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6-K 1 a2607146-kq226.htm 6-K 260714 6-K Q226
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of July 2026
Commission File Number
000-12033
LM ERICSSON TELEPHONE COMPANY
(Translation of registrant’s name into English)
Torshamnsgatan 21, Kista
SE-164 83, Stockholm, Sweden
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F [x] Form 40-F [ ]
Announcement of LM Ericsson Telephone Company, July 14, 2026 regarding “Ericsson reports second quarter results
2026”
Exhibits
Exhibit 99.1Announcement of LM Ericsson Telephone Company, July 14, 2026 regarding “Ericsson reports second
quarter results 2026 ”
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
TELEFONAKTIEBOLAGET LM ERICSSON (publ)
By: /s/ LARS SANDSTRÖM
Lars Sandström
Senior Vice President, Chief Financial Officer
Date: July 14, 2026
EX-99.1 2 a26q2report.htm EX-99.1 26Q2 report
Ericsson  |  Second quarter report 2026. July 14, 2026.
1
ericsson_q-reportxtopp.jpg
Second quarter report 2026
Strategic highlights – disciplined execution and margin resilience
–Adjusted gross margin of 48.4%, supported by solid operational execution and improved margins in Mobile Networks.
–Strong net cash position supporting continued investments and capital returns, with SEK 8.2 b. returned to shareholders in Q2.
–Demonstrated AI-enabled drone sensing and tracking using existing cell towers at a Texas stadium during a major global sporting
event.
Financial highlights – solid financial performance
–Reported sales were SEK 52.7 (56.1) b. Organic* sales decreased by -1%* YoY primarily due to lower IPR licensing revenues,
reflecting a non-recurring benefit from a partial settlement in the prior year period. Organic* sales grew in three out of four market
areas.
–Adjusted1 gross income was SEK 25.5 (27.0) b., with solid operational execution partly offset by currency headwinds. Reported
gross income was SEK 24.1 (26.6) b.
–Adjusted1 gross margin was 48.4% (48.0%). Networks and Cloud Software and Services adjusted gross margin increased.
Reported gross margin was 45.8% (47.5%).
–Adjusted1 EBITA was SEK 6.9 (7.4) b. with a 13.1% (13.2%) margin, benefiting from continued strong margin expansion in Cloud
Software and Services. Reported EBITA was SEK 6.3 (6.8) b., with an 11.9% (12.0%) margin.
–Net income was SEK 4.1 (4.6) b. EPS diluted was SEK 1.22 (1.37).
–Free cash flow before M&A was SEK 0.4 (2.6) b.
–Capital returns to shareholders were SEK 8.2 b. in Q2, including SEK 3.2 b. of share repurchases.
Comment from Börje Ekholm, President and CEO
Our Q2 results underscore the strength of our portfolio and disciplined execution. Adjusted gross margin was 48%, up by 2
percentage points after normalizing for the one-off benefit of the IPR settlement last year.
In Q2, we took action to mitigate component cost inflation. As the impact builds in the coming quarters, we will continue to pursue
internal measures and pricing actions to help offset the effect. We also expect some pressure on Networks adjusted gross margin in
Q3 due to higher volumes of network rollout projects.
Ericsson enters the next phase from a position of strength. Over recent years, we have strengthened our portfolio to capture the
next wave of AI-driven connectivity. Building on our technology leadership in mobile networks, we have expanded into attractive
growth areas, positioning Ericsson to capitalize as AI increasingly moves into the physical world.
SEK b.
Q2
2026
Q2
2025
YoY
change
Q1
2026
QoQ
change
Jan-Jun
2026
Jan-Jun
2025
YoY
change
Net sales
52.7
56.1
-6%
49.3
7%
102.0
111.2
-8%
 Organic sales growth*²⁾
-
-
-1%
-
-
-
-
2%
Gross income
24.1
26.6
-9%
23.3
4%
47.4
53.2
-11%
Gross margin²⁾
45.8%
47.5%
-
47.2%
-
46.5%
47.8%
-
EBIT
5.9
6.4
-7%
1.4
-
7.4
12.3
-40%
EBIT margin²⁾
11.2%
11.4%
-
2.9%
-
7.2%
11.1%
-
EBITA²⁾
6.3
6.8
-7%
1.8
-
8.1
13.4
-40%
EBITA margin²⁾
11.9%
12.0%
-
3.6%
-
7.9%
12.1%
-
Net income
4.1
4.6
-12%
0.9
-
5.0
8.8
-44%
EPS diluted, SEK
1.22
1.37
-11%
0.27
-
1.48
2.61
-43%
Free cash flow before M&A²⁾
0.4
2.6
-85%
5.9
-93%
6.3
5.3
19%
Net cash, end of period²⁾
59.8
36.0
66%
68.1
-12%
59.8
36.0
66%
Adjusted financial measures¹⁾²⁾
Adjusted gross income
25.5
27.0
-5%
23.7
7%
49.2
53.7
-8%
Adjusted gross margin
48.4%
48.0%
-
48.1%
-
48.2%
48.3%
-
Adjusted EBIT
6.5
7.0
-7%
5.2
25%
11.7
13.3
-12%
Adjusted EBIT margin
12.4%
12.6%
-
10.6%
-
11.5%
11.9%
-
Adjusted EBITA
6.9
7.4
-7%
5.6
24%
12.4
14.4
-13%
Adjusted EBITA margin
13.1%
13.2%
-
11.3%
-
12.2%
12.9%
-
* 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.
Ericsson  |  Second quarter report 2026. July 14, 2026.
Group results
2
Amounts marked with an ‘*’ in this document represent sales growth adjusted for the impact of acquisitions and divestments and effects of foreign currency
fluctuations, also named organic sales growth. These numbers present performance on a comparable basis to improve the comparability of results between
periods. Organic sales growth figures are non-IFRS measures.
‘Adjusted’ metrics are adjusted to exclude restructuring charges and are non-IFRS measures. This is a change in nomenclature only.
See ‘Financial statements and other information’ for Alternative performance measures.
Group results
SEK b.
Q2
2026
Q2
2025
YoY
change
Q1
2026
QoQ
change
Jan-Jun
2026
Jan-Jun
2025
YoY
change
Net sales
52.7
56.1
-6%
49.3
7%
102.0
111.2
-8%
 Organic sales growth*¹⁾
-
-
-1%
-
-
-
-
2%
Gross income
24.1
26.6
-9%
23.3
4%
47.4
53.2
-11%
Gross margin
45.8%
47.5%
-
47.2%
-
46.5%
47.8%
-
Research and development (R&D) expenses
-10.5
-12.2
-
-13.5
-
-24.0
-24.2
-
Selling and administrative expenses
-7.7
-8.2
-
-8.1
-
-15.9
-16.8
-
Impairment losses on trade receivables
0.0
0.0
-
-0.2
-
-0.2
0.1
-
Other operating income and expenses
0.1
0.1
33%
0.0
-
0.1
0.1
51%
Share of earnings of associated companies
-0.1
0.0
-
-0.1
-
-0.2
0.0
-
EBIT
5.9
6.4
-7%
1.4
-
7.4
12.3
-40%
EBIT margin¹⁾
11.2%
11.4%
-
2.9%
-
7.2%
11.1%
-
EBITA¹⁾
6.3
6.8
-7%
1.8
-
8.1
13.4
-40%
EBITA margin¹⁾
11.9%
12.0%
-
3.6%
-
7.9%
12.1%
-
Financial income and expenses, net
-0.2
0.0
-
-0.2
-
-0.4
0.0
-
Income tax
-1.7
-1.8
-
-0.4
-
-2.0
-3.4
-
Net income
4.1
4.6
-12%
0.9
-
5.0
8.8
-44%
Restructuring charges
-0.6
-0.7
-
-3.8
-
-4.4
-0.9
-
Adjusted financial measures¹⁾
Adjusted gross income
25.5
27.0
-5%
23.7
7%
49.2
53.7
-8%
Adjusted gross margin
48.4%
48.0%
-
48.1%
-
48.2%
48.3%
-
Adjusted EBIT
6.5
7.0
-7%
5.2
25%
11.7
13.3
-12%
Adjusted EBIT margin
12.4%
12.6%
-
10.6%
-
11.5%
11.9%
-
Adjusted EBITA
6.9
7.4
-7%
5.6
24%
12.4
14.4
-13%
Adjusted EBITA margin
13.1%
13.2%
-
11.3%
-
12.2%
12.9%
-
1) Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements.
Net sales
Reported sales decreased by -6% YoY to SEK 52.7 (56.1) b.,
including a SEK -1.8 b. currency impact. Networks sales declined
by -8% to SEK 33.0 b. Cloud Software and Services sales
increased by 3% to SEK 14.7 b. Enterprise sales declined by
-19% to SEK 4.5 b., mainly driven by a SEK -1.0 b. impact from
the divestment of iconectiv in 2025. Sales in segment Other were
SEK 0.4 b.
Organic sales declined by -1%* YoY due to lower IPR
licensing revenues, reflecting a non-recurring benefit in the prior
year period. Organic sales grew in market areas North East Asia,
South East Asia, Oceania and India and in market area Europe,
Middle East and Africa. Sales in market area Americas declined
by -1%*. Networks sales decreased by -4%* mainly reflecting
lower IPR licensing revenues. Cloud Software and Services sales
grew by 5%*, with growth in all market areas. Sales in segment
Enterprise grew by 3%*, with growth in Global Communications
Platform and Enterprise Wireless Solutions.
IPR licensing revenues declined to SEK 3.4 (4.9) b. The prior-
year period included non-recurring revenues following the partial
settlement of a patent licensing dispute. 82% of IPR licensing
revenues are reported in segment Networks, with the remainder
in Cloud Software and Services.
Gross income and margin
Gross margin decreased to 45.8% (47.5%). Gross margin
declined in Networks and Cloud Software and Services as
restructuring charges more than offset the benefits of cost-
reduction actions and improved delivery performance. The
Enterprise margin declined, primarily due to the impact of the
divestment of iconectiv. Gross margin and gross income were
negatively impacted by lower IPR licensing revenues, reflecting
the non-recurring benefit in the prior year period.
Gross income declined to SEK 24.1 (26.6) b., due to lower
sales and gross margin, a negative currency impact of SEK -0.8
b. and the impact of the divestment of iconectiv.
Adjusted gross income decreased to SEK 25.5 (27.0) b., with
a margin of 48.4% (48.0%).
Research and development (R&D) expenses
R&D expenses decreased to SEK -10.5 (-12.2) b., including
restructuring charges of SEK 0.9 (-0.3) b. and a positive currency
impact of SEK 0.1 b. The quarter included a partial reversal of the
restructuring provision recognized in Q1. Excluding these
impacts, R&D declined as a result of savings from cost-reduction
actions, partly offset by increased investments for technology
leadership.
Selling and administrative (SG&A) expenses
SG&A expenses were SEK -7.7 (-8.2) b., including restructuring
charges of SEK -0.1 (0.0) b. and a currency benefit of SEK 0.2 b.
SG&A expenses declined in all segments as a result of prior
periods’ cost-reduction actions.
Ericsson  |  Second quarter report 2026. July 14, 2026.
Group results
3
Other operating income and expenses
Other operating income and expenses were SEK 0.1 (0.1) b.
Restructuring charges
Restructuring charges were SEK -0.6 (-0.7) b. mainly related to
redundancy activities. Gross income included SEK -1.4 (-0.3) b.
of restructuring charges, while operating expenses included
SEK 0.8 (-0.3) b. of restructuring charges. Following a
reassessment of expected costs, a portion of the restructuring
provision recognized in Q1 was reversed in the quarter.
EBITA
EBITA decreased to SEK 6.3 (6.8) b. Lower gross income was
largely offset by lower operating expenses. EBITA was impacted
by a negative currency impact of SEK -0.6 b. The EBITA margin
was 11.9% (12.0%).
Adjusted EBITA decreased to SEK 6.9 (7.4) b. The adjusted
EBITA margin was 13.1% (13.2%).
EBIT
EBIT decreased to SEK 5.9 (6.4) b. with a margin of 11.2%
(11.4%). Amortization impacted EBIT by SEK -0.4 (-0.4) b.
Adjusted EBIT decreased to SEK 6.5 (7.0) b. with a margin of
12.4% (12.6%).
Financial income and expenses, net
Financial income and expenses were SEK -0.2 (0.0) b. Improved
net interest, driven by higher asset volumes and lower
borrowings, was offset by negative net foreign exchange effects,
including a currency hedge effect of SEK -0.1 (0.1) b.
Income tax
Taxes were SEK -1.7 (-1.8) b. A tax rate of 29% (28%) is
expected for the full year, mainly reflecting the impact of elevated
restructuring costs.
Net income
Net income decreased to SEK 4.1 (4.6) b. Diluted EPS was
SEK 1.22 (1.37).
Employees
The number of employees on June 30, 2026, was 86,536
compared with 87,521 on March 31, 2026. On June 30, 2025, the
number of employees was 91,937.
Financial highlights, year-to-date (Jan-Jun) development
Reported sales decreased by -8% to SEK 102.0 (111.2) b. with a
currency impact of SEK -9.6 b. Sales in Networks declined by
-8% to SEK 66.0 (71.4) b. while sales in Cloud Software and
Services declined by -3% to SEK 26.6 (27.3) b. Sales in
Enterprise declined by -25% to SEK 8.7 (11.5) b. including a SEK
-2.1 b. impact from the divestment of iconectiv in 2025.
Organic sales increased by 2%*. Networks sales increased by
1%*, Cloud Software and Services by 5%* and Enterprise by
4%*.
Organic sales increased in three out of four market areas.
Sales in market area Americas declined slightly, reflecting strong
North America deliveries in the prior-year period, while sales in
Latin America increased. IPR licensing revenues declined to SEK
6.5 (8.0) b., as the prior-year period benefited from higher
revenues related to previously unlicensed periods.
Gross income decreased to SEK 47.4 (53.2) b. impacted by
lower net sales and a negative currency impact of SEK -4.6 b.
Gross income was also impacted by SEK -1.8 (-0.5) b. of
restructuring charges. Gross margin was 46.5% (47.8%).
Adjusted gross income decreased to SEK 49.2 (53.7) b., with a
margin of 48.2% (48.3%). The adjusted gross margin reflected
higher margins in Networks and Cloud Software and Services,
mainly as a result of cost-reduction actions, offset by negative
currency impacts. The gross margin in Enterprise declined YoY
primarily as a result of the divestment of iconectiv.
EBITA decreased to SEK 8.1 (13.4) b. with a margin of
7.9% (12.1%), impacted by lower net sales, increased
restructuring charges, the divestment of iconectiv, and a negative
currency impact of SEK -2.8 b. Adjusted EBITA decreased to SEK
12.4 (14.4) b. with a margin of 12.2% (12.9%). 
EBIT decreased to SEK 7.4 (12.3) b., with a margin of
7.2% (11.1%). Adjusted EBIT was SEK 11.7 (13.3) b. with a
margin of 11.5% (11.9%). Amortization of intangible assets was
SEK -0.7 (-1.1) b.
Net income decreased to SEK 5.0 (8.8) b. including
restructuring charges of SEK -4.4 (-0.9) b. Diluted EPS
decreased to SEK 1.48 (2.61).
Ericsson  |  Second quarter report 2026. July 14, 2026.
Market area sales
4
Market area sales
SEK b.
