6-K
Ericsson Lm Telephone Co (ERIC)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of July 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 of Form 20-F or Form 40-F.
Form 20-F [x] Form 40-F [ ]
Announcement of LM Ericsson Telephone Company, July 14, 2026 regarding “Ericsson reports second quarter results
2026”
Exhibits
Exhibit 99.1Announcement of LM Ericsson Telephone Company, July 14, 2026 regarding “Ericsson reports second
quarter results 2026 ”
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/ LARS SANDSTRÖM
Lars Sandström
Senior Vice President, Chief Financial Officer
Date: July 14, 2026
26Q2 report
| Ericsson | Second quarter report 2026. July 14, 2026. | 1 |
|---|
Second quarter report 2026
Strategic highlights – disciplined execution and margin resilience
–Adjusted gross margin of 48.4%, supported by solid operational execution and improved margins in Mobile Networks.
–Strong net cash position supporting continued investments and capital returns, with SEK 8.2 b. returned to shareholders in Q2.
–Demonstrated AI-enabled drone sensing and tracking using existing cell towers at a Texas stadium during a major global sporting
event.
Financial highlights – solid financial performance
–Reported sales were SEK 52.7 (56.1) b. Organic* sales decreased by -1%* YoY primarily due to lower IPR licensing revenues,
reflecting a non-recurring benefit from a partial settlement in the prior year period. Organic* sales grew in three out of four market
areas.
–Adjusted1 gross income was SEK 25.5 (27.0) b., with solid operational execution partly offset by currency headwinds. Reported
gross income was SEK 24.1 (26.6) b.
–Adjusted1 gross margin was 48.4% (48.0%). Networks and Cloud Software and Services adjusted gross margin increased.
Reported gross margin was 45.8% (47.5%).
–Adjusted1 EBITA was SEK 6.9 (7.4) b. with a 13.1% (13.2%) margin, benefiting from continued strong margin expansion in Cloud
Software and Services. Reported EBITA was SEK 6.3 (6.8) b., with an 11.9% (12.0%) margin.
–Net income was SEK 4.1 (4.6) b. EPS diluted was SEK 1.22 (1.37).
–Free cash flow before M&A was SEK 0.4 (2.6) b.
–Capital returns to shareholders were SEK 8.2 b. in Q2, including SEK 3.2 b. of share repurchases.
Comment from Börje Ekholm, President and CEO
Our Q2 results underscore the strength of our portfolio and disciplined execution. Adjusted gross margin was 48%, up by 2
percentage points after normalizing for the one-off benefit of the IPR settlement last year.
In Q2, we took action to mitigate component cost inflation. As the impact builds in the coming quarters, we will continue to pursue
internal measures and pricing actions to help offset the effect. We also expect some pressure on Networks adjusted gross margin in
Q3 due to higher volumes of network rollout projects.
Ericsson enters the next phase from a position of strength. Over recent years, we have strengthened our portfolio to capture the
next wave of AI-driven connectivity. Building on our technology leadership in mobile networks, we have expanded into attractive
growth areas, positioning Ericsson to capitalize as AI increasingly moves into the physical world.
| SEK b. | Q2<br><br>2026 | Q2<br><br>2025 | YoY<br><br>change | Q1<br><br>2026 | QoQ<br><br>change | Jan-Jun<br><br>2026 | Jan-Jun<br><br>2025 | YoY<br><br>change | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Net sales | 52.7 | 56.1 | -6% | 49.3 | 7% | 102.0 | 111.2 | -8% | ||
| Organic sales growth*²⁾ | - | - | -1% | - | - | - | - | 2% | ||
| Gross income | 24.1 | 26.6 | -9% | 23.3 | 4% | 47.4 | 53.2 | -11% | ||
| Gross margin²⁾ | 45.8% | 47.5% | - | 47.2% | - | 46.5% | 47.8% | - | ||
| EBIT | 5.9 | 6.4 | -7% | 1.4 | - | 7.4 | 12.3 | -40% | ||
| EBIT margin²⁾ | 11.2% | 11.4% | - | 2.9% | - | 7.2% | 11.1% | - | ||
| EBITA²⁾ | 6.3 | 6.8 | -7% | 1.8 | - | 8.1 | 13.4 | -40% | ||
| EBITA margin²⁾ | 11.9% | 12.0% | - | 3.6% | - | 7.9% | 12.1% | - | ||
| Net income | 4.1 | 4.6 | -12% | 0.9 | - | 5.0 | 8.8 | -44% | ||
| EPS diluted, SEK | 1.22 | 1.37 | -11% | 0.27 | - | 1.48 | 2.61 | -43% | ||
| Free cash flow before M&A²⁾ | 0.4 | 2.6 | -85% | 5.9 | -93% | 6.3 | 5.3 | 19% | ||
| Net cash, end of period²⁾ | 59.8 | 36.0 | 66% | 68.1 | -12% | 59.8 | 36.0 | 66% | ||
| Adjusted financial measures¹⁾²⁾ | ||||||||||
| Adjusted gross income | 25.5 | 27.0 | -5% | 23.7 | 7% | 49.2 | 53.7 | -8% | ||
| Adjusted gross margin | 48.4% | 48.0% | - | 48.1% | - | 48.2% | 48.3% | - | ||
| Adjusted EBIT | 6.5 | 7.0 | -7% | 5.2 | 25% | 11.7 | 13.3 | -12% | ||
| Adjusted EBIT margin | 12.4% | 12.6% | - | 10.6% | - | 11.5% | 11.9% | - | ||
| Adjusted EBITA | 6.9 | 7.4 | -7% | 5.6 | 24% | 12.4 | 14.4 | -13% | ||
| Adjusted EBITA margin | 13.1% | 13.2% | - | 11.3% | - | 12.2% | 12.9% | - | * Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations. | |
| --- | ||||||||||
| 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 directly reconcilable line items in the financial statement. | ||||||||||
| Ericsson | Second quarter report 2026. July 14, 2026. | Group results | 2 | |||||||
| --- | --- | --- | ||||||||
| Amounts marked with an ‘*’ in this document represent sales growth adjusted for the impact of acquisitions and divestments and effects of foreign currency<br><br>fluctuations, also named organic sales growth. These numbers present performance on a comparable basis to improve the comparability of results between<br><br>periods. Organic sales growth figures are non-IFRS measures.<br><br>‘Adjusted’ metrics are adjusted to exclude restructuring charges and are non-IFRS measures. This is a change in nomenclature only.<br><br>See ‘Financial statements and other information’ for Alternative performance measures. | ||||||||||
| --- |
Group results
| SEK b. | Q2<br><br>2026 | Q2<br><br>2025 | YoY<br><br>change | Q1<br><br>2026 | QoQ<br><br>change | Jan-Jun<br><br>2026 | Jan-Jun<br><br>2025 | YoY<br><br>change |
|---|---|---|---|---|---|---|---|---|
| Net sales | 52.7 | 56.1 | -6% | 49.3 | 7% | 102.0 | 111.2 | -8% |
| Organic sales growth*¹⁾ | - | - | -1% | - | - | - | - | 2% |
| Gross income | 24.1 | 26.6 | -9% | 23.3 | 4% | 47.4 | 53.2 | -11% |
| Gross margin | 45.8% | 47.5% | - | 47.2% | - | 46.5% | 47.8% | - |
| Research and development (R&D) expenses | -10.5 | -12.2 | - | -13.5 | - | -24.0 | -24.2 | - |
| Selling and administrative expenses | -7.7 | -8.2 | - | -8.1 | - | -15.9 | -16.8 | - |
| Impairment losses on trade receivables | 0.0 | 0.0 | - | -0.2 | - | -0.2 | 0.1 | - |
| Other operating income and expenses | 0.1 | 0.1 | 33% | 0.0 | - | 0.1 | 0.1 | 51% |
| Share of earnings of associated companies | -0.1 | 0.0 | - | -0.1 | - | -0.2 | 0.0 | - |
| EBIT | 5.9 | 6.4 | -7% | 1.4 | - | 7.4 | 12.3 | -40% |
| EBIT margin¹⁾ | 11.2% | 11.4% | - | 2.9% | - | 7.2% | 11.1% | - |
| EBITA¹⁾ | 6.3 | 6.8 | -7% | 1.8 | - | 8.1 | 13.4 | -40% |
| EBITA margin¹⁾ | 11.9% | 12.0% | - | 3.6% | - | 7.9% | 12.1% | - |
| Financial income and expenses, net | -0.2 | 0.0 | - | -0.2 | - | -0.4 | 0.0 | - |
| Income tax | -1.7 | -1.8 | - | -0.4 | - | -2.0 | -3.4 | - |
| Net income | 4.1 | 4.6 | -12% | 0.9 | - | 5.0 | 8.8 | -44% |
| Restructuring charges | -0.6 | -0.7 | - | -3.8 | - | -4.4 | -0.9 | - |
| Adjusted financial measures¹⁾ | ||||||||
| Adjusted gross income | 25.5 | 27.0 | -5% | 23.7 | 7% | 49.2 | 53.7 | -8% |
| Adjusted gross margin | 48.4% | 48.0% | - | 48.1% | - | 48.2% | 48.3% | - |
| Adjusted EBIT | 6.5 | 7.0 | -7% | 5.2 | 25% | 11.7 | 13.3 | -12% |
| Adjusted EBIT margin | 12.4% | 12.6% | - | 10.6% | - | 11.5% | 11.9% | - |
| Adjusted EBITA | 6.9 | 7.4 | -7% | 5.6 | 24% | 12.4 | 14.4 | -13% |
| Adjusted EBITA margin | 13.1% | 13.2% | - | 11.3% | - | 12.2% | 12.9% | - |
- Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements.
Net sales
Reported sales decreased by -6% YoY to SEK 52.7 (56.1) b.,
including a SEK -1.8 b. currency impact. Networks sales declined
by -8% to SEK 33.0 b. Cloud Software and Services sales
increased by 3% to SEK 14.7 b. Enterprise sales declined by
-19% to SEK 4.5 b., mainly driven by a SEK -1.0 b. impact from
the divestment of iconectiv in 2025. Sales in segment Other were
SEK 0.4 b.
Organic sales declined by -1%* YoY due to lower IPR
licensing revenues, reflecting a non-recurring benefit in the prior
year period. Organic sales grew in market areas North East Asia,
South East Asia, Oceania and India and in market area Europe,
Middle East and Africa. Sales in market area Americas declined
by -1%*. Networks sales decreased by -4%* mainly reflecting
lower IPR licensing revenues. Cloud Software and Services sales
grew by 5%*, with growth in all market areas. Sales in segment
Enterprise grew by 3%*, with growth in Global Communications
Platform and Enterprise Wireless Solutions.
IPR licensing revenues declined to SEK 3.4 (4.9) b. The prior-
year period included non-recurring revenues following the partial
settlement of a patent licensing dispute. 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 45.8% (47.5%). Gross margin
declined in Networks and Cloud Software and Services as
restructuring charges more than offset the benefits of cost-
reduction actions and improved delivery performance. The
Enterprise margin declined, primarily due to the impact of the
divestment of iconectiv. Gross margin and gross income were
negatively impacted by lower IPR licensing revenues, reflecting
the non-recurring benefit in the prior year period.
Gross income declined to SEK 24.1 (26.6) b., due to lower
sales and gross margin, a negative currency impact of SEK -0.8
b. and the impact of the divestment of iconectiv.
Adjusted gross income decreased to SEK 25.5 (27.0) b., with
a margin of 48.4% (48.0%).
Research and development (R&D) expenses
R&D expenses decreased to SEK -10.5 (-12.2) b., including
restructuring charges of SEK 0.9 (-0.3) b. and a positive currency
impact of SEK 0.1 b. The quarter included a partial reversal of the
restructuring provision recognized in Q1. Excluding these
impacts, R&D declined as a result of savings from cost-reduction
actions, partly offset by increased investments for technology
leadership.
Selling and administrative (SG&A) expenses
SG&A expenses were SEK -7.7 (-8.2) b., including restructuring
charges of SEK -0.1 (0.0) b. and a currency benefit of SEK 0.2 b.
SG&A expenses declined in all segments as a result of prior
periods’ cost-reduction actions.
| Ericsson | Second quarter report 2026. July 14, 2026. | Group results | 3 |
|---|
Other operating income and expenses
Other operating income and expenses were SEK 0.1 (0.1) b.
Restructuring charges
Restructuring charges were SEK -0.6 (-0.7) b. mainly related to
redundancy activities. Gross income included SEK -1.4 (-0.3) b.
of restructuring charges, while operating expenses included
SEK 0.8 (-0.3) b. of restructuring charges. Following a
reassessment of expected costs, a portion of the restructuring
provision recognized in Q1 was reversed in the quarter.
EBITA
EBITA decreased to SEK 6.3 (6.8) b. Lower gross income was
largely offset by lower operating expenses. EBITA was impacted
by a negative currency impact of SEK -0.6 b. The EBITA margin
was 11.9% (12.0%).
Adjusted EBITA decreased to SEK 6.9 (7.4) b. The adjusted
EBITA margin was 13.1% (13.2%).
EBIT
EBIT decreased to SEK 5.9 (6.4) b. with a margin of 11.2%
(11.4%). Amortization impacted EBIT by SEK -0.4 (-0.4) b.
Adjusted EBIT decreased to SEK 6.5 (7.0) b. with a margin of
12.4% (12.6%).
Financial income and expenses, net
Financial income and expenses were SEK -0.2 (0.0) b. Improved
net interest, driven by higher asset volumes and lower
borrowings, was offset by negative net foreign exchange effects,
including a currency hedge effect of SEK -0.1 (0.1) b.
Income tax
Taxes were SEK -1.7 (-1.8) b. A tax rate of 29% (28%) is
expected for the full year, mainly reflecting the impact of elevated
restructuring costs.
Net income
Net income decreased to SEK 4.1 (4.6) b. Diluted EPS was
SEK 1.22 (1.37).
Employees
The number of employees on June 30, 2026, was 86,536
compared with 87,521 on March 31, 2026. On June 30, 2025, the
number of employees was 91,937.
Financial highlights, year-to-date (Jan-Jun) development
Reported sales decreased by -8% to SEK 102.0 (111.2) b. with a
currency impact of SEK -9.6 b. Sales in Networks declined by
-8% to SEK 66.0 (71.4) b. while sales in Cloud Software and
Services declined by -3% to SEK 26.6 (27.3) b. Sales in
Enterprise declined by -25% to SEK 8.7 (11.5) b. including a SEK
-2.1 b. impact from the divestment of iconectiv in 2025.
Organic sales increased by 2%*. Networks sales increased by
1%*, Cloud Software and Services by 5%* and Enterprise by
4%*.
Organic sales increased in three out of four market areas.
Sales in market area Americas declined slightly, reflecting strong
North America deliveries in the prior-year period, while sales in
Latin America increased. IPR licensing revenues declined to SEK
6.5 (8.0) b., as the prior-year period benefited from higher
revenues related to previously unlicensed periods.
Gross income decreased to SEK 47.4 (53.2) b. impacted by
lower net sales and a negative currency impact of SEK -4.6 b.
Gross income was also impacted by SEK -1.8 (-0.5) b. of
restructuring charges. Gross margin was 46.5% (47.8%).
Adjusted gross income decreased to SEK 49.2 (53.7) b., with a
margin of 48.2% (48.3%). The adjusted gross margin reflected
higher margins in Networks and Cloud Software and Services,
mainly as a result of cost-reduction actions, offset by negative
currency impacts. The gross margin in Enterprise declined YoY
primarily as a result of the divestment of iconectiv.
EBITA decreased to SEK 8.1 (13.4) b. with a margin of
7.9% (12.1%), impacted by lower net sales, increased
restructuring charges, the divestment of iconectiv, and a negative
currency impact of SEK -2.8 b. Adjusted EBITA decreased to SEK
12.4 (14.4) b. with a margin of 12.2% (12.9%).
EBIT decreased to SEK 7.4 (12.3) b., with a margin of
7.2% (11.1%). Adjusted EBIT was SEK 11.7 (13.3) b. with a
margin of 11.5% (11.9%). Amortization of intangible assets was
SEK -0.7 (-1.1) b.
