Ericsson reported third-quarter 2026 revenue of SEK 59.5 billion, up 6% from SEK 56.2 billion a year earlier, with organic sales growth of 7%. Networks organic sales grew 9% as operators invested in network modernization and connectivity. Adjusted EBITA totaled SEK 10.1 billion, a 17.0% margin, compared with SEK 15.8 billion a year earlier. The 2025 period included a SEK 7.6 billion gain from the iconectiv divestment.

Networks revenue reached SEK 38.7 billion, with a 50.3% adjusted gross margin and 23.1% adjusted EBITA margin.

South East Asia, Oceania and India recorded 25% organic growth; North East Asia grew 22%; Europe, Middle East and Africa grew 4%; and the Americas declined 1%.

President and CEO Per Narvinger said customers increasingly need intelligent and autonomous networks to improve performance, efficiency, robustness and resilience. Ericsson said AI-enabled features are already producing efficiency gains in customer deployments. The company also announced organizational simplification intended to strengthen customer focus and cost discipline.

Cloud Software and Services reported SEK 15.8 billion in sales, 3% organic growth and a 12.8% adjusted EBITA margin. Enterprise recorded approximately SEK 4.6 billion in sales, 1% organic growth and negative SEK 0.5 billion adjusted EBITA.

Ericsson expects a broadly flat RAN market and warns that higher component costs may pressure 2027 margins. Fourth-quarter 2026 Networks adjusted gross margin is expected at 49%–51%, with elevated restructuring charges for the year.

Analysis

Ericsson’s 9% organic Networks growth contrasts with management’s assessment of a flat overall RAN market, reflecting customer-specific modernization cycles and regional differences. Growth in Asian markets helped offset the 1% organic decline in the Americas. Networks adjusted EBITA margin improved from 20.3% to 23.1%, supported by higher sales, product mix, intellectual property revenues and cost discipline.

Year-over-year group profitability comparisons require adjustment for the SEK 7.6 billion iconectiv divestment gain in Q3 2025. Excluding that gain, adjusted EBITA rose from approximately SEK 8.2 billion to SEK 10.1 billion. Ericsson’s AI-enabled network automation and licensing business are additional strategic priorities as operators develop 5G Advanced and future 6G capabilities.

Company Profile | Ericsson