 468 | 158 | |||||
| Adjusted gross income | 23,734 | 113,945 | 80,702 | 53,654 | 26,695 | |||||
| Net sales | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | |||||
| Adjusted gross margin (%) | 48.1% | 48.1% | 48.2% | 48.3% | 48.5% | |||||
| Operating expenses | -21,781 | -82,298 | -60,356 | -40,979 | -20,621 | |||||
| Restructuring charges included in R&D expenses | 2,595 | 579 | 279 | 320 | 20 | |||||
| Restructuring charges included in selling and administrative<br>expenses | 738 | 481 | 222 | 149 | 103 | |||||
| Operating expenses excluding restructuring charges | -18,448 | -81,238 | -59,855 | -40,510 | -20,498 | |||||
| EBIT | 1,443 | 38,634 | 27,473 | 12,322 | 5,931 | |||||
| Net sales | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | |||||
| EBIT margin (%) | 2.9% | 16.3% | 16.4% | 11.1% | 10.8% | |||||
| EBIT | 1,443 | 38,634 | 27,473 | 12,322 | 5,931 | |||||
| Total restructuring charges | 3,768 | 2,337 | 1,240 | 937 | 281 | |||||
| Adjusted EBIT | 5,211 | 40,971 | 28,713 | 13,259 | 6,212 | |||||
| Net sales | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | |||||
| Adjusted EBIT margin (%) | 10.6% | 17.3% | 17.2% | 11.9% | 11.3% | |||||
| Adjusted EBIT | 5,211 | 40,971 | 28,713 | 13,259 | 6,212 | |||||
| Impairment of goodwill and intangible assets | - | - | - | - | - | |||||
| Adjusted EBIT excluding impairments of goodwill and intangible<br>assets | 5,211 | 40,971 | 28,713 | 13,259 | 6,212 | |||||
| Net sales | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | |||||
| Adjusted EBIT margin excluding impairments of goodwill and intangible<br>assets (%) | 10.6% | 17.3% | 17.2% | 11.9% | 11.3% | |||||
| 34 Ericsson | First quarter report 2026. April 17, 2026. | Alternative performance measures | ||||||||
| --- | --- |
Table of Contents
EBITA and EBITA margin / Adjusted EBITA and Adjusted EBITA margin
Earnings before interest, income tax, amortizations and write-downs of acquired intangibles (including goodwill) also expressed as a percentage of net sales.
Adjusted EBITA also expressed as a percentage of net sales.
| 2026 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Net income | 887 | 8,571 | 11,300 | 4,626 | 4,217 | |||||
| Income tax | 362 | 2,510 | 3,639 | 1,799 | 1,640 | |||||
| Financial income and expenses, net | 193 | 80 | 212 | -34 | 74 | |||||
| Amortizations and write-downs of acquired intangibles | 344 | 440 | 365 | 372 | 721 | |||||
| Of which segment Enterprise | 307 | 406 | 338 | 346 | 389 | |||||
| EBITA | 1,788 | 11,601 | 15,516 | 6,763 | 6,652 | |||||
| Net sales | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | |||||
| EBITA margin (%) | 3.6% | 16.7% | 27.6% | 12.0% | 12.1% | |||||
| Restructuring charges | 3,768 | 1,097 | 303 | 656 | 281 | |||||
| Adjusted EBITA | 5,556 | 12,698 | 15,819 | 7,419 | 6,933 | |||||
| Adjusted EBITA margin (%) | 11.3% | 18.3% | 28.1% | 13.2% | 12.6% | |||||
| 2026 | 2025 | |||||||||
| Year to date, SEK million | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Net income | 887 | 28,714 | 20,143 | 8,843 | 4,217 | |||||
| Income tax | 362 | 9,588 | 7,078 | 3,439 | 1,640 | |||||
| Financial income and expenses, net | 193 | 332 | 252 | 40 | 74 | |||||
| Amortizations and write-downs of acquired intangibles | 344 | 1,898 | 1,458 | 1,093 | 721 | |||||
| Of which segment Enterprise | 307 | 1,479 | 1,073 | 735 | 389 | |||||
| EBITA | 1,788 | 40,532 | 28,931 | 13,415 | 6,652 | |||||
| Net sales | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | |||||
| EBITA margin (%) | 3.6% | 17.1% | 17.3% | 12.1% | 12.1% | |||||
| Restructuring charges | 3,768 | 2,337 | 1,240 | 937 | 281 | |||||
| Adjusted EBITA | 5,556 | 42,869 | 30,171 | 14,352 | 6,933 | |||||
| Adjusted EBITA margin (%) | 11.3% | 18.1% | 18.0% | 12.9% | 12.6% |
Additionally, Ericsson provides forward-looking targets for adjusted EBITA margin and Free cash flow before M&A as a percentage of net sales, which are non-IFRS financial measures. Ericsson has not provided quantitative reconciliation of these targets to the most directly comparable IFRS measures because certain information needed to reconcile these non-IFRS financial measures to the most comparable IFRS financial measures are dependent on specific items or impacts that are not yet determined, are subject to incarcerating and variability in timing and amount due to their nature, are outside of Ericsson’s control or cannot be predicted, including items and impacts such as currency exchange rate changes, acquisitions and disposals, and charges such as impairments or acquisition related charges. Accordingly, reconciliation of these non-IFRS forward-looking financial measures are not available without unreasonable efforts. Such unavailable reconciling items could significantly impact our results of operations and financial condition.
