Kvartalsrapport Q1 2026

Automatiskt nyckeltalsindex

Detta är sökträffar och textkontext, inte verifierade eller normaliserade redovisningsvärden.

Fulltext

===== SIDA 1 =====

1 Ericsson  |  First quarter report 2026. April 17, 2026.  
 
First quarter report 2026 
Strategic highlights – Robust execution reflecting a more balanced global footprint 
• Strong organic sales growth of 6%*, led by Networks, as customer demand broadened across regions. 
• AI‑native radios announced at Mobile World Congress, extending technology leadership. 
• Share buyback program up to SEK 15 b. approved and expected to commence on April 23, 2026. 
Financial highlights – Solid financial performance with broad-based contribution 
• Reported sales were SEK 49.3 (55.0) b. Organic* sales increased by 6%* YoY, with organic growth in all segments.  
• Adjusted1 gross income decreased to SEK 23.7 (26.7) b., reflecting currency headwinds. Reported gross income 
was SEK 23.3 (26.5) b. 
• Adjusted1 gross margin was 48.1% (48.5%). Cloud Software and Services gross margin increased, while Networks 
margin decreased slightly. Reported gross margin was 47.2% (48.2%). 
• Adjusted1 EBITA was SEK 5.6 (6.9) b., with a 11.3% (12.6%) margin, mainly reflecting currency headwinds. EBITA 
was SEK 1.8 (6.7) b., impacted by -3.8 (-0.3) b. of restructuring charges. 
• Net income was SEK 0.9 (4.2) b. reflecting restructuring charges and currency impacts. Diluted EPS was  
SEK 0.27 (1.24). 
• Free cash flow before M&A was SEK 5.9 (2.7) b., driven by increased operating cash flow. 
Börje Ekholm, President and CEO, said: “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.” 
 
* Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations. 
1 Adjusted metrics are adjusted to exclude restructuring charges.  
2 Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statement. 
SEK b.
Q1
2026
Q1
2025
YoY 
change
Q4
2025
QoQ 
change
Net sales 49.3 55.0 -10% 69.3 -29% 
Organic sales growth * ² - - 6% - -
Gross income 23.3 26.5 -12% 32.7 -29%
Gross margin ² 47.2% 48.2% - 47.2% -
EBIT 1.4 5.9 -76% 11.2 -87%
EBIT margin ² 2.9% 10.8% - 16.1% -
EBITA ² 1.8 6.7 -73% 11.6 -85%
EBITA margin ² 3. 6% 12.1% - 16.7% -
Net income 0.9 4.2 -79% 8.6 -90%
EPS diluted, SEK 0.27 1.24 -78% 2.57 -89%
Free cash flow before M&A ² 5.9 2.7 119% 14.9 -60%
Net cash, end of period ² 68.1 38.6 76% 61.2 11%
Adjusted financial measures ¹ ²
Adjusted gross income 23.7 26.7 -11% 33.2 -29%
Adjusted gross margin 48.1% 48.5% - 48.0% -
Adjusted EBIT 5.2 6.2 -16% 12.3 -57%
Adjusted EBIT margin 10.6% 11.3% - 17.7% -
Adjusted EBITA 5.6 6.9 -20% 12.7 -56%
Adjusted EBITA margin 11.3% 12.6% - 18.3% -

===== SIDA 2 =====

2 Ericsson  |  First quarter report 2026. April 17, 2026. Group results 
 
Amounts marked with an ‘*’ in this document represent sales growth adjusted for the impact of acquisitions and divestments and effects of 
foreign currency fluctuations, also named organic sales growth. These numbers present performance on a comparable basis to improve the 
comparability of results between periods. Organic sales growth figures are non-IFRS measures.  
‘Adjusted’ metrics are adjusted to exclude restructuring charges and are non-IFRS measures. This is a change in nomenclature only. 
See ‘Financial statements and other information’ for Alternative performance measures. 
Group results 
 
1 Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements. 
 
 
Net sales 
Reported sales decreased by -10% YoY to SEK 49.3 (55.0) b., 
including a SEK -7.8 b. currency impact. Networks sales declined  
by -8% to SEK 32.9 b. Cloud Software and Services sales decreased 
by -9% to SEK 11.8 b. Enterprise sales declined by -30% to  
SEK 4.2 b., mainly driven by a SEK -1.1 b. impact from the 
divestment of iconectiv in 2025. Sales in segment Other were stable 
at SEK 0.4 b. 
Organic sales grew by 6%* YoY. Networks sales increased by 
7%*, supported by growth in three of the four market areas. 
Cloud Software and Services sales grew by 4%*, with growth in 
three market areas. Sales in segment Enterprise grew by 4%*, 
driven by Global Communications Platform.  
IPR licensing revenues were SEK 3.1 (3.2) b. as organic revenue 
growth was offset by negative currency impacts. 82% of IPR 
licensing revenues are reported in segment Networks, with the 
remainder in Cloud Software and Services.  
Gross income and margin 
Gross margin decreased to 47.2% (48.2%). Networks gross margin 
decreased, mainly reflecting actions to enhance supply chain 
resilience. Gross margin in Cloud Software and Services increased, 
benefiting from product mix and improved delivery efficiency.  
Gross margin declined in Enterprise primarily due to the impact of 
the divestment of iconectiv and a change in business mix in Global 
Communications Platform. 
Gross income decreased to SEK 23.3 (26.5) b., impacted by lower 
net sales and lower gross margin, and including a negative currency 
impact of SEK -3.8 b. Gross income was also impacted by 
restructuring charges of SEK -0.4 (-0.2) b. 
Adjusted gross income decreased to SEK 23.7 (26.7) b.,  
with a margin of 48.1% (48.5%).  
Research and development (R&D) expenses 
R&D expenses increased to SEK -13.5 (-12.0) b., including 
restructuring charges of SEK -2.6 (-0.0) b. and a positive currency 
impact of SEK 0.7 b. Excluding restructuring and currency impacts, 
R&D expenses decreased by SEK -0.4 b., as investments in 
technology leadership were more than offset by savings from  
cost-reduction actions, primarily in Cloud Software and Services. 
Selling and administrative (SG&A) expenses 
SG&A expenses were SEK -8.1 (-8.6) b., including restructuring 
charges of SEK -0.7 (-0.1) b. and a currency benefit of SEK 0.9 b.  
Excluding restructuring and currency impacts, SG&A expenses 
declined by SEK -0.2 b., primarily reflecting the divestment of 
iconectiv. 
  