Net income decreased to SEK 5.0 (8.8) b. including
restructuring charges of SEK -4.4 (-0.9) b. Diluted EPS
decreased to SEK 1.48 (2.61).
| Ericsson | Second quarter report 2026. July 14, 2026. | Market area sales | 4 |
|---|
Market area sales
| SEK b. | Q2<br><br>2026 | Q2<br><br>2025 | YoY<br><br>change | YoY<br><br>organic<br><br>growth | Q1<br><br>2026 | QoQ<br><br>change | Jan-Jun<br><br>2026 | Jan-Jun<br><br>2025 | YoY<br><br>change | YoY<br><br>organic<br><br>growth |
|---|---|---|---|---|---|---|---|---|---|---|
| Americas | 18.8 | 19.8 | -5% | -1% | 17.1 | 10% | 35.9 | 40.7 | -12% | -2% |
| Europe, Middle East and Africa | 16.3 | 16.2 | 0% | 2% | 14.3 | 14% | 30.6 | 30.7 | 0% | 6% |
| South East Asia, Oceania and India | 5.4 | 5.5 | -2% | 4% | 6.9 | -22% | 12.4 | 12.7 | -3% | 8% |
| North East Asia | 3.7 | 3.8 | -1% | 8% | 3.1 | 20% | 6.9 | 7.0 | -2% | 11% |
| Other | 8.5 | 10.9 | -22% | -12% | 7.9 | 7% | 16.4 | 20.1 | -19% | -1% |
| Of which IPR | 3.4 | 4.9 | -30% | - | 3.1 | 9% | 6.5 | 8.0 | -19% | - |
| Total | 52.7 | 56.1 | -6% | -1% | 49.3 | 7% | 102.0 | 111.2 | -8% | 2% |
Market Area Americas
Sales decreased by -1%* YoY. Networks sales declined in North
America, partly offset by continued growth in Latin America.
Cloud Software and Services sales increased supported
by services growth in North America. Reported sales declined by
-5% YoY.
Market Area Europe, Middle East and Africa
Sales increased by 2%* YoY. Networks sales in Middle East &
Africa increased, driven by 5G network investments in certain
markets. Networks sales in Europe declined, primarily due to the
gradual completion of modernization projects in some markets.
Cloud Software and Services sales increased in Europe due to
core network upgrades to 5G in multiple markets while sales in
Middle East & Africa increased due to the timing of Core project
delivery milestones. Reported sales were stable.
Market Area South East Asia, Oceania and India
Sales increased by 4%* YoY. Networks sales increased as a
result of the timing of project deliveries in South East Asia. Cloud
Software and Services sales increased, reflecting the timing of
project
deliverables. Reported sales decreased by -2% YoY.
Market Area North East Asia
Sales increased by 8%* YoY. Networks sales increased mainly
due to higher deliveries in Japan. Cloud Software and Services
sales increased due to the timing of project milestones in multiple
markets. Reported sales decreased by -1% YoY.
Market Area Other
Market area Other includes IPR licensing revenues and almost
all sales in segment Enterprise. Sales decreased by -12%*,
mainly due to the decline in IPR licensing revenues, partly offset
by organic sales growth in Enterprise and a positive hedge effect.
Reported sales decreased by -22% YoY, mainly reflecting the
divestment of iconectiv in Q3 2025.
| Ericsson | Second quarter report 2026. July 14, 2026. | Segment results | 5 |
|---|
Segment Results
Mobile Networks –
Segment Networks
| SEK b. | Q2<br><br>2026 | Q2<br><br>2025 | YoY<br><br>change | Q1<br><br>2026 |
|---|---|---|---|---|
| Net sales | 33.0 | 35.7 | -8% | 32.9 |
| Of which IPR licensing revenues | 2.8 | 4.0 | -30% | 2.6 |
| Organic sales growth | - | - | -4% | - |
| Gross income | 16.0 | 17.6 | -9% | 16.4 |
| Gross margin | 48.3% | 49.3% | - | 49.7% |
| EBIT | 6.0 | 6.4 | -6% | 3.3 |
| EBIT margin | 18.2% | 17.8% | - | 10.0% |
| EBITA | 6.0 | 6.4 | -6% | 3.3 |
| EBITA margin | 18.3% | 17.9% | - | 10.1% |
| Restructuring charges | 0.2 | -0.1 | - | -3.1 |
| Adjusted financial measures | ||||
| Adjusted gross income | 16.6 | 17.7 | -6% | 16.6 |
| Adjusted gross margin | 50.4% | 49.5% | - | 50.4% |
| Adjusted EBIT | 5.8 | 6.5 | -10% | 6.3 |
| Adjusted EBIT margin | 17.6% | 18.1% | - | 19.2% |
| Adjusted EBITA | 5.8 | 6.5 | -10% | 6.4 |
| Adjusted EBITA margin | 17.7% | 18.2% | - | 19.3% |
Breakdown of sales into products, services and IPR licensing is available in
note 2.
Net sales
Sales decreased by -4%* YoY, mainly reflecting lower IPR
licensing revenues following a non-recurring benefit in the prior-
year period. Excluding IPR licensing revenues, organic sales
would have been broadly stable YoY. Organic sales grew in
market areas North East Asia and in South East Asia, Oceania
and India, while sales declined in the other two market areas.
Reported sales decreased by -8% to SEK 33.0 (35.7) b. including
a negative currency impact of
SEK -1.2 b.
Gross income and margin
Adjusted gross income decreased to SEK 16.6 (17.7) b. impacted
by lower sales and a currency impact of SEK -0.6 b.
Adjusted gross margin increased to 50.4% (49.5%), supported
by a favorable product mix and cost-reduction actions, partly
offset by lower IPR licensing revenues, reflecting a non-recurring
benefit in the prior-year period.
EBITA
Adjusted EBITA decreased to SEK 5.8 (6.5) b., including a SEK
-0.5 b. currency impact. Lower gross income was partly offset by
lower operating expenses, reflecting continued efficiency
improvements and currency benefits. R&D investments continued
to support the strategy to build high-performance programmable
networks. The adjusted EBITA margin was 17.7% (18.2%).
Net sales for the rolling four quarters were SEK 145.6 b. and the
adjusted EBITA margin was 20.2%.
Mobile Networks –
Segment Cloud Software and Services
| SEK b. | Q2<br><br>2026 | Q2<br><br>2025 | YoY<br><br>change | Q1<br><br>2026 |
|---|---|---|---|---|
| Net sales | 14.7 | 14.4 | 3% | 11.8 |
| Of which IPR licensing revenues | 0.6 | 0.9 | -30% | 0.6 |
| Organic sales growth | - | - | 5% | - |
| Gross income | 5.9 | 6.0 | -2% | 4.9 |
| Gross margin | 39.8% | 41.5% | - | 41.5% |
| EBIT | 1.1 | 0.8 | 36% | 0.0 |
| EBIT margin | 7.8% | 5.8% | - | 0.0% |
| EBITA | 1.1 | 0.8 | 36% | 0.0 |
| EBITA margin | 7.8% | 5.9% | - | 0.1% |
| Restructuring charges | -0.7 | -0.5 | - | -0.6 |
| Adjusted financial measures | ||||
| Adjusted gross income | 6.5 | 6.2 | 5% | 5.1 |
| Adjusted gross margin | 44.1% | 43.2% | - | 43.2% |
| Adjusted EBIT | 1.8 | 1.4 | 33% | 0.6 |
| Adjusted EBIT margin | 12.4% | 9.6% | - | 5.3% |
| Adjusted EBITA | 1.8 | 1.4 | 33% | 0.6 |
| Adjusted EBITA margin | 12.4% | 9.6% | - | 5.3% |
Breakdown of sales into products, services and IPR licensing is available in
note 2.
Net sales
Sales increased by 5%* YoY. Sales grew in all market areas.
Reported sales increased by 3% to SEK 14.7 (14.4) b., including
a currency impact of SEK -0.4 b. Services sales accounted for
62% (62%) of sales.
In market area Europe, Middle East and Africa, sales growth
was driven by core network upgrades in Europe and project
deliverables in Middle East and Africa. Sales in market area
North East Asia grew, driven by increased software sales. In the
other market areas, sales growth was driven by accelerated
project deliverables.
Gross income and margin
Adjusted gross margin increased to 44.1% (43.2%), supported by
strong strategy execution with improved delivery performance,
partly offset by the impact of lower IPR licensing revenues,
reflecting a non-recurring benefit in the prior-year period.
Adjusted gross income increased to SEK 6.5 (6.2) b. including
a currency impact of SEK -0.1 b.
EBITA
Adjusted EBITA improved to SEK 1.8 (1.4) b., with no currency
impact. EBITA was supported by improved gross income as well
as lower operating expenses, reflecting continued efficiency
improvements and positive currency impacts. The adjusted
EBITA margin was 12.4% (9.6%).
Net sales for the rolling four quarters were SEK 61.9 b. and the
adjusted EBITA margin was 13.1%.
| Ericsson | Second quarter report 2026. July 14, 2026. | Segment results | 6 |
|---|
Enterprise –
Segment Enterprise
| SEK b. | Q2<br><br>2026 | Q2<br><br>2025 | YoY<br><br>change | Q1<br><br>2026 |
|---|---|---|---|---|
| Net sales | 4.5 | 5.5 | -19% | 4.2 |
| Organic sales growth | - | - | 3% | - |
| Gross income | 2.3 | 3.0 | -25% | 2.0 |
| Gross margin | 50.7% | 54.9% | - | 48.9% |
| EBIT | -1.2 | -0.9 | - | -1.8 |
| EBIT margin | -27.1% | -15.7% | - | -44.2% |
| EBITA | -0.9 | -0.5 | - | -1.5 |
| EBITA margin | -19.8% | -9.4% | - | -36.9% |
| Restructuring charges | -0.1 | 0.0 | - | -0.1 |
| Adjusted financial measures | ||||
| Adjusted gross income | 2.3 | 3.0 | -25% | 2.0 |
| Adjusted gross margin | 50.9% | 54.9% | - | 49.0% |
| Adjusted EBIT | -1.2 | -0.9 | - | -1.7 |
| Adjusted EBIT margin | -25.9% | -15.5% | - | -41.9% |
| Adjusted EBITA | -0.8 | -0.5 | - | -1.4 |
| Adjusted EBITA margin | -18.7% | -9.3% | - | -34.6% |
Net sales
Sales increased by 3%* YoY, with growth in Global
Communications Platform and Enterprise Wireless Solutions.
Reported sales decreased by -19% YoY to SEK 4.5 (5.5) b.,
reflecting the divestment of iconectiv in Q3 2025 and a SEK -0.2
b. currency impact.
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.
Gross income and margin
Adjusted gross margin decreased to 50.9% (54.9%), reflecting
the impact of the divestment of iconectiv in Q3 2025 and a
change in product mix in Global Communications Platform and
Enterprise Wireless Solutions. Adjusted gross income was SEK
2.3 (3.0) b., reflecting the divestment of iconectiv in Q3 2025 and
a negative currency impact of SEK -0.1 b.
EBITA (loss)
Adjusted EBITA (loss) was SEK -0.8 (-0.5) b. The impact from the
divestment of iconectiv in Q3 2025 was partly offset by cost
reductions in Global Communications Platform and Enterprise
Wireless Solutions. The currency impact was SEK 0.0 b. Adjusted
EBITA margin was -18.7% (-9.3%).
Net sales for the rolling four quarters were SEK 18.3 b. and the
adjusted EBITA margin was 19.8%, including a 41.4 percentage
point benefit from the iconectiv gain in Q3 2025.
Segment Other
| SEK b. | Q2<br><br>2026 | Q2<br><br>2025 | YoY<br><br>change | Q1<br><br>2026 |
|---|---|---|---|---|
| Net sales | 0.4 | 0.5 | -11% | 0.4 |
| Organic sales growth | - | - | -6% | - |
| Gross income | 0.0 | 0.0 | -5% | 0.0 |
| Gross margin | 0.5% | 0.4% | - | -1.5% |
| EBIT | 0.0 | 0.0 | - | 0.0 |
| EBIT margin | -3.4% | 9.5% | - | 0.3% |
| EBITA | 0.0 | 0.0 | - | 0.0 |
| EBITA margin | -3.4% | 9.5% | - | 0.3% |
| Restructuring charges | -0.1 | 0.0 | - | 0.0 |
| Adjusted financial measures | ||||
| Adjusted gross income | 0.1 | 0.0 | - | 0.0 |
| Adjusted gross margin | 13.3% | 0.4% | -1.5% | |
| Adjusted EBIT | 0.0 | 0.0 | 3% | 0.0 |
| Adjusted EBIT margin | 10.9% | 9.5% | - | 0.3% |
| Adjusted EBITA | 0.0 | 0.0 | 3% | 0.0 |
| Adjusted EBITA margin | 10.9% | 9.5% | - | 0.3% |
Net sales
Reported sales were SEK 0.4 (0.5) b.
Gross income and margin
Adjusted gross income was SEK 0.1 (0.0) b. Adjusted gross
margin was 13.3% (0.4%).
EBITA (loss)
Adjusted EBITA (loss) was SEK 0.0 (0.0) b.
Net sales for the rolling four quarters were SEK 1.7 b.
| Ericsson | Second quarter report 2026. July 14, 2026. | Cash flow and financial position | 7 |
|---|
Cash flow and financial position
| Free cash flow bridge, SEK b. | Q2<br><br>2026 | Q2<br><br>2025 | Q1<br><br>2026 | Jan-Jun<br><br>2026 | Jan-Jun<br><br>2025 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Adjusted EBITA | 6.9 | 7.4 | 5.6 | 12.4 | 14.4 | |||||
| Depreciation and amortization of non-acquired assets | 1.6 | 1.8 | 1.6 | 3.3 | 3.8 | |||||
| Restructuring charges | -0.6 | -0.7 | -3.8 | -4.4 | -0.9 | |||||
| Changes in operating net assets | -4.4 | -2.7 | 5.6 | 1.2 | -5.5 | |||||
| Interest paid/received, taxes paid, and other | -1.6 | -1.8 | -1.6 | -3.2 | -3.2 | |||||
| Cash flow from operating activities | 1.9 | 4.2 | 7.4 | 9.3 | 8.5 | |||||
| Net capex and other investing activities | -1.0 | -1.0 | -1.0 | -2.1 | -2.1 | |||||
| Repayment of lease liabilities | -0.5 | -0.6 | -0.5 | -1.0 | -1.1 | |||||
| Free cash flow before M&A | 0.4 | 2.6 | 5.9 | 6.3 | 5.3 | |||||
| Cash flow from operating activities | 1.9 | 4.2 | 7.4 | 9.3 | 8.5 | |||||
| Cash flow from investing activities | -3.7 | -10.9 | 1.9 | -1.9 | -9.6 | |||||
| Cash flow from financing activities | -9.2 | -3.5 | -2.3 | -11.5 | -4.2 | SEK b. | Jun 30<br><br>2026 | Jun 30<br><br>2025 | Mar 31<br><br>2026 | |
| --- | --- | --- | --- | |||||||
| Gross cash | 91.3 | 73.3 | 99.5 | |||||||
| - Borrowings, current | 9.5 | 7.3 | 9.9 | |||||||
| - Borrowings, non-current | 22.0 | 29.9 | 21.5 | |||||||
| Net cash | 59.8 | 36.0 | 68.1 | |||||||
| Equity | 104.8 | 85.7 | 103.1 | |||||||
| Equity ratio (%) | 36.4% | 31.7% | 35.5% | |||||||
| Capital turnover (times) | 1.4 | 1.6 | 1.4 | |||||||
| Return on capital employed (%) | 20.7% | 16.8% | 21.4% |
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 1.9 (4.2) b. driven
by earnings and impacted by increased operating net assets.
The increase mainly reflected higher inventories ahead of
planned Q3 deliveries.
Quarterly cash flow from operating activities decreased
compared to the prior-year period, mainly due to higher
inventories in Q2 2026. In first-half 2026, cash flow from
operating activities increased year on year, driven by strong cash
generation in Q1.
Cash flow from investing activities was SEK -3.7 (-10.9) b.
Investing cash flow in the quarter was driven by purchases of
interest-bearing securities.
Cash flow from financing activities was SEK -9.2 (-3.5) b.
Financing cash flow in the quarter included dividends paid of
SEK -5.0 b. and share repurchases of SEK -3.2 b.
Financial position
Gross cash decreased sequentially by SEK -8.2 b. to SEK 91.3
b., impacted by dividend payments and share repurchases.
Net cash decreased sequentially by SEK -8.3 b. to SEK 59.8
b.
The average maturity of parent company borrowings was 2.5
years as of June 30, 2026, compared with 2.7 years as of March
31, 2026.
Liabilities for post-employment benefits decreased
sequentially to SEK 18.0 b. from SEK 18.2 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 8.1 b. lower than
current DBO.
| Ericsson | Second quarter report 2026. July 14, 2026. | Key data points | 8 |
|---|
Key data points
Market
Dell’Oro estimates that the global RAN equipment market will
remain stable in 2026.
Source: Dell’Oro Mobile RAN Quarterly Report Q126, May 2026.
Ericsson
Net sales
Reported average seasonality last 3 years (2023–2025), %.
| Q4 → Q1 | Q1 → Q2 | Q2 → Q3 | Q3 → Q4 | |
|---|---|---|---|---|
| Networks | -25% | +4% | +1% | +17% |
| Cloud Software and 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 through increased penetration of the smartphone
market.