Rolling four quarters of net sales and adjusted EBITA margin (%)
Net sales, EBITA margin and restructuring charges as a sum of last four quarters.
| 2026 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rolling four quarters, SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Net sales | 230,988 | 236,681 | 240,309 | 245,864 | 249,580 | |||||
| EBITA | 35,668 | 40,532 | 37,554 | 28,241 | 23,904 | |||||
| Restructuring charges | 5,824 | 2,337 | 2,866 | 4,116 | 5,088 | |||||
| Adjusted EBITA | 41,492 | 42,869 | 40,420 | 32,357 | 28,992 | |||||
| Adjusted EBITA margin (%) | 18.0% | 18.1% | 16.8% | 13.2% | 11.6% | |||||
| 35 Ericsson | First quarter report 2026. April 17, 2026. | Alternative performance measures | ||||||||
| --- | --- |
Table of Contents
Gross cash and net cash, end of period
Gross cash: Cash and cash equivalents plus interest-bearing securities (current and non-current).
Net cash: Cash and cash equivalents plus interest-bearing securities (current and non-current) less borrowings (current and non-current).
| 2026 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Cash and cash equivalents | 52,315 | 43,926 | 42,695 | 33,620 | 44,590 | |||||
| + Interest-bearing securities, current | 10,775 | 12,715 | 8,345 | 6,790 | 5,147 | |||||
| + Interest-bearing securities, non-current | 36,457 | 37,298 | 37,370 | 32,859 | 24,436 | |||||
| Gross cash, end of period | 99,547 | 93,939 | 88,410 | 73,269 | 74,173 | |||||
| - Borrowings, current | 9,865 | 3,538 | 6,680 | 7,285 | 5,597 | |||||
| - Borrowings, non-current | 21,541 | 29,165 | 29,872 | 29,944 | 29,929 | |||||
| Net cash, end of period | 68,141 | 61,236 | 51,858 | 36,040 | 38,647 |
Capital employed
Total assets less non-interest-bearing provisions and liabilities (which includes non-current provisions, deferred tax liabilities, contract liabilities, other non-current liabilities, current provisions, trade payables, current tax liabilities and other current liabilities).
| 2026 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Total assets | 290,393 | 279,223 | 282,476 | 270,555 | 277,978 | |||||
| Less: Non-interest-bearing<br>provisions and liabilities | ||||||||||
| Provisions, non-current | 4,822 | 2,993 | 2,478 | 2,365 | 2,541 | |||||
| Deferred tax liabilities | 175 | 152 | 1,349 | 1,390 | 1,365 | |||||
| Other non-current<br>liabilities | 1,327 | 1,292 | 899 | 870 | 888 | |||||
| Provisions, current | 6,981 | 5,691 | 5,345 | 6,287 | 6,552 | |||||
| Contract liabilities | 46,008 | 36,867 | 40,642 | 44,370 | 46,757 | |||||
| Trade payables | 26,719 | 26,335 | 25,352 | 24,804 | 26,450 | |||||
| Current tax liabilities | 3,386 | 2,679 | 6,069 | 3,609 | 2,664 | |||||
| Other current liabilities | 40,327 | 34,038 | 34,605 | 32,521 | 41,655 | |||||
| Capital employed | 160,647 | 169,176 | 165,737 | 154,339 | 149,106 |
Capital turnover
Rolling four quarters of net sales divided by five-point average for capital employed.
The definition is updated from Q1 2025. Prior periods are updated accordingly. Refer to the clarification provided at the beginning of the APM section.
| 2026 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Net sales, rolling four quarters | 230,988 | 236,681 | 240,309 | 245,864 | 249,580 | |||||
| Average capital employed, rolling five quarters | ||||||||||
| Capital employed at end of period -4 | 149,106 | 162,967 | 153,610 | 156,496 | 177,181 | |||||
| Capital employed at end of period -3 | 154,339 | 149,106 | 162,967 | 153,610 | 156,496 | |||||
| Capital employed at end of period -2 | 165,737 | 154,339 | 149,106 | 162,967 | 153,610 | |||||
| Capital employed at end of period -1 | 169,176 | 165,737 | 154,339 | 149,106 | 162,967 | |||||
| Capital employed at end of period | 160,647 | 169,176 | 165,737 | 154,339 | 149,106 | |||||
| Average capital employed, rolling five quarters | 159,801 | 160,265 | 157,152 | 155,304 | 159,872 | |||||
| Capital turnover (times) | 1.4 | 1.5 | 1.5 | 1.6 | 1.6 | |||||
| 36 Ericsson | First quarter report 2026. April 17, 2026. | Alternative performance measures | ||||||||
| --- | --- |
Table of Contents
Return on capital employed
Rolling four quarters of EBIT divided by five-point average for capital employed.
