Monitor Q4 2026 for Networks adjusted gross margin (guided 49%-51%) and whether organic sales growth can sustain the 7% pace. Watch for resolution of ongoing DOJ investigation and SAMR patent licensing probe, as well as component cost trends flagged as a 2027 headwind.
Price Chart
Executive Summary
Ericsson reported Q3 2026 results with reported sales up 6% YoY to SEK 59.5B and organic sales growth of 7%, driven by strong Networks demand. However, net income fell 49% to SEK 5.8B and diluted EPS dropped 47% to SEK 1.77, largely due to a SEK 7.6B prior-year divestment gain. The company announced a simplification of its operating structure, while management flagged a flat RAN market, elevated geopolitical uncertainty, and component cost headwinds to gross margin next year.
Key Facts
- Reported sales SEK 59.5B (Q3 2025: SEK 56.2B), +6% YoY; organic sales +7% YoY
- Net income SEK 5.8B (Q3 2025: SEK 11.3B), -49% YoY; diluted EPS SEK 1.77 (Q3 2025: SEK 3.33), -47% YoY
- Adjusted EBITA SEK 10.1B (Q3 2025: SEK 15.8B), -36% YoY; adjusted EBITA margin 17.0% (Q3 2025: 28.1%)
- Free cash flow before M&A SEK 4.9B (Q3 2025: SEK 6.6B), -26% YoY
- Net cash SEK 60.7B at Sep 30, 2026, up from SEK 51.9B a year ago
- Networks organic sales +9% YoY; Cloud Software and Services +3%; Enterprise reported sales -10% due to iconectiv divestment
- IPR licensing revenues SEK 3.9B (Q3 2025: SEK 3.1B), including retroactive revenue
- Restructuring charges SEK -0.9B in Q3; elevated levels expected for full year 2026
- Company announced simplification of operating structure and changes to Executive Team
- Q4 2026 outlook: Networks sales growth expected broadly similar to 3-year average seasonality; adjusted gross margin 49%-51%
Financial Impact
Reported sales up 6% YoY to SEK 59.5B, but net income down 49% to SEK 5.8B and EPS down 47% to SEK 1.77, largely due to a SEK 7.6B prior-year divestment gain. Adjusted EBITA margin fell to 17.0% from 28.1%.
Risk Factors
- Ongoing DOJ investigation into historical Iraq conduct could lead to material penalties
- SAMR anti-monopoly investigation into patent licensing practices in China
- Component cost headwinds expected to pressure gross margins in 2027
- Flat RAN market and elevated geopolitical uncertainty
- Elevated restructuring charges expected for full year 2026
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001628280-26-065962 |
| Document: a2610156-kq326.htm | 0001628280-26-065962 |
| Document: 0001628280-26-065962-index-headers.html | 0001628280-26-065962 |
| Document: 0001628280-26-065962-index.html | 0001628280-26-065962 |
| Document: 0001628280-26-065962.txt | 0001628280-26-065962 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | 6-K | $10.85 | awaiting T+5 | — | $10.89 (+0.38%) |
Oct 19, 2026 7d ago | 6-K | $10.34 $10.89 | ▲ +5.32% | ▲ +5.46% | $10.89 (+5.32%) |
Oct 15, 2026 11d ago | 6-K | $10.71 $10.38 | ▼ −3.08% | ▼ −2.07% | $10.89 (+1.68%) |
Oct 15, 2026 11d ago | 6-K | $10.71 $10.38 | ▼ −3.08% | ▼ −2.07% | $10.89 (+1.68%) |
Oct 13, 2026 13d ago | 6-K | $9.71 $10.65 | ▲ +9.68% | ▲ +10.83% | $10.89 (+12.15%) |
Oct 5, 2026 21d ago | 6-K | $9.22 $9.37 | ▲ +1.63% | ▲ +1.20% | $10.89 (+18.11%) |
Oct 1, 2026 26d ago | Press Release | $9.22 $9.50 | ▲ +3.09% | ▲ +1.79% | $10.89 (+18.18%) |
Sep 28, 2026 28d ago | 6-K | $9.42 $9.22 | ▼ −2.12% | ▼ −3.33% | $10.89 (+15.61%) |
Sep 21, 2026 5w ago | 6-K | $10.25 $9.42 | ▼ −8.10% | ▼ −7.08% | $10.89 (+6.24%) |
Sep 14, 2026 6w ago | 6-K | $10.05 $10.25 | ▲ +1.99% | ▲ +0.33% | $10.89 (+8.36%) |
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