EarningsQ2 2026 Earnings Report
MX:ERICN Q2 2026 EPS Results
Actual EPS$2.22
Consensus EPS$2.11
Beat/MissBeat by +$0.10
One Year Ago EPS$2.46
MX:ERICN Q2 2026 Revenue Results
Actual Revenue$98.24B
Expected Revenue$98.74B
Beat/MissMissed by -$500.24M
YoY Revenue Growth-3.10%
Earnings Announcement Details
QuarterQ2 2026
Date07/14/2026
TimeBefore Open
Conference CallTuesday, July 14, 2026
MX:ERICN Upcoming Earnings
Telefonaktiebolaget LM Ericsson's next earnings date is estimated for October 15, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:ERICN Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Neutral
The call balanced clear operational and margin strengths (solid adjusted gross margins, steady EBITDA margin, CSS margin improvement, strong IPR run‑rate and disciplined cost reductions) against tangible near‑term challenges (sales softness in Networks, rising component inflation, inventory build‑up, an ongoing loss in Enterprise and elevated restructuring). Management emphasizes mitigation actions and strategic positioning for AI, but admits inflationary pressures will increasingly affect results. Overall the positives around margin resilience, cash generation within the target band and structural actions are offset by headline revenue declines and cost risks, producing a balanced outlook.Company Guidance
Strong margin delivery
Adjusted gross margin ~48.4% (group) in Q2 2026; reported gross margin ~48% (management notes +2 percentage points excluding one-off IPR benefits in Q2 2025). EBITDA margin stable at 13.1% year‑on‑year, demonstrating resilient profitability despite a challenging cost environment.
Cloud Software & Services (CSS) improvement
CSS reported sales +3% to SEK 14.7bn (organic +5%), adjusted gross margin 44.1% (up from 43.2% prior year) and adjusted EBITDA SEK 1.8bn with a margin of 14.2%. Rolling four‑quarter adjusted gross margin ~44% and adjusted EBITDA margin ~13% — described as a new high level.
Robust Networks profitability
Networks adjusted gross margin stable at 50.4% and adjusted EBITDA of SEK 5.8bn (adjusted EBITDA margin 17.7%), showing healthy margin on the largest segment even as sales mix shifts.
IPR run‑rate strengthened
IPR revenues in Q2 were SEK 3.4bn (down SEK 1.5bn YoY due to last year's one‑off), but management reports a current IPR run rate of approximately SEK 13.5bn including agreements signed in July 2026 that will benefit Q3.
Operating expense discipline
Operating expenses excluding restructuring fell to SEK 19.0bn, around SEK 1.0bn lower year‑on‑year, driven by cost reductions, currency benefits and the divestment of iconectiv, supporting margin resilience.
Cash generation within guidance band
Cash flow before M&A was SEK 0.4bn in Q2. Rolling four‑quarter cash flow to net sales at 12% — at the upper end of the company's 9%–12% target. Net cash of SEK 59.8bn remains substantial despite a SEK 8.3bn sequential reduction (dividends and share repurchase).
Leadership transition and strategic positioning for AI
Smooth CEO transition planned (Per Narvinger to assume CEO role Oct 1). Management emphasizes positioning for AI‑driven connectivity (uplink, low latency) and continued R&D investments and growth initiatives (Enterprise, mission‑critical, defense).
MX:ERICN 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