Following agreements reached in July 2026 with a top-10
smartphone vendor and a payment terminal vendor, annualized
recurring IPR licensing revenues were approximately SEK 13.5 b.
Optimizing the terms and value of new agreements and
renewals will remain a priority.
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 of intangible assets
Amortization of intangible assets is expected to be around
SEK -0.4 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 Q3 2026 outlook assumes currency rates of USD:SEK 9.7,
EUR:SEK 11.0.
Networks
Sales growth in Q3 2026 is expected to be above 3-year average
seasonality.
Adjusted gross margin in Q3 2026 is expected to be in the range
of 48% to 50%.
Cloud Software and Services
Sales growth in Q3 2026 is expected to be broadly similar to 3-
year average seasonality.
| Ericsson | Second quarter report 2026. July 14, 2026. | Parent Company | 9 |
|---|
Parent Company
Income after financial items January – June 2026, was
SEK 29.0 (19.3) b.
At the end of the quarter, gross cash (cash, cash equivalents
plus interest-bearing securities, current and non-current)
amounted to SEK 78.4 (60.1) b.
There was an increase in intercompany lending of SEK 2.7 b.
and a decrease in intercompany borrowing of SEK 0.4 b. in the
quarter.
At the end of the quarter, non-restricted equity amounted to
SEK 58.4 (31.9) b., and total equity amounted to SEK 106.7
(80.2) b.
The Parent Company has recognized dividends from
subsidiaries of SEK 27.7 (18.9) b. in the quarter.
During the quarter, Ericsson has repurchased 29,535,981
Class B shares for a total consideration of SEK 3.3 b. in
accordance with the AGM authorization. Repurchased shares are
held as treasury shares and are presented as a deduction from
equity.
In accordance with the conditions of the long-term variable
compensation program (LTV) for Ericsson employees, 2,639,299
shares from treasury stock were distributed to employees or sold
in the second quarter. On June 30, 2026, Ericsson held
64,898,958 treasury shares (38,002,276). Repurchased shares
are reflected in the average number of shares outstanding and in
the calculation of earnings per share.
| Ericsson | Second quarter report 2026. July 14, 2026. | Other Information | 10 |
|---|
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
| Ericsson | Second quarter report 2026. July 14, 2026. | Other Information | 11 |
|---|
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, 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.
CEO transition arrangements
On June 16, 2026, the Company announced that Börje Ekholm is
retiring from Ericsson. Börje Ekholm will step down as CEO on
September 30, 2026, and act as executive advisor to the new
CEO until June 15, 2027. Under his employment contract, he has
a 12-month notice period from June 16, 2026, to June 15, 2027,
during which salary and benefits will be paid in line with
contractual terms. Short- and long-term variable compensation
will be determined in accordance with the Company’s plan rules,
including pro-rated vesting of awards for performance periods
that continue after his employment ends. From June 15, 2027,
Börje Ekholm will be subject to a 36-month non-compete
undertaking, for which fixed compensation totaling SEK 14.7
million (USD 1.59 million) will be paid over the three-year period.
Further information will be disclosed as required in the 2026
Annual Report.
PRESS RELEASES
| May 13,<br><br>2026 | Ericsson to utilize mandate to transfer shares |
|---|---|
| May 29,<br><br>2026 | Ericsson’s Nomination Committee appointed |
| June 16,<br><br>2026 | Per Narvinger appointed new President and CEO of Ericsson as<br><br>Börje Ekholm steps down |
| June 18,<br><br>2026 | Ericsson appoints David Hammarwall Head of Business Area<br><br>Networks |
Information on the share buyback program and related press
releases is available on the Ericsson investor website at:
Share buyback program
| Ericsson | Second quarter report 2026. July 14, 2026. | Risk factors | 12 |
|---|
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.”
This report has not been reviewed by Telefonaktiebolaget LM
Ericsson auditors.
Date for next report: October 15, 2026.
| Ericsson | Second quarter report 2026. July 14, 2026. | Board assurance | 13 |
|---|
Board assurance
The Board of Directors and the President and CEO certify that the financial report for the six months gives a fair view of the
performance of the business, position and profit or loss of the Company and the Group and describes the principal risks and
uncertainties that the Company and the companies in the Group face.
Stockholm, July 14, 2026
Telefonaktiebolaget LM Ericsson (publ)
Org. Nr. 556016-0680
| Jan Carlson | Jacob Wallenberg | Jon Fredrik Baksaas | |
|---|---|---|---|
| Chair | Deputy Chair | Member of the Board | |
| Christian Cederholm | Börje Ekholm | Eric A. Elzvik | |
| Member of the Board | President, CEO<br><br>and member of the Board | Member of the Board | |
| Marachel Knight | Kristin S. Rinne | Jonas Synnergren | |
| Member of the Board | Member of the Board | Member of the Board | |
| Christy Wyatt | Karl Åberg | ||
| Member of the Board | Member of the Board | ||
| Ulf Rosberg | Loredana Roslund | Annika Salomonsson | |
| Member of the Board | Member of the Board | Member of the Board | |
| Ericsson | Second quarter report 2026. July 14, 2026. | Editor's note | 14 |
| --- | --- | --- |
Editor’s note
Media and analyst briefing
Ericsson invites media, investors and analysts to a conference
call and live video webcast at 09:00 AM CEST on July 14, 2026.
Link to the webcast, dial-in to audio conference, supporting
material and replay will be available at:
www.ericsson.com/investors and
www.ericsson.com/newsroom
For further information, please contact:
Lars Sandström, Senior Vice President, Chief Financial Officer
Phone: +46 72 161 20 04
E-mail: [email protected]
Peter Borsos, Vice President,
Head of Group Communications
Phone: +46 70 317 68 00
E-mail: [email protected]
Telefonaktiebolaget LM Ericsson
Org. number: 556016-0680
Torshamnsgatan 21
SE-164 83 Stockholm
Phone: +46 10 719 00 00
www.ericsson.com
Investors
Daniel Morris, Vice President,
Head of Investor Relations
Phone: +44 7386 657217
E-mail: [email protected]
Lena Häggblom, Director,
Investor Relations
Phone: +46 72 593 27 78
E-mail: [email protected]
Alan Ganson, Director,
Investor Relations
Phone: +46 70 267 27 30
E-mail: [email protected]
Media
Ralf Bagner, Head of Media Relations
Phone: +46 76 128 47 89
E-mail: [email protected]
Corporate Communications
Phone: +46 10 719 69 92
E-mail: [email protected]
| Ericsson | Second quarter report 2026. July 14, 2026. | Forward-looking statements | 15 |
|---|
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
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 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
–The risk that the ongoing investigations by Ericsson and US
governmental authorities result in a conclusion by Ericsson 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
–Risks related to the Company's ongoing compliance with
obligations under the National Security Agreement entered
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
–Macroeconomic conditions, including inflationary pressures
and effects on customer investments, market recovery and
growth
–Ongoing geopolitical and trade uncertainty, including
challenging global economic conditions, market trends and the
imposition of tariffs and sanctions
–Continued growth of mobile communications, the success of
Ericsson's existing and targeted customer base, and
Ericsson's ability to maintain technology leadership
–Success in implementing key strategies, including improving
profitability, leading in 6G, capturing 5G market 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
–Risks of global operations, including legal and regulatory
requirements and uncertainties, and unfavorable lawsuits and
legal proceedings
–Ericsson's future liquidity, capital resources, capital
expenditures, cost savings and profitability, and risks related to
financial condition
–The expected demand for Ericsson's existing and new
products and services as well as plans to launch new products
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
–Risks related to acquisitions and divestments that may be
disruptive and incur significant expenses, including 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 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
–Other factors included in Ericsson's filings with the US
Securities and Exchange Commission (SEC), including the
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.
| Ericsson | Second quarter report 2026. July 14, 2026. | Financial statements and other information | 16 |
|---|
Financial
statements
and other
information
Contents
| Financial statements (unaudited) | 17 | |||
|---|---|---|---|---|
| Condensed consolidated income statement | 17 | |||
| Condensed statement of comprehensive income | 17 | |||
| Condensed consolidated balance sheet | 18 | |||
| Condensed consolidated statement of cash flows | 19 | |||
| Condensed consolidated statement of changes in equity | 20 | |||
| Condensed consolidated income statement – isolated quarters | 20 | |||
| Condensed consolidated statement of cash flows – isolated<br><br>quarters | 21 | |||
| Condensed Parent Company income statement | 22 | |||
| Condensed Parent Company statement of comprehensive<br><br>income | 22 | |||
| Condensed Parent Company balance sheet | 23 | |||
| Accounting policies and<br><br>Explanatory notes (unaudited) | 24 | |||
| Note 1 – Accounting policies and other information | 24 | |||
| Note 2 – Segment information | 25 | |||
| Note 3 – Financial income and expenses, net | 29 | |||
| 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<br><br>goodwill and intangible assets | 34 | |||
| EBITA and EBITA margin / Adjusted EBITA and Adjusted EBITA<br><br>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 | 36 | |||
| Equity ratio | 37 | |||
| Return on equity | 37 | |||
| Operating working capital | 37 | |||
| Free cash flow before M&A / Free cash flow after M&A / Free<br><br>cash flow before M&A (% of net sales) | 38 | |||
| Sales growth by segment adjusted for comparable units and<br><br>currency | 38 | |||
| Sales growth by market area adjusted for comparable units and<br><br>currency | 39 | |||
| Rolling four quarters of net sales by segment | 39 | |||
| Gross margin by segment by quarter | 39 | |||
| EBIT margin by segment by quarter | 39 | |||
| EBITA and EBITA margin by segment by quarter | 40 | |||
| Restructuring charges by function | 40 | |||
| Restructuring charges by segment | 41 | |||
| Adjusted gross income and Adjusted gross margin by segment | 41 | |||
| Adjusted EBIT and Adjusted EBIT margin by segment | 42 | |||
| Rolling four quarters of adjusted EBITA margin by segment (%) | 42 | |||
| Operating working capital days | 43 | |||
| Ericsson | Second quarter report 2026. July 14, 2026. | Financial statements | 17 | |
| --- | --- | --- |
Financial statements (unaudited)
Condensed consolidated income statement
| Q2 | Jan-Jun | |||||
|---|---|---|---|---|---|---|
| SEK million | Note | 2026 | 2025 | Change | 2026 | 2025 |
| Net sales | 2 | 52,691 | 56,132 | -6% | 102,022 | 111,157 |
| Cost of sales | -28,568 | -29,483 | -3% | -54,601 | -57,971 | |
| Gross income | 2 | 24,122 | 26,649 | -9% | 47,421 | 53,186 |
| Research and development expenses | -10,480 | -12,212 | -14% | -23,969 | -24,244 | |
| Selling and administrative expenses | -7,736 | -8,180 | -5% | -15,872 | -16,801 | |
| Impairment reversals/losses on trade receivables | -20 | 34 | -161% | -177 | 66 | |
| Operating expenses | -18,237 | -20,358 | -10% | -40,017 | -40,979 | |
| Other operating income and expenses | 90 | 67 | 33% | 113 | 75 | |
| Share of earnings of associated companies | -56 | 33 | - | -155 | 40 | |
| Earnings before financial items and income tax (EBIT) | 2 | 5,919 | 6,391 | -7% | 7,362 | 12,322 |
| Financial income and expenses, net | 3 | -178 | 34 | - | -372 | -40 |
| Income after financial items | 5,741 | 6,425 | -11% | 6,990 | 12,282 | |
| Income tax | -1,665 | -1,799 | -7% | -2,027 | -3,439 | |
| Net income | 4,076 | 4,626 | -12% | 4,963 | 8,843 | |
| Net income attributable to: | ||||||
| Owners of the Parent Company | 4,046 | 4,567 | 4,933 | 8,716 | ||
| Non-controlling interests | 30 | 59 | 30 | 127 | ||
| Other information | ||||||
| Average number of shares, basic (million) | 8 | 3,313 | 3,333 | 3,323 | 3,333 | |
| Earnings per share, basic (SEK)¹⁾ | 8 | 1.22 | 1.37 | 1.48 | 2.62 | |
| Earnings per share, diluted (SEK)¹⁾²⁾ | 8 | 1.22 | 1.37 | 1.48 | 2.61 |
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.
Condensed statement of comprehensive income
| Q2 | Jan-Jun | |||
|---|---|---|---|---|
| SEK million | 2026 | 2025 | 2026 | 2025 |
| Net income | 4,076 | 4,626 | 4,963 | 8,843 |
| Other comprehensive income | ||||
| Items that will not be reclassified to profit or loss | ||||
| Remeasurements of defined benefit pension plans | 437 | -3,528 | 610 | -817 |
| Revaluation of credit risk on borrowings | -121 | 63 | -13 | 91 |
| Tax on items that will not be reclassified to profit or loss | -53 | 489 | -128 | 13 |
| Items that have been or may be reclassified to profit or loss | ||||
| Cash flow hedge reserve | ||||
| Gains/losses arising during the period | -76 | 1,726 | -420 | 4,655 |
| Reclassification adjustments on gains/losses included in profit or loss | -568 | 29 | -1,132 | 322 |
| Translation reserves | ||||
| Changes in translation reserves | 984 | -2,282 | 3,462 | -9,898 |
| Reclassification to profit or loss | – | 54 | -10 | 54 |
| Share of other comprehensive income of associated companies | 78 | -6 | 107 | -56 |
| Tax on items that have been or may be reclassified to profit or loss | 133 | -361 | 320 | -1,025 |
| Total other comprehensive income, net of tax | 814 | -3,816 | 2,794 | -6,661 |
| Total comprehensive income | 4,890 | 810 | 7,757 | 2,182 |
| Total comprehensive income attributable to: | ||||
| Owners of the Parent Company | 4,858 | 671 | 7,731 | 1,886 |
| Non-controlling interests | 32 | 139 | 26 | 296 |
| Ericsson | Second quarter report 2026. July 14, 2026. | Financial statements | 18 | |
| --- | --- | --- |
Condensed consolidated balance sheet
| SEK million | Note | Jun 30<br><br>2026 | Dec 31<br><br>2025 |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Intangible assets | |||
| Capitalized development expenses | 3,771 | 3,866 | |
| Goodwill | 49,371 | 46,882 | |
| Customer relationships, IPR and other intangible assets | 5,181 | 5,631 | |
| Property, plant and equipment | 8,782 | 8,789 | |
| Right-of-use assets | 7,151 | 6,738 | |
| Financial assets | |||
| Investments in associated companies | 1,550 | 1,507 | |
| Other investments in shares and participations | 5 | 2,151 | 1,909 |
| Customer finance, non-current | 5 | 26 | 238 |
| Interest-bearing securities, non-current | 5 | 37,193 | 37,298 |
| Other financial assets, non-current | 5 | 6,581 | 5,960 |
| Deferred tax assets | 19,028 | 16,851 | |
| 140,787 | 135,669 | ||
| Current assets | |||
| Inventories | 30,718 | 23,451 | |
| Contracts assets | 8,225 | 7,333 | |
| Trade receivables | 5 | 37,921 | 40,327 |
| Customer finance, current | 5 | 1,657 | 852 |
| Current tax assets | 5,571 | 5,030 | |
| Other current receivables | 8,916 | 9,920 | |
| Interest-bearing securities, current | 5 | 12,413 | 12,715 |
| Cash and cash equivalents | 5 | 41,691 | 43,926 |
| 147,113 | 143,554 | ||
| Total assets | 287,899 | 279,223 | |
| Equity and liabilities | |||
| Equity | |||
| Stockholders' equity | 104,047 | 109,535 | |
| Non-controlling interest in equity of subsidiaries | 718 | 729 | |
| 104,764 | 110,264 | ||
| Non-current liabilities | |||
| Post-employment benefits | 18,008 | 18,648 | |
| Provisions, non-current | 4 | 4,037 | 2,993 |
| Deferred tax liabilities | 173 | 152 | |
| Borrowings, non-current | 5 | 21,990 | 29,165 |
| Lease liabilities, non-current | 6,244 | 5,772 | |
| Other non-current liabilities | 1,355 | 1,292 | |
| 51,808 | 58,022 | ||
| Current liabilities | |||
| Provisions, current | 4 | 7,126 | 5,691 |
| Borrowings, current | 5 | 9,468 | 3,538 |
| Lease liabilities, current | 1,776 | 1,789 | |
| Contract liabilities | 45,133 | 36,867 | |
| Trade payables | 5 | 28,925 | 26,335 |
| Current tax liabilities | 4,669 | 2,679 | |
| Other current liabilities | 34,231 | 34,038 | |
| 131,327 | 110,937 | ||
| Total equity and liabilities | 287,899 | 279,223 | |
| Ericsson | Second quarter report 2026. July 14, 2026. | Financial statements | 19 |
| --- | --- | --- |
Condensed consolidated statement of cash flows
| Q2 | Jan-Jun | ||||
|---|---|---|---|---|---|
| SEK million | Note | 2026 | 2025 | 2026 | 2025 |
| Operating activities | |||||
| Net income | 4,076 | 4,626 | 4,963 | 8,843 | |
| Adjustments for | |||||
| Taxes | 1,652 | 1,949 | 2,004 | 3,703 | |
| Earnings/dividends in associated companies | 64 | -22 | 233 | -20 | |
| Depreciation, amortization and impairment losses | 6 | 1,988 | 2,177 | 3,975 | 4,927 |
| Other | -531 | -410 | -1,078 | -295 | |
| 7,249 | 8,320 | 10,097 | 17,159 | ||
| Changes in operating net assets | |||||
| Inventories | -4,622 | 210 | -6,352 | -2,058 | |
| Customer finance, current and non-current | 94 | 391 | -528 | 2,255 | |
| Trade receivables and contract assets | 2,516 | 188 | 3,799 | -124 | |
| Trade payables | 1,667 | -636 | 1,197 | -2,208 | |
| Provisions and post-employment benefits | -690 | -298 | 1,867 | -2,613 | |
| Contract liabilities | -1,376 | -1,329 | 6,701 | 7,267 | |
| Other operating assets and liabilities, net | -1,985 | -1,187 | -5,480 | -8,017 | |
| -4,397 | -2,661 | 1,203 | -5,499 | ||
| Interest received | 739 | 458 | 1,269 | 1,134 | |
| Interest paid | -631 | -699 | -1,165 | -1,470 | |
| Taxes paid | -1,028 | -1,268 | -2,070 | -2,816 | |
| Cash flow from operating activities | 1,932 | 4,150 | 9,336 | 8,508 | |
| Investing activities | |||||
| Investments in property, plant and equipment | 6 | -637 | -561 | -1,257 | -1,290 |
| Sales of property, plant and equipment | 23 | 40 | 33 | 79 | |
| Acquisitions/divestments of subsidiaries and other operations, net | -238 | 141 | -309 | 137 | |
| Product development | 6 | -384 | -193 | -762 | -500 |
| Purchase of interest-bearing securities | -13,548 | -12,295 | -19,941 | -18,815 | |
| Sales of interest-bearing securities | 11,988 | 2,568 | 20,702 | 8,272 | |
| Other investing activities | -926 | -562 | -327 | 2,560 | |
| Cash flow from investing activities | -3,721 | -10,862 | -1,861 | -9,557 | |
| Financing activities | |||||
| Proceeds from issuance of borrowings | 128 | 198 | 128 | 198 | |
| Repayment of borrowings | -207 | -432 | -207 | -511 | |
| Dividends paid | -5,037 | -4,810 | -5,037 | -4,810 | |
| Repayment of lease liabilities | -513 | -554 | -971 | -1,147 | |
| Repurchase of own shares | -3,224 | -116 | -3,234 | -116 | |
| Other financing activities | -362 | 2,243 | -2,172 | 2,183 | |
| Cash flow from financing activities | -9,216 | -3,471 | -11,494 | -4,203 | |
| Effect of exchange rate changes on cash | 381 | -787 | 1,784 | -5,013 | |
| Net change in cash and cash equivalents | -10,624 | -10,970 | -2,236 | -10,265 | |
| Cash and cash equivalents, beginning of period | 52,315 | 44,590 | 43,926 | 43,885 | |
| Cash and cash equivalents, end of period | 41,691 | 33,620 | 41,691 | 33,620 | |
| Ericsson | Second quarter report 2026. July 14, 2026. | Financial statements | 20 | ||
| --- | --- | --- |
Condensed consolidated statement of changes in equity
| Jan-Jun | ||
|---|---|---|
| SEK million | 2026 | 2025 |
| Opening balance | 110,264 | 92,983 |
| Total comprehensive income | 7,757 | 2,182 |
| Sale/repurchase of own shares | -3,307 | -116 |
| Share issue, net | – | 116 |
| Long-term variable compensation plans | 88 | 77 |
| Dividends to shareholders¹⁾ | -10,037 | -9,543 |
| Transactions with non-controlling interests | – | – |
| Closing balance | 104,764 | 85,699 |
¹⁾ Jan-Jun includes SEK 5,000 (4,769) million of dividend approved by the Annual General Meeting on March 31, 2026, which will be paid out in October 2026.