The definition is updated from Q1 2025. Prior periods are updated accordingly. Refer to the clarification provided at the beginning of the APM section.
| 2026 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| EBIT, rolling four quarters | 34,146 | 38,634 | 35,431 | 26,054 | 6,144 | |||||
| Average capital employed, rolling five quarters | ||||||||||
| Capital employed at end of period -4 | 149,106 | 162,967 | 153,610 | 156,496 | 177,181 | |||||
| Capital employed at end of period -3 | 154,339 | 149,106 | 162,967 | 153,610 | 156,496 | |||||
| Capital employed at end of period -2 | 165,737 | 154,339 | 149,106 | 162,967 | 153,610 | |||||
| Capital employed at end of period -1 | 169,176 | 165,737 | 154,339 | 149,106 | 162,967 | |||||
| Capital employed at end of period | 160,647 | 169,176 | 165,737 | 154,339 | 149,106 | |||||
| Average capital employed, rolling five quarters | 159,801 | 160,265 | 157,152 | 155,304 | 159,872 | |||||
| Return on capital employed (%) | 21.4% | 24.1% | 22.5% | 16.8% | 3.8% |
Equity ratio
Equity expressed as a percentage of total assets.
| 2026 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Total equity | 103,133 | 110,264 | 102,494 | 85,699 | 84,858 | |||||
| Total assets | 290,393 | 279,223 | 282,476 | 270,555 | 277,978 | |||||
| Equity ratio (%) | 35.5% | 39.5% | 36.3% | 31.7% | 30.5% |
Return on equity
Annualized net income attributable to owners of the Parent Company as a percentage of average stockholders’ equity.
Annualization factor of four is used for isolated quarter.
Annualization factor of four is used for Jan-Mar, two is used for Jan-Jun, 4/3 is used for Jan-Sep and one is used for Jan-Dec.
| 2026 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Net income attributable to owners of the Parent Company | 888 | 8,563 | 11,149 | 4,567 | 4,149 | |||||
| Annualized | 3,551 | 34,252 | 44,596 | 18,268 | 16,596 | |||||
| Average stockholders’ equity | ||||||||||
| Stockholders’ equity, beginning of period | 109,535 | 102,658 | 86,748 | 86,039 | 94,284 | |||||
| Stockholders’ equity, end of period | 102,440 | 109,535 | 102,658 | 86,748 | 86,039 | |||||
| Average stockholders’ equity | 105,988 | 106,097 | 94,703 | 86,394 | 90,162 | |||||
| Return on equity (%) | 3.4% | 32.3% | 47.1% | 21.1% | 18.4% | |||||
| 2026 | 2025 | |||||||||
| Year to date, SEK million | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Net income attributable to owners of the Parent Company | 888 | 28,428 | 19,865 | 8,716 | 4,149 | |||||
| Annualized | 3,551 | 28,428 | 26,487 | 17,432 | 16,596 | |||||
| Average stockholders’ equity | ||||||||||
| Stockholders’ equity, beginning of period | 109,535 | 94,284 | 94,284 | 94,284 | 94,284 | |||||
| Stockholders’ equity, end of period | 102,440 | 109,535 | 102,658 | 86,748 | 86,039 | |||||
| Average stockholders’ equity | 105,988 | 101,910 | 98,471 | 90,516 | 90,162 | |||||
| Return on equity (%) | 3.4% | 27.9% | 26.9% | 19.3% | 18.4% | |||||
| 37 Ericsson | First quarter report 2026. April 17, 2026. | Alternative performance measures | ||||||||
| --- | --- |
Table of Contents
Operating working capital
Inventories, contract assets, trade receivables, customer finance (current and non-current), advances to suppliers and prepaid expenses less contract liabilities and trade payables.
| 2026 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK million | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |||||
| Inventories | 25,732 | 23,451 | 27,519 | 27,068 | 27,649 | |||||
| Contract assets | 8,526 | 7,333 | 7,494 | 6,618 | 5,735 | |||||
| Trade receivables | 39,345 | 40,327 | 38,136 | 39,107 | 41,428 | |||||
| Customer finance, current | 1,582 | 852 | 1,290 | 1,879 | 2,396 | |||||
| Customer finance, non-current | 190 | 238 | 242 | 78 | 27 | |||||
| Advance payments to suppliers ¹^)^ | 44 | 46 | 39 | 41 | 46 | |||||
| Prepaid expenses<br>¹^)^ | 3,015 | 2,390 | 2,443 | 3,025 | 3,749 | |||||
| Less: Contract liabilities | 46,008 | 36,867 | 40,642 | 44,370 | 46,757 | |||||
| Less: Trade payables | 26,719 | 26,335 | 25,352 | 24,804 | 26,450 | |||||
| Operating working capital | **** | 5,709 | **** | 11,435 | **** | 11,169 | **** | 8,642 | **** | 7,823 |
^1)^ Part of Other current receivables in the consolidated balance sheet.