SEK b. 
Q1
2026 
Q1
2025 
YoY 
change 
Q4
2025 
QoQ 
change 
Net sales 49.3 55.0 -10% 69.3 -29%
 Organic sales growth * ¹ - - 6% - -
Gross income 23.3 26.5 -12% 32.7 -29%
Gross margin 47.2% 48.2% - 47.2% -
Research and development (R&D) expenses -13.5 -12.0 - -13.1 -
Selling and administrative expenses -8.1 -8.6 - -9.0 -
Impairment losses on trade receivables -0.2 0.0 - 0.1 -
Other operating income and expenses 0.0 0.0 - 0.4 -94%
Share of earnings of associated companies -0.1 0.0 - 0.0 -
EBIT 1.4 5.9 -76% 11.2 -87%
EBIT margin ¹ 2.9% 10.8% - 16.1% -
EBITA ¹ 1.8 6.7 -73% 11.6 -85%
EBITA margin ¹ 3.6% 12.1% - 16.7% -
Financial income and expenses, net -0.2 -0.1 - -0.1 -
Income tax -0.4 -1.6 - -2.5 -
Net income 0.9 4.2 -79% 8.6 -90%
Restructuring charges -3.8 -0.3 - -1.1 -
Adjusted financial measures ¹
Adjusted gross income 23.7 26.7 -11% 33.2 -29%
Adjusted gross margin 48.1% 48.5% - 48.0% -
Adjusted EBIT 5.2 6.2 -16% 12.3 -57%
Adjusted EBIT margin 10.6% 11.3% - 17.7% -
Adjusted EBITA 5.6 6.9 - 20% 12.7 -56%
Adjusted EBITA margin 11.3% 12.6% - 18.3% -

===== SIDA 3 =====

3 Ericsson  |  First quarter report 2026. April 17, 2026. Group results 
 
Restructuring charges 
Restructuring charges were SEK -3.8 (-0.3) b., driven by announced 
headcount reduction plans in Sweden. Gross income included  
SEK -0.4 (-0.2) b. of restructuring charges, while restructuring 
charges in operating expenses were SEK -3.3 (-0.1) b.  
EBITA 
EBITA decreased to SEK 1.8 (6.7) b., mainly due to increased 
restructuring charges of SEK -3.8 (-0.3) b., lower gross income, and 
a SEK -0.5 b. impact from the revaluation of cash settled long-term 
variable compensation programs due to the increase in the share 
price. This was partly offset by lower operating expenses from cost-
reduction actions. EBITA included a negative YoY currency impact 
of SEK -2.2 b. The EBITA margin was 3.6% (12.1%). 
Adjusted EBITA decreased to SEK 5.6 (6.9) b. The adjusted  
EBITA margin was 11.3% (12.6%). 
EBIT 
EBIT decreased to SEK 1.4 (5.9) b. with a margin of  
2.9% (10.8%). Amortization impacted EBIT by SEK -0.3 (-0.7) b.  
Adjusted EBIT decreased to SEK 5.2 (6.2) b. with a margin  
of 10.6% (11.3%).  
Financial income and expenses, net 
Financial income and expenses were SEK -0.2 (-0.1) b.  
Financial net decreased as lower interest expense was offset  
by a SEK -0.1 (0.2) b. negative currency hedge effect. 
Income tax 
Taxes were SEK -0.4 (-1.6) b. A tax rate of 29% (25%) is expected 
for the full year, mainly reflecting restructuring initiatives in various 
markets. 
Net income  
Net income decreased to SEK 0.9 (4.2) b. 
Diluted EPS was SEK 0.27 (1.24). 
Employees  
The number of employees on March 31, 2026, was 87,521 
compared with 88,826 on December 31, 2025.