Condensed consolidated income statement – isolated quarters
| 2026 | 2025 | |||||
|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Net sales | 52,691 | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 |
| Cost of sales | -28,568 | -26,033 | -36,580 | -29,462 | -29,483 | -28,488 |
| Gross income | 24,122 | 23,299 | 32,705 | 26,777 | 26,649 | 26,537 |
| Research and development expenses | -10,480 | -13,489 | -13,098 | -11,510 | -12,212 | -12,032 |
| Selling and administrative expenses | -7,736 | -8,135 | -8,971 | -7,913 | -8,180 | -8,621 |
| Impairment reversals/losses on trade receivables | -20 | -156 | 127 | 46 | 34 | 32 |
| Operating expenses | -18,237 | -21,781 | -21,942 | -19,377 | -20,358 | -20,621 |
| Other operating income and expenses | 90 | 24 | 420 | 7,715 | 67 | 8 |
| Share of earnings of associated companies | -56 | -99 | -22 | 36 | 33 | 7 |
| Earnings before financial items and income tax (EBIT) | 5,919 | 1,443 | 11,161 | 15,151 | 6,391 | 5,931 |
| Financial income and expenses, net | -178 | -193 | -80 | -212 | 34 | -74 |
| Income after financial items | 5,741 | 1,250 | 11,081 | 14,939 | 6,425 | 5,857 |
| Income tax | -1,665 | -362 | -2,510 | -3,639 | -1,799 | -1,640 |
| Net income | 4,076 | 887 | 8,571 | 11,300 | 4,626 | 4,217 |
| Net income attributable to: | ||||||
| Owners of the Parent Company | 4,046 | 888 | 8,563 | 11,149 | 4,567 | 4,149 |
| Non-controlling interests | 30 | – | 8 | 151 | 59 | 68 |
| Other information | ||||||
| Average number of shares, basic (million) | 3,313 | 3,333 | 3,333 | 3,333 | 3,333 | 3,333 |
| Earnings per share, basic (SEK)¹⁾ | 1.22 | 0.27 | 2.57 | 3.34 | 1.37 | 1.25 |
| Earnings per share, diluted (SEK)¹⁾²⁾ | 1.22 | 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.
| Ericsson | Second quarter report 2026. July 14, 2026. | Financial statements | 21 |
|---|
Condensed consolidated statement of cash flows – isolated quarters
| 2026 | 2025 | |||||
|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Operating activities | ||||||
| Net income | 4,076 | 887 | 8,571 | 11,300 | 4,626 | 4,217 |
| Adjustments for | ||||||
| Taxes | 1,652 | 353 | 2,724 | 3,647 | 1,949 | 1,754 |
| Earnings/dividends in associated companies | 64 | 169 | 27 | 50 | -22 | 2 |
| Depreciation, amortization and impairment losses | 1,988 | 1,987 | 2,185 | 2,129 | 2,177 | 2,750 |
| Other | -531 | -547 | -735 | -7,549 | -410 | 115 |
| 7,249 | 2,849 | 12,772 | 9,577 | 8,320 | 8,838 | |
| Changes in operating net assets | ||||||
| Inventories | -4,622 | -1,730 | 3,667 | -680 | 210 | -2,268 |
| Customer finance, current and non-current | 94 | -622 | 406 | 372 | 391 | 1,864 |
| Trade receivables and contract assets | 2,516 | 1,283 | -3,288 | -889 | 188 | -312 |
| Trade payables | 1,667 | -471 | 1,568 | 1,102 | -636 | -1,572 |
| Provisions and post-employment benefits | -690 | 2,557 | 1,743 | -565 | -298 | -2,315 |
| Contract liabilities | -1,376 | 8,077 | -2,913 | -2,869 | -1,329 | 8,596 |
| Other operating assets and liabilities, net | -1,985 | -3,494 | 5,175 | 3,047 | -1,187 | -6,830 |
| -4,397 | 5,600 | 6,358 | -482 | -2,661 | -2,837 | |
| Interest received | 739 | 531 | 716 | 433 | 458 | 676 |
| Interest paid | -631 | -534 | -407 | -328 | -699 | -771 |
| Taxes paid | -1,028 | -1,042 | -2,932 | -1,261 | -1,268 | -1,548 |
| Cash flow from operating activities | 1,932 | 7,403 | 16,507 | 7,939 | 4,150 | 4,358 |
| Investing activities | ||||||
| Investments in property, plant and equipment | -637 | -620 | -849 | -491 | -561 | -729 |
| Sales of property, plant and equipment | 23 | 10 | 56 | 57 | 40 | 39 |
| Acquisitions/divestments of subs. and other operations, net | -238 | -72 | 338 | 10,064 | 141 | -4 |
| Product development | -384 | -378 | -352 | -286 | -193 | -307 |
| Purchase of interest-bearing securities | -13,548 | -6,393 | -10,310 | -9,633 | -12,295 | -6,520 |
| Sales of interest-bearing securities | 11,988 | 8,714 | 4,867 | 3,549 | 2,568 | 5,704 |
| Other investing activities | -926 | 599 | 1,216 | -106 | -562 | 3,122 |
| Cash flow from investing activities | -3,721 | 1,860 | -5,034 | 3,154 | -10,862 | 1,305 |
| Financing activities | ||||||
| Proceeds from issuance of borrowings | 128 | – | 200 | – | 198 | – |
| Repayment of borrowings | -207 | – | -3,001 | -26 | -432 | -79 |
| Dividends paid | -5,037 | – | -4,734 | -1 | -4,810 | – |
| Repayment of lease liabilities | -513 | -459 | -461 | -507 | -554 | -593 |
| Repurchase of own shares | -3,224 | -10 | -6 | – | -116 | – |
| Other financing activities | -362 | -1,809 | -841 | -643 | 2,243 | -60 |
| Cash flow from financing activities | -9,216 | -2,278 | -8,843 | -1,177 | -3,471 | -732 |
| Effect of exchange rate changes on cash | 381 | 1,403 | -1,399 | -841 | -787 | -4,226 |
| Net change in cash and cash equivalents | -10,624 | 8,388 | 1,231 | 9,075 | -10,970 | 705 |
| Cash and cash equivalents, beginning of period | 52,315 | 43,926 | 42,695 | 33,620 | 44,590 | 43,885 |
| Cash and cash equivalents, end of period | 41,691 | 52,315 | 43,926 | 42,695 | 33,620 | 44,590 |
| Ericsson | Second quarter report 2026. July 14, 2026. | Financial statements | 22 | |||
| --- | --- | --- |
Condensed Parent Company income statement
| Q2 | Jan-Jun | |||
|---|---|---|---|---|
| SEK million | 2026 | 2025 | 2026 | 2025 |
| Net sales | – | – | – | – |
| Cost of sales | – | – | – | – |
| Gross income | – | – | – | – |
| Operating expenses | -298 | -429 | -541 | -866 |
| Other operating income and expenses | 764 | 659 | 1,449 | 1,316 |
| EBIT | 466 | 230 | 908 | 450 |
| Financial net | 27,730 | 18,792 | 28,104 | 18,854 |
| Income after financial items | 28,196 | 19,022 | 29,012 | 19,304 |
| Transfers to (-) / from untaxed reserves | – | – | – | – |
| Income tax | -324 | -110 | -434 | -179 |
| Net income | 27,872 | 18,912 | 28,578 | 19,125 |
Condensed Parent Company statement of comprehensive income
| Q2 | Jan-Jun | |||
|---|---|---|---|---|
| SEK million | 2026 | 2025 | 2026 | 2025 |
| Net income | 27,872 | 18,912 | 28,578 | 19,125 |
| Other comprehensive income, net of tax | – | – | – | – |
| Total comprehensive income | 27,872 | 18,912 | 28,578 | 19,125 |
| Ericsson | Second quarter report 2026. July 14, 2026. | Financial statements | 23 | |
| --- | --- | --- |
Condensed Parent Company balance sheet
| SEK million | Jun 30<br><br>2026 | Dec 31<br><br>2025 | |
|---|---|---|---|
| Assets | |||
| Fixed assets | |||
| Intangible assets | 141 | 151 | |
| Tangible assets | 298 | 300 | |
| Financial assets¹⁾ | 135,926 | 135,029 | |
| 136,365 | 135,480 | ||
| Current assets | |||
| Receivables | 20,424 | 19,323 | |
| Short-term investments | 12,237 | 12,651 | |
| Cash and cash equivalents | 28,921 | 27,807 | |
| 61,582 | 59,781 | ||
| Total assets | 197,947 | 195,261 | |
| Stockholders' equity, provisions and liabilities | |||
| Equity | |||
| Restricted equity | 48,351 | 48,351 | |
| Non-restricted equity | 58,356 | 43,051 | |
| 106,707 | 91,402 | ||
| Provisions | 135 | 60 | |
| Non-current liabilities | 22,011 | 29,164 | |
| Current liabilities | 69,094 | 74,635 | |
| Total stockholders' equity, provisions and liabilities | 197,947 | 195,261 | |
| ¹⁾ Of which interest-bearing securities, non-current | 37,193 | 37,298 | |
| Ericsson | Second quarter report 2026. July 14, 2026. | Accounting policies and Explanatory notes | 24 |
| --- | --- | --- |
Accounting policies and
Explanatory notes (unaudited)
Note 1 – Accounting policies and other
information
Accounting policies for the Group
This condensed consolidated interim financial report for the
reporting period ended June 30, 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.
New accounting standards and interpretations
IASB has issued the following new standard with effective date of
January 1, 2027:
– In April 2024, IASB issued a new standard, IFRS 18 that will
replace IAS 1 Presentation of Financial Statements. The standard
sets out the requirements for the presentation and disclosure of
information in the financial statements to ensure better
comparability, consistency and faithful representation of an
entity’s assets, liabilities, equity, income, and expenses. The new
standard’s biggest impact is on the statement of profit or loss
(income statement), where it includes more specific guidance on
how the statement of profit or loss shall be presented mandating
certain income and expense classification and subtotals to be
presented.
– Impact at transition: The standard is effective for the annual
periods beginning on or after January 1, 2027. The Company will
apply the new standard as from January 1, 2027. At transition,
the Company will apply the new presentation and disclosure
requirements retrospectively for all periods presented. As the
standard only impacts the presentation and disclosure
requirements, and not the measurement of any items presented
in the financial statements, there will be no effect on retained
earnings at transition date. The largest effect is on the
presentation of the income statement where certain items such
as foreign exchange differences will be classified differently within
the income statement. In addition, there will be new subtotals
introduced such as Operating profit. Accordingly, the information
for prior years will be restated. The transition note will include a
bridge between the IAS 1 presentation and the new IFRS 18
presentation when the standard is applied.
– The Company is still assessing the detailed impact that the
transition to IFRS 18 will have on the financial statements.
