Telefonaktiebolaget LM Ericsson (publ) (ERICB) Earnings Call Transcripts

Telefonaktiebolaget LM Ericsson (publ)'s Latest Earnings Call - Q1 FY2026

In the first quarter of 2026, Ericsson reported a revenue of SEK 49.3 billion, reflecting a 10% decline year-over-year primarily due to adverse currency effects, while organic growth remained strong at 6%. Earnings before interest, taxes, and amortization (EBITA) was SEK 5.6 billion, resulting in an EBITA margin of 11.3%. Management maintained a cautious outlook for North America, expecting similar trends for the year, but highlighted growth opportunities in other markets, particularly in enterprise and mission-critical networks, as well as a robust cash position bolstered by a share buyback program of SEK 15 billion.

Reported metrics

Guidance from management

Management expects sales growth in Networks to align with the three-year average seasonality and anticipates stronger growth in Cloud Software and Services. They expect adjusted gross margins for Networks to be in the range of 49% to 51%.

What management said

I would -- there, we have actually strengthened our market position. So we should see healthy growth as we continue to deliver on those opportunities. So I'm actually very comfortable about that.

The ones that we announced today or in this quarter, of course, they come more in the second half of the year and into next year. And then we have the previous ones that is coming, you can see now. So that is a continuous work that we do.

What analysts pressed on

Analysts expressed concerns regarding the sustainability of North American revenue trends and the impact of rising input costs on margins. There were questions about the effectiveness of cost-saving measures and the potential for further declines in the Enterprise segment's performance.

Main topics on the call

• Organic Growth Resilience — Despite a reported sales decline of 10%, Ericsson achieved a strong organic growth of 6%, with all segments contributing positively. CEO Borje Ekholm noted, "We saw a very large currency headwind during the quarter... bu...
• North America Revenue Trends — Management indicated that North American sales decreased by mid-single digits, with expectations for similar performance throughout 2026. Ekholm stated, "I don’t see a changing market condition, but I see a bit better mi...
• Cash Flow and Share Buyback — Ericsson reported a healthy cash flow of SEK 5.9 billion and announced a share buyback program of SEK 15 billion. This was highlighted as a positive signal of financial strength amid challenging market conditions.
• Enterprise Segment Challenges — The Enterprise segment reported a significant loss of SEK 1.4 billion, which management deemed "unacceptable" but attributed to one-time costs. They expressed confidence in an improvement plan to reduce losses moving for...

Read the full Telefonaktiebolaget LM Ericsson (publ) transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 55 Telefonaktiebolaget LM Ericsson (publ) earnings call transcripts on record, spanning January 24, 2020 to October 15, 2026. Based on this history, Telefonaktiebolaget LM Ericsson (publ) reports quarterly. The most recent call on file is dated October 15, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

ERICB

Exchange

OM

Country

SE

Sector

Information Technology

Industry

Communications Equipment

Calls on record

55

First call

January 24, 2020

Most recent

October 15, 2026

Reporting cadence

quarterly