Q2
2026
Q2
2025
YoY
change
YoY
organic
growth
Q1
2026
QoQ
change
Jan-Jun
2026
Jan-Jun
2025
YoY
change
YoY
organic
growth
Americas
18.8
19.8
-5%
-1%
17.1
10%
35.9
40.7
-12%
-2%
Europe, Middle East and Africa
16.3
16.2
0%
2%
14.3
14%
30.6
30.7
0%
6%
South East Asia, Oceania and India
5.4
5.5
-2%
4%
6.9
-22%
12.4
12.7
-3%
8%
North East Asia
3.7
3.8
-1%
8%
3.1
20%
6.9
7.0
-2%
11%
Other
8.5
10.9
-22%
-12%
7.9
7%
16.4
20.1
-19%
-1%
 Of which IPR
3.4
4.9
-30%
-
3.1
9%
6.5
8.0
-19%
-
Total
52.7
56.1
-6%
-1%
49.3
7%
102.0
111.2
-8%
2%
Market Area Americas
Sales decreased by -1%* YoY. Networks sales declined in North
America, partly offset by continued growth in Latin America.
Cloud Software and Services sales increased supported
by services growth in North America. Reported sales declined by
-5% YoY.
Market Area Europe, Middle East and Africa
Sales increased by 2%* YoY. Networks sales in Middle East &
Africa increased, driven by 5G network investments in certain
markets. Networks sales in Europe declined, primarily due to the
gradual completion of modernization projects in some markets.
Cloud Software and Services sales increased in Europe due to
core network upgrades to 5G in multiple markets while sales in
Middle East & Africa increased due to the timing of Core project
delivery milestones. Reported sales were stable.
Market Area South East Asia, Oceania and India
Sales increased by 4%* YoY. Networks sales increased as a
result of the timing of project deliveries in South East Asia. Cloud
Software and Services sales increased, reflecting the timing of
project
deliverables. Reported sales decreased by -2% YoY. 
Market Area North East Asia
Sales increased by 8%* YoY. Networks sales increased mainly
due to higher deliveries in Japan. Cloud Software and Services
sales increased due to the timing of project milestones in multiple
markets. Reported sales decreased by -1% YoY.
Market Area Other
Market area Other includes IPR licensing revenues and almost
all sales in segment Enterprise. Sales decreased by -12%*,
mainly due to the decline in IPR licensing revenues, partly offset
by organic sales growth in Enterprise and a positive hedge effect.
Reported sales decreased by -22% YoY, mainly reflecting the
divestment of iconectiv in Q3 2025.
Ericsson  |  Second quarter report 2026. July 14, 2026.
Segment results
5
Segment Results
Mobile Networks –
Segment Networks
SEK b.
Q2
2026
Q2
2025
YoY
change
Q1
2026
Net sales
33.0
35.7
-8%
32.9
  Of which IPR licensing revenues
2.8
4.0
-30%
2.6
 Organic sales growth
-
-
-4%
-
Gross income
16.0
17.6
-9%
16.4
Gross margin
48.3%
49.3%
-
49.7%
EBIT
6.0
6.4
-6%
3.3
EBIT margin
18.2%
17.8%
-
10.0%
EBITA
6.0
6.4
-6%
3.3
EBITA margin
18.3%
17.9%
-
10.1%
Restructuring charges
0.2
-0.1
-
-3.1
Adjusted financial measures
Adjusted gross income
16.6
17.7
-6%
16.6
Adjusted gross margin
50.4%
49.5%
-
50.4%
Adjusted EBIT
5.8
6.5
-10%
6.3
Adjusted EBIT margin
17.6%
18.1%
-
19.2%
Adjusted EBITA
5.8
6.5
-10%
6.4
Adjusted EBITA margin
17.7%
18.2%
-
19.3%
Breakdown of sales into products, services and IPR licensing is available in
note 2.
Net sales
Sales decreased by -4%* YoY, mainly reflecting lower IPR
licensing revenues following a non-recurring benefit in the prior-
year period. Excluding IPR licensing revenues, organic sales
would have been broadly stable YoY. Organic sales grew in
market areas North East Asia and in South East Asia, Oceania
and India, while sales declined in the other two market areas.
Reported sales decreased by -8% to SEK 33.0 (35.7) b. including
a negative currency impact of
SEK -1.2 b.
Gross income and margin
Adjusted gross income decreased to SEK 16.6 (17.7) b. impacted
by lower sales and a currency impact of SEK -0.6 b.
Adjusted gross margin increased to 50.4% (49.5%), supported
by a favorable product mix and cost-reduction actions, partly
offset by lower IPR licensing revenues, reflecting a non-recurring
benefit in the prior-year period.
EBITA
Adjusted EBITA decreased to SEK 5.8 (6.5) b., including a SEK
-0.5 b. currency impact. Lower gross income was partly offset by
lower operating expenses, reflecting continued efficiency
improvements and currency benefits. R&D investments continued
to support the strategy to build high-performance programmable
networks. The adjusted EBITA margin was 17.7% (18.2%).
Net sales for the rolling four quarters were SEK 145.6 b. and the
adjusted EBITA margin was 20.2%.
Mobile Networks –
Segment Cloud Software and Services
SEK b.
Q2
2026
Q2
2025
YoY
change
Q1
2026
Net sales
14.7
14.4
3%
11.8
  Of which IPR licensing revenues
0.6
0.9
-30%
0.6
 Organic sales growth
-
-
5%
-
Gross income
5.9
6.0
-2%
4.9
Gross margin
39.8%
41.5%
-
41.5%
EBIT
1.1
0.8
36%
0.0
EBIT margin
7.8%
5.8%
-
0.0%
EBITA
1.1
0.8
36%
0.0
EBITA margin
7.8%
5.9%
-
0.1%
Restructuring charges
-0.7
-0.5
-
-0.6
Adjusted financial measures
Adjusted gross income
6.5
6.2
5%
5.1
Adjusted gross margin
44.1%
43.2%
-
43.2%
Adjusted EBIT
1.8
1.4
33%
0.6
Adjusted EBIT margin
12.4%
9.6%
-
5.3%
Adjusted EBITA
1.8
1.4
33%
0.6
Adjusted EBITA margin
12.4%
9.6%
-
5.3%
Breakdown of sales into products, services and IPR licensing is available in
note 2.
Net sales
Sales increased by 5%* YoY. Sales grew in all market areas.
Reported sales increased by 3% to SEK 14.7 (14.4) b., including
a currency impact of SEK -0.4 b. Services sales accounted for
62% (62%) of sales.
In market area Europe, Middle East and Africa, sales growth
was driven by core network upgrades in Europe and project
deliverables in Middle East and Africa. Sales in market area
North East Asia grew, driven by increased software sales. In the
other market areas, sales growth was driven by accelerated
project deliverables.
Gross income and margin
Adjusted gross margin increased to 44.1% (43.2%), supported by
strong strategy execution with improved delivery performance,
partly offset by the impact of lower IPR licensing revenues,
reflecting a non-recurring benefit in the prior-year period.
Adjusted gross income increased to SEK 6.5 (6.2) b. including
a currency impact of SEK -0.1 b.
EBITA
Adjusted EBITA improved to SEK 1.8 (1.4) b., with no currency
impact. EBITA was supported by improved gross income as well
as lower operating expenses, reflecting continued efficiency
improvements and positive currency impacts. The adjusted
EBITA margin was 12.4% (9.6%).
Net sales for the rolling four quarters were SEK 61.9 b. and the
adjusted EBITA margin was 13.1%.
Ericsson  |  Second quarter report 2026. July 14, 2026.
Segment results
6
Enterprise –
Segment Enterprise
SEK b.
Q2
2026
Q2
2025
YoY
change
Q1
2026
Net sales
4.5
5.5
-19%
4.2
 Organic sales growth
-
-
3%
-
Gross income
2.3
3.0
-25%
2.0
Gross margin
50.7%
54.9%
-
48.9%
EBIT
-1.2
-0.9
-
-1.8
EBIT margin
-27.1%
-15.7%
-
-44.2%
EBITA
-0.9
-0.5
-
-1.5
EBITA margin
-19.8%
-9.4%
-
-36.9%
Restructuring charges
-0.1
0.0
-
-0.1
Adjusted financial measures
Adjusted gross income
2.3
3.0
-25%
2.0
Adjusted gross margin
50.9%
54.9%
-
49.0%
Adjusted EBIT
-1.2
-0.9
-
-1.7
Adjusted EBIT margin
-25.9%
-15.5%
-
-41.9%
Adjusted EBITA
-0.8
-0.5
-
-1.4
Adjusted EBITA margin
-18.7%
-9.3%
-
-34.6%
Net sales
Sales increased by 3%* YoY, with growth in Global
Communications Platform and Enterprise Wireless Solutions.
Reported sales decreased by -19% YoY to SEK 4.5 (5.5) b.,
reflecting the divestment of iconectiv in Q3 2025 and a SEK -0.2
b. currency impact.
Growth in Global Communications Platform was driven by
higher sales* in CPaaS and in network API powered solutions.
Sales* in Enterprise Wireless Solutions benefited from growth in
WWAN solutions.
Gross income and margin
Adjusted gross margin decreased to 50.9% (54.9%), reflecting
the impact of the divestment of iconectiv in Q3 2025 and a
change in product mix in Global Communications Platform and
Enterprise Wireless Solutions. Adjusted gross income was SEK
2.3 (3.0) b., reflecting the divestment of iconectiv in Q3 2025 and
a negative currency impact of SEK -0.1 b.
EBITA (loss)
Adjusted EBITA (loss) was SEK -0.8 (-0.5) b. The impact from the
divestment of iconectiv in Q3 2025 was partly offset by cost
reductions in Global Communications Platform and Enterprise
Wireless Solutions. The currency impact was SEK 0.0 b. Adjusted
EBITA margin was -18.7% (-9.3%).
Net sales for the rolling four quarters were SEK 18.3 b. and the
adjusted EBITA margin was 19.8%, including a 41.4 percentage
point benefit from the iconectiv gain in Q3 2025.
Segment Other
SEK b.
Q2
2026
Q2
2025
YoY
change
Q1
2026
Net sales
0.4
0.5
-11%
0.4
 Organic sales growth
-
-
-6%
-
Gross income
0.0
0.0
-5%
0.0
Gross margin
0.5%
0.4%
-
-1.5%
EBIT
0.0
0.0
-
0.0
EBIT margin
-3.4%
9.5%
-
0.3%
EBITA
0.0
0.0
-
0.0
EBITA margin
-3.4%
9.5%
-
0.3%
Restructuring charges
-0.1
0.0
-
0.0
Adjusted financial measures
Adjusted gross income
0.1
0.0
-
0.0
Adjusted gross margin
13.3%
0.4%
-1.5%
Adjusted EBIT
0.0
0.0
3%
0.0
Adjusted EBIT margin
10.9%
9.5%
-
0.3%
Adjusted EBITA
0.0
0.0
3%
0.0
Adjusted EBITA margin
10.9%
9.5%
-
0.3%
Net sales
Reported sales were SEK 0.4 (0.5) b.
Gross income and margin
Adjusted gross income was SEK 0.1 (0.0) b. Adjusted gross
margin was 13.3% (0.4%).
EBITA (loss)
Adjusted EBITA (loss) was SEK 0.0 (0.0) b.
Net sales for the rolling four quarters were SEK 1.7 b.
Ericsson  |  Second quarter report 2026. July 14, 2026.
Cash flow and financial position
7
Cash flow and financial position
Free cash flow bridge, SEK b.
Q2
2026
Q2
2025
Q1
2026
Jan-Jun
2026
Jan-Jun
2025
Adjusted EBITA
6.9
7.4
5.6
12.4
14.4
Depreciation and amortization of non-acquired assets
1.6
1.8
1.6
3.3
3.8
Restructuring charges
-0.6
-0.7
-3.8
-4.4
-0.9
Changes in operating net assets
-4.4
-2.7
5.6
1.2
-5.5
Interest paid/received, taxes paid, and other
-1.6
-1.8
-1.6
-3.2
-3.2
Cash flow from operating activities
1.9
4.2
7.4
9.3
8.5
Net capex and other investing activities
-1.0
-1.0
-1.0
-2.1
-2.1
Repayment of lease liabilities
-0.5
-0.6
-0.5
-1.0
-1.1
Free cash flow before M&A
0.4
2.6
5.9
6.3
5.3
Cash flow from operating activities
1.9
4.2
7.4
9.3
8.5
Cash flow from investing activities
-3.7
-10.9
1.9
-1.9
-9.6
Cash flow from financing activities
-9.2
-3.5
-2.3
-11.5
-4.2
SEK b.
Jun 30
2026
Jun 30
2025
Mar 31
2026
Gross cash
91.3
73.3
99.5
- Borrowings, current
9.5
7.3
9.9
- Borrowings, non-current
22.0
29.9
21.5
Net cash
59.8
36.0
68.1
Equity
104.8
85.7
103.1
Equity ratio (%)
36.4%
31.7%
35.5%
Capital turnover (times)
1.4
1.6
1.4
Return on capital employed (%)
20.7%
16.8%
21.4%
Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements.
Cash flow
Cash flow from operating activities was SEK 1.9 (4.2) b. driven
by earnings and impacted by increased operating net assets.
The increase mainly reflected higher inventories ahead of
planned Q3 deliveries.
Quarterly cash flow from operating activities decreased
compared to the prior-year period, mainly due to higher
inventories in Q2 2026. In first-half 2026, cash flow from
operating activities increased year on year, driven by strong cash
generation in Q1.
Cash flow from investing activities was SEK -3.7 (-10.9) b.
Investing cash flow in the quarter was driven by purchases of
interest-bearing securities.
Cash flow from financing activities was SEK -9.2 (-3.5) b.
Financing cash flow in the quarter included dividends paid of
SEK -5.0 b. and share repurchases of SEK -3.2 b.
Financial position
Gross cash decreased sequentially by SEK -8.2 b. to SEK 91.3
b., impacted by dividend payments and share repurchases.
Net cash decreased sequentially by SEK -8.3 b. to SEK 59.8
b.
The average maturity of parent company borrowings was 2.5
years as of June 30, 2026, compared with 2.7 years as of March
31, 2026.
Liabilities for post-employment benefits decreased
sequentially to SEK 18.0 b. from SEK 18.2 b. The Swedish
defined benefit obligation (DBO) was calculated using a discount
rate based on the yields of Swedish government bonds. If the
discount rate had been based on Swedish covered mortgage
bonds, the liability for post- employment benefits would have
been approximately SEK 9.9 b., which is SEK 8.1 b. lower than
current DBO.
Ericsson  |  Second quarter report 2026. July 14, 2026.
Key data points
8
Key data points
Market
Dell’Oro estimates that the global RAN equipment market will
remain stable in 2026. 
Source: Dell’Oro Mobile RAN Quarterly Report Q126, May 2026.
Ericsson
Net sales
Reported average seasonality last 3 years (2023–2025), %.
Q4 → Q1
Q1 → Q2
Q2 → Q3
Q3 → Q4
Networks
-25%
+4%
+1%
+17%
Cloud Software and Services
-33%
+13%
+3%
+29%
Net sales may show large variations between quarters, including
currency changes.
IPR licensing revenues
IPR licensing revenue growth opportunities remain in new market
segments and through increased penetration of the smartphone
market.
Following agreements reached in July 2026 with a top-10
smartphone vendor and a payment terminal vendor, annualized
recurring IPR licensing revenues were approximately SEK 13.5 b.
Optimizing the terms and value of new agreements and
renewals will remain a priority.
Currency exposure
Currency exposure can vary significantly from quarter to quarter.
In 2025, approximately half of net sales were USD denominated,
over 15% of net sales were EUR denominated, and five other
currencies (INR, JPY, GBP, CNY, AUD) contributed approximately
15% of net sales.
Further currency information is available at:
https://www.ericsson.com/en/investors/financial-reports-and-
presentations/foreign-exchange-rates
Amortization of intangible assets
Amortization of intangible assets is expected to be around
SEK -0.4 b. per quarter in segment Enterprise.
Restructuring charges
Restructuring charges for 2026 are expected to be at elevated
levels.
