Overview
- Ericsson reported stronger-than-expected third-quarter results with operating profit before amortisation and restructuring of 10.1 billion crowns and organic sales up 7% to 59.5 billion crowns.
- The adjusted EBITA margin narrowed to 17.0% from 28.1% a year earlier but topped analysts' 14.2% forecast.
- Company executives credited efficiency measures and project phasing, notably in North America, for lifting results despite cost pressures.
- Ericsson said component costs rose in the quarter and repeated an earlier warning that surging AI demand for memory chips will be a headwind to gross margins next year.
- New CEO Per Narvinger said the RAN market is flat and geopolitical uncertainty is elevated, which together increase downside risk and could prompt further cost actions or slower carrier upgrade spending.