Free cash flow before M&A / Free cash flow after M&A / Free cash flow before M&A (% of net sales)
Free cash flow before M&A: Cash flow from operating activities less net capital expenditures, other investments (excluding M&A) and repayment of lease liabilities.
Free cash flow after M&A: Cash flow from operating activities less net capital expenditures, other investments and repayment of lease liabilities.
Free cash flow before M&A (% of net sales): Free cash flow before M&A as a percentage of net sales.
| 2026 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Cash flow from operating activities | 7,403 | 16,507 | 7,939 | 4,150 | 4,358 | |||||
| Net capital expenditures and other investments (excl.<br>M&A) | ||||||||||
| Investments in property, plant and equipment | -620 | -849 | -491 | -561 | -729 | |||||
| Sales of property, plant and equipment | 10 | 56 | 57 | 40 | 39 | |||||
| Product development | -378 | -352 | -286 | -193 | -307 | |||||
| Other investments<br>¹^)^ | -36 | -47 | -81 | -301 | -64 | |||||
| Repayment of lease liabilities | -459 | -462 | -507 | -554 | -593 | |||||
| Free cash flow before M&A | 5,921 | 14,853 | 6,631 | 2,581 | 2,704 | |||||
| Acquisitions/divestments of subs and other operations, net | -72 | 338 | 10,064 | 141 | -4 | |||||
| Free cash flow after M&A | 5,849 | 15,191 | 16,695 | 2,722 | 2,700 | |||||
| Net sales | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | |||||
| Free cash flow before M&A (% of net sales) | 12.0% | 21.4% | 11.8% | 4.6% | 4.9% | |||||
| 2026 | 2025 | |||||||||
| Year to date, SEK million | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Cash flow from operating activities | 7,403 | 32,954 | 16,447 | 8,508 | 4,358 | |||||
| Net capital expenditures and other investments (excl.<br>M&A) | ||||||||||
| Investments in property, plant and equipment | -620 | -2,630 | -1,781 | -1,290 | -729 | |||||
| Sales of property, plant and equipment | 10 | 192 | 136 | 79 | 39 | |||||
| Product development | -378 | -1,138 | -786 | -500 | -307 | |||||
| Other investments<br>¹^)^ | -36 | -493 | -446 | -365 | -64 | |||||
| Repayment of lease liabilities | -459 | -2,116 | -1,654 | -1,147 | -593 | |||||
| Free cash flow before M&A | 5,921 | 26,769 | 11,916 | 5,285 | 2,704 | |||||
| Acquisitions/divestments of subs and other operations, net | -72 | 10,539 | 10,201 | 137 | -4 | |||||
| Free cash flow after M&A | 5,849 | 37,308 | 22,117 | 5,422 | 2,700 | |||||
| Net sales | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | |||||
| Free cash flow before M&A (% of net sales) | 12.0% | 11.3% | 7.1% | 4.8% | 4.9% |
^1)^ Other investments is part of the line item Other investing activities in the Consolidated cash flow statement. The differences are movements in other interest-bearing assets, which are not to be part of the definition of Free cash flow.
| 38 Ericsson | First quarter report 2026. April 17, 2026. | Alternative performance measures |
|---|
Table of Contents
Sales growth by segment adjusted for comparable units and currency
| 2026 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarter, year over year change, percent | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Networks | 7% | 4% | -5% | 3% | 3% | |||||
| Cloud Software and Services | 4% | 12% | 9% | 1% | -3% | |||||
| Enterprise | 4% | 2% | -7% | -6% | -7% | |||||
| Other | -2% | -10% | -15% | -1% | -23% | |||||
| Total | **** | 6% | **** | 6% | **** | -2% | **** | 2% | **** | 0% |
| 2026 | 2025 | |||||||||
| Year to date, year over year change, percent | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Networks | 7% | 1% | 0% | 3% | 3% | |||||
| Cloud Software and Services | 4% | 6% | 2% | -1% | -3% | |||||
| Enterprise | 4% | -5% | -7% | -6% | -7% | |||||
| Other | -2% | -13% | -14% | -13% | -23% | |||||
| Total | **** | 6% | **** | 2% | **** | 0% | **** | 1% | **** | 0% |
| Sales growth by market area adjusted for comparable units and currency * | ||||||||||
| 2026 | 2025 | |||||||||
| Isolated quarter, year over year change, percent | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Americas | -2% | -1% | -8% | 10% | 20% | |||||
