STOCKHOLM, Oct. 15, 2026 /PRNewswire/ —

Strategic highlights – executing well in a challenging environment

• Solid customer demand in strategic markets, combined with near-term commercial actions, supported organic growth of 7%*.
• Customer wins and deployments across network modernization, differentiated connectivity and mission-critical networks.
• Driving portfolio optimization, pricing and efficiency measures to help offset higher component costs and to strengthen competitiveness.

Financial highlights – sales growth and cost discipline

• Reported sales were SEK 59.5 (56.2) b. Organic* sales increased by 7%* YoY primarily driven by higher sales in Networks. Organic* sales grew in three out of four market areas.
• Adjusted [1] gross income increased to SEK 28.4 (27.0) b., driven by Mobile Networks. Reported gross income was SEK 28.0 (26.8) b.
• Adjusted [1] gross margin was 47.7% (48.1%). Networks margin increased, supported by retroactive IPR revenues. Enterprise margin was lower, due to the divestment of iconectiv. Cloud Software and Services margin was stable. Reported gross margin was 47.1% (47.6%).
• Adjusted [1] EBITA was SEK 10.1 (15.8) b. with a 17.0% (28.1%) margin. Excluding the prior-year period capital gain of SEK 7.6 b., adjusted EBITA increased. Operating expenses decreased YoY. Reported EBITA was SEK 9.2 (15.5) b., with a 15.5% (27.6%) margin.
• Net income was SEK 5.8 (11.3) b. and diluted EPS was SEK 1.77 (3.33). Prior-year EPS included a SEK 1.72 per share divestment gain.
• Free cash flow before M&A was SEK 4.9 (6.6) b.
• Capital returns to shareholders were SEK 4.8 b. of share repurchases.

Comment from Per Narvinger, President and CEO: “We delivered strong third-quarter results, supported by focused execution, the strength of our portfolio, and the trust customers place in Ericsson. During the quarter, I met with many of our customers. A consistent theme was the need for more intelligent and autonomous networks to improve performance, efficiency, robustness and resilience. Ericsson is well positioned, and we are already seeing the efficiency gains from AI-enabled features in our portfolio being deployed in customer networks.

Today, we also announced a simplification of our operating structure that will strengthen our customer focus and drive further efficiencies over time. It will enable us to move faster, improve accountability and better support our customers in a changing market. Ericsson has a proud history of shaping global connectivity, and I am excited to lead the company in this period of rapid technology change.

Looking ahead, the RAN market is flat, geopolitical uncertainty remains elevated and component costs are a headwind to gross margin next year. We will stay close to our customers, continue to prioritize technology leadership and take disciplined actions to strengthen competitiveness. Ericsson remains well positioned to navigate these challenges and deliver profitable long-term growth, with all segments contributing.”

*Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations.
[1] Adjusted metrics are adjusted to exclude restructuring charges.
[2] Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statement.

NOTES TO EDITORS

You find the complete report with tables in the attached PDF or on https://www.ericsson.com/en/investors/financial-reports/interim-reports

Video webcast for analysts, investors and journalists

President and CEO Per Narvinger and CFO Lars Sandström will comment on the report and take questions at a video webcast at 9:00 AM CEST (8:00 AM BST London, 3:00 AM EDT New York).

Join the webcast or please go to www.ericsson.com/investors

To ask a question: Access dial-in information here

The webcast will be available on-demand after the event and can be viewed at www.ericsson.com/investors.

FOR FURTHER INFORMATION, PLEASE CONTACT

Investors

Daniel Morris, Head of Investor Relations
Phone: +44 7386657217
E-mail: investor.relations@ericsson.com

Lena Häggblom, Director, Investor Relations
Phone: +46 72 593 27 78
E-mail: lena.haggblom@ericsson.com

Media
Ralf Bagner, Head of Media Relations
Phone: +46 76 128 47 89
E-mail: ralf.bagner@ericsson.com

Media relations
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com

This is information that Telefonaktiebolaget LM Ericsson is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 CEST on October 15, 2026.

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