===== SIDA 4 =====

4 Ericsson  |  First quarter report 2026 . April 17, 2026. Market area sales 
 
Market area sales
 
 
Market Area Americas  
Sales decreased by -2%* YoY, with strong growth in Latin America 
partly offset by lower sales in North America. Networks sales 
declined in North America, primarily reflecting accelerated network 
investments in the prior-year period, in part due to tariff uncertainty, 
as well as a short-term reallocation of customer spend following 
mobile network operator consolidation announced last year. Cloud 
Software and Services sales increased, driven by timing of project 
deliverables in core networks as well as North America managed 
services growth. Reported sales decreased by -18% YoY. 
In the quarter, a successful live proof of concept was conducted at 
Ericsson’s US headquarters in Plano, Texas, demonstrating sensing 
technology for unmanned aerial vehicle (UAV) detection and 
airspace monitoring using massive-MIMO radios. 
Market Area Europe, Middle East and Africa 
Sales grew by 10%* YoY. Networks sales in Europe increased, 
supported by the timing of project deliverables, partly offset by the 
completion of modernization projects. Networks sales in Middle 
East and Africa also increased, driven by 5G network investments. 
Cloud Software and Services sales declined due to timing of project 
deliverables as well as exits and descoping of managed services 
contracts. Reported sales decreased by -1% YoY. 
In the quarter, a five-year partnership extension was agreed with 
Virgin Media O2 in the UK to become its primary Radio Access 
Network (RAN) partner, powering the majority of its nationwide 
mobile network and providing advanced 5G capabilities.  
Market Area South East Asia, Oceania and India 
Sales increased by 12%* YoY. Networks sales increased, primarily 
driven by higher deliveries in India. Cloud Software and Services 
sales increased, reflecting timing of project deliverables. Reported 
sales declined by -4% YoY. 
Market Area North East Asia 
Sales increased by 15%* YoY. Networks and Cloud Software and 
Services sales increased, reflecting the timing of project deliverables 
predominantly in Japan. Reported sales declined by -3% YoY. 
In the quarter, a multi-year agreement was signed with Softbank to 
deploy next generation core network solutions. A multi-year 
agreement was signed with Far EasTone to modernize its RAN and 
core, with AI native, 5G advanced, and 6G ready networks. 
Market Area Other 
Market area Other primarily includes IPR licensing revenues and 
almost all sales in segment Enterprise. Sales increased by 12%* YoY 
with growth in Enterprise and a favorable currency hedge effect. 
Reported sales decreased by -15% YoY, mainly reflecting the 
divestment of iconectiv in Q3 2025. 
 
SEK b.
Q1
2026
Q1
2025
YoY 
change
YoY 
organic 
growth
Q4
2025
QoQ 
change
Americas 17.1 20.9 -18% -2% 22.9 -26%
Europe, Middle East and Africa 14.3 14.5 -1% 10% 23.4 -39%
South East Asia, Oceania and India 6.9 7.2 -4% 12% 9.0 -23%
North East Asia 3.1 3.2 -3% 15% 5.2 -40%
Other 7.9 9.3 -15% 12% 8.8 -11%
 Of which IPR 3.1 3.2 -1% - 3.3 -6%
Total 49.3 55.0 -10% 6% 69.3 -29%

===== SIDA 5 =====

5 Ericsson  |  First quarter report 2026. April 17, 2026. Segment results 
 
Segment results 
Mobile Networks –  
Segment Networks  
 
Breakdown of sales into products, services and IPR licensing is available in note 3. 
 
 
Net sales 
Sales increased by 7%* YoY, with growth in three of the four market 
areas. Reported sales decreased by -8% YoY to SEK 32.9 (35.6) b. 
including a currency impact of SEK -5.2 b.  
Sales grew across the market area Europe, Middle East and Africa 
driven by network modernizations as well as 5G launches and 
rollouts. Sales in market area South East Asia, Oceania and India 
increased primarily due to higher deliveries in India. Sales in market 
area North East Asia also increased, reflecting the timing of project 
deliverables predominantly in Japan. Sales in market area Americas 
declined reflecting accelerated network investments in the prior-
year period in North America, as well as a short-term reallocation of 
customer spend following mobile network operator consolidation in 
2025. The decline was partly offset by higher sales in Latin America. 
Gross income and margin 
Adjusted gross margin decreased slightly to 50.4% (51.0%), mainly 
reflecting actions to enhance supply chain resilience. Adjusted gross 
income decreased to SEK 16.6 (18.2) b., impacted by lower gross 
margin, lower sales and a currency impact of SEK -2.7 b.  
EBITA  
Adjusted EBITA was SEK 6.4 (7.5) b. Lower gross income was 
partly offset by lower operating expenses. Operating expenses 
benefitted from continued efficiency improvements and positive 
currency impacts. R&D investments remained stable, supporting the 
strategy of building the best high-performing, AI-native, 
programmable networks, and maintaining technology leadership. 
Adjusted EBITA included a SEK -2.0 b. currency impact.  
The adjusted EBITA margin was 19.3% (21.0%). 
Net sales rolling four quarters were SEK 148.3 b. and the adjusted 
EBITA margin rolling four quarters was 20.3%. 
 
Mobile Networks – 
Segment Cloud Software and Services 
Breakdown of sales into products, services and IPR licensing is available in note 3. 
 
