Overview
- Ericsson, which reported results Friday, posted Q1 2026 adjusted operating profit of SEK 5.2 billion versus a SEK 5.4 billion estimate, and the stock fell about 1.6% in Stockholm and 3% in U.S. premarket trading.
- Reported net sales were SEK 49.3 billion, down 10% year over year, while organic growth reached 6% as currency translation created an estimated SEK 7.8 billion drag and Networks led gains across regions.
- Net income dropped to about SEK 0.9 billion, a decline of roughly 79% from a year earlier, as SEK 3.8 billion in restructuring charges and currency effects weighed on results.
- The board approved a share repurchase of up to SEK 15 billion starting April 23 and raised the dividend, supported by free cash flow of SEK 5.9 billion and a strengthened net cash position of SEK 68.1 billion.
- Leaders said AI-linked semiconductor inflation is lifting input costs and guided to a flattish radio access network market with Q2 Networks trends in line with typical seasonality and gross margins of 49% to 51%.