Ericsson Reports Resilient Q1 2026 Performance with Strong Cash Flow
Ericsson noted that its ongoing investments in supply chain resilience and diversified operations continue to support stable delivery and long-term growth, even as it navigates rising input costs and evolving market conditions.
Ericsson has released its first quarter 2026 financial results, highlighting resilient performance, steady organic growth, and continued strategic execution despite a challenging macroeconomic environment.
The company recorded organic sales growth of 6%, driven primarily by its Networks segment, as customer demand expanded across multiple regions. During the quarter, Ericsson also strengthened its technology leadership with the announcement of AI-native radios at Mobile World Congress. Additionally, a share buyback program of up to SEK 15 billion has been approved, with implementation expected to begin on April 23, 2026.
Reported sales for the quarter stood at SEK 49.3 billion, down from SEK 55.0 billion in the same period last year. Despite this decline, organic growth remained positive across all business segments. Adjusted gross income fell to SEK 23.7 billion, reflecting currency headwinds, while reported gross income reached SEK 23.3 billion.
Profitability remained relatively stable, with an adjusted gross margin of 48.1%, slightly down from 48.5% last year. The Cloud Software and Services segment posted improved margins, while Networks saw a slight decline. Adjusted EBITA came in at SEK 5.6 billion, with a margin of 11.3%, impacted mainly by currency effects. Reported EBITA dropped to SEK 1.8 billion due to restructuring charges.
Net income for the quarter was SEK 0.9 billion, compared to SEK 4.2 billion a year earlier, reflecting both restructuring costs and currency pressures. Diluted earnings per share stood at SEK 0.27. Meanwhile, free cash flow before M&A more than doubled to SEK 5.9 billion, driven by stronger operating cash flow.
“Our Q1 results demonstrate continued resilience in a dynamic environment, with organic sales growth of 6%. Our healthy gross margins and strong cash flow reflect the progress we have made in recent years, reducing reliance on geographic mix and strengthening our foundations globally. Our multi-year investments in building a resilient, diversified, supply chain have enabled us to deliver consistently for customers amidst geopolitical and macroeconomic uncertainties. We are facing increasing input costs, especially in semiconductors, caused in part by AI demand. Our ambition is to offset these challenges, by working closely with customers and suppliers, and through product substitution and efficiency actions. Looking ahead, while we continue to expect a flattish RAN market, our focused strategy, leading portfolio, and strengthened positions in mission critical and Enterprise give us confidence in our ability to grow faster than the mobile networks market and drive long-term success.”
– Börje Ekholm, President and CEO, Ericsson
Ericsson noted that its ongoing investments in supply chain resilience and diversified operations continue to support stable delivery and long-term growth, even as it navigates rising input costs and evolving market conditions.
