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Ericsson Lags Profit Expectations on Higher Chip Costs
Adjusted EBITA fell 20% to SEK 5.6 billion as higher semiconductor costs and weaker North American sales offset gains elsewhere.
- On Thursday, Swedish telecoms equipment maker Ericsson reported a sharp profitability fall for the first quarter of 2026 as the North American market that drove results a year ago shifted into reverse.
- Adjusted EBITA fell 20% year-on-year to SEK 5.6 billion, with CEO Ekholm citing rising semiconductor costs: "We are facing increasing input costs, especially in semiconductors."
- Networks, Ericsson's largest business segment at around 67% of group sales, saw revenue fall 8% to SEK 32.9 billion; reported EBITA plummeted 73% to SEK 1.8 billion due to restructuring charges.
- While the Americas region declined following operator consolidation and reduced spending, growth in Europe, the Middle East, Africa, India, South East Asia, and Oceania partially offset the North American shortfall.
- Research firm Dell Oro Group anticipates the global radio access network equipment market will remain broadly stable in 2026, while Ekholm maintained, "We are not immune, but we are resilient.
14 Articles
14 Articles
Ericsson narrowly misses Q1 profit forecasts as North America unwind
The Swedish telecoms equipment maker narrowly missed profit forecasts, with adjusted EBITA falling 20% year-on-year to SEK 5.6 billion. North America, which drove a 20%+ surge in Q1 2025, declined sharply as prior-year pull-forward investment unwinds. CEO Ekholm blames rising semiconductor input costs, partly driven by AI demand. Ericsson reported a sharp fall in profitability […] This story continues at The Next Web
Ericsson: Q1 Earnings Snapshot - The Morning Sun
STOCKHOLM (AP) — STOCKHOLM (AP) — Ericsson (ERIC) on Friday reported first-quarter net income of $97.2 million. On a per-share basis, the Stockholm-based company said it had profit of 3 cents. Earnings, adjusted for restructuring costs, came to 13 cents per share. The results met Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was also for earnings of 13 cents per share. The telecommunicatio…
Ericsson's sales were lower than expected. And profitability is being pressured as the AI boom creates rising input costs. The strongest impact is the stronger krona, which lowers profits by over 2 billion. - We have strong headwinds in terms of currency, says the telecom giant's vice president Per Narvinger.
Ericsson boosts sales, but net income slumps
Ericsson has reported Q1 2026 sales of SEK 49.3 billion (€4.5bn). The tech giant saw a 79 per cent year-on-year plummet in net income to SEK 887 million for the quarter ending March 31st, hit by restructuring charges tied to headcount reductions in Sweden, which rose to SEK 3.8 billion from SEK 281 million a year earlier. Source: Ericsson boosts sales, but net income slumps
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