Segments
Increased uncertainty remains in the outlook and in the broader
macroeconomic and geopolitical environment.
The Q3 2026 outlook assumes currency rates of USD:SEK 9.7,
EUR:SEK 11.0.
Networks
Sales growth in Q3 2026 is expected to be above 3-year average
seasonality.
Adjusted gross margin in Q3 2026 is expected to be in the range
of 48% to 50%.
Cloud Software and Services
Sales growth in Q3 2026 is expected to be broadly similar to 3-
year average seasonality.
Ericsson  |  Second quarter report 2026. July 14, 2026.
Parent Company
9
Parent Company
Income after financial items January – June 2026, was
SEK 29.0 (19.3) b.
At the end of the quarter, gross cash (cash, cash equivalents
plus interest-bearing securities, current and non-current)
amounted to SEK 78.4 (60.1) b.
There was an increase in intercompany lending of SEK 2.7 b.
and a decrease in intercompany borrowing of SEK 0.4 b. in the
quarter.
At the end of the quarter, non-restricted equity amounted to
SEK 58.4 (31.9) b., and total equity amounted to SEK 106.7
(80.2) b.
The Parent Company has recognized dividends from
subsidiaries of SEK 27.7 (18.9) b. in the quarter.
During the quarter, Ericsson has repurchased 29,535,981
Class B shares for a total consideration of SEK 3.3 b. in
accordance with the AGM authorization. Repurchased shares are
held as treasury shares and are presented as a deduction from
equity.
In accordance with the conditions of the long-term variable
compensation program (LTV) for Ericsson employees, 2,639,299
shares from treasury stock were distributed to employees or sold
in the second quarter. On June 30, 2026, Ericsson held
64,898,958 treasury shares (38,002,276). Repurchased shares
are reflected in the average number of shares outstanding and in
the calculation of earnings per share.
Ericsson  |  Second quarter report 2026. July 14, 2026.
Other Information
10
Other information
Legal proceedings involving governmental authorities
In February 2022, Ericsson publicly disclosed that an internal
investigation in 2019 included a review of the conduct of
Ericsson employees, vendors and suppliers in Iraq during the
period between 2011 to 2019. The investigators could not
determine the ultimate recipients of any payments, nor identify
that any Ericsson employee was directly involved in financing
terrorist organizations. The Company’s 2019 internal Iraq
investigation did not conclude that Ericsson made or was
responsible for any payments to any terrorist organization.
The Company continues to fully cooperate with the US
Department of Justice (DOJ) in its investigation into matters
discussed in the 2019 internal Iraq investigation report and
related topics concerning jurisdictions including Iraq. As
additional information continues to be identified and evaluated in
continued cooperation with the DOJ during its ongoing
investigation, it is expected that there will not be any conclusive
determinations on the outcome until the investigation is
completed. The scope and duration of the investigation remain
uncertain.
In April 2019, Ericsson was informed by China’s State
Administration for Market Regulation Anti-monopoly Bureau
(SAMR) that SAMR has initiated an investigation into Ericsson’s
patent licensing practices in China. Ericsson is cooperating with
the investigation, which is still in a fact-finding phase. The next
steps include continued fact-finding and meetings with SAMR in
order to facilitate the authority’s assessment and conclusions. In
case of adverse findings, SAMR has the power to impose
behavioral and financial remedies.
Legal proceedings not involving governmental authorities
In August 2022, a civil lawsuit was filed in the United States
District Court for the District of Columbia against
Telefonaktiebolaget LM Ericsson and Ericsson Inc. (collectively,
the “Ericsson defendants”). The lawsuit was brought by US
military service members, employees of US government
contractors and other civilians who were killed or injured in
terrorist attacks in Iraq, Afghanistan and Syria from 2005 to 2021,
as well as by their family members. The lawsuit asserts claims
against the Ericsson defendants under the U.S. Anti-Terrorism
Act alleging that the Ericsson defendants made payments that
ultimately aided the terrorist organizations that committed,
planned or authorized the attacks. In November 2022, the
Ericsson defendants filed a motion to dismiss the complaint. On
December 20, 2022, plaintiffs filed an amended complaint, which
added additional plaintiffs, including a plaintiff injured in Turkey,
and also named Ericsson AB (collectively with the Ericsson
defendants, the “Ericsson corporate defendants”), President and
CEO Börje Ekholm and a former employee (who has not been
served with process) as additional defendants and also asserted
additional allegations and claims. In March 2023, the Ericsson
corporate defendants and Mr. Ekholm filed motions to dismiss
the amended complaint. Plaintiffs filed their oppositions to
defendants’ motions to dismiss the amended complaint in June
2023, and defendants filed reply briefs in support of their motions
to dismiss in July 2023. All briefing has been submitted, and
resolution of the matter is pending with the District Court. All
defendants will continue to vigorously defend this matter.
In February 2024, a second civil lawsuit also alleging
violations of the U.S. Anti-Terrorism Act was filed in the United
States District Court for the District of Columbia. The lawsuit was
filed by the same law firm and involves substantially similar
factual allegations and claims as those made in the Anti-
Terrorism Act lawsuit originally filed in August 2022, and similarly
names the same Ericsson corporate defendants, President and
CEO Börje Ekholm and a former employee as defendants. The
new lawsuit was brought by additional US military service
members, employees of US government contractors and other
civilians who were killed or injured in terrorist attacks in Iraq,
Afghanistan, Syria, Turkey, Niger, and France from 2005 to 2021,
as well as by their family members. The District Court for the
District of Columbia has stayed the proceedings in this matter
pending its decision on the motions to dismiss in the earlier-filed
suit. The defendants will vigorously defend this matter.
In November 2025, a third civil lawsuit also alleging violations
of the US Anti-Terrorism Act was filed in the US District Court for
the District of Columbia. The lawsuit was filed by a law firm not
involved in the August 2022 and February 2024 lawsuits and
involves substantially similar factual allegations and claims to
those made in the Anti-Terrorism Act lawsuits filed in August
2022 and February 2024, and similarly names the same Ericsson
corporate defendants, CEO Börje Ekholm and a former
employee as defendants. The new lawsuit was brought by
additional US military service members, employees of US
government contractors and other civilians who were killed or
injured in terrorist attacks in France, Afghanistan, and Belgium
from 2012 to 2018, as well as by their family members. The
District Court for the District of Columbia has stayed the
proceedings in this matter pending its decision on the motions to
dismiss in the earlier-filed suit. The defendants will vigorously
defend this matter.
In March 2026, a fourth civil lawsuit also alleging violations of
the US Anti-Terrorism Act was filed in the US District Court for
the District of Columbia. The lawsuit involves substantially similar
factual allegations and claims to those made in the Anti-Terrorism
Act lawsuits filed in August 2022, February 2024, and November
2025, and similarly names the same Ericsson corporate
defendants, CEO Börje Ekholm and a former employee as
defendants. The new lawsuit was brought by additional US
military service members and civilians who were killed or injured
in terrorist attacks in Afghanistan, Iraq, Niger, Tajikistan and
Turkey from 2005 to 2018, as well as by their family members.
The District Court for the District of Columbia has stayed the
proceedings in this matter pending its decision on the motions to
dismiss in the earlier-filed suit. The defendants will vigorously
defend this matter.
Beginning on August 4, 2023, a number of civil lawsuits have
been filed against Telefonaktiebolaget LM Ericsson in Solna
District Court, Sweden. 93 claimants have filed suit, which are
coordinated and financed by a UK-based litigation funder. The
claimants consist of a group of non-Swedish funds and financial
institutions that allegedly are or have been shareholders of the
Company. Their damages claims are primarily based on alleged
inadequate disclosure of the contents of the Company’s 2019
internal Iraq investigation report. Ericsson filed its statement of
defense on March 15, 2024. On February 14, 2025, the District
Court ordered Ericsson to produce the 2019 internal Iraq
Ericsson  |  Second quarter report 2026. July 14, 2026.
Other Information
11
investigation report to the claimants’ external counsel. Ericsson
appealed the decision and on August 15, 2025, the Court of
Appeal overturned the District Court’s decision. The claimants
appealed, but on March 12, 2026, the Supreme Court refused
leave to appeal. Proceedings on the merits of the case will now
continue in the District Court. Ericsson will continue to vigorously
defend this matter.
The Company actively manages its IPR portfolio and its need
for third-party licenses and is involved from time to time, in the
ordinary course of business, in litigation related thereto, as
plaintiff, defendant and other capacities.
In addition to the proceedings discussed above, the Company
is, and in the future may be, involved in various other regulatory
investigations, enforcement actions, lawsuits, claims (including
claims by third-parties the Company has indemnified against
infringement liability or provided guarantees to) and proceedings
incidental to the ordinary course of business and transactions.
CEO transition arrangements
On June 16, 2026, the Company announced that Börje Ekholm is
retiring from Ericsson. Börje Ekholm will step down as CEO on
September 30, 2026, and act as executive advisor to the new
CEO until June 15, 2027. Under his employment contract, he has
a 12-month notice period from June 16, 2026, to June 15, 2027,
during which salary and benefits will be paid in line with
contractual terms. Short- and long-term variable compensation
will be determined in accordance with the Company’s plan rules,
including pro-rated vesting of awards for performance periods
that continue after his employment ends. From June 15, 2027,
Börje Ekholm will be subject to a 36-month non-compete
undertaking, for which fixed compensation totaling SEK 14.7
million (USD 1.59 million) will be paid over the three-year period.
Further information will be disclosed as required in the 2026
Annual Report.
PRESS RELEASES
May 13,
2026
Ericsson to utilize mandate to transfer shares
May 29,
2026
Ericsson’s Nomination Committee appointed
June 16,
2026
Per Narvinger appointed new President and CEO of Ericsson as
Börje Ekholm steps down
June 18,
2026
Ericsson appoints David Hammarwall Head of Business Area
Networks
Information on the share buyback program and related press
releases is available on the Ericsson investor website at:
Share buyback program
Ericsson  |  Second quarter report 2026. July 14, 2026.
Risk factors
12
Risk factors
Ericsson is exposed to a number of risks in its activities. To
stimulate identification and support cross-functional treatment
within the Ericsson Group, risks are grouped in a number of
categories, including, for example, risks relating to technology,
IPR, compliance, project execution, operations, supply chain and
sourcing concentration, products and services, customer
concentration, treasury and accounting, the geopolitical
environment, M&A, cybersecurity and occupational health and
safety. Ericsson’s risk management is embedded into strategy
development and operational processes, and material Group
risks are regularly assessed and reviewed by executives as
required by Ericsson’s Material Group Risk Protocol to ensure
accountability, effectiveness, efficiency, business continuity and
compliance. Risks are defined in both a short-term and long-term
perspective and are related to long-term objectives and strategic
direction as well as to short-term objectives. Risk factors and
uncertainties of relevance to Ericsson are described in the
Ericsson Annual Report 2025 and in the Annual Report on Form
20-F for the year ended December 31, 2025 (in the following, the
“Annual Report 2025”). See also the risks set out in the section
titled “Forward-looking statements.”
This report has not been reviewed by Telefonaktiebolaget LM
Ericsson auditors.
Date for next report: October 15, 2026.
Ericsson  |  Second quarter report 2026. July 14, 2026.
Board assurance
13
Board assurance
The Board of Directors and the President and CEO certify that the financial report for the six months gives a fair view of the
performance of the business, position and profit or loss of the Company and the Group and describes the principal risks and
uncertainties that the Company and the companies in the Group face.
Stockholm, July 14, 2026
Telefonaktiebolaget LM Ericsson (publ)
Org. Nr. 556016-0680
Jan Carlson
Jacob Wallenberg
Jon Fredrik Baksaas
Chair
Deputy Chair
Member of the Board
Christian Cederholm
Börje Ekholm
Eric A. Elzvik
Member of the Board
President, CEO
and member of the Board
Member of the Board
Marachel Knight
Kristin S. Rinne
Jonas Synnergren
Member of the Board
Member of the Board
Member of the Board
Christy Wyatt
Karl Åberg
Member of the Board
Member of the Board
Ulf Rosberg
Loredana Roslund
Annika Salomonsson
Member of the Board
Member of the Board
Member of the Board
Ericsson  |  Second quarter report 2026. July 14, 2026.
Editor's note
14
Editor’s note
Media and analyst briefing
Ericsson invites media, investors and analysts to a conference
call and live video webcast at 09:00 AM CEST on July 14, 2026.
Link to the webcast, dial-in to audio conference, supporting
material and replay will be available at:
www.ericsson.com/investors and
www.ericsson.com/newsroom
For further information, please contact:
Lars Sandström, Senior Vice President, Chief Financial Officer
Phone: +46 72 161 20 04
E-mail: investor.relations@ericsson.com 
Peter Borsos, Vice President,
Head of Group Communications
Phone: +46 70 317 68 00
E-mail: media.relations@ericsson.com
Telefonaktiebolaget LM Ericsson
Org. number: 556016-0680
Torshamnsgatan 21
SE-164 83 Stockholm
Phone: +46 10 719 00 00
www.ericsson.com
Investors
Daniel Morris, Vice President,
Head of Investor Relations
Phone: +44 7386 657217
E-mail: investor.relations@ericsson.com
Lena Häggblom, Director,
Investor Relations
Phone: +46 72 593 27 78
E-mail: investor.relations@ericsson.com
Alan Ganson, Director,
Investor Relations
Phone: +46 70 267 27 30
E-mail: investor.relations@ericsson.com
Media
Ralf Bagner, Head of Media Relations
Phone: +46 76 128 47 89
E-mail: media.relations@ericsson.com
Corporate Communications
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com
Ericsson  |  Second quarter report 2026. July 14, 2026.
Forward-looking statements
15
Forward-looking statements
This report includes forward-looking statements. All statements
other than statements of historical fact are forward-looking
statements. The words “believe,” “expect,” “foresee,” “anticipate,”
“assume,” “intend,” “likely,” “projects,” “may,” “could,” “plan,”
“estimate,” “forecast,” “will,” “should,” “would,” “predict,” “aim,”
“ambition,” “seek,” “potential,” “target,” “might,” “continue,” or, in
each case, their negative or variations, and similar words or
expressions are used to identify forward-looking statements.