| Europe, Middle East and Africa | 10% | 13% | 3% | -1% | -7% | |||||
| South East Asia, Oceania and India | 12% | 19% | 1% | -22% | -17% | |||||
| North East Asia | 15% | -16% | 10% | -15% | -8% | |||||
| Other | 12% | 13% | -2% | 15% | -6% | |||||
| Total | **** | 6% | **** | 6% | **** | -2% | **** | 2% | **** | 0% |
| 2026 | 2025 | |||||||||
| Year to date, year over year change, percent | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Americas | -2% | 4% | 6% | 14% | 20% | |||||
| Europe, Middle East and Africa | 10% | 3% | -2% | -4% | -7% | |||||
| South East Asia, Oceania and India | 12% | -4% | -13% | -19% | -17% | |||||
| North East Asia | 15% | -9% | -5% | -12% | -8% | |||||
| Other | 12% | 5% | 3% | 5% | -6% | |||||
| Total | **** | 6% | **** | 2% | **** | 0% | **** | 1% | **** | 0% |
| ^*^ Q1-Q3 2025 have been restated to reflect changes in the market area structure. On February 25, 2025, the new market area structure was announced, and during Q4 2025 one additional country was added to<br>Americas. | ||||||||||
| Rolling four quarters of net sales by segment | ||||||||||
| 2026 | 2025 | |||||||||
| Rolling four quarters, SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Networks | 148,308 | 151,014 | 153,611 | 158,203 | 160,135 | |||||
| Cloud Software and Services | 61,573 | 62,715 | 62,141 | 61,748 | 62,565 | |||||
| Enterprise | 19,352 | 21,117 | 22,629 | 23,890 | 24,826 | |||||
| Other | 1,754 | 1,835 | 1,928 | 2,023 | 2,054 | |||||
| Total | **** | 230,988 | **** | 236,681 | **** | 240,309 | **** | 245,864 | **** | 249,580 |
| 39 Ericsson | First quarter report 2026. April 17, 2026. | Alternative performance measures | ||||||||
| --- | --- |
Table of Contents
Gross margin by segment by quarter
| 2026 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, as percentage of net sales | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Networks | 49.7% | 49.0% | 50.0% | 49.3% | 50.8% | |||||
| Cloud Software and Services | 41.5% | 43.1% | 42.1% | 41.5% | 39.1% | |||||
| Enterprise | 48.9% | 52.1% | 51.6% | 54.9% | 56.3% | |||||
| Other | -1.5% | 7.4% | 0.0% | 0.4% | 3.8% | |||||
| Total | **** | 47.2% | **** | 47.2% | **** | 47.6% | **** | 47.5% | **** | 48.2% |
| 2026 | 2025 | |||||||||
| Year to date, as percentage of net sales | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Networks | 49.7% | 49.7% | 50.0% | 50.1% | 50.8% | |||||
| Cloud Software and Services | 41.5% | 41.7% | 41.0% | 40.4% | 39.1% | |||||
| Enterprise | 48.9% | 53.9% | 54.4% | 55.6% | 56.3% | |||||
| Other | -1.5% | 3.0% | 1.5% | 2.1% | 3.8% | |||||
| Total | **** | 47.2% | **** | 47.6% | **** | 47.8% | **** | 47.8% | **** | 48.2% |
EBIT margin by segment by quarter
| 2026 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, as percentage of net sales | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Networks | 10.0% | 21.1% | 20.0% | 17.8% | 19.8% | |||||
| Cloud Software and Services | 0.0% | 16.8% | 11.2% | 5.8% | 0.5% | |||||
| Enterprise | -44.2% | -33.3% | 131.5% | -15.7% | -17.1% | |||||
| Other | 0.3% | 1.1% | -71.5% | 9.5% | -35.0% | |||||
| Total | **** | 2.9% | **** | 16.1% | **** | 26.9% | **** | 11.4% | **** | 10.8% |
| 2026 | 2025 | |||||||||
| Year to date, as percentage of net sales | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Networks | 10.0% | 19.7% | 19.2% | 18.8% | 19.8% | |||||
| Cloud Software and Services | 0.0% | 9.6% | 6.2% | 3.3% | 0.5% | |||||
| Enterprise | -44.2% | 15.3% | 28.8% | -16.4% | -17.1% | |||||
| Other | 0.3% | -22.3% | -30.5% | -12.8% | -35.0% | |||||
| Total | **** | 2.9% | **** | 16.3% | **** | 16.4% | **** | 11.1% | **** | 10.8% |
| 40 Ericsson | First quarter report 2026. April 17, 2026. | Alternative performance measures | ||||||||
| --- | --- |
Table of Contents
EBITA and EBITA margin by segment by quarter
| 2026 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Networks | 3,315 | 9,348 | 7,096 | 6,397 | 7,367 | |||||
| Cloud Software and Services | 9 | 3,368 | 1,726 | 845 | 76 | |||||
| Enterprise | -1,537 | -1,120 | 6,987 | -524 | -625 | |||||
| Other | 1 | 5 | -293 | 45 | -166 | |||||