 
Net sales 
Sales increased by 4%* YoY, with growth in three of the four  
market areas and growth in core networks. Reported sales declined  
by -9% to SEK 11.8 (13.0) b., including a currency impact of  
SEK -1.6 b. Services sales accounted for 64% (64%) of sales. 
Sales grew in Americas, driven primarily by core networks. Sales in 
market areas South East Asia, Oceania and India and in North East 
Asia increased, driven by timing of project deliverables. In market 
area Europe, Middle East and Africa, sales declined across the 
region, mainly due to lower services sales. 
Gross income and margin 
Adjusted gross margin increased to 43.2% (39.9%), supported by 
strong strategy execution with improved delivery efficiency and a 
favorable shift in product mix. Adjusted gross income decreased 
slightly to SEK 5.1 (5.2) b., impacted by a negative currency impact 
of SEK -0.6 b.  
EBITA  
Adjusted EBITA increased to SEK 0.6 (0.2) b. Lower gross income 
was offset by lower operating expenses. Operating expenses 
benefitted from continued efficiency improvements and positive 
currency impacts. Adjusted EBITA included a SEK -0.3 b. currency 
impact. The adjusted EBITA margin was 5.3% (1.2%). 
Net sales rolling four quarters were SEK 61.6 b. and the adjusted 
EBITA margin rolling four quarters was 12.4%.  
 
  
SEK b.
Q1
2026 
Q1
2025 
YoY 
change 
Q4
2025 
Net sales 32.9 35.6 -8% 44.2
  Of which IPR licensing revenues 2.6 2.6 -1% 2.7
 Organic sales growth - - 7% -
Gross income 16.4 18.1 -10% 21.6
Gross margin   49.7% 50.8% - 49.0%
EBIT 3.3 7.0 -53% 9.3
EBIT margin   10.0% 19.8% - 21.1%
EBITA 3.3 7.4 -55% 9.3
EBITA margin   10.1% 20.7% - 21.1%
Restructuring charges -3.1 -0.1 - -0.7
Adjusted financial measures 
Adjusted gross income 16.6 18.2 -9% 21.9
Adjusted gross margin 50.4% 51.0% - 49.6%
Adjusted EBIT 6.3 7.1 -11% 10.0
Adjusted EBIT margin 19.2% 20.1% - 22.7%
Adjusted EBITA 6.4 7.5 -15% 10.1
Adjusted EBITA margin 19.3% 21.0% - 22.8%
SEK b.
Q1
2026 
Q1
2025 
YoY 
change 
Q4
2025 
Net sales 11.8 13.0 -9% 20.0  
Of which IPR licensing revenues 0.6 0.6 -1% 0.6 
Organic sales growth - - 4% -
Gross income 4.9 5.1 -3% 8.6
Gross margin  41.5% 39.1% - 43.1%
EBIT 0.0 0.1 -96% 3.4
EBIT margin   0.0% 0.5% - 16.8%
EBITA 0.0 0.1 -88% 3.4
EBITA margin   0.1% 0.6% - 16.8%
Restructuring charges -0.6 -0.1 - -0.3
 
Adjusted financial measures 
Adjusted gross income 5.1 5.2 -1% 8.9
Adjusted gross margin 43.2% 39.9% - 44.3%
Adjusted EBIT 0.6 0.1 - 3.7
Adjusted EBIT margin 5.3% 1.1% - 18.5%
Adjusted EBITA 0.6 0.2 - 3.7
Adjusted EBITA margin 5.3% 1.2% - 18.6%

===== SIDA 6 =====

6 Ericsson  |  First quarter report 2026. April 17, 2026. Segment results 
 
Enterprise –  
Segment Enterprise 
 
 
Net sales 
Sales increased by 4%* YoY, primarily driven by Global 
Communications Platform, with slight growth in Enterprise Wireless 
Solutions. Reported sales decreased by -30% YoY to  
SEK 4.2 (5.9) b., reflecting the divestment of iconectiv in Q3 2025 
and a SEK -0.8 b. currency impact. 
Sales growth in Global Communications Platform was driven by 
higher sales in CPaaS and in network API powered solutions. Sales 
in Enterprise Wireless Solutions benefited from growth in WWAN 
solutions. 
Gross income and margin 
Adjusted gross margin decreased to 49.0% (56.2%), reflecting the 
impact of the divestment of iconectiv in Q3 2025 and a change in 
business mix in Global Communications Platform. Adjusted gross 
income was SEK 2.0 (3.3) b., reflecting the divestment of iconectiv 
in Q3 2025 and a negative currency impact of SEK -0.4 b. 
EBITA (loss) 
Adjusted EBITA (loss) was SEK -1.4 (-0.5) b., reflecting the 
divestment of iconectiv in Q3 2025 and SEK -0.3 b. of non-recurring 
costs in the current quarter, including the impact of a revaluation of 
cash settled long-term variable compensation programs due to the 
increase in the share price. The currency impact was SEK -0.1 b. 
Adjusted EBITA margin was -34.6% (-8.9%).  
Net sales rolling four quarters were SEK 19.4 b. and the adjusted 
EBITA margin rolling four quarters was 20.4%, including a 39.1 
percentage point benefit from the iconectiv gain in Q3 2025. 
 
Segment Other 
 
 
Net sales 
Reported sales were SEK 0.4 (0.5) b.  
Gross income and margin 
Adjusted gross income was SEK 0.0 (0.0) b. Adjusted gross margin 
was -1.5% (4.2%). 
EBITA (loss) 
Adjusted EBITA (loss) was SEK 0.0 (-0.2) b.  
Net sales rolling four quarters were SEK 1.8 b.  
 
