Ericsson recently announced a healthy Q3 2026 revenue rise with its performance boosted by higher sales in its Network division and effective efficiency measures. However the company’s new CEO Per Narvinger warned of potential headwinds over the next year.
Overseeing his first results announcement since taking the helm from Borje Ekholm last month, former Networks chief Narvinger said he spent the quarter meeting customers and a consistent theme emerged: “the need for more intelligent and autonomous networks to improve performance, efficiency, robustness and resilience”.
Looking ahead, he added: “the RAN market is flat, geopolitical uncertainty remains elevated, and component costs are a headwind to gross margin next year”.
Narvinger believes through disciplined actions and prioritising technology leadership, the company remains well positioned “to navigate these challenges and deliver profitable long-term growth”.
Revenue for the period rose 6% year-on-year to SEK59.5 billion ($6 billion), with sales from Networks up 9% to SEK38.7 billion. Cloud Software and Services increased 3% to SEK15.8 billion, while Enterprise sales dropped 10% to SEK4.6 billion, reflecting the divestment of iconectiv.
Breaking out geographical markets, sales grew in most markets including Asia and Europe, but offset by the Americas with struggles in Latin America.
IPR licensing revenue hit SEK3.9 billion from SEK3.1 billion, driven party by retroactive revenue to previously unlicenced products.
Net income declined 49% to SEK5.8 billion.
Source: Mobile World Live
Image Credit: Ericsson