| Total | **** | 1,788 | **** | 11,601 | **** | 15,516 | **** | 6,763 | **** | 6,652 |
| 2026 | 2025 | |||||||||
| Isolated quarters, as percentage of net sales | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Networks | 10.1% | 21.1% | 20.0% | 17.9% | 20.7% | |||||
| Cloud Software and Services | 0.1% | 16.8% | 11.2% | 5.9% | 0.6% | |||||
| Enterprise | -36.9% | -24.5% | 138.1% | -9.4% | -10.5% | |||||
| Other | 0.3% | 1.1% | -71.3% | 9.5% | -35.0% | |||||
| Total | **** | 3.6% | **** | 16.7% | **** | 27.6% | **** | 12.0% | **** | 12.1% |
| 2026 | 2025 | |||||||||
| Year to date, SEK million | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Networks | 3,315 | 30,208 | 20,860 | 13,764 | 7,367 | |||||
| Cloud Software and Services | 9 | 6,015 | 2,647 | 921 | 76 | |||||
| Enterprise | -1,537 | 4,718 | 5,838 | -1,149 | -625 | |||||
| Other | 1 | -409 | -414 | -121 | -166 | |||||
| Total | **** | 1,788 | **** | 40,532 | **** | 28,931 | **** | 13,415 | **** | 6,652 |
| 2026 | 2025 | |||||||||
| Year to date, as percentage of net sales | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Networks | 10.1% | 20.0% | 19.5% | 19.3% | 20.7% | |||||
| Cloud Software and Services | 0.1% | 9.6% | 6.2% | 3.4% | 0.6% | |||||
| Enterprise | -36.9% | 22.3% | 35.3% | -10.0% | -10.5% | |||||
| Other | 0.3% | -22.3% | -30.5% | -12.8% | -35.0% | |||||
| Total | **** | 3.6% | **** | 17.1% | **** | 17.3% | **** | 12.1% | **** | 12.1% |
| 41 Ericsson | First quarter report 2026. April 17, 2026. | Alternative performance measures | ||||||||
| --- | --- |
Table of Contents
Restructuring charges by function
| 2026 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Cost of sales | -435 | -538 | -271 | -310 | -158 | |||||
| Research and development expenses | -2,595 | -300 | 41 | -300 | -20 | |||||
| Selling and administrative expenses | -738 | -259 | -73 | -46 | -103 | |||||
| Total | **** | -3,768 | **** | -1,097 | **** | -303 | **** | -656 | **** | -281 |
| 2026 | 2025 | |||||||||
| Year to date, SEK million | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Cost of sales | -435 | -1,277 | -739 | -468 | -158 | |||||
| Research and development expenses | -2,595 | -579 | -279 | -320 | -20 | |||||
| Selling and administrative expenses | -738 | -481 | -222 | -149 | -103 | |||||
| Total | **** | -3,768 | **** | -2,337 | **** | -1,240 | **** | -937 | **** | -281 |
Restructuring charges by segment
| 2026 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Networks | -3,052 | -710 | -79 | -109 | -108 | |||||
| of which cost of sales | -226 | -270 | -45 | -67 | -55 | |||||
| of which operating expenses | -2,826 | -440 | -34 | -42 | -53 | |||||
| Cloud Software and Services | -620 | -349 | -193 | -538 | -74 | |||||
| of which cost of sales | -205 | -240 | -222 | -243 | -102 | |||||
| of which operating expenses | -415 | -109 | 29 | -295 | 28 | |||||
| Enterprise | -96 | -5 | -27 | -9 | -97 | |||||
| of which cost of sales | -5 | -1 | 0 | 0 | 1 | |||||
| of which operating expenses | -91 | -4 | -27 | -9 | -98 | |||||
| Other | 0 | -33 | -4 | 0 | -2 | |||||
| of which cost of sales | 0 | -27 | -4 | 0 | -2 | |||||
| of which operating expenses | 0 | -6 | 0 | 0 | 0 | |||||
| Total | **** | -3,768 | **** | -1,097 | **** | -303 | **** | -656 | **** | -281 |
| 2026 | 2025 | |||||||||
| Year to date, SEK million | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Networks | -3,052 | -1,006 | -296 | -217 | -108 | |||||
| of which cost of sales | -226 | -437 | -167 | -122 | -55 | |||||
| of which operating expenses | -2,826 | -569 | -129 | -95 | -53 | |||||
| Cloud Software and Services | -620 | -1,154 | -805 | -612 | -74 | |||||
| of which cost of sales | -205 | -807 | -567 | -345 | -102 | |||||
| of which operating expenses | -415 | -347 | -238 | -267 | 28 | |||||
| Enterprise | -96 | -138 | -133 | -106 | -97 | |||||
| of which cost of sales | -5 | 0 | 1 | 1 | 1 | |||||
| of which operating expenses | -91 | -138 | -134 | -107 | -98 | |||||
| Other | 0 | -39 | -6 | -2 | -2 | |||||
| of which cost of sales | 0 | -33 | -6 | -2 | -2 | |||||
| of which operating expenses | 0 | -6 | 0 | 0 | 0 | |||||