SEK b. 
Q1
2026 
Q1
2025 
YoY 
change 
Q4
2025 
Net sales 4.2 5.9 -30% 4.6
 Organic sales growth - - 4% -
Gross income 2.0 3.3 -39% 2.4
Gross margin  48.9% 56.3% - 52.1%
EBIT (loss) -1.8 -1.0 - -1.5
EBIT margin  -44.2% -17.1% - -33.3%
EBITA (loss) -1.5 -0.6 - -1.1
EBITA margin  -36.9% -10.5% - -24.5%
Restructuring charges -0.1 -0.1 - 0.0
Adjusted financial measures 
Adjusted gross income 2.0 3.3 -39% 2.4
Adjusted gross margin 49.0% 56.2% - 52.1%
Adjusted EBIT (loss) -1.7 -0.9 - -1.5
Adjusted EBIT margin -41.9% -15.5% - -33.2%
Adjusted EBITA (loss) -1.4 -0.5 - -1.1
Adjusted EBITA margin -34.6% -8.9% - -24.4%
SEK b. 
Q1
2026 
Q1
2025 
YoY 
change 
Q4
2025 
Net sales 0.4 0.5 -17% 0.5
 Organic sales growth - - -2% -
Gross income 0.0 0.0 -133% 0.0
Gross margin  -1.5% 3.8% - 7.4%
EBIT (loss) 0.0 -0.2 - 0.0
EBIT margin  0.3% -35.0% - 1.1%
EBITA (loss) 0.0 -0.2 - 0.0
EBITA margin  0.3% -35.0% - 1.1%
Restructuring charges - 0.0 - 0.0
Adjusted financial measures 
Adjusted gross income 0.0 0.0 -130% 0.1
Adjusted gross margin -1.5% 4.2% - 13.0%
Adjusted EBIT (loss) 0.0 -0.2 - 0.0
Adjusted EBIT margin 0.3% -34.6% - 8.0%
Adjusted EBITA (loss) 0.0 -0.2 - 0.0
Adjusted EBITA margin 0.3% -34.6% - 8.0%

===== SIDA 7 =====

7 Ericsson  |  First quarter report 2026. April 17, 2026. Cash flow and financial position 
 
Cash flow and financial position
 
 
Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements. 
 
Cash flow  
Cash flow from operating activities was SEK 7.4 (4.4) b. Operating 
cash flow in the quarter was driven by earnings and a reduction in 
operating net assets. Operating net assets decreased driven by 
annual IPR payments received in the quarter. 
Cash flow from operating activities increased compared to the prior 
year period, reflecting solid underlying earnings and positive cash 
flow from currency hedges. 
Cash flow from investing activities was SEK 1.9 (1.3) b. Investing 
cash flow in the quarter was driven by the sale of interest-bearing 
securities. 
Cash flow from financing activities was SEK -2.3 (-0.7) b. Financing 
cash flow in the quarter was driven by collateral on derivatives. 
Financial position  
Gross cash increased sequentially by SEK 5.6 b. to SEK 99.5 b., 
driven by positive free cash flow before M&A and a positive 
exchange rate effect on cash and cash equivalents. 
Net cash increased SEK 6.9 b. sequentially to SEK 68.1 b. 
The average maturity of parent company borrowings was  
2.7 years as of March 31, 2026, compared with 3.5 years as of 
March 31, 2025. 
Liabilities for post-employment benefits decreased to SEK 18.2 b. 
from SEK 18.6 b. The Swedish defined benefit obligation (DBO) was 
calculated using a discount rate based on the yields of Swedish 
government bonds. If the discount rate had been based on Swedish 
covered mortgage bonds, the liability for post-employment benefits 
would have been approximately SEK 9.9 b., which is SEK 8.3 b. 
lower than current DBO. 
 
Free cash flow bridge, SEK b.
Q1
2026 
Q1
2025 
Q4
2025 
Adjusted EBITA 5.6 6.9 12.7
Depreciation and amortization of non-acquired assets 1.6 2.0 1.7
Restructuring charges -3.8 -0.3 -1.1
Changes in operating net assets 5.6 -2.8 6.4
Interest paid/received, taxes paid, and other -1.6 -1.5 -3.2
Cash flow from operating activities 7.4 4.4 16.5
Net capex and other investing activities -1.0 -1.1 -1.2
Repayment of lease liabilities -0.5 -0.6 -0.5
Free cash flow before M&A 5.9 2.7 14.9
Cash flow from operating activities 7.4 4.4 16.5
Cash flow from investing activities 1.9 1.3 -5.0
Cash flow from financing activities -2.3 -0.7 -8.8
SEK b.
Mar 31
2026 
Mar 31
2025 
Dec 31
2025 
Gross cash 99.5 74.2 93.9
 - Borrowings, current 9.9 5.6 3.5
 - Borrowings, non-current 21.5 29.9 29.2
Net cash 68.1 38.6 61.2
Equity 103.1 84.9 110.3
Equity ratio (%) 35.5% 30.5% 39.5%
Capital turnover (times) 1.4 1.6 1.5
Return on capital employed (%) 21.4% 3.8% 24.1%

===== SIDA 8 =====

8 Ericsson  |  First quarter report 2026. April 17, 2026. Key data points 
 
Key data points   
Market 
 
Dell’Oro estimates that the global RAN equipment market will be 
broadly stable in 2026.  
Source: Dell’Oro Mobile RAN Quarterly Report Q425, Feb 2026. 
Ericsson 
 
Net sales  
Reported average seasonality last 3 years (2023–2025), %. 
 