Other
Rounding differences may occur in the summation of amounts.
| Ericsson | Second quarter report 2026. July 14, 2026. | Accounting policies and Explanatory notes | 25 |
|---|
Note 2 – Segment information
Net sales by segment by quarter
| 2026 | 2025 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Networks | 33,047 | 32,937 | 44,200 | 35,424 | 35,747 | 35,643 | ||||||||
| Of which Products | 24,684 | 25,549 | 33,275 | 26,531 | 27,622 | 28,060 | ||||||||
| Of which Services | 8,363 | 7,388 | 10,925 | 8,893 | 8,125 | 7,583 | ||||||||
| Cloud Software and Services | 14,732 | 11,833 | 20,031 | 15,346 | 14,363 | 12,975 | ||||||||
| Of which Products | 5,569 | 4,295 | 8,459 | 5,431 | 5,407 | 4,719 | ||||||||
| Of which Services | 9,163 | 7,539 | 11,572 | 9,915 | 8,956 | 8,256 | ||||||||
| Enterprise | 4,490 | 4,168 | 4,578 | 5,058 | 5,548 | 5,933 | ||||||||
| Other | 422 | 393 | 476 | 411 | 474 | 474 | ||||||||
| Total | 52,691 | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Sequential change, percent | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Networks | 0% | -25% | 25% | -1% | 0% | -24% | ||||||||
| Of which Products | -3% | -23% | 25% | -4% | -2% | -23% | ||||||||
| Of which Services | 13% | -32% | 23% | 9% | 7% | -26% | ||||||||
| Cloud Software and Services | 25% | -41% | 31% | 7% | 11% | -33% | ||||||||
| Of which Products | 30% | -49% | 56% | 0% | 15% | -40% | ||||||||
| Of which Services | 22% | -35% | 17% | 11% | 8% | -29% | ||||||||
| Enterprise | 8% | -9% | -9% | -9% | -6% | -3% | ||||||||
| Other | 7% | -17% | 16% | -13% | 0% | -17% | ||||||||
| Total | 7% | -29% | 23% | 0% | 2% | -25% | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year over year change, percent | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Networks | -8% | -8% | -6% | -11% | -5% | 6% | ||||||||
| Of which Products | -11% | -9% | -9% | -15% | -3% | 10% | ||||||||
| Of which Services | 3% | -3% | 7% | 1% | -11% | -9% | ||||||||
| Cloud Software and Services | 3% | -9% | 3% | 3% | -5% | -1% | ||||||||
| Of which Products | 3% | -9% | 8% | 4% | 12% | 4% | ||||||||
| Of which Services | 2% | -9% | -1% | 2% | -14% | -3% | ||||||||
| Enterprise | -19% | -30% | -25% | -20% | -14% | -1% | ||||||||
| Other | -11% | -17% | -16% | -19% | -6% | -20% | ||||||||
| Total | -6% | -10% | -5% | -9% | -6% | 3% | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, SEK million | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Networks | 65,984 | 32,937 | 151,014 | 106,814 | 71,390 | 35,643 | ||||||||
| Of which Products | 50,233 | 25,549 | 115,488 | 82,213 | 55,682 | 28,060 | ||||||||
| Of which Services | 15,751 | 7,388 | 35,526 | 24,601 | 15,708 | 7,583 | ||||||||
| Cloud Software and Services | 26,566 | 11,833 | 62,715 | 42,684 | 27,338 | 12,975 | ||||||||
| Of which Products | 9,863 | 4,295 | 24,016 | 15,557 | 10,126 | 4,719 | ||||||||
| Of which Services | 16,702 | 7,539 | 38,699 | 27,127 | 17,212 | 8,256 | ||||||||
| Enterprise | 8,658 | 4,168 | 21,117 | 16,539 | 11,481 | 5,933 | ||||||||
| Other | 815 | 393 | 1,835 | 1,359 | 948 | 474 | ||||||||
| Total | 102,022 | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year over year change, percent | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Networks | -8% | -8% | -5% | -4% | 0% | 6% | ||||||||
| Of which Products | -10% | -9% | -5% | -4% | 3% | 10% | ||||||||
| Of which Services | 0% | -3% | -2% | -6% | -10% | -9% | ||||||||
| Cloud Software and Services | -3% | -9% | 0% | -1% | -3% | -1% | ||||||||
| Of which Products | -3% | -9% | 7% | 7% | 8% | 4% | ||||||||
| Of which Services | -3% | -9% | -4% | -5% | -9% | -3% | ||||||||
| Enterprise | -25% | -30% | -15% | -12% | -8% | -1% | ||||||||
| Other | -14% | -17% | -16% | -15% | -14% | -20% | ||||||||
| Total | -8% | -10% | -5% | -4% | -2% | 3% | ||||||||
| Ericsson | Second quarter report 2026. July 14, 2026. | Accounting policies and Explanatory notes | 26 | |||||||||||
| --- | --- | --- |
Gross income by segment by quarter
| 2026 | 2025 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Networks | 15,975 | 16,359 | 21,648 | 17,705 | 17,638 | 18,112 | ||||||||
| Cloud Software and Services | 5,868 | 4,907 | 8,636 | 6,463 | 5,964 | 5,069 | ||||||||
| Enterprise | 2,276 | 2,039 | 2,386 | 2,609 | 3,045 | 3,338 | ||||||||
| Other | 2 | -6 | 35 | 0 | 2 | 18 | ||||||||
| Total | 24,122 | 23,299 | 32,705 | 26,777 | 26,649 | 26,537 | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, SEK million | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Networks | 32,334 | 16,359 | 75,103 | 53,455 | 35,750 | 18,112 | ||||||||
| Cloud Software and Services | 10,776 | 4,907 | 26,132 | 17,496 | 11,033 | 5,069 | ||||||||
| Enterprise | 4,315 | 2,039 | 11,378 | 8,992 | 6,383 | 3,338 | ||||||||
| Other | -4 | -6 | 55 | 20 | 20 | 18 | ||||||||
| Total | 47,421 | 23,299 | 112,668 | 79,963 | 53,186 | 26,537 |
EBIT by segment by quarter
| 2026 | 2025 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Networks | 6,006 | 3,283 | 9,318 | 7,075 | 6,376 | 7,040 | ||||||||
| Cloud Software and Services | 1,142 | 3 | 3,364 | 1,721 | 840 | 71 | ||||||||
| Enterprise | -1,215 | -1,844 | -1,526 | 6,649 | -870 | -1,014 | ||||||||
| Other | -14 | 1 | 5 | -294 | 45 | -166 | ||||||||
| Total | 5,919 | 1,443 | 11,161 | 15,151 | 6,391 | 5,931 | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, SEK million | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Networks | 9,290 | 3,283 | 29,809 | 20,491 | 13,416 | 7,040 | ||||||||
| Cloud Software and Services | 1,146 | 3 | 5,996 | 2,632 | 911 | 71 | ||||||||
| Enterprise | -3,059 | -1,844 | 3,239 | 4,765 | -1,884 | -1,014 | ||||||||
| Other | -14 | 1 | -410 | -415 | -121 | -166 | ||||||||
| Total | 7,362 | 1,443 | 38,634 | 27,473 | 12,322 | 5,931 | ||||||||
| Ericsson | Second quarter report 2026. July 14, 2026. | Accounting policies and Explanatory notes | 27 | |||||||||||
| --- | --- | --- |
Net sales by market area by quarter
| 2026 | 2025 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Americas | 18,821 | 17,077 | 22,928 | 19,837 | 19,809 | 20,859 | ||||||||
| Europe, Middle East and Africa¹⁾²⁾ | 16,261 | 14,298 | 23,350 | 16,730 | 16,193 | 14,475 | ||||||||
| South East Asia, Oceania and India | 5,407 | 6,946 | 8,986 | 7,097 | 5,505 | 7,226 | ||||||||
| North East Asia | 3,734 | 3,122 | 5,205 | 3,825 | 3,766 | 3,215 | ||||||||
| Other¹⁾²⁾ | 8,467 | 7,888 | 8,816 | 8,750 | 10,859 | 9,250 | ||||||||
| Total | 52,691 | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | ||||||||
| ¹⁾ Of which in Sweden | 688 | 781 | 1,374 | 863 | 686 | 461 | ||||||||
| ²⁾ Of which in EU | 7,526 | 7,081 | 10,663 | 8,213 | 8,223 | 7,566 | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Sequential change, percent | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Americas | 10% | -26% | 16% | 0% | -5% | -19% | ||||||||
| Europe, Middle East and Africa¹⁾²⁾ | 14% | -39% | 40% | 3% | 12% | -34% | ||||||||
| South East Asia, Oceania and India | -22% | -23% | 27% | 29% | -24% | -14% | ||||||||
| North East Asia | 20% | -40% | 36% | 2% | 17% | -55% | ||||||||
| Other¹⁾²⁾ | 7% | -11% | 1% | -19% | 17% | -4% | ||||||||
| Total | 7% | -29% | 23% | 0% | 2% | -25% | ||||||||
| ¹⁾ Of which in Sweden | -12% | -43% | 59% | 26% | 49% | -23% | ||||||||
| ²⁾ Of which in EU | 6% | -34% | 30% | 0% | 9% | -31% | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year over year change, percent | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Americas | -5% | -18% | -11% | -16% | 0% | 26% | ||||||||
| Europe, Middle East and Africa¹⁾²⁾ | 0% | -1% | 7% | -1% | -6% | -5% | ||||||||
| South East Asia, Oceania and India | -2% | -4% | 6% | -8% | -28% | -16% | ||||||||
| North East Asia | -1% | -3% | -27% | 4% | -17% | -6% | ||||||||
| Other¹⁾²⁾ | -22% | -15% | -9% | -13% | 4% | -3% | ||||||||
| Total | -6% | -10% | -5% | -9% | -6% | 3% | ||||||||
| ¹⁾ Of which in Sweden | 0% | 69% | 130% | 100% | 18% | -37% | ||||||||
| ²⁾ Of which in EU | -8% | -6% | -2% | 1% | -4% | 0% | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, SEK million | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Americas | 35,898 | 17,077 | 83,433 | 60,505 | 40,668 | 20,859 | ||||||||
| Europe, Middle East and Africa¹⁾²⁾ | 30,559 | 14,298 | 70,748 | 47,398 | 30,668 | 14,475 | ||||||||
| South East Asia, Oceania and India | 12,352 | 6,946 | 28,814 | 19,828 | 12,731 | 7,226 | ||||||||
| North East Asia | 6,856 | 3,122 | 16,011 | 10,806 | 6,981 | 3,215 | ||||||||
| Other¹⁾²⁾ | 16,356 | 7,888 | 37,675 | 28,859 | 20,109 | 9,250 | ||||||||
| Total | 102,022 | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | ||||||||
| ¹⁾ Of which in Sweden | 1,469 | 781 | 3,384 | 2,010 | 1,147 | 461 | ||||||||
| ²⁾ Of which in EU | 14,607 | 7,081 | 34,665 | 24,002 | 15,789 | 7,566 | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, year over year change, percent | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Americas | -12% | -18% | -3% | 1% | 12% | 26% | ||||||||
| Europe, Middle East and Africa¹⁾²⁾ | 0% | -1% | -1% | -4% | -6% | -5% | ||||||||
| South East Asia, Oceania and India | -3% | -4% | -11% | -17% | -22% | -16% | ||||||||
| North East Asia | -2% | -3% | -15% | -7% | -13% | -6% | ||||||||
| Other¹⁾²⁾ | -19% | -15% | -5% | -4% | 1% | -3% | ||||||||
| Total | -8% | -10% | -5% | -4% | -2% | 3% | ||||||||
| ¹⁾ Of which in Sweden | 28% | 69% | 45% | 15% | -13% | -37% | ||||||||
| ²⁾ Of which in EU | -7% | -6% | -2% | -1% | -2% | 0% | ||||||||
| Ericsson | Second quarter report 2026. July 14, 2026. | Accounting policies and Explanatory notes | 28 | |||||||||||
| --- | --- | --- |
Net sales by market area by segment
| Q2 2026 | Jan-Jun 2026 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK million | Networks | Cloud<br><br>Software and<br><br>Services | Enterprise | Other | Total | Networks | Cloud<br><br>Software and<br><br>Services | Enterprise | Other | Total |
| Americas | 14,147 | 4,619 | 55 | 0 | 18,821 | 27,829 | 7,955 | 115 | 0 | 35,898 |
| Europe, Middle East and Africa | 9,469 | 6,536 | 256 | 0 | 16,261 | 18,411 | 11,711 | 437 | 0 | 30,559 |
| South East Asia, Oceania and India | 3,467 | 1,929 | 10 | 0 | 5,407 | 8,542 | 3,788 | 23 | 0 | 12,352 |
| North East Asia | 2,863 | 869 | 1 | 0 | 3,734 | 5,233 | 1,620 | 3 | 0 | 6,856 |
| Other¹⁾ | 3,100 | 778 | 4,167 | 422 | 8,467 | 5,969 | 1,491 | 8,081 | 815 | 16,356 |
| Total | 33,047 | 14,732 | 4,490 | 422 | 52,691 | 65,984 | 26,566 | 8,658 | 815 | 102,022 |
| Share of total | 63% | 28% | 9% | 1% | 100% | 65% | 26% | 8% | 1% | 100% |
- Includes primarily IPR licensing revenues and a major part of segment Enterprise.
| Q2 2026 | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sequential change, percent | Networks | Cloud<br><br>Software and<br><br>Services | Enterprise | Other | Total | ||||||||||||
| Americas | 3% | 39% | -8% | - | 10% | ||||||||||||
| Europe, Middle East and Africa | 6% | 26% | 42% | 6% | 14% | ||||||||||||
| South East Asia, Oceania and India | -32% | 4% | -24% | - | -22% | ||||||||||||
| North East Asia | 21% | 16% | -8% | - | 20% | ||||||||||||
| Other | 8% | 9% | 6% | 7% | 7% | ||||||||||||
| Total | 0% | 25% | 8% | 7% | 7% | Q2 2026 | Jan-Jun 2026 | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| Year over year change, percent | Networks | Cloud<br><br>Software and<br><br>Services | Enterprise | Other | Total | Networks | Cloud<br><br>Software and<br><br>Services | Enterprise | Other | Total | |||||||
| Americas | -7% | 2% | -33% | - | -5% | -14% | -1% | -45% | -100% | -12% | |||||||
| Europe, Middle East and Africa | -3% | 6% | 16% | - | 0% | 2% | -3% | -5% | - | 0% | |||||||
| South East Asia, Oceania and India | -5% | 5% | -50% | -100% | -2% | -4% | -2% | -14% | -100% | -3% | |||||||
| North East Asia | -4% | 10% | -20% | - | -1% | -2% | -2% | -68% | - | -2% | |||||||
| Other | -25% | -24% | -20% | -11% | -22% | -11% | -11% | -25% | -14% | -19% | |||||||
| Total | -8% | 3% | -19% | -11% | -6% | -8% | -3% | -25% | -14% | -8% |
Top 5 countries in sales
| 2026 | 2025 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Country, percentage of net sales¹⁾ | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| United States | 40% | 39% | 36% | 40% | 44% | 45% | ||||||||
| India | 4% | 8% | 5% | 5% | 4% | 7% | ||||||||
| United Kingdom | 5% | 4% | 4% | 4% | 4% | 4% | ||||||||
| Japan | 4% | 4% | 4% | 3% | 3% | 3% | ||||||||
| China | 4% | 3% | 3% | 3% | 4% | 3% | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Country, percentage of net sales¹⁾ | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| United States | 40% | 39% | 41% | 43% | 44% | 45% | ||||||||
| India | 6% | 8% | 5% | 5% | 6% | 7% | ||||||||
| United Kingdom | 5% | 4% | 4% | 4% | 4% | 4% | ||||||||
| Japan | 4% | 4% | 4% | 3% | 3% | 3% | ||||||||
| China | 3% | 3% | 3% | 4% | 4% | 3% |
- Based on Jan-Jun 2026. Includes IPR licensing revenues.