| Total | **** | -3,768 | **** | -2,337 | **** | -1,240 | **** | -937 | **** | -281 |
| 42 Ericsson | First quarter report 2026. April 17, 2026. | Alternative performance measures | ||||||||
| --- | --- |
Table of Contents
| Adjusted gross income and Adjusted gross margin by segment | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | |||||||||
| Isolated quarters, SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Networks | 16,585 | 21,918 | 17,750 | 17,705 | 18,167 | |||||
| Cloud Software and Services | 5,112 | 8,876 | 6,685 | 6,207 | 5,171 | |||||
| Enterprise | 2,044 | 2,387 | 2,609 | 3,045 | 3,337 | |||||
| Other | -6 | 62 | 4 | 2 | 20 | |||||
| Total | **** | 23,734 | **** | 33,243 | **** | 27,048 | **** | 26,959 | **** | 26,695 |
| 2026 | 2025 | |||||||||
| Isolated quarters, as percentage of net sales | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Networks | 50.4% | 49.6% | 50.1% | 49.5% | 51.0% | |||||
| Cloud Software and Services | 43.2% | 44.3% | 43.6% | 43.2% | 39.9% | |||||
| Enterprise | 49.0% | 52.1% | 51.6% | 54.9% | 56.2% | |||||
| Other | -1.5% | 13.0% | 1.0% | 0.4% | 4.2% | |||||
| Total | **** | 48.1% | **** | 48.0% | **** | 48.1% | **** | 48.0% | **** | 48.5% |
| 2026 | 2025 | |||||||||
| Year to date, SEK million | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Networks | 16,585 | 75,540 | 53,622 | 35,872 | 18,167 | |||||
| Cloud Software and Services | 5,112 | 26,939 | 18,063 | 11,378 | 5,171 | |||||
| Enterprise | 2,044 | 11,378 | 8,991 | 6,382 | 3,337 | |||||
| Other | -6 | 88 | 26 | 22 | 20 | |||||
| Total | **** | 23,734 | **** | 113,945 | **** | 80,702 | **** | 53,654 | **** | 26,695 |
| 2026 | 2025 | |||||||||
| Year to date, as percentage of net sales | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Networks | 50.4% | 50.0% | 50.2% | 50.2% | 51.0% | |||||
| Cloud Software and Services | 43.2% | 43.0% | 42.3% | 41.6% | 39.9% | |||||
| Enterprise | 49.0% | 53.9% | 54.4% | 55.6% | 56.2% | |||||
| Other | -1.5% | 4.8% | 1.9% | 2.3% | 4.2% | |||||
| Total | **** | 48.1% | **** | 48.1% | **** | 48.2% | **** | 48.3% | **** | 48.5% |
| 43 Ericsson | First quarter report 2026. April 17, 2026. | Alternative performance measures | ||||||||
| --- | --- |
Table of Contents
| Adjusted EBIT (loss) and Adjusted EBIT margin by segment | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | |||||||||
| Isolated quarters, SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Networks | 6,335 | 10,028 | 7,154 | 6,485 | 7,148 | |||||
| Cloud Software and Services | 623 | 3,713 | 1,914 | 1,378 | 145 | |||||
| Enterprise | -1,748 | -1,521 | 6,676 | -861 | -917 | |||||
| Other | 1 | 38 | -290 | 45 | -164 | |||||
| Total | **** | 5,211 | **** | 12,258 | **** | 15,454 | **** | 7,047 | **** | 6,212 |
| 2026 | 2025 | |||||||||
| Isolated quarters, as percentage of net sales | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Networks | 19.2% | 22.7% | 20.2% | 18.1% | 20.1% | |||||
| Cloud Software and Services | 5.3% | 18.5% | 12.5% | 9.6% | 1.1% | |||||
| Enterprise | -41.9% | -33.2% | 132.0% | -15.5% | -15.5% | |||||
| Other | 0.3% | 8.0% | -70.6% | 9.5% | -34.6% | |||||
| Total | **** | 10.6% | **** | 17.7% | **** | 27.5% | **** | 12.6% | **** | 11.3% |
| 2026 | 2025 | |||||||||
| Year to date, SEK million | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Networks | 6,335 | 30,815 | 20,787 | 13,633 | 7,148 | |||||
| Cloud Software and Services | 623 | 7,150 | 3,437 | 1,523 | 145 | |||||
| Enterprise | -1,748 | 3,377 | 4,898 | -1,778 | -917 | |||||
| Other | 1 | -371 | -409 | -119 | -164 | |||||
| Total | **** | 5,211 | **** | 40,971 | **** | 28,713 | **** | 13,259 | **** | 6,212 |
| 2026 | 2025 | |||||||||
| Year to date, as percentage of net sales | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Networks | 19.2% | 20.4% | 19.5% | 19.1% | 20.1% | |||||
| Cloud Software and Services | 5.3% | 11.4% | 8.1% | 5.6% | 1.1% | |||||
| Enterprise | -41.9% | 16.0% | 29.6% | -15.5% | -15.5% | |||||
| Other | 0.3% | -20.2% | -30.1% | -12.6% | -34.6% | |||||
| Total | **** | 10.6% | **** | 17.3% | **** | 17.2% | **** | 11.9% | **** | 11.3% |