Net sales may show large variations between quarters, including 
currency changes. 
IPR licensing revenues 
IPR licensing revenue growth opportunities remain in new market 
segments and from increased penetration of the smartphone 
market. 
At the end of Q1 2026, recurring annual IPR licensing revenues 
were approximately SEK 13 b. 
Currency exposure 
Currency exposure can vary significantly from quarter to quarter. In 
2025, approximately half of net sales were USD denominated, over 
15% of net sales were EUR denominated, and five other currencies 
(INR, JPY, GBP, CNY, AUD) contributed approximately 15% of net 
sales. 
Further currency information is available at: 
https://www.ericsson.com/en/investors/financial-reports-and-
presentations/foreign-exchange-rates 
Amortization of intangible assets 
Amortization of intangible assets is expected to be around  
SEK -0.3 b. per quarter in segment Enterprise. 
Restructuring charges 
Restructuring charges for 2026 are expected to be at elevated 
levels. 
Segments 
 
Increased uncertainty remains in the outlook and in the broader 
macroeconomic and geopolitical environment. 
The Q2 outlook assumes currency rates of USD:SEK 9.2,  
EUR:SEK 10.8. 
Networks  
Sales growth in Q2 2026 is expected to be broadly similar to  
3-year average seasonality. 
Adjusted gross margin in Q2 2026 is expected to be in the range  
of 49% to 51%. 
Cloud Software and Services 
Sales growth in Q2 2026 is expected to be above 3-year average 
seasonality. 
 
 
 Q4Q1 Q1Q2 Q2Q3 Q3Q4 
Networks -25% +4% +1% +17% 
Cloud Software and 
Services -33% +13% +3% +29%

===== SIDA 9 =====

9 Ericsson  |  First quarter report 2026. April 17, 2026. Parent Company 
 
Parent Company 
 
Income after financial items January - -- March 2026, was  
SEK 0.8 (0.3) b. 
At the end of the quarter, gross cash (cash, cash equivalents plus 
interest-bearing securities, current and non-current) amounted to 
SEK 86.3 (61.2) b. 
There was an increase in intercompany lending of SEK 1.1 b. and a 
decrease in intercompany borrowing of SEK 1.1 b. in the quarter. 
At the end of the quarter, non-restricted equity amounted to 
SEK 33.8 (13.0) billion, and total equity amounted to  
SEK 82.1 (61.3) b. 
The proposed dividend for 2025 of SEK 3.00 per share was 
approved by the Annual General Meeting on March 31, 2026 (‘‘the 
AGM’’). The first of two equal dividend payments of SEK 1.50 per 
share was made on April 9, 2026, and the second will be made with 
a record date of September 29, 2026, with an expected payment 
date of October 2, 2026. 
The AGM resolved to authorize the Board of Directors to decide on 
the purchase of the Company’s ordinary Class B shares. The number 
of shares purchased must at no time result in the Company’s 
holding exceeding 10 percent of all the shares in the Company. 
On April 16, 2026, it was announced that the Board of Directors had 
resolved to utilize the authorization granted by the AGM to initiate a 
share buyback program relating to Ericsson’s ordinary Class B 
shares on Nasdaq Stockholm up to a maximum consideration of 
SEK 15 billion. The acquisitions are expected to commence on April 
23, 2026, at the earliest, and to end no later than March 31, 2027. 
The holding of treasury stock on March 31, 2026, was 38,002,276 
Class B shares.

===== SIDA 10 =====

10 Ericsson  |  First quarter report 2026. April 17, 2026. Other information 
 
Other information
Legal proceedings involving governmental authorities 
In February 2022, Ericsson publicly disclosed that an internal 
investigation in 2019 included a review of the conduct of Ericsson 
employees, vendors and suppliers in Iraq during the period between 
2011 to 2019. The investigators could not determine the ultimate 
recipients of any payments, nor identify that any Ericsson employee 
was directly involved in financing terrorist organizations. The 
Company’s 2019 internal Iraq investigation did not conclude that 
Ericsson made or was responsible for any payments to any terrorist 
organization.  
The Company continues to fully cooperate with the US Department 
of Justice (DOJ) in its investigation into matters discussed in the 
2019 internal Iraq investigation report and related topics 
concerning jurisdictions including Iraq. As additional information 
continues to be identified and evaluated in continued cooperation 
with the DOJ during its ongoing investigation, it is expected that 
there will not be any conclusive determinations on the outcome 
until the investigation is completed. The scope and duration of the 
investigation remain uncertain. 
In April 2019, Ericsson was informed by China’s State 
Administration for Market Regulation Anti-monopoly Bureau 
(SAMR) that SAMR has initiated an investigation into Ericsson’s 
patent licensing practices in China. Ericsson is cooperating with the 
investigation, which is still in a fact-finding phase. The next steps 
include continued fact-finding and meetings with SAMR in order to 
facilitate the authority’s assessment and conclusions. In case of 
adverse findings, SAMR has the power to impose behavioral and 
financial remedies. 
Legal proceedings not involving governmental authorities 
 