IPR licensing revenues by segment by quarter
| 2026 | 2025 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Networks | 2,796 | 2,569 | 2,733 | 2,569 | 3,987 | 2,606 | ||||||||
| Cloud Software and Services | 614 | 564 | 600 | 564 | 875 | 572 | ||||||||
| Total | 3,410 | 3,133 | 3,333 | 3,133 | 4,862 | 3,178 | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, SEK million | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Networks | 5,365 | 2,569 | 11,895 | 9,162 | 6,593 | 2,606 | ||||||||
| Cloud Software and Services | 1,178 | 564 | 2,611 | 2,011 | 1,447 | 572 | ||||||||
| Total | 6,543 | 3,133 | 14,506 | 11,173 | 8,040 | 3,178 | ||||||||
| Ericsson | Second quarter report 2026. July 14, 2026. | Accounting policies and Explanatory notes | 29 | |||||||||||
| --- | --- | --- |
Note 3 – Financial income and expenses, net
Financial income and expenses, net
| 2026 | 2025 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Financial income | 732 | 585 | 620 | 662 | 579 | 619 | ||||||||
| Financial expenses | -680 | -594 | -580 | -735 | -927 | -805 | ||||||||
| Net foreign exchange gains/losses | -229 | -184 | -120 | -139 | 382 | 112 | ||||||||
| Total | -178 | -193 | -80 | -212 | 34 | -74 | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, SEK million | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Financial income | 1,316 | 585 | 2,480 | 1,860 | 1,198 | 619 | ||||||||
| Financial expenses | -1,274 | -594 | -3,047 | -2,467 | -1,732 | -805 | ||||||||
| Net foreign exchange gains/losses | -414 | -184 | 235 | 355 | 494 | 112 | ||||||||
| Total | -372 | -193 | -332 | -252 | -40 | -74 |
Note 4 – Provisions
Provisions
| 2026 | 2025 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Opening balance | 11,803 | 8,684 | 7,823 | 8,652 | 9,093 | 11,715 | ||||||||
| Additions | 1,265 | 6,016 | 3,005 | 847 | 1,830 | 1,055 | ||||||||
| Utilization | -1,815 | -2,898 | -1,605 | -1,311 | -1,853 | -3,009 | ||||||||
| Of which restructuring | -1,064 | -546 | -721 | -813 | -837 | -1,201 | ||||||||
| Reversal of excess amounts | -217 | -171 | -357 | -370 | -273 | -256 | ||||||||
| Reclassification, translation difference and other | 126 | 172 | -182 | 5 | -145 | -412 | ||||||||
| Closing balance | 11,163 | 11,803 | 8,684 | 7,823 | 8,652 | 9,093 | ||||||||
| Of which restructuring | 4,017 | 4,956 | 1,889 | 1,710 | 2,429 | 2,720 | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, SEK million | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Opening balance | 8,684 | 8,684 | 11,715 | 11,715 | 11,715 | 11,715 | ||||||||
| Additions | 7,281 | 6,016 | 6,737 | 3,732 | 2,885 | 1,055 | ||||||||
| Utilization | -4,713 | -2,898 | -7,778 | -6,173 | -4,862 | -3,009 | ||||||||
| Of which restructuring | -1,610 | -546 | -3,572 | -2,851 | -2,038 | -1,201 | ||||||||
| Reversal of excess amounts | -388 | -171 | -1,256 | -899 | -529 | -256 | ||||||||
| Reclassification, translation difference and other | 298 | 172 | -734 | -552 | -557 | -412 | ||||||||
| Closing balance | 11,163 | 11,803 | 8,684 | 7,823 | 8,652 | 9,093 | ||||||||
| Of which restructuring | 4,017 | 4,956 | 1,889 | 1,710 | 2,429 | 2,720 | ||||||||
| Ericsson | Second quarter report 2026. July 14, 2026. | Accounting policies and Explanatory notes | 30 | |||||||||||
| --- | --- | --- |
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 | Jun 30<br><br>2026 | Dec 31<br><br>2025 | ||||||
|---|---|---|---|---|---|---|---|---|
| Fair value hierarchy level | Fair value hierarchy level | |||||||
| Carrying<br><br>value | Level 1 | Level 2 | Level 3 | Carrying<br><br>value | Level 1 | Level 2 | Level 3 | |
| Assets at fair value through profit or loss | ||||||||
| Customer finance¹⁾ | 1.7 | – | – | 1.7 | 1.1 | – | – | 1.1 |
| Interest-bearing securities | 49.4 | 43.6 | 5.8 | – | 49.9 | 45.4 | 4.5 | – |
| Cash equivalents²⁾ | 27.0 | – | 27.0 | – | 25.3 | – | 25.3 | – |
| Other financial assets | 2.2 | 0.1 | – | 2.1 | 1.9 | – | – | 1.9 |
| Other current assets | 0.8 | – | 0.8 | – | 2.9 | – | 2.9 | – |
| Assets at fair value through OCI | ||||||||
| Trade receivables | 37.9 | – | – | 37.9 | 40.3 | – | – | 40.3 |
| Assets at amortized costs | ||||||||
| Interest-bearing securities | 0.2 | – | – | – | 0.1 | – | – | – |
| Other financial assets | 0.0 | – | – | – | 0.1 | – | – | – |
| Total financial assets | 119.1 | 121.6 | ||||||
| Financial liabilities at designated FVTPL | ||||||||
| Parent company borrowings | -30.7 | -19.2 | -11.5 | – | -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 | -28.9 | – | – | – | -26.3 | – | – | – |
| Borrowings | -0.8 | – | – | – | -3.1 | – | – | – |
| Total financial liabilities | -60.7 | -59.2 |
- Year to date movements of customer finance receivables are as follows: additions of SEK 11.5 billion, disposals and repayments of SEK 11.0 billion. No material revaluation impact in the
current period (< SEK 0.1billion).
- Total Cash and cash equivalent is SEK 41.7 (43.9 on Dec 31, 2025) billion, of which SEK 27.0 (SEK 25.3 on Dec 31, 2025) billion relating to Cash equivalents are presented in the table
above.
Exchange rates used in the consolidation
| Jan-Jun | Jan-Dec | ||
|---|---|---|---|
| Closing rates to SEK | 2026 | 2025 | 2025 |
| EUR | 11.08 | 11.14 | 10.82 |
| USD | 9.72 | 9.50 | 9.19 |
| Ericsson | Second quarter report 2026. July 14, 2026. | Accounting policies and Explanatory notes | 31 |
| --- | --- | --- |
Note 6 – Cash flow
Information on investments
Investments in assets subject to depreciation, amortization, impairment and write-downs
| 2026 | 2025 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Additions | ||||||||||||||
| Property, plant and equipment | 637 | 620 | 849 | 491 | 561 | 729 | ||||||||
| Capitalized development expenses | 384 | 378 | 352 | 286 | 193 | 307 | ||||||||
| IPR, brands and other intangible assets | 36 | 35 | 48 | 81 | 301 | 57 | ||||||||
| Total | 1,058 | 1,033 | 1,249 | 858 | 1,055 | 1,093 | ||||||||
| Depreciation, amortization and impairment losses | ||||||||||||||
| Property, plant and equipment | 698 | 735 | 814 | 812 | 826 | 1,029 | ||||||||
| Capitalized development expenses | 426 | 436 | 446 | 449 | 451 | 444 | ||||||||
| Goodwill, IPR, brands and other intangible assets | 358 | 344 | 439 | 365 | 373 | 721 | ||||||||
| Right-of-use assets | 506 | 471 | 486 | 503 | 527 | 556 | ||||||||
| Total | 1,988 | 1,986 | 2,185 | 2,129 | 2,177 | 2,750 | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, SEK million | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Additions | ||||||||||||||
| Property, plant and equipment | 1,257 | 620 | 2,630 | 1,781 | 1,290 | 729 | ||||||||
| Capitalized development expenses | 762 | 378 | 1,138 | 786 | 500 | 307 | ||||||||
| IPR, brands and other intangible assets | 72 | 35 | 487 | 439 | 358 | 57 | ||||||||
| Total | 2,091 | 1,033 | 4,255 | 3,006 | 2,148 | 1,093 | ||||||||
| Depreciation, amortization and impairment losses | ||||||||||||||
| Property, plant and equipment | 1,433 | 735 | 3,481 | 2,667 | 1,855 | 1,029 | ||||||||
| Capitalized development expenses | 862 | 436 | 1,790 | 1,344 | 895 | 444 | ||||||||
| Goodwill, IPR, brands and other intangible assets | 702 | 344 | 1,898 | 1,459 | 1,094 | 721 | ||||||||
| Right-of-use assets | 978 | 471 | 2,072 | 1,586 | 1,083 | 556 | ||||||||
| Total | 3,975 | 1,986 | 9,241 | 7,056 | 4,927 | 2,750 |
Note 7 – Contingent liabilities and Assets pledged as collateral
Contingent liabilities and Assets pledged as collateral
| SEK million | Jun 30<br><br>2026 | Dec 31<br><br>2025 | |
|---|---|---|---|
| Contingent liabilities | 4,697 | 4,091 | |
| Assets pledged as collateral | 8,826 | 8,695 | |
| Ericsson | Second quarter report 2026. July 14, 2026. | Accounting policies and Explanatory notes | 32 |
| --- | --- | --- |
Note 8 – Share information
Number of shares and earnings per share
| Q2 | Jan-Jun | |||
|---|---|---|---|---|
| 2026 | 2025 | 2026 | 2025 | |
| Number of shares, end of period (million) | 3,371 | 3,371 | 3,371 | 3,371 |
| Of which class A-shares (million) | 262 | 262 | 262 | 262 |
| Of which class B-shares (million) | 3,110 | 3,110 | 3,110 | 3,110 |
| Number of treasury shares, end of period (million) | 65 | 38 | 65 | 38 |
| Number of shares outstanding, basic, end of period (million) | 3,306 | 3,333 | 3,306 | 3,333 |
| Numbers of shares outstanding, diluted, end of period (million) | 3,316 | 3,343 | 3,316 | 3,343 |
| Average number of treasury shares (million) | 52 | 31 | 45 | 23 |
| Average number of shares outstanding, basic (million) | 3,313 | 3,333 | 3,323 | 3,333 |
| Average number of shares outstanding, diluted (million)¹⁾ | 3,322 | 3,343 | 3,333 | 3,342 |
| Earnings per share, basic (SEK)²⁾ | 1.22 | 1.37 | 1.48 | 2.62 |
| Earnings per share, diluted (SEK)¹⁾²⁾ | 1.22 | 1.37 | 1.48 | 2.61 |
Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.
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 March 31, 2026. 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 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.
During the quarter, Ericsson has repurchased 29,535,981
Class B shares for a total consideration of SEK 3.3 billion in
accordance with the AGM authorization. Repurchased shares
are held as treasury shares and are presented as a deduction
from equity. In accordance with the conditions of the long-term
variable compensation program (LTV) for Ericsson employees,
2,639,299 shares from treasury stock were distributed or sold to
employees in the second quarter. On June 30, 2026, Ericsson
held 64,898,958 (38,002,276 on Dec 31, 2025) treasury shares.
Repurchased shares are reflected in the average number of
shares outstanding and in the calculation of earnings per share.
Note 9 – Employee information
Number of employees
| 2026 | 2025 | |||||
|---|---|---|---|---|---|---|
| End of period | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 |
| Americas | 14,136 | 14,537 | 15,050 | 15,346 | 15,926 | 15,857 |
| Europe, Middle East and Africa¹⁾ | 38,308 | 38,548 | 39,045 | 39,489 | 40,413 | 40,677 |
| South East Asia, Oceania and India | 25,050 | 25,100 | 25,189 | 25,358 | 25,591 | 25,991 |
| North East Asia | 9,042 | 9,336 | 9,542 | 9,705 | 10,007 | 10,341 |
| Total | 86,536 | 87,521 | 88,826 | 89,898 | 91,937 | 92,866 |
| ¹⁾ Of which in Sweden | 13,013 | 12,615 | 12,806 | 12,967 | 13,476 | 13,222 |
| Ericsson | Second quarter report 2026. July 14, 2026. | Alternative performance measures | 33 | |||
| --- | --- | --- |
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 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Reported net sales | 52,691 | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | ||||||||
| Acquired business | – | – | – | – | – | – | ||||||||
| Net FX impact | 1,821 | 7,755 | 6,801 | 4,213 | 4,672 | -1,817 | ||||||||
| Current period net sales, excluding acquired business & FX impact | 54,511 | 57,087 | 76,086 | 60,452 | 60,804 | 53,208 | ||||||||
| Prior year period net sales adjusted for acquired & divested business | 55,121 | 53,903 | 71,474 | 61,794 | 59,848 | 53,325 | ||||||||
| Organic sales growth (%) | -1% | 6% | 6% | -2% | 2% | 0% | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, year over year change, SEK million | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Reported net sales | 102,022 | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | ||||||||
| Acquired business | – | – | – | – | – | – | ||||||||
| Net FX impact | 9,576 | 7,755 | 13,869 | 7,068 | 2,855 | -1,817 | ||||||||
| Current period net sales, excluding acquired business & FX impact | 111,598 | 57,087 | 250,550 | 174,464 | 114,012 | 53,208 | ||||||||
| Prior year period net sales adjusted for acquired & divested business | 109,024 | 53,903 | 246,441 | 174,967 | 113,173 | 53,325 | ||||||||
| Organic sales growth (%) | 2% | 6% | 2% | 0% | 1% | 0% | ||||||||
| Ericsson | Second quarter report 2026. July 14, 2026. | Alternative performance measures | 34 | |||||||||||
| --- | --- | --- |
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 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Gross income | 24,122 | 23,299 | 32,705 | 26,777 | 26,649 | 26,537 | ||||||||
| Net sales | 52,691 | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | ||||||||
| Gross margin (%) | 45.8% | 47.2% | 47.2% | 47.6% | 47.5% | 48.2% | ||||||||
| Gross income | 24,122 | 23,299 | 32,705 | 26,777 | 26,649 | 26,537 | ||||||||
| Restructuring charges included in cost of sales | 1,359 | 435 | 538 | 271 | 310 | 158 | ||||||||
| Adjusted gross income | 25,481 | 23,734 | 33,243 | 27,048 | 26,959 | 26,695 | ||||||||
| Net sales | 52,691 | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | ||||||||
| Adjusted gross margin (%) | 48.4% | 48.1% | 48.0% | 48.1% | 48.0% | 48.5% | ||||||||
| Operating expenses | -18,237 | -21,781 | -21,942 | -19,377 | -20,358 | -20,621 | ||||||||
| Restructuring charges included in R&D expenses | -882 | 2,595 | 300 | -41 | 300 | 20 | ||||||||
| Restructuring charges included in selling and administrative expenses | 124 | 738 | 259 | 73 | 46 | 103 | ||||||||
| Operating expenses excluding restructuring charges | -18,995 | -18,448 | -21,383 | -19,345 | -20,012 | -20,498 | ||||||||
| EBIT | 5,919 | 1,443 | 11,161 | 15,151 | 6,391 | 5,931 | ||||||||
| Net sales | 52,691 | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | ||||||||
| EBIT margin (%) | 11.2% | 2.9% | 16.1% | 26.9% | 11.4% | 10.8% | ||||||||
| EBIT | 5,919 | 1,443 | 11,161 | 15,151 | 6,391 | 5,931 | ||||||||
| Total restructuring charges | 601 | 3,768 | 1,097 | 303 | 656 | 281 | ||||||||
| Adjusted EBIT | 6,520 | 5,211 | 12,258 | 15,454 | 7,047 | 6,212 | ||||||||
| Net sales | 52,691 | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | ||||||||
| Adjusted EBIT margin (%) | 12.4% | 10.6% | 17.7% | 27.5% | 12.6% | 11.3% | ||||||||
| Adjusted EBIT | 6,520 | 5,211 | 12,258 | 15,454 | 7,047 | 6,212 | ||||||||
| Impairment of goodwill and intangible assets | 2 | – | – | – | – | – | ||||||||
| Adjusted EBIT excluding impairments of goodwill and intangible assets | 6,521 | 5,211 | 12,258 | 15,454 | 7,047 | 6,212 | ||||||||
| Net sales | 52,691 | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | ||||||||
