Ericsson Narrows Q1 Profit Miss as North America Unwinds
April 17, 2026 - 8:09 am
The Swedish telecoms equipment maker narrowly missed profit forecasts, with adjusted EBITA falling 20% year-on-year to SEK 5.6 billion. North America, which drove a *20%+ surge in Q1 2025, declined sharply as prior-year pull-forward investment unwinds. CEO Ekholm attributes this to rising semiconductor input costs, partly due to AI demand.
Ericsson reported a sharp fall in profitability for the first quarter of 2026, as the North American market that propelled the Swedish telecoms equipment maker’s results a year ago shifted into reverse.
Key Findings:
- Adjusted EBITA fell 20% year-on-year to SEK 5.6 billion, slightly missing expectations.
- Networks, Ericsson’s largest business segment at 67% of group sales, saw revenue fall 8% on a reported basis to SEK 32.9 billion.
- The Americas region declined due to operator consolidation effects and reduced investment from US telecoms operators.
- Adjusted gross margin narrowed to 48.1%.
- CEO Börje Ekholm attributed cost pressure to increasing semiconductor input costs, partly driven by AI demand.
- Ericsson’s restructuring program continues, with plans to cut around 1,200 jobs in Sweden in 2025.
The company expects the global radio access network equipment market to remain stable in 2026, with growth anticipated in mission-critical communications and enterprise segments. Beyond North America, sales grew in Europe, the Middle East and Africa, Southeast Asia, and Latin America.