In August 2022, a civil lawsuit was filed in the United States District 
Court for the District of Columbia against Telefonaktiebolaget LM 
Ericsson and Ericsson Inc. (collectively, the “Ericsson defendants”). 
The lawsuit was brought by US military service members, 
employees of US government contractors and other civilians who 
were killed or injured in terrorist attacks in Iraq, Afghanistan and 
Syria from 2005 to 2021, as well as by their family members. The 
lawsuit asserts claims against the Ericsson defendants under the 
U.S. Anti-Terrorism Act alleging that the Ericsson defendants made 
payments that ultimately aided the terrorist organizations that 
committed, planned or authorized the attacks. In November 2022, 
the Ericsson defendants filed a motion to dismiss the complaint. On 
December 20, 2022, plaintiffs filed an amended complaint, which 
added additional plaintiffs, including a plaintiff injured in Turkey, 
and also named Ericsson AB (collectively with the Ericsson 
defendants, the “Ericsson corporate defendants”), President and 
CEO Börje Ekholm and a former employee (who has not been 
served with process) as additional defendants and also asserted 
additional allegations and claims. In March 2023, the Ericsson 
corporate defendants and Mr. Ekholm filed motions to dismiss the 
amended complaint. Plaintiffs filed their oppositions to defendants’ 
motions to dismiss the amended complaint in June 2023, and 
defendants filed reply briefs in support of their motions to dismiss in 
July 2023. All briefing has been submitted, and resolution of the 
matter is pending with the District Court. All defendants will 
continue to vigorously defend this matter. 
In February 2024, a second civil lawsuit also alleging violations of 
the U.S. Anti-Terrorism Act was filed in the United States District 
Court for the District of Columbia. The lawsuit was filed by the same 
law firm and involves substantially similar factual allegations and 
claims as those made in the Anti-Terrorism Act lawsuit originally 
filed in August 2022, and similarly names the same Ericsson 
corporate defendants, President and CEO Börje Ekholm and a 
former employee as defendants. The new lawsuit was brought by 
additional US military service members, employees of US 
government contractors and other civilians who were killed or 
injured in terrorist attacks in Iraq, Afghanistan, Syria, Turkey, Niger, 
and France from 2005 to 2021, as well as by their family members. 
The District Court for the District of Columbia has stayed the 
proceedings in this matter pending its decision on the motions to 
dismiss in the earlier-filed suit. The defendants will vigorously 
defend this matter. 
In November 2025, a third civil lawsuit also alleging violations of 
the US Anti-Terrorism Act was filed in the US District Court for the 
District of Columbia. The lawsuit was filed by a law firm not 
involved in the August 2022 and February 2024 lawsuits and 
involves substantially similar factual allegations and claims to those 
made in the Anti-Terrorism Act lawsuits filed in August 2022 and 
February 2024, and similarly names the same Ericsson corporate 
defendants, CEO Börje Ekholm and a former employee as 
defendants. The new lawsuit was brought by additional US military 
service members, employees of US government contractors and 
other civilians who were killed or injured in terrorist attacks in 
France, Afghanistan, and Belgium from 2012 to 2018, as well as by 
their family members. The District Court for the District of Columbia 
has stayed the proceedings in this matter pending its decision on 
the motions to dismiss in the earlier-filed suit. The defendants will 
vigorously defend this matter. 
In March 2026, a fourth civil lawsuit also alleging violations of the 
US Anti-Terrorism Act was filed in the US District Court for the 
District of Columbia. The lawsuit involves substantially similar 
factual allegations and claims to those made in the Anti-Terrorism 
Act lawsuits filed in August 2022, February 2024, and November 
2025, and similarly names the same Ericsson corporate defendants, 
CEO Börje Ekholm and a former employee as defendants. The new 
lawsuit was brought by additional US military service members and 
civilians who were killed or injured in terrorist attacks in 
Afghanistan, Iraq, Niger, Tajikistan and Turkey from 2005 to 2018, 
as well as by their family members. The District Court for the District 
of Columbia has stayed the proceedings in this matter pending its 
decision on the motions to dismiss in the earlier-filed suit. The 
defendants will vigorously defend this matter. 
Beginning on August 4, 2023, a number of civil lawsuits have been 
filed against Telefonaktiebolaget LM Ericsson in Solna District 
Court, Sweden. 93 claimants have filed suit, which are coordinated 
and financed by a UK-based litigation funder. The claimants consist 
of a group of non-Swedish funds and financial institutions that 
allegedly are or have been shareholders of the Company. Their 
damages claims are primarily based on alleged inadequate 
disclosure of the contents of the Company’s 2019 internal Iraq 
investigation report. Ericsson filed its statement of defense on 
March 15, 2024. On February 14, 2025, the District Court ordered 
Ericsson to produce the 2019 internal Iraq investigation report to 
the claimants’ external counsel. Ericsson appealed the decision and 
on August 15, 2025, the Court of Appeal overturned the District 
Court’s decision. The claimants appealed, but on March 12, 2026,

===== SIDA 11 =====

11 Ericsson  |  First quarter report 2026. April 17, 2026. Other information 
 
the Supreme Court refused leave to appeal. Proceedings on the 
merits of the case will now continue in the District Court. Ericsson 
will continue to vigorously defend this matter.  
The Company actively manages its IPR portfolio and its need for 
third-party licenses and is involved from time to time, in the ordinary 
course of business, in litigation related thereto, as plaintiff, 
defendant and other capacities. 
In addition to the proceedings discussed above, the Company is, 
and in the future may be, involved in various other regulatory 
investigations, enforcement actions, lawsuits, claims (including 
claims by third-parties the Company has indemnified against 
infringement liability or provided guarantees to) and proceedings 
incidental to the ordinary course of business and transactions.
PRESS RELEASES 
March 31, 2026 Ericsson’s Annual General Meeting 2026 - 
Ericsson 
April 16, 2026 Ericsson Initiates Share Buyback Program