These statements are subject to risks and uncertainties that
could cause actual results to differ materially and adversely from
those expressed in, or implied or projected by, the forward-
looking statements, including, in particular the following:
–Potential material additional liability resulting from past
conduct, including allegations of past conduct that remains
unresolved or unknown in multiple jurisdictions, including Iraq,
which remains the subject of ongoing investigations by
Ericsson and US governmental authorities
–Risks related to internal controls and governance, including
the potential to incur material liability in connection with
internal controls surrounding payments made to third parties in
connection with past conduct in multiple jurisdictions, including
Iraq, which remains the subject of ongoing investigations by
Ericsson and US governmental authorities
–The risk that the ongoing investigations by Ericsson and US
governmental authorities result in a conclusion by Ericsson or
US governmental authorities that the Company’s past conduct
included making or having responsibility for making payments
to a terrorist organization or other improper payments, which
could lead to material additional liability
–Risks related to the Company's ongoing compliance with
obligations under the National Security Agreement entered
into in connection with Ericsson’s acquisition of Vonage
Holdings Corp. (Vonage), which may adversely affect the
Vonage business and subject the Company to additional
liabilities
–Ericsson's goals, strategies, planning assumptions and
operational or financial performance expectations
–Macroeconomic conditions, including inflationary pressures
and effects on customer investments, market recovery and
growth
–Ongoing geopolitical and trade uncertainty, including
challenging global economic conditions, market trends and the
imposition of tariffs and sanctions
–Continued growth of mobile communications, the success of
Ericsson's existing and targeted customer base, and
Ericsson's ability to maintain technology leadership
–Success in implementing key strategies, including improving
profitability, leading in 6G, capturing 5G market opportunities,
capitalizing on network API and Enterprise opportunities,
incorporation of AI technologies into certain products, services
and processes and expected benefits from restructuring
activities
–Risks related to cybersecurity and privacy, security and data
localization
–Industry trends, future characteristics and development of the
markets in which Ericsson operates
–Risks of global operations, including legal and regulatory
requirements and uncertainties, and unfavorable lawsuits and
legal proceedings
–Ericsson's future liquidity, capital resources, capital
expenditures, cost savings and profitability, and risks related to
financial condition
–The expected demand for Ericsson's existing and new
products and services as well as plans to launch new products
and services including research and development
expenditures
–Ericsson's ability to deliver on future plans and achieve future
growth
–The expected operational or financial performance of strategic
cooperation activities and joint ventures
–Risks related to acquisitions and divestments that may be
disruptive and incur significant expenses, including Ericsson's
ability to successfully consummate such transactions, protect
the value of acquisitions during integration, or achieve the
value anticipated with an acquisition
–Trends related to Ericsson's industry, including Ericsson's
regulatory environment, competition and customer structure
–Intense competition from existing competitors, and new
entrants, including vendor consolidation
–Risks related to the supply chain and single-source or highly
concentrated third-party suppliers
–Large, multi-year agreements with limited number of  key
customers, and operator consolidation
–Risks related to intellectual property, key employees, and
unforeseen risks and disruptions due to natural or man-made
events
–Risks related to environmental, social, governance, diversity,
equity and inclusion and business conduct
–Other factors included in Ericsson's filings with the US
Securities and Exchange Commission (SEC), including the
factors described throughout this report, included in the
section Risk factors, and in “Risk Factors” in the Annual
Report 2025, as updated by subsequent reports filed with the
SEC.
These forward-looking statements also represent Ericsson's 
estimates, assumptions and expectations only as of the date that
they were made, and to the extent they represent third-party
data,  Ericsson has not undertaken to independently verify such
third-party data and does not intend to do so. Given these risks
and uncertainties, readers are cautioned not to place undue
reliance on such forward-looking statements and are urged to
carefully review and consider the various disclosures made in
this report and in other documents Ericsson files from time to
time with Ericsson's regulators that disclose risks and
uncertainties that may affect Ericsson's business. Ericsson
expressly disclaims a duty to provide updates to these forward-
looking statements, and the estimates and assumptions
associated with them, after the date of this report, to reflect
events or changes in circumstances or changes in expectations
or the occurrence of anticipated events, whether as a result of
new information, future events or otherwise, except as required
by applicable law or stock exchange regulations.
Ericsson  |  Second quarter report 2026. July 14, 2026.
Financial statements and other information
16
Financial
statements
and other
information
Contents
Ericsson  |  Second quarter report 2026. July 14, 2026.
Financial statements
17
Financial statements (unaudited)
Condensed consolidated income statement
Q2
Jan-Jun
SEK million
Note
2026
2025
Change
2026
2025
Net sales
2
52,691
56,132
-6%
102,022
111,157
Cost of sales
-28,568
-29,483
-3%
-54,601
-57,971
Gross income
2
24,122
26,649
-9%
47,421
53,186
Research and development expenses
-10,480
-12,212
-14%
-23,969
-24,244
Selling and administrative expenses
-7,736
-8,180
-5%
-15,872
-16,801
Impairment reversals/losses on trade receivables
-20
34
-161%
-177
66
Operating expenses
-18,237
-20,358
-10%
-40,017
-40,979
Other operating income and expenses
90
67
33%
113
75
Share of earnings of associated companies
-56
33
-
-155
40
Earnings before financial items and income tax (EBIT)
2
5,919
6,391
-7%
7,362
12,322
Financial income and expenses, net
3
-178
34
-
-372
-40
Income after financial items
5,741
6,425
-11%
6,990
12,282
Income tax
-1,665
-1,799
-7%
-2,027
-3,439
Net income
4,076
4,626
-12%
4,963
8,843
Net income attributable to:
 Owners of the Parent Company
4,046
4,567
4,933
8,716
 Non-controlling interests
30
59
30
127
Other information
 Average number of shares, basic (million)
8
3,313
3,333
3,323
3,333
 Earnings per share, basic (SEK)¹⁾
8
1.22
1.37
1.48
2.62
 Earnings per share, diluted (SEK)¹⁾²⁾
8
1.22
1.37
1.48
2.61
¹⁾ Based on net income attributable to owners of the Parent Company.
²⁾ Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.
Condensed statement of comprehensive income
Q2
Jan-Jun
SEK million
2026
2025
2026
2025
Net income
4,076
4,626
4,963
8,843
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit pension plans
437
-3,528
610
-817
Revaluation of credit risk on borrowings
-121
63
-13
91
Tax on items that will not be reclassified to profit or loss
-53
489
-128
13
Items that have been or may be reclassified to profit or loss
Cash flow hedge reserve
 Gains/losses arising during the period
-76
1,726
-420
4,655
 Reclassification adjustments on gains/losses included in profit or loss
-568
29
-1,132
322
Translation reserves
    Changes in translation reserves
984
-2,282
3,462
-9,898
    Reclassification to profit or loss
–
54
-10
54
Share of other comprehensive income of associated companies
78
-6
107
-56
Tax on items that have been or may be reclassified to profit or loss
133
-361
320
-1,025
Total other comprehensive income, net of tax
814
-3,816
2,794
-6,661
Total comprehensive income
4,890
810
7,757
2,182
Total comprehensive income attributable to:
 Owners of the Parent Company
4,858
671
7,731
1,886
 Non-controlling interests
32
139
26
296
Ericsson  |  Second quarter report 2026. July 14, 2026.
Financial statements
18
Condensed consolidated balance sheet
SEK million
Note
Jun 30
2026
Dec 31
2025
Assets
Non-current assets 
Intangible assets
 Capitalized development expenses
3,771
3,866
 Goodwill
49,371
46,882
 Customer relationships, IPR and other intangible assets
5,181
5,631
Property, plant and equipment 
8,782
8,789
Right-of-use assets
7,151
6,738
Financial assets
 Investments in associated companies
1,550
1,507
 Other investments in shares and participations
5
2,151
1,909
 Customer finance, non-current
5
26
238
 Interest-bearing securities, non-current
5
37,193
37,298
 Other financial assets, non-current
5
6,581
5,960
Deferred tax assets
19,028
16,851
140,787
135,669
Current assets
Inventories
30,718
23,451
Contracts assets
8,225
7,333
Trade receivables
5
37,921
40,327
Customer finance, current
5
1,657
852
Current tax assets
5,571
5,030
Other current receivables
8,916
9,920
Interest-bearing securities, current
5
12,413
12,715
Cash and cash equivalents
5
41,691
43,926
147,113
143,554
Total assets
287,899
279,223
Equity and liabilities
Equity
Stockholders' equity
104,047
109,535
Non-controlling interest in equity of subsidiaries
718
729
104,764
110,264
Non-current liabilities
Post-employment benefits
18,008
18,648
Provisions, non-current
4
4,037
2,993
Deferred tax liabilities
173
152
Borrowings, non-current
5
21,990
29,165
Lease liabilities, non-current
6,244
5,772
Other non-current liabilities
1,355
1,292
51,808
58,022
Current liabilities
Provisions, current
4
7,126
5,691
Borrowings, current
5
9,468
3,538
Lease liabilities, current
1,776
1,789
Contract liabilities
45,133
36,867
Trade payables
5
28,925
26,335
Current tax liabilities
4,669
2,679
Other current liabilities
34,231
34,038
131,327
110,937
Total equity and liabilities
287,899
279,223
Ericsson  |  Second quarter report 2026. July 14, 2026.
Financial statements
19
Condensed consolidated statement of cash flows
Q2
Jan-Jun
SEK million
Note
2026
2025
2026
2025
Operating activities
Net income
4,076
4,626
4,963
8,843
Adjustments for
 Taxes
1,652
1,949
2,004
3,703
 Earnings/dividends in associated companies
64
-22
233
-20
 Depreciation, amortization and impairment losses
6
1,988
2,177
3,975
4,927
 Other
-531
-410
-1,078
-295
7,249
8,320
10,097
17,159
Changes in operating net assets
Inventories
-4,622
210
-6,352
-2,058
Customer finance, current and non-current
94
391
-528
2,255
Trade receivables and contract assets
2,516
188
3,799
-124
Trade payables
1,667
-636
1,197
-2,208
Provisions and post-employment benefits
-690
-298
1,867
-2,613
Contract liabilities
-1,376
-1,329
6,701
7,267
Other operating assets and liabilities, net
-1,985
-1,187
-5,480
-8,017
-4,397
-2,661
1,203
-5,499
Interest received
739
458
1,269
1,134
Interest paid
-631
-699
-1,165
-1,470
Taxes paid
-1,028
-1,268
-2,070
-2,816
Cash flow from operating activities
1,932
4,150
9,336
8,508
Investing activities
Investments in property, plant and equipment
6
-637
-561
-1,257
-1,290
Sales of property, plant and equipment
23
40
33
79
Acquisitions/divestments of subsidiaries and other operations, net
-238
141
-309
137
Product development
6
-384
-193
-762
-500
Purchase of interest-bearing securities
-13,548
-12,295
-19,941
-18,815
Sales of interest-bearing securities
11,988
2,568
20,702
8,272
Other investing activities
-926
-562
-327
2,560
Cash flow from investing activities
-3,721
-10,862
-1,861
-9,557
Financing activities
Proceeds from issuance of borrowings
128
198
128
198
Repayment of borrowings
-207
-432
-207
-511
Dividends paid
-5,037
-4,810
-5,037
-4,810
Repayment of lease liabilities
-513
-554
-971
-1,147
Repurchase of own shares
-3,224
-116
-3,234
-116
Other financing activities
-362
2,243
-2,172
2,183
Cash flow from financing activities
-9,216
-3,471
-11,494
-4,203
Effect of exchange rate changes on cash
381
-787
1,784
-5,013
Net change in cash and cash equivalents
-10,624
-10,970
-2,236
-10,265
Cash and cash equivalents, beginning of period
52,315
44,590
43,926
43,885
Cash and cash equivalents, end of period
41,691
33,620
41,691
33,620
Ericsson  |  Second quarter report 2026. July 14, 2026.
Financial statements
20
Condensed consolidated statement of changes in equity
Jan-Jun
SEK million
2026
2025
Opening balance
110,264
92,983
Total comprehensive income
7,757
2,182
Sale/repurchase of own shares
-3,307
-116
Share issue, net
–
116
Long-term variable compensation plans
88
77
Dividends to shareholders¹⁾
-10,037
-9,543
Transactions with non-controlling interests
–
–
Closing balance
104,764
85,699
¹⁾ Jan-Jun includes SEK 5,000 (4,769) million of dividend approved by the Annual General Meeting on March 31, 2026, which will be paid out in October 2026.
Condensed consolidated income statement – isolated quarters
2026
2025
Isolated quarters, SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Net sales
52,691
49,332
69,285
56,239
56,132
55,025
Cost of sales
-28,568
-26,033
-36,580
-29,462
-29,483
-28,488
Gross income
24,122
23,299
32,705
26,777
26,649
26,537
Research and development expenses
-10,480
-13,489
-13,098
-11,510
-12,212
-12,032
Selling and administrative expenses
-7,736
-8,135
-8,971
-7,913
-8,180
-8,621
Impairment reversals/losses on trade receivables
-20
-156
127
46
34
32
Operating expenses
-18,237
-21,781
-21,942
-19,377
-20,358
-20,621
Other operating income and expenses
90
24
420
7,715
67
8
Share of earnings of associated companies
-56
-99
-22
36
33
7
Earnings before financial items and income tax (EBIT)
5,919
1,443
11,161
15,151
6,391
5,931
Financial income and expenses, net
-178
-193
-80
-212
34
-74
Income after financial items
5,741
1,250
11,081
14,939
6,425
5,857
Income tax
-1,665
-362
-2,510
-3,639
-1,799
-1,640
Net income 
4,076
887
8,571
11,300
4,626
4,217
Net income attributable to:
 Owners of the Parent Company
4,046
888
8,563
11,149
4,567
4,149
 Non-controlling interests
30
–
8
151
59
68
Other information
 Average number of shares, basic (million)
3,313
3,333
3,333
3,333
3,333
3,333
 Earnings per share, basic (SEK)¹⁾
1.22
0.27
2.57
3.34
1.37
1.25
 Earnings per share, diluted (SEK)¹⁾²⁾
1.22
0.27
2.57
3.33
1.37
1.24
¹⁾ Based on net income attributable to owners of the Parent Company.
²⁾ Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.
Ericsson  |  Second quarter report 2026. July 14, 2026.
Financial statements
21
Condensed consolidated statement of cash flows – isolated quarters
2026
2025
Isolated quarters, SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Operating activities
Net income 
4,076
887
8,571
11,300
4,626
4,217
Adjustments for
 Taxes
1,652
353
2,724
3,647
1,949
1,754
 Earnings/dividends in associated companies
64
169
27
50
-22
2
 Depreciation, amortization and impairment losses
1,988
1,987
2,185
2,129
2,177
2,750
 Other
-531
-547
-735
-7,549
-410
115
7,249
2,849
12,772
9,577
8,320
8,838
Changes in operating net assets
Inventories
-4,622
-1,730
3,667
-680
210
-2,268
Customer finance, current and non-current
94
-622
406
372
391
1,864
Trade receivables and contract assets
2,516
1,283
-3,288
-889
188
-312
Trade payables
1,667
-471
1,568
1,102
-636
-1,572
Provisions and post-employment benefits
-690
2,557
1,743
-565
-298
-2,315
Contract liabilities
-1,376
8,077
-2,913
-2,869
-1,329
8,596
Other operating assets and liabilities, net
-1,985
-3,494
5,175
3,047
-1,187
-6,830
-4,397
5,600
6,358
-482
-2,661
-2,837
Interest received
739
531
716
433
458
676
Interest paid
-631
-534
-407
-328
-699
-771
Taxes paid
-1,028
-1,042
-2,932
-1,261
-1,268
-1,548
Cash flow from operating activities
1,932
7,403
16,507
7,939
4,150
4,358
Investing activities
Investments in property, plant and equipment
-637
-620
-849
-491
-561
-729
Sales of property, plant and equipment
23
10
56
57
40
39
Acquisitions/divestments of subs. and other operations, net
-238
-72
338
10,064
141
-4
Product development
-384
-378
-352
-286
-193
-307
Purchase of interest-bearing securities
-13,548
-6,393
-10,310
-9,633
-12,295
-6,520
Sales of interest-bearing securities
11,988
8,714
4,867
3,549
2,568
5,704
Other investing activities
-926
599
1,216
-106
-562
3,122
Cash flow from investing activities
-3,721
1,860
-5,034
3,154
-10,862
1,305
Financing activities
Proceeds from issuance of borrowings
128
–
200
–
198
–
Repayment of borrowings
-207
–
-3,001
-26
-432
-79
Dividends paid
-5,037
–
-4,734
-1
-4,810
–
Repayment of lease liabilities
-513
-459
-461
-507
-554
-593
Repurchase of own shares
-3,224
-10
-6
–
-116
–
Other financing activities
-362
-1,809
-841
-643
2,243
-60
Cash flow from financing activities
-9,216
-2,278
-8,843
-1,177
-3,471
-732
Effect of exchange rate changes on cash
381
1,403
-1,399
-841
-787
-4,226
Net change in cash and cash equivalents
-10,624
8,388
1,231
9,075
-10,970
705
Cash and cash equivalents, beginning of period
52,315
43,926
42,695
33,620
44,590
43,885
Cash and cash equivalents, end of period
41,691
52,315
43,926
42,695
33,620
44,590
Ericsson  |  Second quarter report 2026. July 14, 2026.