| Adjusted EBIT margin excluding impairments of goodwill and intangible assets (%) | 12.4% | 10.6% | 17.7% | 27.5% | 12.6% | 11.3% | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, SEK million | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Gross income | 47,421 | 23,299 | 112,668 | 79,963 | 53,186 | 26,537 | ||||||||
| Net sales | 102,022 | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | ||||||||
| Gross margin (%) | 46.5% | 47.2% | 47.6% | 47.8% | 47.8% | 48.2% | ||||||||
| Gross income | 47,421 | 23,299 | 112,668 | 79,963 | 53,186 | 26,537 | ||||||||
| Restructuring charges included in cost of sales | 1,794 | 435 | 1,277 | 739 | 468 | 158 | ||||||||
| Adjusted gross income | 49,216 | 23,734 | 113,945 | 80,702 | 53,654 | 26,695 | ||||||||
| Net sales | 102,022 | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | ||||||||
| Adjusted gross margin (%) | 48.2% | 48.1% | 48.1% | 48.2% | 48.3% | 48.5% | ||||||||
| Operating expenses | -40,017 | -21,781 | -82,298 | -60,356 | -40,979 | -20,621 | ||||||||
| Restructuring charges included in R&D expenses | 1,713 | 2,595 | 579 | 279 | 320 | 20 | ||||||||
| Restructuring charges included in selling and administrative expenses | 861 | 738 | 481 | 222 | 149 | 103 | ||||||||
| Operating expenses excluding restructuring charges | -37,443 | -18,448 | -81,238 | -59,855 | -40,510 | -20,498 | ||||||||
| EBIT | 7,362 | 1,443 | 38,634 | 27,473 | 12,322 | 5,931 | ||||||||
| Net sales | 102,022 | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | ||||||||
| EBIT margin (%) | 7.2% | 2.9% | 16.3% | 16.4% | 11.1% | 10.8% | ||||||||
| EBIT | 7,362 | 1,443 | 38,634 | 27,473 | 12,322 | 5,931 | ||||||||
| Total restructuring charges | 4,369 | 3,768 | 2,337 | 1,240 | 937 | 281 | ||||||||
| Adjusted EBIT | 11,731 | 5,211 | 40,971 | 28,713 | 13,259 | 6,212 | ||||||||
| Net sales | 102,022 | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | ||||||||
| Adjusted EBIT margin (%) | 11.5% | 10.6% | 17.3% | 17.2% | 11.9% | 11.3% | ||||||||
| Adjusted EBIT | 11,731 | 5,211 | 40,971 | 28,713 | 13,259 | 6,212 | ||||||||
| Impairment of goodwill and intangible assets | 2 | – | – | – | – | – | ||||||||
| Adjusted EBIT excluding impairments of goodwill and intangible assets | 11,733 | 5,211 | 40,971 | 28,713 | 13,259 | 6,212 | ||||||||
| Net sales | 102,022 | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | ||||||||
| Adjusted EBIT margin excluding impairments of goodwill and intangible assets (%) | 11.5% | 10.6% | 17.3% | 17.2% | 11.9% | 11.3% | ||||||||
| Ericsson | Second quarter report 2026. July 14, 2026. | Alternative performance measures | 35 | |||||||||||
| --- | --- | --- |
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 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Net income | 4,076 | 887 | 8,571 | 11,300 | 4,626 | 4,217 | ||||||||
| Income tax | 1,665 | 362 | 2,510 | 3,639 | 1,799 | 1,640 | ||||||||
| Financial income and expenses, net | 178 | 193 | 80 | 212 | -34 | 74 | ||||||||
| Amortizations and write-downs of acquired intangibles | 358 | 344 | 440 | 365 | 372 | 721 | ||||||||
| Of which segment Enterprise | 327 | 307 | 406 | 338 | 346 | 389 | ||||||||
| EBITA | 6,277 | 1,788 | 11,601 | 15,516 | 6,763 | 6,652 | ||||||||
| Net sales | 52,691 | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | ||||||||
| EBITA margin (%) | 11.9% | 3.6% | 16.7% | 27.6% | 12.0% | 12.1% | ||||||||
| Restructuring charges | 601 | 3,768 | 1,097 | 303 | 656 | 281 | ||||||||
| Adjusted EBITA | 6,878 | 5,556 | 12,698 | 15,819 | 7,419 | 6,933 | ||||||||
| Adjusted EBITA margin (%) | 13.1% | 11.3% | 18.3% | 28.1% | 13.2% | 12.6% | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, SEK million | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Net income | 4,963 | 887 | 28,714 | 20,143 | 8,843 | 4,217 | ||||||||
| Income tax | 2,027 | 362 | 9,588 | 7,078 | 3,439 | 1,640 | ||||||||
| Financial income and expenses, net | 372 | 193 | 332 | 252 | 40 | 74 | ||||||||
| Amortizations and write-downs of acquired intangibles | 702 | 344 | 1,898 | 1,458 | 1,093 | 721 | ||||||||
| Of which segment Enterprise | 634 | 307 | 1,479 | 1,073 | 735 | 389 | ||||||||
| EBITA | 8,065 | 1,788 | 40,532 | 28,931 | 13,415 | 6,652 | ||||||||
| Net sales | 102,022 | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | ||||||||
| EBITA margin (%) | 7.9% | 3.6% | 17.1% | 17.3% | 12.1% | 12.1% | ||||||||
| Restructuring charges | 4,369 | 3,768 | 2,337 | 1,240 | 937 | 281 | ||||||||
| Adjusted EBITA | 12,433 | 5,556 | 42,869 | 30,171 | 14,352 | 6,933 | ||||||||
| Adjusted EBITA margin (%) | 12.2% | 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 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Net sales | 227,546 | 230,988 | 236,681 | 240,309 | 245,864 | 249,580 |
| EBITA | 35,182 | 35,668 | 40,532 | 37,554 | 28,241 | 23,904 |
| Restructuring charges | 5,769 | 5,824 | 2,337 | 2,866 | 4,116 | 5,088 |
| Adjusted EBITA | 40,950 | 41,492 | 42,869 | 40,420 | 32,357 | 28,992 |
| Adjusted EBITA margin (%) | 18.0% | 18.0% | 18.1% | 16.8% | 13.2% | 11.6% |
| Ericsson | Second quarter report 2026. July 14, 2026. | Alternative performance measures | 36 | |||
| --- | --- | --- |
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 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Cash and cash equivalents | 41,691 | 52,315 | 43,926 | 42,695 | 33,620 | 44,590 |
| + Interest-bearing securities, current | 12,413 | 10,775 | 12,715 | 8,345 | 6,790 | 5,147 |
| + Interest-bearing securities, non-current | 37,193 | 36,457 | 37,298 | 37,370 | 32,859 | 24,436 |
| Gross cash, end of period | 91,297 | 99,547 | 93,939 | 88,410 | 73,269 | 74,173 |
| - Borrowings, current | 9,468 | 9,865 | 3,538 | 6,680 | 7,285 | 5,597 |
| - Borrowings, non-current | 21,990 | 21,541 | 29,165 | 29,872 | 29,944 | 29,929 |
| Net cash, end of period | 59,839 | 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 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Total assets | 287,899 | 290,393 | 279,223 | 282,476 | 270,555 | 277,978 |
| Less: Non-interest-bearing provisions and liabilities | ||||||
| Provisions, non-current | -4,037 | -4,822 | -2,993 | -2,478 | -2,365 | -2,541 |
| Deferred tax liabilities | -173 | -175 | -152 | -1,349 | -1,390 | -1,365 |
| Other non-current liabilities | -1,355 | -1,327 | -1,292 | -899 | -870 | -888 |
| Provisions, current | -7,126 | -6,981 | -5,691 | -5,345 | -6,287 | -6,552 |
| Contract liabilities | -45,133 | -46,008 | -36,867 | -40,642 | -44,370 | -46,757 |
| Trade payables | -28,925 | -26,719 | -26,335 | -25,352 | -24,804 | -26,450 |
| Current tax liabilities | -4,669 | -3,386 | -2,679 | -6,069 | -3,609 | -2,664 |
| Other current liabilities | -34,231 | -40,327 | -34,038 | -34,605 | -32,521 | -41,655 |
| Capital employed | 162,250 | 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.
| 2026 | 2025 | |||||
|---|---|---|---|---|---|---|
| SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Net sales, rolling four quarters | 227,546 | 230,988 | 236,681 | 240,309 | 245,864 | 249,580 |
| Average capital employed, rolling five quarters | ||||||
| Capital employed at end of period -4 | 154,339 | 149,106 | 162,967 | 153,610 | 156,496 | 177,181 |
| Capital employed at end of period -3 | 165,737 | 154,339 | 149,106 | 162,967 | 153,610 | 156,496 |
| Capital employed at end of period -2 | 169,176 | 165,737 | 154,339 | 149,106 | 162,967 | 153,610 |
| Capital employed at end of period -1 | 160,647 | 169,176 | 165,737 | 154,339 | 149,106 | 162,967 |
| Capital employed at end of period | 162,250 | 160,647 | 169,176 | 165,737 | 154,339 | 149,106 |
| Average capital employed, rolling five quarters | 162,430 | 159,801 | 160,265 | 157,152 | 155,304 | 159,872 |
| Capital turnover (times) | 1.4 | 1.4 | 1.5 | 1.5 | 1.6 | 1.6 |
Return on capital employed
Rolling four quarters of EBIT divided by five-point average for capital employed.
| 2026 | 2025 | |||||
|---|---|---|---|---|---|---|
| SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| EBIT, rolling four quarters | 33,675 | 34,146 | 38,634 | 35,431 | 26,054 | 6,144 |
| Average capital employed, rolling five quarters | ||||||
| Capital employed at end of period -4 | 154,339 | 149,106 | 162,967 | 153,610 | 156,496 | 177,181 |
| Capital employed at end of period -3 | 165,737 | 154,339 | 149,106 | 162,967 | 153,610 | 156,496 |
| Capital employed at end of period -2 | 169,176 | 165,737 | 154,339 | 149,106 | 162,967 | 153,610 |
| Capital employed at end of period -1 | 160,647 | 169,176 | 165,737 | 154,339 | 149,106 | 162,967 |
| Capital employed at end of period | 162,250 | 160,647 | 169,176 | 165,737 | 154,339 | 149,106 |
| Average capital employed, rolling five quarters | 162,430 | 159,801 | 160,265 | 157,152 | 155,304 | 159,872 |
| Return on capital employed (%) | 20.7% | 21.4% | 24.1% | 22.5% | 16.8% | 3.8% |
| Ericsson | Second quarter report 2026. July 14, 2026. | Alternative performance measures | 37 | |||
| --- | --- | --- |
Equity ratio
Equity expressed as a percentage of total assets.
| 2026 | 2025 | |||||
|---|---|---|---|---|---|---|
| SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Total equity | 104,764 | 103,133 | 110,264 | 102,494 | 85,699 | 84,858 |
| Total assets | 287,899 | 290,393 | 279,223 | 282,476 | 270,555 | 277,978 |
| Equity ratio (%) | 36.4% | 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 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Net income attributable to owners of the Parent Company | 4,046 | 888 | 8,563 | 11,149 | 4,567 | 4,149 | ||||||||
| Annualized | 16,182 | 3,551 | 34,252 | 44,596 | 18,268 | 16,596 | ||||||||
| Average stockholders' equity | ||||||||||||||
| Stockholders' equity, beginning of period | 102,440 | 109,535 | 102,658 | 86,748 | 86,039 | 94,284 | ||||||||
| Stockholders' equity, end of period | 104,047 | 102,440 | 109,535 | 102,658 | 86,748 | 86,039 | ||||||||
| Average stockholders' equity | 103,243 | 105,988 | 106,097 | 94,703 | 86,394 | 90,162 | ||||||||
| Return on equity (%) | 15.7% | 3.4% | 32.3% | 47.1% | 21.1% | 18.4% | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, SEK million | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Net income attributable to owners of the Parent Company | 4,933 | 888 | 28,428 | 19,865 | 8,716 | 4,149 | ||||||||
| Annualized | 9,867 | 3,551 | 28,428 | 26,487 | 17,432 | 16,596 | ||||||||
| Average stockholders' equity | ||||||||||||||
| Stockholders' equity, beginning of period | 109,535 | 109,535 | 94,284 | 94,284 | 94,284 | 94,284 | ||||||||
| Stockholders' equity, end of period | 104,047 | 102,440 | 109,535 | 102,658 | 86,748 | 86,039 | ||||||||
| Average stockholders' equity | 106,791 | 105,988 | 101,910 | 98,471 | 90,516 | 90,162 | ||||||||
| Return on equity (%) | 9.2% | 3.4% | 27.9% | 26.9% | 19.3% | 18.4% |
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 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 |
| Inventories | 30,718 | 25,732 | 23,451 | 27,519 | 27,068 | 27,649 |
| Contract assets | 8,225 | 8,526 | 7,333 | 7,494 | 6,618 | 5,735 |
| Trade receivables | 37,921 | 39,345 | 40,327 | 38,136 | 39,107 | 41,428 |
| Customer finance, current | 1,657 | 1,582 | 852 | 1,290 | 1,879 | 2,396 |
| Customer finance, non-current | 26 | 190 | 238 | 242 | 78 | 27 |
| Advance payments to suppliers¹⁾ | 39 | 44 | 46 | 39 | 41 | 46 |
| Prepaid expenses¹⁾ | 2,868 | 3,015 | 2,390 | 2,443 | 3,025 | 3,749 |
| Less: Contract liabilities | -45,133 | -46,008 | -36,867 | -40,642 | -44,370 | -46,757 |
| Less: Trade payables | -28,925 | -26,719 | -26,335 | -25,352 | -24,804 | -26,450 |
| Operating working capital | 7,398 | 5,709 | 11,435 | 11,169 | 8,642 | 7,823 |
- Part of Other current receivables in the consolidated balance sheet.
| Ericsson | Second quarter report 2026. July 14, 2026. | Alternative performance measures | 38 |
|---|
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 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Cash flow from operating activities | 1,932 | 7,403 | 16,507 | 7,939 | 4,150 | 4,358 | ||||||||
| Net capital expenditures and other investments (excl. M&A) | ||||||||||||||
| Investments in property, plant and equipment | -637 | -620 | -849 | -491 | -561 | -729 | ||||||||
| Sales of property, plant and equipment | 23 | 10 | 56 | 57 | 40 | 39 | ||||||||
| Product development | -384 | -378 | -352 | -286 | -193 | -307 | ||||||||
| Other investments¹⁾ | -36 | -36 | -47 | -81 | -301 | -64 | ||||||||
| Repayment of lease liabilities | -513 | -459 | -462 | -507 | -554 | -593 | ||||||||
| Free cash flow before M&A | 385 | 5,921 | 14,853 | 6,631 | 2,581 | 2,704 | ||||||||
| Acquisitions/divestments of subs and other operations, net | -238 | -72 | 338 | 10,064 | 141 | -4 | ||||||||
| Free cash flow after M&A | 147 | 5,849 | 15,191 | 16,695 | 2,722 | 2,700 | ||||||||
| Net sales | 52,691 | 49,332 | 69,285 | 56,239 | 56,132 | 55,025 | ||||||||
| Free cash flow before M&A (% of net sales) | 0.7% | 12.0% | 21.4% | 11.8% | 4.6% | 4.9% | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, SEK million | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Cash flow from operating activities | 9,336 | 7,403 | 32,954 | 16,447 | 8,508 | 4,358 | ||||||||
| Net capital expenditures and other investments (excl. M&A) | ||||||||||||||
| Investments in property, plant and equipment | -1,257 | -620 | -2,630 | -1,781 | -1,290 | -729 | ||||||||
| Sales of property, plant and equipment | 33 | 10 | 192 | 136 | 79 | 39 | ||||||||
| Product development | -762 | -378 | -1,138 | -786 | -500 | -307 | ||||||||
| Other investments¹⁾ | -72 | -36 | -493 | -446 | -365 | -64 | ||||||||
| Repayment of lease liabilities | -971 | -459 | -2,116 | -1,654 | -1,147 | -593 | ||||||||
| Free cash flow before M&A | 6,306 | 5,921 | 26,769 | 11,916 | 5,285 | 2,704 | ||||||||
| Acquisitions/divestments of subs and other operations, net | -309 | -72 | 10,539 | 10,201 | 137 | -4 | ||||||||
| Free cash flow after M&A | 5,996 | 5,849 | 37,308 | 22,117 | 5,422 | 2,700 | ||||||||
| Net sales | 102,022 | 49,332 | 236,681 | 167,396 | 111,157 | 55,025 | ||||||||
| Free cash flow before M&A (% of net sales) | 6.2% | 12.0% | 11.3% | 7.1% | 4.8% | 4.9% |
- 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.
