0001193125-26-161693
SEC filingLM Ericsson Telephone Company reported Q1 2026 results with SEK 49.3 billion net sales, 6% organic growth, SEK 0.9 billion net income, and approved SEK 15 billion share buyback program.
Ericsson's Q1 2026 results showed resilience with 6% organic sales growth despite a 10% reported decline to SEK 49.3 billion due to SEK -7.8 billion currency headwinds. Networks drove growth with 7% organic increase to SEK 32.9 billion, supported by expansions in Europe, Middle East, Africa, India, and Japan, though Americas saw declines from prior-year acceleration and operator consolidation. Cloud Software and Services grew 4% organically to SEK 11.8 billion, aided by project timing, while Enterprise sales fell 30% reported (4% organic) to SEK 4.2 billion post-iconectiv divestment. Gross margin dipped to 47.2% (adjusted 48.1%) from supply chain resilience actions and mix shifts, with Networks margin at 49.7% and Cloud Software improving. R&D expenses rose to SEK 13.5 billion including SEK -2.6 billion restructuring, offset by efficiency gains. Total restructuring charges of SEK -3.8 billion, mainly Sweden headcount reductions, drove EBITA down to SEK 1.8 billion (adjusted SEK 5.6 billion, 11.3% margin). CEO Börje Ekholm highlighted diversified supply chain enabling delivery amid uncertainties, rising semiconductor costs from AI demand, and confidence in outpacing flattish RAN market via AI-native tech and enterprise strength. Strong free cash flow of SEK 5.9 billion and net cash SEK 68.1 billion support the new SEK 15 billion buyback starting April 23. Employees numbered 87,521, reflecting ongoing reductions.