Financial statements
22
Condensed Parent Company income statement
Q2
Jan-Jun
SEK million
2026
2025
2026
2025
Net sales
–
–
–
–
Cost of sales
–
–
–
–
Gross income
–
–
–
–
Operating expenses
-298
-429
-541
-866
Other operating income and expenses
764
659
1,449
1,316
EBIT
466
230
908
450
Financial net
27,730
18,792
28,104
18,854
Income after financial items
28,196
19,022
29,012
19,304
Transfers to (-) / from untaxed reserves
–
–
–
–
Income tax
-324
-110
-434
-179
Net income
27,872
18,912
28,578
19,125
Condensed Parent Company statement of comprehensive income
Q2
Jan-Jun
SEK million
2026
2025
2026
2025
Net income
27,872
18,912
28,578
19,125
Other comprehensive income, net of tax
–
–
–
–
Total comprehensive income
27,872
18,912
28,578
19,125
Ericsson  |  Second quarter report 2026. July 14, 2026.
Financial statements
23
Condensed Parent Company balance sheet
SEK million
Jun 30
2026
Dec 31
2025
Assets
Fixed assets
Intangible assets
141
151
Tangible assets
298
300
Financial assets¹⁾
135,926
135,029
136,365
135,480
Current assets
Receivables
20,424
19,323
Short-term investments
12,237
12,651
Cash and cash equivalents
28,921
27,807
61,582
59,781
Total assets
197,947
195,261
Stockholders' equity, provisions and liabilities
Equity
Restricted equity
48,351
48,351
Non-restricted equity
58,356
43,051
106,707
91,402
Provisions
135
60
Non-current liabilities
22,011
29,164
Current liabilities
69,094
74,635
Total stockholders' equity, provisions and liabilities
197,947
195,261
¹⁾ Of which interest-bearing securities, non-current
37,193
37,298
Ericsson  |  Second quarter report 2026. July 14, 2026.
Accounting policies and Explanatory notes
24
Accounting policies and
Explanatory notes (unaudited)
Note 1 – Accounting policies and other
information
Accounting policies for the Group
This condensed consolidated interim financial report for the
reporting period ended June 30, 2026, has been prepared in
accordance with International Accounting Standard IAS 34
“Interim Financial Reporting”. The term “IFRS Accounting
Standards” used in this document refers to IFRS® Accounting
standards as issued by the International Accounting Standards
Board (IASB) as well as interpretations of these standards as
issued by IASB’s Standards Interpretation Committee (SIC) and
IFRS Interpretations Committee (IFRIC). The accounting policies
adopted are consistent with those of the annual report for the
year ended December 31, 2025, and should be read in
conjunction with that annual report. Amendments to IFRS
Accounting Standards that became effective during 2026 do not
have a material impact on the result and financial position of the
Company.
New accounting standards and interpretations
IASB has issued the following new standard with effective date of
January 1, 2027:
– In April 2024, IASB issued a new standard, IFRS 18 that will
replace IAS 1 Presentation of Financial Statements. The standard
sets out the requirements for the presentation and disclosure of
information in the financial statements to ensure better
comparability, consistency and faithful representation of an
entity’s assets, liabilities, equity, income, and expenses. The new
standard’s biggest impact is on the statement of profit or loss
(income statement), where it includes more specific guidance on
how the statement of profit or loss shall be presented mandating
certain income and expense classification and subtotals to be
presented.
– Impact at transition: The standard is effective for the annual
periods beginning on or after January 1, 2027. The Company will
apply the new standard as from January 1, 2027. At transition,
the Company will apply the new presentation and disclosure
requirements retrospectively for all periods presented. As the
standard only impacts the presentation and disclosure
requirements, and not the measurement of any items presented
in the financial statements, there will be no effect on retained
earnings at transition date. The largest effect is on the
presentation of the income statement where certain items such
as foreign exchange differences will be classified differently within
the income statement. In addition, there will be new subtotals
introduced such as Operating profit. Accordingly, the information
for prior years will be restated. The transition note will include a
bridge between the IAS 1 presentation and the new IFRS 18
presentation when the standard is applied.
– The Company is still assessing the detailed impact that the
transition to IFRS 18 will have on the financial statements.
Other
Rounding differences may occur in the summation of amounts.
Ericsson  |  Second quarter report 2026. July 14, 2026.
Accounting policies and Explanatory notes
25
Note 2 – Segment information
Net sales by segment by quarter
2026
2025
Isolated quarters, SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Networks
33,047
32,937
44,200
35,424
35,747
35,643
 Of which Products
24,684
25,549
33,275
26,531
27,622
28,060
 Of which Services
8,363
7,388
10,925
8,893
8,125
7,583
Cloud Software and Services
14,732
11,833
20,031
15,346
14,363
12,975
 Of which Products
5,569
4,295
8,459
5,431
5,407
4,719
 Of which Services
9,163
7,539
11,572
9,915
8,956
8,256
Enterprise
4,490
4,168
4,578
5,058
5,548
5,933
Other
422
393
476
411
474
474
Total
52,691
49,332
69,285
56,239
56,132
55,025
2026
2025
Sequential change, percent
Q2
Q1
Q4
Q3
Q2
Q1
Networks
0%
-25%
25%
-1%
0%
-24%
 Of which Products
-3%
-23%
25%
-4%
-2%
-23%
 Of which Services
13%
-32%
23%
9%
7%
-26%
Cloud Software and Services
25%
-41%
31%
7%
11%
-33%
 Of which Products
30%
-49%
56%
0%
15%
-40%
 Of which Services
22%
-35%
17%
11%
8%
-29%
Enterprise
8%
-9%
-9%
-9%
-6%
-3%
Other
7%
-17%
16%
-13%
0%
-17%
Total
7%
-29%
23%
0%
2%
-25%
2026
2025
Year over year change, percent
Q2
Q1
Q4
Q3
Q2
Q1
Networks
-8%
-8%
-6%
-11%
-5%
6%
 Of which Products
-11%
-9%
-9%
-15%
-3%
10%
 Of which Services
3%
-3%
7%
1%
-11%
-9%
Cloud Software and Services
3%
-9%
3%
3%
-5%
-1%
 Of which Products
3%
-9%
8%
4%
12%
4%
 Of which Services
2%
-9%
-1%
2%
-14%
-3%
Enterprise
-19%
-30%
-25%
-20%
-14%
-1%
Other
-11%
-17%
-16%
-19%
-6%
-20%
Total
-6%
-10%
-5%
-9%
-6%
3%
2026
2025
Year to date, SEK million
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Networks
65,984
32,937
151,014
106,814
71,390
35,643
 Of which Products
50,233
25,549
115,488
82,213
55,682
28,060
 Of which Services
15,751
7,388
35,526
24,601
15,708
7,583
Cloud Software and Services
26,566
11,833
62,715
42,684
27,338
12,975
 Of which Products
9,863
4,295
24,016
15,557
10,126
4,719
 Of which Services
16,702
7,539
38,699
27,127
17,212
8,256
Enterprise
8,658
4,168
21,117
16,539
11,481
5,933
Other
815
393
1,835
1,359
948
474
Total
102,022
49,332
236,681
167,396
111,157
55,025
2026
2025
Year over year change, percent
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Networks
-8%
-8%
-5%
-4%
0%
6%
 Of which Products
-10%
-9%
-5%
-4%
3%
10%
 Of which Services
0%
-3%
-2%
-6%
-10%
-9%
Cloud Software and Services
-3%
-9%
0%
-1%
-3%
-1%
 Of which Products
-3%
-9%
7%
7%
8%
4%
 Of which Services
-3%
-9%
-4%
-5%
-9%
-3%
Enterprise
-25%
-30%
-15%
-12%
-8%
-1%
Other
-14%
-17%
-16%
-15%
-14%
-20%
Total
-8%
-10%
-5%
-4%
-2%
3%
Ericsson  |  Second quarter report 2026. July 14, 2026.
Accounting policies and Explanatory notes
26
Gross income by segment by quarter
2026
2025
Isolated quarters, SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Networks
15,975
16,359
21,648
17,705
17,638
18,112
Cloud Software and Services
5,868
4,907
8,636
6,463
5,964
5,069
Enterprise
2,276
2,039
2,386
2,609
3,045
3,338
Other
2
-6
35
0
2
18
Total
24,122
23,299
32,705
26,777
26,649
26,537
2026
2025
Year to date, SEK million
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Networks
32,334
16,359
75,103
53,455
35,750
18,112
Cloud Software and Services
10,776
4,907
26,132
17,496
11,033
5,069
Enterprise
4,315
2,039
11,378
8,992
6,383
3,338
Other
-4
-6
55
20
20
18
Total
47,421
23,299
112,668
79,963
53,186
26,537
EBIT by segment by quarter
2026
2025
Isolated quarters, SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Networks
6,006
3,283
9,318
7,075
6,376
7,040
Cloud Software and Services
1,142
3
3,364
1,721
840
71
Enterprise
-1,215
-1,844
-1,526
6,649
-870
-1,014
Other
-14
1
5
-294
45
-166
Total
5,919
1,443
11,161
15,151
6,391
5,931
2026
2025
Year to date, SEK million
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Networks
9,290
3,283
29,809
20,491
13,416
7,040
Cloud Software and Services
1,146
3
5,996
2,632
911
71
Enterprise
-3,059
-1,844
3,239
4,765
-1,884
-1,014
Other
-14
1
-410
-415
-121
-166
Total
7,362
1,443
38,634
27,473
12,322
5,931
Ericsson  |  Second quarter report 2026. July 14, 2026.
Accounting policies and Explanatory notes
27
Net sales by market area by quarter
2026
2025
Isolated quarters, SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Americas
18,821
17,077
22,928
19,837
19,809
20,859
Europe, Middle East and Africa¹⁾²⁾
16,261
14,298
23,350
16,730
16,193
14,475
South East Asia, Oceania and India
5,407
6,946
8,986
7,097
5,505
7,226
North East Asia
3,734
3,122
5,205
3,825
3,766
3,215
Other¹⁾²⁾
8,467
7,888
8,816
8,750
10,859
9,250
Total
52,691
49,332
69,285
56,239
56,132
55,025
¹⁾ Of which in Sweden
688
781
1,374
863
686
461
²⁾ Of which in EU
7,526
7,081
10,663
8,213
8,223
7,566
2026
2025
Sequential change, percent
Q2
Q1
Q4
Q3
Q2
Q1
Americas
10%
-26%
16%
0%
-5%
-19%
Europe, Middle East and Africa¹⁾²⁾
14%
-39%
40%
3%
12%
-34%
South East Asia, Oceania and India
-22%
-23%
27%
29%
-24%
-14%
North East Asia
20%
-40%
36%
2%
17%
-55%
Other¹⁾²⁾
7%
-11%
1%
-19%
17%
-4%
Total
7%
-29%
23%
0%
2%
-25%
¹⁾ Of which in Sweden
-12%
-43%
59%
26%
49%
-23%
²⁾ Of which in EU
6%
-34%
30%
0%
9%
-31%
2026
2025
Year over year change, percent
Q2
Q1
Q4
Q3
Q2
Q1
Americas
-5%
-18%
-11%
-16%
0%
26%
Europe, Middle East and Africa¹⁾²⁾
0%
-1%
7%
-1%
-6%
-5%
South East Asia, Oceania and India
-2%
-4%
6%
-8%
-28%
-16%
North East Asia
-1%
-3%
-27%
4%
-17%
-6%
Other¹⁾²⁾
-22%
-15%
-9%
-13%
4%
-3%
Total
-6%
-10%
-5%
-9%
-6%
3%
¹⁾ Of which in Sweden
0%
69%
130%
100%
18%
-37%
²⁾ Of which in EU
-8%
-6%
-2%
1%
-4%
0%
2026
2025
Year to date, SEK million
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Americas
35,898
17,077
83,433
60,505
40,668
20,859
Europe, Middle East and Africa¹⁾²⁾
30,559
14,298
70,748
47,398
30,668
14,475
South East Asia, Oceania and India
12,352
6,946
28,814
19,828
12,731
7,226
North East Asia
6,856
3,122
16,011
10,806
6,981
3,215
Other¹⁾²⁾
16,356
7,888
37,675
28,859
20,109
9,250
Total
102,022
49,332
236,681
167,396
111,157
55,025
¹⁾ Of which in Sweden
1,469
781
3,384
2,010
1,147
461
²⁾ Of which in EU
14,607
7,081
34,665
24,002
15,789
7,566
2026
2025
Year to date, year over year change, percent
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Americas
-12%
-18%
-3%
1%
12%
26%
Europe, Middle East and Africa¹⁾²⁾
0%
-1%
-1%
-4%
-6%
-5%
South East Asia, Oceania and India
-3%
-4%
-11%
-17%
-22%
-16%
North East Asia
-2%
-3%
-15%
-7%
-13%
-6%
Other¹⁾²⁾
-19%
-15%
-5%
-4%
1%
-3%
Total
-8%
-10%
-5%
-4%
-2%
3%
¹⁾ Of which in Sweden
28%
69%
45%
15%
-13%
-37%
²⁾ Of which in EU
-7%
-6%
-2%
-1%
-2%
0%
Ericsson  |  Second quarter report 2026. July 14, 2026.
Accounting policies and Explanatory notes
28
Net sales by market area by segment
Q2 2026
Jan-Jun 2026
SEK million
Networks
Cloud
Software and
Services
Enterprise
Other
Total
Networks
Cloud
Software and
Services
Enterprise
Other
Total
Americas
14,147
4,619
55
0
18,821
27,829
7,955
115
0
35,898
Europe, Middle East and Africa
9,469
6,536
256
0
16,261
18,411
11,711
437
0
30,559
South East Asia, Oceania and India
3,467
1,929
10
0
5,407
8,542
3,788
23
0
12,352
North East Asia
2,863
869
1
0
3,734
5,233
1,620
3
0
6,856
Other¹⁾
3,100
778
4,167
422
8,467
5,969
1,491
8,081
815
16,356
Total
33,047
14,732
4,490
422
52,691
65,984
26,566
8,658
815
102,022
Share of total
63%
28%
9%
1%
100%
65%
26%
8%
1%
100%
1) Includes primarily IPR licensing revenues and a major part of segment Enterprise.
Q2 2026
Sequential change, percent
Networks
Cloud
Software and
Services
Enterprise
Other
Total
Americas
3%
39%
-8%
-
10%
Europe, Middle East and Africa
6%
26%
42%
6%
14%
South East Asia, Oceania and India
-32%
4%
-24%
-
-22%
North East Asia
21%
16%
-8%
-
20%
Other
8%
9%
6%
7%
7%
Total
0%
25%
8%
7%
7%
Q2 2026
Jan-Jun 2026
Year over year change, percent
Networks
Cloud
Software and
Services
Enterprise
Other
Total
Networks
Cloud
Software and
Services
Enterprise
Other
Total
Americas
-7%
2%
-33%
-
-5%
-14%
-1%
-45%
-100%
-12%
Europe, Middle East and Africa
-3%
6%
16%
-
0%
2%
-3%
-5%
-
0%
South East Asia, Oceania and India
-5%
5%
-50%
-100%
-2%
-4%
-2%
-14%
-100%
-3%
North East Asia
-4%
10%
-20%
-
-1%
-2%
-2%
-68%
-
-2%
Other
-25%
-24%
-20%
-11%
-22%
-11%
-11%
-25%
-14%
-19%
Total
-8%
3%
-19%
-11%
-6%
-8%
-3%
-25%
-14%
-8%
Top 5 countries in sales
2026
2025
Country, percentage of net sales¹⁾
Q2
Q1
Q4
Q3
Q2
Q1
United States
40%
39%
36%
40%
44%
45%
India
4%
8%
5%
5%
4%
7%
United Kingdom
5%
4%
4%
4%
4%
4%
Japan
4%
4%
4%
3%
3%
3%
China
4%
3%
3%
3%
4%
3%
2026
2025
Country, percentage of net sales¹⁾
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
United States
40%
39%
41%
43%
44%
45%
India
6%
8%
5%
5%
6%
7%
United Kingdom
5%
4%
4%
4%
4%
4%
Japan
4%
4%
4%
3%
3%
3%
China
3%
3%
3%
4%
4%
3%
1) Based on Jan-Jun 2026. Includes IPR licensing revenues.
IPR licensing revenues by segment by quarter
2026
2025
Isolated quarters, SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Networks
2,796
2,569
2,733
2,569
3,987
2,606
Cloud Software and Services
614
564
600
564
875
572
Total
3,410
3,133
3,333
3,133
4,862
3,178
2026
2025
Year to date, SEK million
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Networks
5,365
2,569
11,895
9,162
6,593
2,606
Cloud Software and Services
1,178
564
2,611
2,011
1,447
572
Total
6,543
3,133
14,506
11,173
8,040
3,178
Ericsson  |  Second quarter report 2026. July 14, 2026.
Accounting policies and Explanatory notes
29
Note 3 – Financial income and expenses, net
Financial income and expenses, net
2026
2025
Isolated quarters, SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Financial income
732
585
620
662
579
619
Financial expenses
-680
-594
-580
-735
-927
-805
Net foreign exchange gains/losses
-229
-184
-120
-139
382
112
Total
-178
-193
-80
-212
34
-74
2026
2025
Year to date, SEK million
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Financial income
1,316
585
2,480
1,860
1,198
619
Financial expenses
-1,274
-594
-3,047
-2,467
-1,732
-805
Net foreign exchange gains/losses
-414
-184
235
355
494
112
Total
-372
-193
-332
-252
-40
-74
Note 4 – Provisions
Provisions
2026
2025
Isolated quarters, SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Opening balance
11,803
8,684
7,823
8,652
9,093
11,715
Additions
1,265
6,016
3,005
847
1,830
1,055
Utilization
-1,815
-2,898
-1,605
-1,311
-1,853
-3,009
 Of which restructuring
-1,064
-546
-721
-813
-837
-1,201
Reversal of excess amounts
-217
-171
-357
-370
-273
-256
Reclassification, translation difference and other
126
172
-182
5
-145
-412
Closing balance
11,163
11,803
8,684
7,823
8,652
9,093
 Of which restructuring
4,017
4,956
1,889
1,710
2,429
2,720
2026
2025
Year to date, SEK million
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Opening balance
8,684
8,684
11,715
11,715
11,715
11,715
Additions
7,281
6,016
6,737
3,732
2,885
1,055
Utilization
-4,713
-2,898
-7,778
-6,173
-4,862
-3,009
 Of which restructuring
-1,610
-546
-3,572
-2,851
-2,038
-1,201
Reversal of excess amounts
-388
-171
-1,256
-899
-529
-256
Reclassification, translation difference and other
298
172
-734
-552
-557
-412
Closing balance
11,163
11,803
8,684
7,823
8,652
9,093
 Of which restructuring
4,017
4,956
1,889
1,710
2,429
2,720
Ericsson  |  Second quarter report 2026. July 14, 2026.
Accounting policies and Explanatory notes
30
Note 5 – Financial risk management
There have been no changes to the fair value hierarchy categorization from that presented in the latest Annual Report. Where Level 2
and Level 3 fair value hierarchies apply, the inputs and valuation methods used remained unchanged. The book values and fair values
of financial instruments are as follows:
Financial instruments
SEK billion
Jun 30
2026
Dec 31
2025
Fair value hierarchy level
Fair value hierarchy level
Carrying
value
Level 1
Level 2
Level 3
Carrying
value
Level 1
Level 2
Level 3
Assets at fair value through profit or loss
  Customer finance¹⁾
1.7
–
–
1.7
1.1
–
–
1.1
  Interest-bearing securities
49.4
43.6
5.8
–
49.9
45.4
4.5
–
  Cash equivalents²⁾
27.0
–
27.0
–
25.3
–
25.3
–
  Other financial assets
2.2
0.1
–
2.1
1.9
–
–
1.9
  Other current assets
0.8
–
0.8
–
2.9
–
2.9
–
Assets at fair value through OCI
  Trade receivables
37.9
–
–
37.9
40.3
–
–
40.3
Assets at amortized costs
  Interest-bearing securities
0.2
–
–
–
0.1
–
–
–
  Other financial assets
0.0
–
–
–
0.1
–
–
–
Total financial assets
119.1
121.6
Financial liabilities at designated FVTPL
  Parent company borrowings
-30.7
-19.2
-11.5
–
-29.6
-18.8
-10.8
–
Financial liabilities at FVTPL
  Other current liabilities
-0.4
–
-0.4
–
-0.2
–
-0.2
–
Liabilities at amortized cost
  Trade payables
-28.9
–
–
–
-26.3
–
–
–
  Borrowings
-0.8
–
–
–
-3.1
–
–
–
Total financial liabilities
-60.7
-59.2
1) Year to date movements of customer finance receivables are as follows: additions of SEK 11.5 billion, disposals and repayments of SEK 11.0 billion. No material revaluation impact in the
current period (< SEK 0.1billion).
2) Total Cash and cash equivalent is SEK 41.7 (43.9 on Dec 31, 2025) billion, of which SEK 27.0 (SEK 25.3 on Dec 31, 2025) billion relating to Cash equivalents are presented in the table
above.
Exchange rates used in the consolidation
Jan-Jun
Jan-Dec
Closing rates to SEK
2026
2025
2025
EUR
11.08
11.14
10.82
USD
9.72
9.50
9.19
Ericsson  |  Second quarter report 2026. July 14, 2026.
Accounting policies and Explanatory notes
31
Note 6 – Cash flow
Information on investments
Investments in assets subject to depreciation, amortization, impairment and write-downs
2026
2025
Isolated quarters, SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Additions
 Property, plant and equipment
637
620
849
491
561
729
 Capitalized development expenses
384
378
352
286
193
307
 IPR, brands and other intangible assets
36
35
48
81
301
57
Total
1,058
1,033
1,249
858
1,055
1,093
Depreciation, amortization and impairment losses
 Property, plant and equipment
698
735
814
812
826
1,029
 Capitalized development expenses
426
436
446
449
451
444
 Goodwill, IPR, brands and other intangible assets
358
344
439
365
373
721
 Right-of-use assets
506
471
486
503
527
556
Total
1,988
1,986
2,185
2,129
2,177
2,750
2026
2025
Year to date, SEK million
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Additions
 Property, plant and equipment
1,257
620
2,630
1,781
1,290
729
 Capitalized development expenses
762
378
1,138
786
500
307
 IPR, brands and other intangible assets
72
35
487
439
358
57
Total
2,091
1,033
4,255
3,006
2,148
1,093
Depreciation, amortization and impairment losses
 Property, plant and equipment
1,433
735
3,481
2,667
1,855
1,029
 Capitalized development expenses
862
436
1,790
1,344
895
444
 Goodwill, IPR, brands and other intangible assets
702
344
1,898
1,459
1,094
721
 Right-of-use assets
978
471
2,072
1,586
1,083
556
Total
3,975
1,986
9,241
7,056
4,927
2,750
Note 7 – Contingent liabilities and Assets pledged as collateral
Contingent liabilities and Assets pledged as collateral
SEK million
Jun 30
2026
Dec 31
2025
Contingent liabilities
4,697
4,091
Assets pledged as collateral
8,826
8,695
Ericsson  |  Second quarter report 2026. July 14, 2026.
Accounting policies and Explanatory notes
32
Note 8 – Share information
Number of shares and earnings per share
Q2
Jan-Jun
2026
2025
2026
2025
Number of shares, end of period (million)
3,371
3,371
3,371
3,371
 Of which class A-shares (million)
262
262
262
262
 Of which class B-shares (million)
3,110
3,110
3,110
3,110
Number of treasury shares, end of period (million)
65
38
65
38
Number of shares outstanding, basic, end of period (million)
3,306
3,333
3,306
3,333
Numbers of shares outstanding, diluted, end of period (million)
3,316
3,343
3,316
3,343
Average number of treasury shares (million)
52
31
45
23
Average number of shares outstanding, basic (million)
3,313
3,333
3,323
3,333
Average number of shares outstanding, diluted (million)¹⁾
3,322
3,343
3,333
3,342
Earnings per share, basic (SEK)²⁾
1.22
1.37
1.48
2.62
Earnings per share, diluted (SEK)¹⁾²⁾
1.22
1.37
1.48
2.61
1) Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.
2) Based on net income attributable to owners of the Parent Company.
The proposed dividend for 2025 of SEK 3.00 per share was
approved by the AGM March 31, 2026. The first of two equal
dividend payments of SEK 1.50 per share was made on April 9,
2026, and the second will be made with a record date of
September 29, 2026, with an expected payment date of October
2, 2026.
The AGM resolved to approve the Board of Directors'
proposal on authorization for the Board of Directors to, on one or
several occasions prior to the AGM 2027, decide on the
purchase of the Company's own shares of series B. The number
of shares purchased must at no time result in the Company's
holding exceeding 10 percent of all the shares in the Company.
During the quarter, Ericsson has repurchased 29,535,981
Class B shares for a total consideration of SEK 3.3 billion in
accordance with the AGM authorization. Repurchased shares
are held as treasury shares and are presented as a deduction
from equity. In accordance with the conditions of the long-term
variable compensation program (LTV) for Ericsson employees,
2,639,299 shares from treasury stock were distributed or sold to
employees in the second quarter. On June 30, 2026, Ericsson
held 64,898,958 (38,002,276 on Dec 31, 2025) treasury shares.
Repurchased shares are reflected in the average number of
shares outstanding and in the calculation of earnings per share.
Note 9 – Employee information
Number of employees
2026
2025
End of period
Jun 30
Mar 31
Dec 31
Sep 30
Jun 30
Mar 31
Americas
14,136
14,537
15,050
15,346
15,926
15,857
Europe, Middle East and Africa¹⁾
38,308
38,548
39,045
39,489
40,413
40,677
South East Asia, Oceania and India
25,050
25,100
25,189
25,358
25,591
25,991
North East Asia
9,042
9,336
9,542
9,705
10,007
10,341
Total
86,536
87,521
88,826
89,898
91,937
92,866
¹⁾ Of which in Sweden
13,013
12,615
12,806
12,967
13,476
13,222
Ericsson  |  Second quarter report 2026. July 14, 2026.
Alternative performance measures
33
Alternative performance measures (unaudited)
In this section, the Company presents its Alternative Performance
Measures (APMs), which are not recognized measures of
financial performance under IFRS. The presentation of APMs has
limitations as analytical tools and should not be considered in
isolation or as a substitute for related financial measures
prepared in accordance with IFRS.
APMs are presented to enhance an investor’s evaluation of
ongoing operating results, to aid in forecasting future periods and
to facilitate meaningful comparison of results between periods.
Management uses these APMs to, among other things,
evaluate ongoing operations in relation to historical results, for
internal planning and forecasting purposes and in the calculation
of certain performance-based compensation. APMs should not be
viewed as substitutes for income statement or cash flow items
computed in accordance with IFRS.
This section also includes a reconciliation of the APMs to the
most directly reconcilable line items in the financial statements.
For more information about non-IFRS key operating measures,
see Ericsson Annual Report 2025.
Sales growth adjusted for comparable units and currency
Sales growth adjusted for the impact of acquisitions and divestments as well as the effects of foreign currency fluctuations. Also
named organic sales growth.
2026
2025
Isolated quarters, year over year change, SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Reported net sales
52,691
49,332
69,285
56,239
56,132
55,025
 Acquired business
–
–
–
–
–
–
 Net FX impact
1,821
7,755
6,801
4,213
4,672
-1,817
Current period net sales, excluding acquired business & FX impact
54,511
57,087
76,086
60,452
60,804
53,208
Prior year period net sales adjusted for acquired & divested business
55,121
53,903
71,474
61,794
59,848
53,325
Organic sales growth (%)
-1%
6%
6%
-2%
2%
0%
2026
2025
Year to date, year over year change, SEK million
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Reported net sales
102,022
49,332
236,681
167,396
111,157
55,025
 Acquired business
–
–
–
–
–
–
 Net FX impact
9,576
7,755
13,869
7,068
2,855
-1,817
Current period net sales, excluding acquired business & FX impact
111,598
57,087
250,550
174,464
114,012
53,208
Prior year period net sales adjusted for acquired & divested business
109,024
53,903
246,441
174,967
113,173
53,325
Organic sales growth (%)
2%
6%
2%
0%
1%
0%
Ericsson  |  Second quarter report 2026. July 14, 2026.
Alternative performance measures
34
Items excluding restructuring charges and impairments of goodwill and intangible assets
Gross income, operating expenses, and EBIT are presented excluding restructuring charges, and for certain measures, as a
percentage of net sales. EBIT is also presented excluding restructuring charges and impairments of goodwill and intangible assets.
2026
2025
Isolated quarters, SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Gross income
24,122
23,299
32,705
26,777
26,649
26,537
Net sales
52,691
49,332
69,285
56,239
56,132
55,025
Gross margin (%)
45.8%
47.2%
47.2%
47.6%
47.5%
48.2%
Gross income
24,122
23,299
32,705
26,777
26,649
26,537
Restructuring charges included in cost of sales
1,359
435
538
271
310
158
Adjusted gross income
25,481
23,734
33,243
27,048
26,959
26,695
Net sales
52,691
49,332
69,285
56,239
56,132
55,025
Adjusted gross margin (%)
48.4%
48.1%
48.0%
48.1%
48.0%
48.5%
Operating expenses
-18,237
-21,781
-21,942
-19,377
-20,358
-20,621
Restructuring charges included in R&D expenses
-882
2,595
300
-41
300
20
Restructuring charges included in selling and administrative expenses
124
738
259
73
46
103
Operating expenses excluding restructuring charges
-18,995
-18,448
-21,383
-19,345
-20,012
-20,498
EBIT 
5,919
1,443
11,161
15,151
6,391
5,931
Net sales
52,691
49,332
69,285
56,239
56,132
55,025
EBIT margin (%)
11.2%
2.9%
16.1%
26.9%
11.4%
10.8%
EBIT 
5,919
1,443
11,161
15,151
6,391
5,931
Total restructuring charges
601
3,768
1,097
303
656
281
Adjusted EBIT 
6,520
5,211
12,258
15,454
7,047
6,212
Net sales
52,691
49,332
69,285
56,239
56,132
55,025
Adjusted EBIT margin (%)
12.4%
10.6%
17.7%
27.5%
12.6%
11.3%
Adjusted EBIT 
6,520
5,211
12,258
15,454
7,047
6,212
Impairment of goodwill and intangible assets
2
–
–
–
–
–
Adjusted EBIT excluding impairments of goodwill and intangible assets
6,521
5,211
12,258
15,454
7,047
6,212
Net sales
52,691
49,332
69,285
56,239
56,132
55,025
Adjusted EBIT margin excluding impairments of goodwill and intangible assets (%)
12.4%
10.6%
17.7%
27.5%
12.6%
11.3%
2026
2025
Year to date, SEK million
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Gross income
47,421
23,299
112,668
79,963
53,186
26,537
Net sales
102,022
49,332
236,681
167,396
111,157
55,025
Gross margin (%)
46.5%
47.2%
47.6%
47.8%
47.8%
48.2%
Gross income
47,421
23,299
112,668
79,963
53,186
26,537
Restructuring charges included in cost of sales
1,794
435
1,277
739
468
158
Adjusted gross income
49,216
23,734
113,945
80,702
53,654
26,695
Net sales
102,022
49,332
236,681
167,396
111,157
55,025
Adjusted gross margin (%)
48.2%
48.1%
48.1%
48.2%
48.3%
48.5%
Operating expenses
-40,017
-21,781
-82,298
-60,356
-40,979
-20,621
Restructuring charges included in R&D expenses
1,713
2,595
579
279
320
20
Restructuring charges included in selling and administrative expenses
861
738
481
222
149
103
Operating expenses excluding restructuring charges
-37,443
-18,448
-81,238
-59,855
-40,510
-20,498
EBIT 
7,362
1,443
38,634
27,473
12,322
5,931
Net sales
102,022
49,332
236,681
167,396
111,157
55,025
EBIT margin (%)
7.2%
2.9%
16.3%
16.4%
11.1%
10.8%
EBIT 
7,362
1,443
38,634
27,473
12,322
5,931
Total restructuring charges
4,369
3,768
2,337
1,240
937
281
Adjusted EBIT 
11,731
5,211
40,971
28,713
13,259
6,212
Net sales
102,022
49,332
236,681
167,396
111,157
55,025
Adjusted EBIT margin (%)
11.5%
10.6%
17.3%
17.2%
11.9%
11.3%
Adjusted EBIT 
11,731
5,211
40,971
28,713
13,259
6,212
Impairment of goodwill and intangible assets
2
–
–
–
–
–
Adjusted EBIT excluding impairments of goodwill and intangible assets
11,733
5,211
40,971
28,713
13,259
6,212
Net sales
102,022
49,332
236,681
167,396
111,157
55,025
Adjusted EBIT margin excluding impairments of goodwill and intangible assets (%)
11.5%
10.6%
17.3%
17.2%
11.9%
11.3%
Ericsson  |  Second quarter report 2026. July 14, 2026.
Alternative performance measures
35
EBITA and EBITA margin / Adjusted EBITA and Adjusted EBITA margin
Earnings before interest, income tax, amortizations and write-downs of acquired intangibles (including goodwill) also expressed as a
percentage of net sales.
Adjusted EBITA also expressed as a percentage of net sales.
2026
2025
Isolated quarters, SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Net income 
4,076
887
8,571
11,300
4,626
4,217
Income tax
1,665
362
2,510
3,639
1,799
1,640
Financial income and expenses, net
178
193
80
212
-34
74
Amortizations and write-downs of acquired intangibles
358
344
440
365
372
721
 Of which segment Enterprise
327
307
406
338
346
389
EBITA
6,277
1,788
11,601
15,516
6,763
6,652
Net sales
52,691
49,332
69,285
56,239
56,132
55,025
EBITA margin (%)
11.9%
3.6%
16.7%
27.6%
12.0%
12.1%
Restructuring charges
601
3,768
1,097
303
656
281
Adjusted EBITA
6,878
5,556
12,698
15,819
7,419
6,933
Adjusted EBITA margin (%)
13.1%
11.3%
18.3%
28.1%
13.2%
12.6%
2026
2025
Year to date, SEK million
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Net income 
4,963
887
28,714
20,143
8,843
4,217
Income tax
2,027
362
9,588
7,078
3,439
1,640
Financial income and expenses, net
372
193
332
252
40
74
Amortizations and write-downs of acquired intangibles
702
344
1,898
1,458
1,093
721
 Of which segment Enterprise
634
307
1,479
1,073
735
389
EBITA
8,065
1,788
40,532
28,931
13,415
6,652
Net sales
102,022
49,332
236,681
167,396
111,157
55,025
EBITA margin (%)
7.9%
3.6%
17.1%
17.3%
12.1%
12.1%
Restructuring charges
4,369
3,768
2,337
1,240
937
281
Adjusted EBITA
12,433
5,556
42,869
30,171
14,352
6,933
Adjusted EBITA margin (%)
12.2%
11.3%
18.1%
18.0%
12.9%
12.6%
Additionally, Ericsson provides forward-looking targets for
adjusted EBITA margin and Free cash flow before M&A as a
percentage of net sales, which are non-IFRS financial measures.
Ericsson has not provided quantitative reconciliation of these
targets to the most directly comparable IFRS measures because
certain information needed to reconcile these non-IFRS financial
measures to the most comparable IFRS financial measures are
dependent on specific items or impacts that are not yet
determined, are subject to incarcerating and variability in timing
and amount due to their nature, are outside of Ericsson’s control
or cannot be predicted, including items and impacts such as
currency exchange rate changes, acquisitions and disposals, and
charges such as impairments or acquisition related charges.
Accordingly, reconciliation of these non-IFRS forward-looking
financial measures are not available without unreasonable efforts.
Such unavailable reconciling items could significantly impact our
results of operations and financial condition.
Rolling four quarters of net sales and adjusted EBITA margin (%)
Net sales, EBITA margin and restructuring charges as a sum of last four quarters.
2026
2025
Rolling four quarters, SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Net sales
227,546
230,988
236,681
240,309
245,864
249,580
EBITA
35,182
35,668
40,532
37,554
28,241
23,904
Restructuring charges
5,769
5,824
2,337
2,866
4,116
5,088
Adjusted EBITA
40,950
41,492
42,869
40,420
32,357
28,992
Adjusted EBITA margin (%)
18.0%
18.0%
18.1%
16.8%
13.2%
11.6%
Ericsson  |  Second quarter report 2026. July 14, 2026.
Alternative performance measures
36
Gross cash and net cash, end of period
Gross cash: Cash and cash equivalents plus interest-bearing securities (current and non-current).
Net cash: Cash and cash equivalents plus interest-bearing securities (current and non-current) less borrowings (current and non-
current).
2026
2025
SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Cash and cash equivalents
41,691
52,315
43,926
42,695
33,620
44,590
+ Interest-bearing securities, current
12,413
10,775
12,715
8,345
6,790
5,147
+ Interest-bearing securities, non-current
37,193
36,457
37,298
37,370
32,859
24,436
Gross cash, end of period
91,297
99,547
93,939
88,410
73,269
74,173
- Borrowings, current
9,468
9,865
3,538
6,680
7,285
5,597
- Borrowings, non-current
21,990
21,541
29,165
29,872
29,944
29,929
Net cash, end of period
59,839
68,141
61,236
51,858
36,040
38,647
Capital employed
Total assets less non-interest-bearing provisions and liabilities (which includes non-current provisions, deferred tax liabilities, contract
liabilities, other non-current liabilities, current provisions, trade payables, current tax liabilities and other current liabilities).
2026
2025
SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Total assets
287,899
290,393
279,223
282,476
270,555
277,978
Less: Non-interest-bearing provisions and liabilities
 Provisions, non-current
-4,037
-4,822
-2,993
-2,478
-2,365
-2,541
 Deferred tax liabilities
-173
-175
-152
-1,349
-1,390
-1,365
 Other non-current liabilities
-1,355
-1,327
-1,292
-899
-870
-888
 Provisions, current
-7,126
-6,981
-5,691
-5,345
-6,287
-6,552
 Contract liabilities
-45,133
-46,008
-36,867
-40,642
-44,370
-46,757
 Trade payables
-28,925
-26,719
-26,335
-25,352
-24,804
-26,450
 Current tax liabilities
-4,669
-3,386
-2,679
-6,069
-3,609
-2,664
 Other current liabilities
-34,231
-40,327
-34,038
-34,605
-32,521
-41,655
Capital employed
162,250
160,647
169,176
165,737
154,339
149,106
Capital turnover
Rolling four quarters of net sales divided by five-point average for capital employed.
2026
2025
SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Net sales, rolling four quarters
227,546
230,988
236,681
240,309
245,864
249,580
Average capital employed, rolling five quarters
    Capital employed at end of period -4
154,339
149,106
162,967
153,610
156,496
177,181
    Capital employed at end of period -3
165,737
154,339
149,106
162,967
153,610
156,496
    Capital employed at end of period -2
169,176
165,737
154,339
149,106
162,967
153,610
    Capital employed at end of period -1
160,647
169,176
165,737
154,339
149,106
162,967
 Capital employed at end of period
162,250
160,647
169,176
165,737
154,339
149,106
 Average capital employed, rolling five quarters
162,430
159,801
160,265
157,152
155,304
159,872
Capital turnover (times)
1.4
1.4
1.5
1.5
1.6
1.6
Return on capital employed
Rolling four quarters of EBIT divided by five-point average for capital employed.
2026
2025
SEK million
Q2
Q1
Q4
Q3
Q2
Q1
EBIT, rolling four quarters
33,675
34,146
38,634
35,431
26,054
6,144
Average capital employed, rolling five quarters
    Capital employed at end of period -4
154,339
149,106
162,967
153,610
156,496
177,181
    Capital employed at end of period -3
165,737
154,339
149,106
162,967
153,610
156,496
    Capital employed at end of period -2
169,176
165,737
154,339
149,106
162,967
153,610
    Capital employed at end of period -1
160,647
169,176
165,737
154,339
149,106
162,967
    Capital employed at end of period
162,250
160,647
169,176
165,737
154,339
149,106
 Average capital employed, rolling five quarters
162,430
159,801
160,265
157,152
155,304
159,872
Return on capital employed (%)
20.7%
21.4%
24.1%
22.5%
16.8%
3.8%
Ericsson  |  Second quarter report 2026. July 14, 2026.
Alternative performance measures
37
Equity ratio
Equity expressed as a percentage of total assets.
2026
2025
SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Total equity
104,764
103,133
110,264
102,494
85,699
84,858
Total assets
287,899
290,393
279,223
282,476
270,555
277,978
Equity ratio (%)
36.4%
35.5%
39.5%
36.3%
31.7%
30.5%
Return on equity
Annualized net income attributable to owners of the Parent Company as a percentage of average stockholders’ equity.
Annualization factor of four is used for isolated quarter.
Annualization factor of four is used for Jan-Mar, two is used for Jan-Jun, 4/3 is used for Jan-Sep and one is used for Jan-Dec.
2026
2025
Isolated quarters, SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Net income attributable to owners of the Parent Company
4,046
888
8,563
11,149
4,567
4,149
Annualized
16,182
3,551
34,252
44,596
18,268
16,596
Average stockholders' equity
 Stockholders' equity, beginning of period
102,440
109,535
102,658
86,748
86,039
94,284
 Stockholders' equity, end of period
104,047
102,440
109,535
102,658
86,748
86,039
 Average stockholders' equity
103,243
105,988
106,097
94,703
86,394
90,162
Return on equity (%)
15.7%
3.4%
32.3%
47.1%
21.1%
18.4%
2026
2025
Year to date, SEK million
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Net income attributable to owners of the Parent Company
4,933
888
28,428
19,865
8,716
4,149
Annualized
9,867
3,551
28,428
26,487
17,432
16,596
Average stockholders' equity
 Stockholders' equity, beginning of period
109,535
109,535
94,284
94,284
94,284
94,284
 Stockholders' equity, end of period
104,047
102,440
109,535
102,658
86,748
86,039
 Average stockholders' equity
106,791
105,988
101,910
98,471
90,516
90,162
Return on equity (%)
9.2%
3.4%
27.9%
26.9%
19.3%
18.4%
Operating working capital
Inventories, contract assets, trade receivables, customer finance (current and non-current), advances to suppliers and prepaid
expenses less contract liabilities and trade payables.
2026
2025
SEK million
Jun 30
Mar 31
Dec 31
Sep 30
Jun 30
Mar 31
Inventories
30,718
25,732
23,451
27,519
27,068
27,649
Contract assets
8,225
8,526
7,333
7,494
6,618
5,735
Trade receivables
37,921
39,345
40,327
38,136
39,107
41,428
Customer finance, current
1,657
1,582
852
1,290
1,879
2,396
Customer finance, non-current
26
190
238
242
78
27
Advance payments to suppliers¹⁾
39
44
46
39
41
46
Prepaid expenses¹⁾
2,868
3,015
2,390
2,443
3,025
3,749
Less: Contract liabilities
-45,133
-46,008
-36,867
-40,642
-44,370
-46,757
Less: Trade payables
-28,925
-26,719
-26,335
-25,352
-24,804
-26,450
Operating working capital
7,398
5,709
11,435
11,169
8,642
7,823
1) Part of Other current receivables in the consolidated balance sheet.
Ericsson  |  Second quarter report 2026. July 14, 2026.
Alternative performance measures
38
Free cash flow before M&A / Free cash flow after M&A / Free cash flow before M&A (% of net
sales)
Free cash flow before M&A: Cash flow from operating activities less net capital expenditures, other investments (excluding M&A) and
repayment of lease liabilities.
Free cash flow after M&A: Cash flow from operating activities less net capital expenditures, other investments and repayment of lease
liabilities.
Free cash flow before M&A (% of net sales): Free cash flow before M&A as a percentage of net sales.
2026
2025
Isolated quarters, SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Cash flow from operating activities
1,932
7,403
16,507
7,939
4,150
4,358
Net capital expenditures and other investments (excl. M&A)
 Investments in property, plant and equipment
-637
-620
-849
-491
-561
-729
 Sales of property, plant and equipment
23
10
56
57
40
39
 Product development
-384
-378
-352
-286
-193
-307
 Other investments¹⁾
-36
-36
-47
-81
-301
-64
 Repayment of lease liabilities
-513
-459
-462
-507
-554
-593
Free cash flow before M&A
385
5,921
14,853
6,631
2,581
2,704
 Acquisitions/divestments of subs and other operations, net
-238
-72
338
10,064
141
-4
Free cash flow after M&A
147
5,849
15,191
16,695
2,722
2,700
Net sales
52,691
49,332
69,285
56,239
56,132
55,025
Free cash flow before M&A (% of net sales)
0.7%
12.0%
21.4%
11.8%
4.6%
4.9%
2026
2025
Year to date, SEK million
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Cash flow from operating activities
9,336
7,403
32,954
16,447
8,508
4,358
Net capital expenditures and other investments (excl. M&A)
 Investments in property, plant and equipment
-1,257
-620
-2,630
-1,781
-1,290
-729
 Sales of property, plant and equipment
33
10
192
136
79
39
 Product development
-762
-378
-1,138
-786
-500
-307
 Other investments¹⁾
-72
-36
-493
-446
-365
-64
 Repayment of lease liabilities
-971
-459
-2,116
-1,654
-1,147
-593
Free cash flow before M&A
6,306
5,921
26,769
11,916
5,285
2,704
 Acquisitions/divestments of subs and other operations, net
-309
-72
10,539
10,201
137
-4
Free cash flow after M&A
5,996
5,849
37,308
22,117
5,422
2,700
Net sales
102,022
49,332
236,681
167,396
111,157
55,025
Free cash flow before M&A (% of net sales)
6.2%
12.0%
11.3%
7.1%
4.8%
4.9%
1) Other investments is part of the line item Other investing activities in the Consolidated cash flow statement. The differences are movements in other interest-bearing assets, which are not to
be part of the definition of Free cash flow.
Sales growth by segment adjusted for comparable units and currency
2026
2025
Isolated quarter, year over year change, percent
Q2
Q1
Q4
Q3
Q2
Q1
Networks
-4%
7%
4%
-5%
3%
3%
Cloud Software and Services
5%
4%
12%
9%
1%
-3%
Enterprise
3%
4%
2%
-7%
-6%
-7%
Other
-6%
-2%
-10%
-15%
-1%
-23%
Total
-1%
6%
6%
-2%
2%
0%
2026
2025
Year to date, year over year change, percent
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Networks
1%
7%
1%
0%
3%
3%
Cloud Software and Services
5%
4%
6%
2%
-1%
-3%
Enterprise
4%
4%
-5%
-7%
-6%
-7%
Other
-4%
-2%
-13%
-14%
-13%
-23%
Total
2%
6%
2%
0%
1%
0%
Ericsson  |  Second quarter report 2026. July 14, 2026.
Alternative performance measures
39
Sales growth by market area adjusted for comparable units and currency
2026
2025
Isolated quarter, year over year change, percent
Q2
Q1
Q4
Q3
Q2
Q1
Americas
-1%
-2%
-1%
-8%
10%
20%
Europe, Middle East and Africa
2%
10%
13%
3%
-1%
-7%
South East Asia, Oceania and India
4%
12%
19%
1%
-22%
-17%
North East Asia
8%
15%
-16%
10%
-15%
-8%
Other
-12%
12%
13%
-2%
15%
-6%
Total
-1%
6%
6%
-2%
2%
0%
2026
2025
Year to date, year over year change, percent
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Americas
-2%
-2%
4%
6%
14%
20%
Europe, Middle East and Africa
6%
10%
3%
-2%
-4%
-7%
South East Asia, Oceania and India
8%
12%
-4%
-13%
-19%
-17%
North East Asia
11%
15%
-9%
-5%
-12%
-8%
Other
-1%
12%
5%
3%
5%
-6%
Total
2%
6%
2%
0%
1%
0%
Rolling four quarters of net sales by segment
2026
2025
Rolling four quarters, SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Networks
145,608
148,308
151,014
153,611
158,203
160,135
Cloud Software and Services
61,943
61,573
62,715
62,141
61,748
62,565
Enterprise
18,294
19,352
21,117
22,629
23,890
24,826
Other
1,702
1,754
1,835
1,928
2,023
2,054
Total
227,546
230,988
236,681
240,309
245,864
249,580
Gross margin by segment by quarter
2026
2025
Isolated quarters, as percentage of net sales
Q2
Q1
Q4
Q3
Q2
Q1
Networks
48.3%
49.7%
49.0%
50.0%
49.3%
50.8%
Cloud Software and Services
39.8%
41.5%
43.1%
42.1%
41.5%
39.1%
Enterprise
50.7%
48.9%
52.1%
51.6%
54.9%
56.3%
Other
0.5%
-1.5%
7.4%
0.0%
0.4%
3.8%
Total
45.8%
47.2%
47.2%
47.6%
47.5%
48.2%
2026
2025
Year to date, as percentage of net sales
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Networks
49.0%
49.7%
49.7%
50.0%
50.1%
50.8%
Cloud Software and Services
40.6%
41.5%
41.7%
41.0%
40.4%
39.1%
Enterprise
49.8%
48.9%
53.9%
54.4%
55.6%
56.3%
Other
-0.5%
-1.5%
3.0%
1.5%
2.1%
3.8%
Total
46.5%
47.2%
47.6%
47.8%
47.8%
48.2%
EBIT margin by segment by quarter
2026
2025
Isolated quarters, as percentage of net sales
Q2
Q1
Q4
Q3
Q2
Q1
Networks
18.2%
10.0%
21.1%
20.0%
17.8%
19.8%
Cloud Software and Services
7.8%
0.0%
16.8%
11.2%
5.8%
0.5%
Enterprise
-27.1%
-44.2%
-33.3%
131.5%
-15.7%
-17.1%
Other
-3.4%
0.3%
1.1%
-71.5%
9.5%
-35.0%
Total
11.2%
2.9%
16.1%
26.9%
11.4%
10.8%
2026
2025
Year to date, as percentage of net sales
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Networks
14.1%
10.0%
19.7%
19.2%
18.8%
19.8%
Cloud Software and Services
4.3%
0.0%
9.6%
6.2%
3.3%
0.5%
Enterprise
-35.3%
-44.2%
15.3%
28.8%
-16.4%
-17.1%
Other
-1.7%
0.3%
-22.3%
-30.5%
-12.8%
-35.0%
Total
7.2%
2.9%
16.3%
16.4%
11.1%
10.8%
Ericsson  |  Second quarter report 2026. July 14, 2026.
Alternative performance measures
40
EBITA and EBITA margin by segment by quarter
2026
2025
Isolated quarters, SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Networks
6,034
3,315
9,348
7,096
6,397
7,367
Cloud Software and Services
1,146
9
3,368
1,726
845
76
Enterprise
-888
-1,537
-1,120
6,987
-524
-625
Other
-14
1
5
-293
45
-166
Total
6,277
1,788
11,601
15,516
6,763
6,652
2026
2025
Isolated quarters, as percentage of net sales
Q2
Q1
Q4
Q3
Q2
Q1
Networks
18.3%
10.1%
21.1%
20.0%
17.9%
20.7%
Cloud Software and Services
7.8%
0.1%
16.8%
11.2%
5.9%
0.6%
Enterprise
-19.8%
-36.9%
-24.5%
138.1%
-9.4%
-10.5%
Other
-3.4%
0.3%
1.1%
-71.3%
9.5%
-35.0%
Total
11.9%
3.6%
16.7%
27.6%
12.0%
12.1%
2026
2025
Year to date, SEK million
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Networks
9,349
3,315
30,208
20,860
13,764
7,367
Cloud Software and Services
1,154
9
6,015
2,647
921
76
Enterprise
-2,425
-1,537
4,718
5,838
-1,149
-625
Other
-13
1
-409
-414
-121
-166
Total
8,065
1,788
40,532
28,931
13,415
6,652
2026
2025
Year to date, as percentage of net sales
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Networks
14.2%
10.1%
20.0%
19.5%
19.3%
20.7%
Cloud Software and Services
4.3%
0.1%
9.6%
6.2%
3.4%
0.6%
Enterprise
-28.0%
-36.9%
22.3%
35.3%
-10.0%
-10.5%
Other
-1.6%
0.3%
-22.3%
-30.5%
-12.8%
-35.0%
Total
7.9%
3.6%
17.1%
17.3%
12.1%
12.1%
Restructuring charges by function
2026
2025
Isolated quarters, SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Cost of sales
-1,359
-435
-538
-271
-310
-158
Research and development expenses
882
-2,595
-300
41
-300
-20
Selling and administrative expenses
-124
-738
-259
-73
-46
-103
Total
-601
-3,768
-1,097
-303
-656
-281
2026
2025
Year to date, SEK million
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Cost of sales
-1,794
-435
-1,277
-739
-468
-158
Research and development expenses
-1,713
-2,595
-579
-279
-320
-20
Selling and administrative expenses
-861
-738
-481
-222
-149
-103
Total
-4,369
-3,768
-2,337
-1,240
-937
-281
Ericsson  |  Second quarter report 2026. July 14, 2026.
Alternative performance measures
41
Restructuring charges by segment
2026
2025
Isolated quarters, SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Networks
198
-3,052
-710
-79
-109
-108
 of which cost of sales
-671
-226
-270
-45
-67
-55
 of which operating expenses
869
-2,826
-440
-34
-42
-53
Cloud Software and Services
-688
-620
-349
-193
-538
-74
 of which cost of sales
-626
-205
-240
-222
-243
-102
 of which operating expenses
-62
-415
-109
29
-295
28
Enterprise
-50
-96
-5
-27
-9
-97
 of which cost of sales
-8
-5
-1
0
0
1
 of which operating expenses
-43
-91
-4
-27
-9
-98
Other
-60
0
-33
-4
0
-2
 of which cost of sales
-54
0
-27
-4
0
-2
 of which operating expenses
-6
0
-6
0
0
0
Total
-601
-3,768
-1,097
-303
-656
-281
2026
2025
Year to date, SEK million
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Networks
-2,854
-3,052
-1,006
-296
-217
-108
 of which cost of sales
-897
-226
-437
-167
-122
-55
 of which operating expenses
-1,957
-2,826
-569
-129
-95
-53
Cloud Software and Services
-1,308
-620
-1,154
-805
-612
-74
 of which cost of sales
-831
-205
-807
-567
-345
-102
 of which operating expenses
-477
-415
-347
-238
-267
28
Enterprise
-147
-96
-138
-133
-106
-97
 of which cost of sales
-13
-5
0
1
1
1
 of which operating expenses
-134
-91
-138
-134
-107
-98
Other
-60
0
-39
-6
-2
-2
 of which cost of sales
-54
0
-33
-6
-2
-2
 of which operating expenses
-6
0
-6
0
0
0
Total
-4,369
-3,768
-2,337
-1,240
-937
-281
Adjusted gross income and Adjusted gross margin by segment
2026
2025
Isolated quarters, SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Networks
16,647
16,585
21,918
17,750
17,705
18,167
Cloud Software and Services
6,494
5,112
8,876
6,685
6,207
5,171
Enterprise
2,284
2,044
2,387
2,609
3,045
3,337
Other
56
-6
62
4
2
20
Total
25,481
23,734
33,243
27,048
26,959
26,695
2026
2025
Isolated quarters, as percentage of net sales
Q2
Q1
Q4
Q3
Q2
Q1
Networks
50.4%
50.4%
49.6%
50.1%
49.5%
51.0%
Cloud Software and Services
44.1%
43.2%
44.3%
43.6%
43.2%
39.9%
Enterprise
50.9%
49.0%
52.1%
51.6%
54.9%
56.2%
Other
13.3%
-1.5%
13.0%
1.0%
0.4%
4.2%
Total
48.4%
48.1%
48.0%
48.1%
48.0%
48.5%
2026
2025
Year to date, SEK million
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Networks
33,231
16,585
75,540
53,622
35,872
18,167
Cloud Software and Services
11,607
5,112
26,939
18,063
11,378
5,171
Enterprise
4,328
2,044
11,378
8,991
6,382
3,337
Other
50
-6
88
26
22
20
Total
49,216
23,734
113,945
80,702
53,654
26,695
2026
2025
Year to date, as percentage of net sales
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Networks
50.4%
50.4%
50.0%
50.2%
50.2%
51.0%
Cloud Software and Services
43.7%
43.2%
43.0%
42.3%
41.6%
39.9%
Enterprise
50.0%
49.0%
53.9%
54.4%
55.6%
56.2%
Other
6.1%
-1.5%
4.8%
1.9%
2.3%
4.2%
Total
48.2%
48.1%
48.1%
48.2%
48.3%
48.5%
Ericsson  |  Second quarter report 2026. July 14, 2026.
Alternative performance measures
42
Adjusted EBIT and Adjusted EBIT margin by segment
2026
2025
Isolated quarters, SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Networks
5,808
6,335
10,028
7,154
6,485
7,148
Cloud Software and Services
1,830
623
3,713
1,914
1,378
145
Enterprise
-1,165
-1,748
-1,521
6,676
-861
-917
Other
46
1
38
-290
45
-164
Total
6,520
5,211
12,258
15,454
7,047
6,212
2026
2025
Isolated quarters, as percentage of net sales
Q2
Q1
Q4
Q3
Q2
Q1
Networks
17.6%
19.2%
22.7%
20.2%
18.1%
20.1%
Cloud Software and Services
12.4%
5.3%
18.5%
12.5%
9.6%
1.1%
Enterprise
-25.9%
-41.9%
-33.2%
132.0%
-15.5%
-15.5%
Other
10.9%
0.3%
8.0%
-70.6%
9.5%
-34.6%
Total
12.4%
10.6%
17.7%
27.5%
12.6%
11.3%
2026
2025
Year to date, SEK million
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Networks
12,143
6,335
30,815
20,787
13,633
7,148
Cloud Software and Services
2,454
623
7,150
3,437
1,523
145
Enterprise
-2,912
-1,748
3,377
4,898
-1,778
-917
Other
47
1
-371
-409
-119
-164
Total
11,731
5,211
40,971
28,713
13,259
6,212
2026
2025
Year to date, as percentage of net sales
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Networks
18.4%
19.2%
20.4%
19.5%
19.1%
20.1%
Cloud Software and Services
9.2%
5.3%
11.4%
8.1%
5.6%
1.1%
Enterprise
-33.6%
-41.9%
16.0%
29.6%
-15.5%
-15.5%
Other
5.7%
0.3%
-20.2%
-30.1%
-12.6%
-34.6%
Total
11.5%
10.6%
17.3%
17.2%
11.9%
11.3%
Rolling four quarters of adjusted EBITA margin by segment (%)
2026
2025
Rolling four quarters, as percentage of net sales
Q2
Q1
Q4
Q3
Q2
Q1
Networks
20.2%
20.3%
20.7%
20.4%
20.4%
19.3%
Cloud Software and Services
13.1%
12.4%
11.4%
8.5%
6.1%
4.0%
Enterprise
19.8%
20.4%
23.0%
21.2%
-12.6%
-15.0%
Other
-12.0%
-11.7%
-20.2%
-46.5%
-30.4%
-35.5%
Total
18.0%
18.0%
18.1%
16.8%
13.2%
11.6%
Ericsson  |  Second quarter report 2026. July 14, 2026.
Alternative performance measures
43
Adjusted EBITA and Adjusted EBITA margin by segment
2026
2025
Isolated quarters, SEK million
Q2
Q1
Q4
Q3
Q2
Q1
Networks
5,836
6,367
10,058
7,175
6,506
7,475
Cloud Software and Services
1,834
629
3,717
1,919
1,383
150
Enterprise
-838
-1,441
-1,115
7,014
-515
-528
Other
46
1
38
-289
45
-164
Total
6,878
5,556
12,698
15,819
7,419
6,933
2026
2025
Isolated quarters, as percentage of net sales
Q2
Q1
Q4
Q3
Q2
Q1
Networks
17.7%
19.3%
22.8%
20.3%
18.2%
21.0%
Cloud Software and Services
12.4%
5.3%
18.6%
12.5%
9.6%
1.2%
Enterprise
-18.7%
-34.6%
-24.4%
138.7%
-9.3%
-8.9%
Other
10.9%
0.3%
8.0%
-70.3%
9.5%
-34.6%
Total
13.1%
11.3%
18.3%
28.1%
13.2%
12.6%
2026
2025
Year to date, SEK million
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Networks
12,202
6,367
31,214
21,156
13,981
7,475
Cloud Software and Services
2,463
629
7,169
3,452
1,533
150
Enterprise
-2,279
-1,441
4,856
5,971
-1,043
-528
Other
47
1
-370
-408
-119
-164
Total
12,433
5,556
42,869
30,171
14,352
6,933
2026
2025
Year to date, as percentage of net sales
Jan-Jun
Jan-Mar
Jan-Dec
Jan-Sep
Jan-Jun
Jan-Mar
Networks
18.5%
19.3%
20.7%
19.8%
19.6%
21.0%
Cloud Software and Services
9.3%
5.3%
11.4%
8.1%
5.6%
1.2%
Enterprise
-26.3%
-34.6%
23.0%
36.1%
-9.1%
-8.9%
Other
5.8%
0.3%
-20.2%
-30.0%
-12.6%
-34.6%
Total
12.2%
11.3%
18.1%
18.0%
12.9%
12.6%
Operating working capital days
Inventory turnover days (ITO): Five quarter average inventory
divided by four quarter rolling absolute value of cost of sales
excluding restructuring charges multiplied by 365, expressed as
number of days.
Days sales outstanding (DSO): Five quarter average of
contract assets, trade receivables and customer finance (current
and non-current) less contract liabilities divided by four quarter
rolling net sales multiplied by 365, expressed as number of days.
Days payables outstanding (DPO): Five quarter average of
advances to suppliers and prepaid expenses less trade payables
divided by four quarter rolling absolute value of cost of sales
excluding restructuring charges multiplied by 365, expressed as
number of days.
Operating working capital days: ITO plus DSO less DPO
2026
2025
Q2
Q1
Q4
Q3
Q2
Q1
Inventory turnover days (ITO)
83
80
79
80
80
81
Days sales outstanding (DSO)
9
9
12
11
14
17
Less: Days payables outstanding (DPO)
-73
-70
-71
-68
-66
-64
Operating working capital days
19
19
20
23
28
34