EarningsQ3 2026 Earnings Report
CH:ERCA Q3 2026 EPS Results
Actual EPSCHF0.15
Consensus EPSCHF0.12
Beat/MissBeat by +CHF0.03
One Year Ago EPSCHF0.29
CH:ERCA Q3 2026 Revenue Results
Actual RevenueCHF5.08B
Expected RevenueCHF4.61B
Beat/MissBeat by +CHF471.06M
YoY Revenue Growth+4.28%
Earnings Announcement Details
QuarterQ3 2026
Date10/15/2026
TimeBefore Open
Conference CallThursday, October 15, 2026
CH:ERCA Upcoming Earnings
Telefonaktiebolaget LM Ericsson's next earnings date is estimated for January 22, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
CH:ERCA Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive, supported by 7% organic sales growth, growth across nearly all segments, a 17% EBITA margin, strong Networks performance, improving operating expenses, solid cash generation and progress in AI-enabled products. However, management highlighted a broadly flat RAN market, rising component costs, a likely 2027 transition-year impact, negative Enterprise EBITA, elevated restructuring charges and macroeconomic uncertainty. The number and strength of the reported achievements outweighed the challenges.Company Guidance
Strong Third-Quarter Organic Growth
Q3 net sales totaled SEK 59.5 billion, with organic sales increasing 7% year-over-year and organic growth in all segments. Management attributed the growth to solid customer demand in strategic markets and effective commercial execution.
Improved Profitability and Operating Leverage
Gross margin was 47.7% and EBITA margin was 17%. Adjusted EBITA was SEK 10.1 billion, and the 17% EBITA margin demonstrated the benefits of operating leverage with higher sales.
Operating Expense Reduction
Operating expenses excluding restructuring charges improved to SEK 18.4 billion, around SEK 0.7 billion lower year-over-year. Cost reduction actions were mitigating wage pressures.
Networks Revenue and Earnings Growth
Networks sales increased 9% year-over-year to SEK 38.7 billion, with year-to-date organic sales growth of 4%. Adjusted EBITA increased to SEK 9 billion from SEK 7.2 billion last year, mostly due to higher sales, while adjusted EBITA margin was 23.1%.
Networks Margin Resilience
Networks adjusted gross margin was stable at 50.3%, supported by product mix and retroactive IPR licensing revenues that offset some component cost increases. Adjusted gross income increased to SEK 19.4 billion.
Cloud Software and Services Growth
Cloud Software and Services sales increased 3% year-over-year to SEK 15.8 billion. Growth was broad-based across the company’s offerings and benefited from adjacencies and expansion into non-CSP verticals. Adjusted EBITA increased slightly to SEK 2.0 billion, with a margin close to 13%.
IPR Revenue Increase
IPR revenues were SEK 3.9 billion, an increase of SEK 0.8 billion year-over-year. Part of the increase was due to retroactive revenue related to previously unlicensed periods, and the current IPR run rate was approximately SEK 13.5 billion.
Enterprise 5G Customer Momentum
Although reported Enterprise sales were affected by the prior-year sale of iconectiv, organic Enterprise sales grew 1%. Management reported good customer momentum in enterprise 5G private networks.
Enterprise Wireless Solutions Reorganization
Ericsson will dissolve the Enterprise Wireless Solutions business area while continuing the portfolio and solutions. Neutral host and EP5G will move into Networks to capture R&D synergies, improve R&D scale and accelerate the journey toward profitability.
Cradlepoint Improvement
The business formerly known as Cradlepoint will remain a stand-alone unit within the Enterprise segment. Management said the business is showing strong improvements and is getting to black numbers.
Strategic Focus on Vonage Profitability
Management stated that Vonage is targeting both growth and cost improvements, with a priority on reaching black numbers faster in the Enterprise segment.
Market Area and Executive Team Simplification
From January, Ericsson will create Market Area Asia Pacific by combining Northeast Asia with Southeast Asia, Oceania and India. The changes are intended to improve effectiveness across the region while maintaining country-level customer focus and will create a leaner executive team with clearer accountability.
Cash Flow and Balance Sheet Strength
Cash flow before M&A was SEK 4.9 billion, supported by earnings. Rolling-four-quarter cash flow to net sales was 11%, within the 9% to 12% target, and net cash increased sequentially to SEK 60.7 billion. Ericsson also raised a EUR 500 million bond in Q3 to prepare for upcoming maturities.
Shareholder Returns
The share buyback continued in Q3, using SEK 4.5 billion of cash flow. Year-to-date, Ericsson had returned SEK 8 billion to shareholders through buybacks, with 79 million shares repurchased, alongside SEK 5 billion of dividends.
AI-Native Network Functionality Already Commercially Deployed
Ericsson’s AI-native link adaptation feature provides a 10% gain in spectrum efficiency. It is commercially deployed with 3 operators and running on more than 60,000 base stations.
AI and Custom Silicon Opportunity
Management said Ericsson’s purpose-built silicon enables customers to obtain more from spectrum assets without increasing power consumption. AI functionality is viewed as a potential upsell and differentiator, and the company said models can be deployed on basebands already in the field without requiring new hardware.
Positioning for AI-Driven Connectivity Demand
Management expects AI applications to increase demand for reliable and resilient mobile networks and said Ericsson is well positioned through its technology, customer relationships and continued investment in technology leadership.
Satellite and Terrestrial Connectivity Opportunity
Ericsson views satellite communication as a positive addition to terrestrial networks. Management emphasized the importance of seamless, high-performing connectivity between outdoor and indoor environments and said customers cannot rely on satellite alone and will also need terrestrial coverage.
Cost and Commercial Mitigation Actions
Ericsson has mitigated higher component costs through product substitution, upselling, portfolio steering and other commercial measures. The company is also pursuing portfolio optimization, price increases, supply-chain measures and efficiency improvements.
Q4 Networks Margin Outlook
For Q4, Ericsson expects Networks adjusted gross margin to be in the range of 49% to 51%, benefiting from product mix. For Networks and Cloud Software and Services, sales growth is expected to be broadly similar to the three-year average quarter-on-quarter seasonality.
6G Upgrade Flexibility
Ericsson expects much of its portfolio to be upgradeable to 6G, allowing reuse of basebands and radios. Management expects some new spectrum bands to require new radios, while also anticipating that existing products will support 6G alongside new 6G products.
Emerging Programmable and Mission-Critical Network Use Cases
Some customers are beginning to use 5G standalone functionality, although management said volume is not yet significant. Mission-critical networks, including blue-light networks, were described as a good business already, while quality-on-demand and network-slicing use cases are expected to develop over time.
CH:ERCA Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed