Ericsson Reports Second Quarter Results 2026

Ericsson reported its second quarter results for 2026, with sales of SEK 52.7 billion, a decrease of 6% year-over-year. The company experienced a decline in Networks sales, while Cloud Software and Services saw growth. Organic sales decreased by 1% primarily due to lower IPR licensing revenues. The reported gross margin decreased to 45.8%, and net income fell to SEK 4.1 billion. Free cash flow before M&A was SEK 0.4 billion. Ericsson returned SEK 8.2 billion to shareholders through dividends and share repurchases. The company highlighted disciplined execution and margin resilience, with an adjusted gross margin of 48.4%. They also noted progress in AI-enabled technology demonstrations. Looking ahead, Ericsson anticipates some pressure on the Networks adjusted gross margin in Q3 due to increased network rollout projects.