Overview

• Ericsson reported diluted EPS of 3.33 SEK (35 cents), topping a 14-cent consensus, on revenue of $5.91 billion that narrowly exceeded forecasts despite a 9% year-over-year decline in local currency and a 2% organic drop.
• Profitability strengthened with an adjusted gross margin of 48.1% and an adjusted EBIT margin of 27.5%, supported by cost actions and higher IPR licensing, while adjusted EBITA rose to 28.1%.
• Sales mix shifted as Cloud Software & Services grew 3%, partially offsetting an 11% decline in Networks and a 20% drop in Enterprise tied to the iconectiv divestment.
• The sale of iconectiv delivered a capital gain and boosted the net cash position to 51.9 billion SEK, though free cash flow before M&A fell to 6.6 billion SEK from a year earlier.
• Management guided for Networks and Cloud Software & Services to track three-year average seasonality and projected a Networks adjusted gross margin of 49%–51%, while flagging tariff and macroeconomic uncertainty.