Sales growth by segment adjusted for comparable units and currency
| 2026 | 2025 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarter, year over year change, percent | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Networks | -4% | 7% | 4% | -5% | 3% | 3% | ||||||||
| Cloud Software and Services | 5% | 4% | 12% | 9% | 1% | -3% | ||||||||
| Enterprise | 3% | 4% | 2% | -7% | -6% | -7% | ||||||||
| Other | -6% | -2% | -10% | -15% | -1% | -23% | ||||||||
| Total | -1% | 6% | 6% | -2% | 2% | 0% | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, year over year change, percent | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Networks | 1% | 7% | 1% | 0% | 3% | 3% | ||||||||
| Cloud Software and Services | 5% | 4% | 6% | 2% | -1% | -3% | ||||||||
| Enterprise | 4% | 4% | -5% | -7% | -6% | -7% | ||||||||
| Other | -4% | -2% | -13% | -14% | -13% | -23% | ||||||||
| Total | 2% | 6% | 2% | 0% | 1% | 0% | ||||||||
| Ericsson | Second quarter report 2026. July 14, 2026. | Alternative performance measures | 39 | |||||||||||
| --- | --- | --- |
Sales growth by market area adjusted for comparable units and currency
| 2026 | 2025 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarter, year over year change, percent | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Americas | -1% | -2% | -1% | -8% | 10% | 20% | ||||||||
| Europe, Middle East and Africa | 2% | 10% | 13% | 3% | -1% | -7% | ||||||||
| South East Asia, Oceania and India | 4% | 12% | 19% | 1% | -22% | -17% | ||||||||
| North East Asia | 8% | 15% | -16% | 10% | -15% | -8% | ||||||||
| Other | -12% | 12% | 13% | -2% | 15% | -6% | ||||||||
| Total | -1% | 6% | 6% | -2% | 2% | 0% | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, year over year change, percent | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Americas | -2% | -2% | 4% | 6% | 14% | 20% | ||||||||
| Europe, Middle East and Africa | 6% | 10% | 3% | -2% | -4% | -7% | ||||||||
| South East Asia, Oceania and India | 8% | 12% | -4% | -13% | -19% | -17% | ||||||||
| North East Asia | 11% | 15% | -9% | -5% | -12% | -8% | ||||||||
| Other | -1% | 12% | 5% | 3% | 5% | -6% | ||||||||
| Total | 2% | 6% | 2% | 0% | 1% | 0% |
Rolling four quarters of net sales by segment
| 2026 | 2025 | |||||
|---|---|---|---|---|---|---|
| Rolling four quarters, SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Networks | 145,608 | 148,308 | 151,014 | 153,611 | 158,203 | 160,135 |
| Cloud Software and Services | 61,943 | 61,573 | 62,715 | 62,141 | 61,748 | 62,565 |
| Enterprise | 18,294 | 19,352 | 21,117 | 22,629 | 23,890 | 24,826 |
| Other | 1,702 | 1,754 | 1,835 | 1,928 | 2,023 | 2,054 |
| Total | 227,546 | 230,988 | 236,681 | 240,309 | 245,864 | 249,580 |
Gross margin by segment by quarter
| 2026 | 2025 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, as percentage of net sales | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Networks | 48.3% | 49.7% | 49.0% | 50.0% | 49.3% | 50.8% | ||||||||
| Cloud Software and Services | 39.8% | 41.5% | 43.1% | 42.1% | 41.5% | 39.1% | ||||||||
| Enterprise | 50.7% | 48.9% | 52.1% | 51.6% | 54.9% | 56.3% | ||||||||
| Other | 0.5% | -1.5% | 7.4% | 0.0% | 0.4% | 3.8% | ||||||||
| Total | 45.8% | 47.2% | 47.2% | 47.6% | 47.5% | 48.2% | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, as percentage of net sales | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Networks | 49.0% | 49.7% | 49.7% | 50.0% | 50.1% | 50.8% | ||||||||
| Cloud Software and Services | 40.6% | 41.5% | 41.7% | 41.0% | 40.4% | 39.1% | ||||||||
| Enterprise | 49.8% | 48.9% | 53.9% | 54.4% | 55.6% | 56.3% | ||||||||
| Other | -0.5% | -1.5% | 3.0% | 1.5% | 2.1% | 3.8% | ||||||||
| Total | 46.5% | 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 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Networks | 18.2% | 10.0% | 21.1% | 20.0% | 17.8% | 19.8% | ||||||||
| Cloud Software and Services | 7.8% | 0.0% | 16.8% | 11.2% | 5.8% | 0.5% | ||||||||
| Enterprise | -27.1% | -44.2% | -33.3% | 131.5% | -15.7% | -17.1% | ||||||||
| Other | -3.4% | 0.3% | 1.1% | -71.5% | 9.5% | -35.0% | ||||||||
| Total | 11.2% | 2.9% | 16.1% | 26.9% | 11.4% | 10.8% | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, as percentage of net sales | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Networks | 14.1% | 10.0% | 19.7% | 19.2% | 18.8% | 19.8% | ||||||||
| Cloud Software and Services | 4.3% | 0.0% | 9.6% | 6.2% | 3.3% | 0.5% | ||||||||
| Enterprise | -35.3% | -44.2% | 15.3% | 28.8% | -16.4% | -17.1% | ||||||||
| Other | -1.7% | 0.3% | -22.3% | -30.5% | -12.8% | -35.0% | ||||||||
| Total | 7.2% | 2.9% | 16.3% | 16.4% | 11.1% | 10.8% | ||||||||
| Ericsson | Second quarter report 2026. July 14, 2026. | Alternative performance measures | 40 | |||||||||||
| --- | --- | --- |
EBITA and EBITA margin by segment by quarter
| 2026 | 2025 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Networks | 6,034 | 3,315 | 9,348 | 7,096 | 6,397 | 7,367 | ||||||||
| Cloud Software and Services | 1,146 | 9 | 3,368 | 1,726 | 845 | 76 | ||||||||
| Enterprise | -888 | -1,537 | -1,120 | 6,987 | -524 | -625 | ||||||||
| Other | -14 | 1 | 5 | -293 | 45 | -166 | ||||||||
| Total | 6,277 | 1,788 | 11,601 | 15,516 | 6,763 | 6,652 | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Isolated quarters, as percentage of net sales | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Networks | 18.3% | 10.1% | 21.1% | 20.0% | 17.9% | 20.7% | ||||||||
| Cloud Software and Services | 7.8% | 0.1% | 16.8% | 11.2% | 5.9% | 0.6% | ||||||||
| Enterprise | -19.8% | -36.9% | -24.5% | 138.1% | -9.4% | -10.5% | ||||||||
| Other | -3.4% | 0.3% | 1.1% | -71.3% | 9.5% | -35.0% | ||||||||
| Total | 11.9% | 3.6% | 16.7% | 27.6% | 12.0% | 12.1% | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, SEK million | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Networks | 9,349 | 3,315 | 30,208 | 20,860 | 13,764 | 7,367 | ||||||||
| Cloud Software and Services | 1,154 | 9 | 6,015 | 2,647 | 921 | 76 | ||||||||
| Enterprise | -2,425 | -1,537 | 4,718 | 5,838 | -1,149 | -625 | ||||||||
| Other | -13 | 1 | -409 | -414 | -121 | -166 | ||||||||
| Total | 8,065 | 1,788 | 40,532 | 28,931 | 13,415 | 6,652 | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, as percentage of net sales | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Networks | 14.2% | 10.1% | 20.0% | 19.5% | 19.3% | 20.7% | ||||||||
| Cloud Software and Services | 4.3% | 0.1% | 9.6% | 6.2% | 3.4% | 0.6% | ||||||||
| Enterprise | -28.0% | -36.9% | 22.3% | 35.3% | -10.0% | -10.5% | ||||||||
| Other | -1.6% | 0.3% | -22.3% | -30.5% | -12.8% | -35.0% | ||||||||
| Total | 7.9% | 3.6% | 17.1% | 17.3% | 12.1% | 12.1% |
Restructuring charges by function
| 2026 | 2025 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Cost of sales | -1,359 | -435 | -538 | -271 | -310 | -158 | ||||||||
| Research and development expenses | 882 | -2,595 | -300 | 41 | -300 | -20 | ||||||||
| Selling and administrative expenses | -124 | -738 | -259 | -73 | -46 | -103 | ||||||||
| Total | -601 | -3,768 | -1,097 | -303 | -656 | -281 | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, SEK million | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Cost of sales | -1,794 | -435 | -1,277 | -739 | -468 | -158 | ||||||||
| Research and development expenses | -1,713 | -2,595 | -579 | -279 | -320 | -20 | ||||||||
| Selling and administrative expenses | -861 | -738 | -481 | -222 | -149 | -103 | ||||||||
| Total | -4,369 | -3,768 | -2,337 | -1,240 | -937 | -281 | ||||||||
| Ericsson | Second quarter report 2026. July 14, 2026. | Alternative performance measures | 41 | |||||||||||
| --- | --- | --- |
Restructuring charges by segment
| 2026 | 2025 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Networks | 198 | -3,052 | -710 | -79 | -109 | -108 | ||||||||
| of which cost of sales | -671 | -226 | -270 | -45 | -67 | -55 | ||||||||
| of which operating expenses | 869 | -2,826 | -440 | -34 | -42 | -53 | ||||||||
| Cloud Software and Services | -688 | -620 | -349 | -193 | -538 | -74 | ||||||||
| of which cost of sales | -626 | -205 | -240 | -222 | -243 | -102 | ||||||||
| of which operating expenses | -62 | -415 | -109 | 29 | -295 | 28 | ||||||||
| Enterprise | -50 | -96 | -5 | -27 | -9 | -97 | ||||||||
| of which cost of sales | -8 | -5 | -1 | 0 | 0 | 1 | ||||||||
| of which operating expenses | -43 | -91 | -4 | -27 | -9 | -98 | ||||||||
| Other | -60 | 0 | -33 | -4 | 0 | -2 | ||||||||
| of which cost of sales | -54 | 0 | -27 | -4 | 0 | -2 | ||||||||
| of which operating expenses | -6 | 0 | -6 | 0 | 0 | 0 | ||||||||
| Total | -601 | -3,768 | -1,097 | -303 | -656 | -281 | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, SEK million | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Networks | -2,854 | -3,052 | -1,006 | -296 | -217 | -108 | ||||||||
| of which cost of sales | -897 | -226 | -437 | -167 | -122 | -55 | ||||||||
| of which operating expenses | -1,957 | -2,826 | -569 | -129 | -95 | -53 | ||||||||
| Cloud Software and Services | -1,308 | -620 | -1,154 | -805 | -612 | -74 | ||||||||
| of which cost of sales | -831 | -205 | -807 | -567 | -345 | -102 | ||||||||
| of which operating expenses | -477 | -415 | -347 | -238 | -267 | 28 | ||||||||
| Enterprise | -147 | -96 | -138 | -133 | -106 | -97 | ||||||||
| of which cost of sales | -13 | -5 | 0 | 1 | 1 | 1 | ||||||||
| of which operating expenses | -134 | -91 | -138 | -134 | -107 | -98 | ||||||||
| Other | -60 | 0 | -39 | -6 | -2 | -2 | ||||||||
| of which cost of sales | -54 | 0 | -33 | -6 | -2 | -2 | ||||||||
| of which operating expenses | -6 | 0 | -6 | 0 | 0 | 0 | ||||||||
| Total | -4,369 | -3,768 | -2,337 | -1,240 | -937 | -281 |
Adjusted gross income and Adjusted gross margin by segment
| 2026 | 2025 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Networks | 16,647 | 16,585 | 21,918 | 17,750 | 17,705 | 18,167 | ||||||||
| Cloud Software and Services | 6,494 | 5,112 | 8,876 | 6,685 | 6,207 | 5,171 | ||||||||
| Enterprise | 2,284 | 2,044 | 2,387 | 2,609 | 3,045 | 3,337 | ||||||||
| Other | 56 | -6 | 62 | 4 | 2 | 20 | ||||||||
| Total | 25,481 | 23,734 | 33,243 | 27,048 | 26,959 | 26,695 | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Isolated quarters, as percentage of net sales | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Networks | 50.4% | 50.4% | 49.6% | 50.1% | 49.5% | 51.0% | ||||||||
| Cloud Software and Services | 44.1% | 43.2% | 44.3% | 43.6% | 43.2% | 39.9% | ||||||||
| Enterprise | 50.9% | 49.0% | 52.1% | 51.6% | 54.9% | 56.2% | ||||||||
| Other | 13.3% | -1.5% | 13.0% | 1.0% | 0.4% | 4.2% | ||||||||
| Total | 48.4% | 48.1% | 48.0% | 48.1% | 48.0% | 48.5% | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, SEK million | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Networks | 33,231 | 16,585 | 75,540 | 53,622 | 35,872 | 18,167 | ||||||||
| Cloud Software and Services | 11,607 | 5,112 | 26,939 | 18,063 | 11,378 | 5,171 | ||||||||
| Enterprise | 4,328 | 2,044 | 11,378 | 8,991 | 6,382 | 3,337 | ||||||||
| Other | 50 | -6 | 88 | 26 | 22 | 20 | ||||||||
| Total | 49,216 | 23,734 | 113,945 | 80,702 | 53,654 | 26,695 | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, as percentage of net sales | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Networks | 50.4% | 50.4% | 50.0% | 50.2% | 50.2% | 51.0% | ||||||||
| Cloud Software and Services | 43.7% | 43.2% | 43.0% | 42.3% | 41.6% | 39.9% | ||||||||
| Enterprise | 50.0% | 49.0% | 53.9% | 54.4% | 55.6% | 56.2% | ||||||||
| Other | 6.1% | -1.5% | 4.8% | 1.9% | 2.3% | 4.2% | ||||||||
| Total | 48.2% | 48.1% | 48.1% | 48.2% | 48.3% | 48.5% | ||||||||
| Ericsson | Second quarter report 2026. July 14, 2026. | Alternative performance measures | 42 | |||||||||||
| --- | --- | --- |
Adjusted EBIT and Adjusted EBIT margin by segment
| 2026 | 2025 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Networks | 5,808 | 6,335 | 10,028 | 7,154 | 6,485 | 7,148 | ||||||||
| Cloud Software and Services | 1,830 | 623 | 3,713 | 1,914 | 1,378 | 145 | ||||||||
| Enterprise | -1,165 | -1,748 | -1,521 | 6,676 | -861 | -917 | ||||||||
| Other | 46 | 1 | 38 | -290 | 45 | -164 | ||||||||
| Total | 6,520 | 5,211 | 12,258 | 15,454 | 7,047 | 6,212 | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Isolated quarters, as percentage of net sales | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Networks | 17.6% | 19.2% | 22.7% | 20.2% | 18.1% | 20.1% | ||||||||
| Cloud Software and Services | 12.4% | 5.3% | 18.5% | 12.5% | 9.6% | 1.1% | ||||||||
| Enterprise | -25.9% | -41.9% | -33.2% | 132.0% | -15.5% | -15.5% | ||||||||
| Other | 10.9% | 0.3% | 8.0% | -70.6% | 9.5% | -34.6% | ||||||||
| Total | 12.4% | 10.6% | 17.7% | 27.5% | 12.6% | 11.3% | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, SEK million | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Networks | 12,143 | 6,335 | 30,815 | 20,787 | 13,633 | 7,148 | ||||||||
| Cloud Software and Services | 2,454 | 623 | 7,150 | 3,437 | 1,523 | 145 | ||||||||
| Enterprise | -2,912 | -1,748 | 3,377 | 4,898 | -1,778 | -917 | ||||||||
| Other | 47 | 1 | -371 | -409 | -119 | -164 | ||||||||
| Total | 11,731 | 5,211 | 40,971 | 28,713 | 13,259 | 6,212 | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, as percentage of net sales | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Networks | 18.4% | 19.2% | 20.4% | 19.5% | 19.1% | 20.1% | ||||||||
| Cloud Software and Services | 9.2% | 5.3% | 11.4% | 8.1% | 5.6% | 1.1% | ||||||||
| Enterprise | -33.6% | -41.9% | 16.0% | 29.6% | -15.5% | -15.5% | ||||||||
| Other | 5.7% | 0.3% | -20.2% | -30.1% | -12.6% | -34.6% | ||||||||
| Total | 11.5% | 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 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Networks | 20.2% | 20.3% | 20.7% | 20.4% | 20.4% | 19.3% |
| Cloud Software and Services | 13.1% | 12.4% | 11.4% | 8.5% | 6.1% | 4.0% |
| Enterprise | 19.8% | 20.4% | 23.0% | 21.2% | -12.6% | -15.0% |
| Other | -12.0% | -11.7% | -20.2% | -46.5% | -30.4% | -35.5% |
| Total | 18.0% | 18.0% | 18.1% | 16.8% | 13.2% | 11.6% |
| Ericsson | Second quarter report 2026. July 14, 2026. | Alternative performance measures | 43 | |||
| --- | --- | --- |
Adjusted EBITA and Adjusted EBITA margin by segment
| 2026 | 2025 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Isolated quarters, SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Networks | 5,836 | 6,367 | 10,058 | 7,175 | 6,506 | 7,475 | ||||||||
| Cloud Software and Services | 1,834 | 629 | 3,717 | 1,919 | 1,383 | 150 | ||||||||
| Enterprise | -838 | -1,441 | -1,115 | 7,014 | -515 | -528 | ||||||||
| Other | 46 | 1 | 38 | -289 | 45 | -164 | ||||||||
| Total | 6,878 | 5,556 | 12,698 | 15,819 | 7,419 | 6,933 | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Isolated quarters, as percentage of net sales | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||
| Networks | 17.7% | 19.3% | 22.8% | 20.3% | 18.2% | 21.0% | ||||||||
| Cloud Software and Services | 12.4% | 5.3% | 18.6% | 12.5% | 9.6% | 1.2% | ||||||||
| Enterprise | -18.7% | -34.6% | -24.4% | 138.7% | -9.3% | -8.9% | ||||||||
| Other | 10.9% | 0.3% | 8.0% | -70.3% | 9.5% | -34.6% | ||||||||
| Total | 13.1% | 11.3% | 18.3% | 28.1% | 13.2% | 12.6% | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, SEK million | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Networks | 12,202 | 6,367 | 31,214 | 21,156 | 13,981 | 7,475 | ||||||||
| Cloud Software and Services | 2,463 | 629 | 7,169 | 3,452 | 1,533 | 150 | ||||||||
| Enterprise | -2,279 | -1,441 | 4,856 | 5,971 | -1,043 | -528 | ||||||||
| Other | 47 | 1 | -370 | -408 | -119 | -164 | ||||||||
| Total | 12,433 | 5,556 | 42,869 | 30,171 | 14,352 | 6,933 | 2026 | 2025 | ||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Year to date, as percentage of net sales | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||
| Networks | 18.5% | 19.3% | 20.7% | 19.8% | 19.6% | 21.0% | ||||||||
| Cloud Software and Services | 9.3% | 5.3% | 11.4% | 8.1% | 5.6% | 1.2% | ||||||||
| Enterprise | -26.3% | -34.6% | 23.0% | 36.1% | -9.1% | -8.9% | ||||||||
| Other | 5.8% | 0.3% | -20.2% | -30.0% | -12.6% | -34.6% | ||||||||
| Total | 12.2% | 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 | |||||
|---|---|---|---|---|---|---|
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
| Inventory turnover days (ITO) | 83 | 80 | 79 | 80 | 80 | 81 |
| Days sales outstanding (DSO) | 9 | 9 | 12 | 11 | 14 | 17 |
| Less: Days payables outstanding (DPO) | -73 | -70 | -71 | -68 | -66 | -64 |
| Operating working capital days | 19 | 19 | 20 | 23 | 28 | 34 |