Rolling four quarters of adjusted EBITA margin by segment (%)
| 2026 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rolling four quarters, as percentage of net sales | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Networks | 20.3% | 20.7% | 20.4% | 20.4% | 19.3% | |||||
| Cloud Software and Services | 12.4% | 11.4% | 8.5% | 6.1% | 4.0% | |||||
| Enterprise | 20.4% | 23.0% | 21.2% | -12.6% | -15.0% | |||||
| Other | -11.7% | -20.2% | -46.5% | -30.4% | -35.5% | |||||
| Total | **** | 18.0% | **** | 18.1% | **** | 16.8% | **** | 13.2% | **** | 11.6% |
| 44 Ericsson | First quarter report 2026. April 17, 2026. | Alternative performance measures | ||||||||
| --- | --- |
Table of Contents
Adjusted EBITA and Adjusted EBITA margin by segment
| 2026 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Networks | 6,367 | 10,058 | 7,175 | 6,506 | 7,475 | |||||
| Cloud Software and Services | 629 | 3,717 | 1,919 | 1,383 | 150 | |||||
| Enterprise | -1,441 | -1,115 | 7,014 | -515 | -528 | |||||
| Other | 1 | 38 | -289 | 45 | -164 | |||||
| Total | **** | 5,556 | **** | 12,698 | **** | 15,819 | **** | 7,419 | **** | 6,933 |
| 2026 | 2025 | |||||||||
| Isolated quarters, as percentage of net sales | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Networks | 19.3% | 22.8% | 20.3% | 18.2% | 21.0% | |||||
| Cloud Software and Services | 5.3% | 18.6% | 12.5% | 9.6% | 1.2% | |||||
| Enterprise | -34.6% | -24.4% | 138.7% | -9.3% | -8.9% | |||||
| Other | 0.3% | 8.0% | -70.3% | 9.5% | -34.6% | |||||
| Total | **** | 11.3% | **** | 18.3% | **** | 28.1% | **** | 13.2% | **** | 12.6% |
| 2026 | 2025 | |||||||||
| Year to date, SEK million | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Networks | 6,367 | 31,214 | 21,156 | 13,981 | 7,475 | |||||
| Cloud Software and Services | 629 | 7,169 | 3,452 | 1,533 | 150 | |||||
| Enterprise | -1,441 | 4,856 | 5,971 | -1,043 | -528 | |||||
| Other | 1 | -370 | -408 | -119 | -164 | |||||
| Total | **** | 5,556 | **** | 42,869 | **** | 30,171 | **** | 14,352 | **** | 6,933 |
| 2026 | 2025 | |||||||||
| Year to date, as percentage of net sales | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||
| Networks | 19.3% | 20.7% | 19.8% | 19.6% | 21.0% | |||||
| Cloud Software and Services | 5.3% | 11.4% | 8.1% | 5.6% | 1.2% | |||||
| Enterprise | -34.6% | 23.0% | 36.1% | -9.1% | -8.9% | |||||
| Other | 0.3% | -20.2% | -30.0% | -12.6% | -34.6% | |||||
| Total | **** | 11.3% | **** | 18.1% | **** | 18.0% | **** | 12.9% | **** | 12.6% |
Operating working capital days
Inventory turnover days (ITO): Five quarter average inventory divided by four quarter rolling absolute value of cost of sales excluding restructuring charges multiplied by 365, expressed as number of days.
Days sales outstanding (DSO): Five quarter average of contract assets, trade receivables and customer finance (current and non-current) less contract liabilities divided by four quarter rolling net sales multiplied by 365, expressed as number of days.
Days payables outstanding (DPO): Five quarter average of advances to suppliers and prepaid expenses less trade payables divided by four quarter rolling absolute value of cost of sales excluding restructuring charges multiplied by 365, expressed as number of days.
Operating working capital days: ITO plus DSO less DPO
| 2026 | 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q4 | Q3 | Q2 | Q1 | ||||||
| Inventory turnover days (ITO) | 80 | 79 | 80 | 80 | 81 | |||||
| Days sales outstanding (DSO) | 9 | 12 | 11 | 14 | 17 | |||||
| Less: Days payables outstanding (DPO) | 70 | 71 | 68 | 66 | 64 | |||||
| Operating working capital days | **** | 19 | **** | 20 | **** | 23 | **** | 28 | **** | 34 |
| 45 Ericsson | First quarter report 2026. April 17, 2026. | Alternative performance measures | ||||||||
| --- | --- |
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| TELEFONAKTIEBOLAGET LM ERICSSON (publ) | |
|---|---|
| By: | /s/ CHRIS HOUGHTON |
| Chris Houghton | |
| Senior Vice President, Chief Operating Officer | |
| By: | /s/ LARS SANDSTRÖM |
| Lars Sandström | |
| Senior Vice President, Chief Financial Officer |
Date: April 17, 2026