===== SIDA 12 =====

12 Ericsson  |  First quarter report 2026. April 17, 2026. Risk factors 
 
Risk factors
Ericsson is exposed to a number of risks in its activities. To stimulate 
identification and support cross-functional treatment within the 
Ericsson Group, risks are grouped in a number of categories, 
including, for example, risks relating to technology, IPR, compliance, 
project execution, operations, supply chain and sourcing 
concentration, products and services, customer concentration, 
treasury and accounting, the geopolitical environment, M&A, 
cybersecurity and occupational health and safety. Ericsson’s risk 
management is embedded into strategy development and 
operational processes, and material Group risks are regularly 
assessed and reviewed by executives as required by Ericsson’s 
Material Group Risk Protocol to ensure accountability, effectiveness, 
efficiency, business continuity and compliance. Risks are defined in 
both a short-term and long-term perspective and are related to 
long-term objectives and strategic direction as well as to short-term 
objectives. Risk factors and uncertainties of relevance to Ericsson 
are described in the Ericsson Annual Report 2025 and in the Annual 
Report on Form 20-F for the year ended December 31, 2025 (in the 
following, the “Annual Report 2025”). See also the risks set out in 
the section titled “Forward-looking statements.” 
Stockholm, April 17, 2026 
Telefonaktiebolaget LM Ericsson  
Börje Ekholm, President and CEO  
Org. No. 556016-0680  
Date for next report: July 14, 2026

===== SIDA 13 =====

13 Ericsson  |  First quarter report 2026. April 17, 2026. Editor’s Note 
 
Editor’s note
Media and analyst briefing 
Ericsson invites media, investors and analysts to a conference call 
and live video webcast at 09:00 AM CEST on April 17, 2026.  
Link to the webcast, dial-in to audio conference, supporting material 
and replay will be available at:  
www.ericsson.com/investors and 
www.ericsson.com/newsroom 
For further information, please contact: 
Lars Sandström, Senior Vice President, Chief Financial Officer 
Phone: +46 72 161 20 04 
E-mail: investor.relations@ericsson.com   
Peter Borsos, Vice President,  
Head of Group Communications 
Phone: +46 70 317 68 00 
E-mail: media.relations@ericsson.com 
Telefonaktiebolaget LM Ericsson 
Org. number: 556016-0680 
Torshamnsgatan 21 
SE-164 83 Stockholm 
Phone: +46 10 719 00 00 
www.ericsson.com 
Investors 
Daniel Morris, Vice President, 
Head of Investor Relations 
Phone: +44 7386 657217 
E-mail: investor.relations@ericsson.com  
Lena Häggblom, Director, 
Investor Relations 
Phone: +46 72 593 27 78 
E-mail: investor.relations@ericsson.com 
Alan Ganson, Director,  
Investor Relations 
Phone: +46 70 267 27 30 
E-mail: investor.relations@ericsson.com 
Media 
Ralf Bagner, Head of Media Relations 
Phone: +46 76 128 47 89 
E-mail: media.relations@ericsson.com 
Corporate Communications  
Phone: +46 10 719 69 92 
E-mail: media.relations@ericsson.com

===== SIDA 14 =====

14 Ericsson  |  First quarter report 2026. April 17, 2026. Forward-looking statements 
 
Forward-looking statements 
This report includes forward-looking statements. All statements 
other than statements of historical fact are forward-looking 
statements. The words “believe,” “expect,” “foresee,” “anticipate,” 
“assume,” “intend,” “likely,” “projects,” “may,” “could,” “plan,” 
“estimate,” “forecast,” “will,” “should,” “would,” “predict,” “aim,” 
“ambition,” “seek,” “potential,” “target,” “might,” “continue,” or, in 
each case, their negative or variations, and similar words or 
expressions are used to identify forward-looking statements. These 
statements are subject to risks and uncertainties that could cause 
actual results to differ materially and adversely from those 
expressed in, or implied or projected by, the forward-looking 
statements, including, in particular the following: 
− Potential material additional liability resulting from past 
conduct, including allegations of past conduct that 
remains unresolved or unknown in multiple jurisdictions, 
including Iraq, which remains the subject of ongoing 
investigations by Ericsson and US governmental 
authorities 
− Risks related to internal controls and governance, 
including the potential to incur material liability in 
connection with internal controls surrounding payments 
made to third parties in connection with past conduct in 
multiple jurisdictions, including Iraq, which remains the 
subject of ongoing investigations by Ericsson and US 
governmental authorities 
− The risk that the ongoing investigations by Ericsson and 
US governmental authorities result in a conclusion by 
Ericsson or US governmental authorities that the 
Company’s past conduct included making or having 
responsibility for making payments to a terrorist 
organization or other improper payments, which could 
lead to material additional liability 
− Risks related to the Company’s ongoing compliance with 
obligations under the National Security Agreement 
entered into in connection with Ericsson’s acquisition of 
Vonage Holdings Corp. (Vonage), which may adversely 
affect the Vonage business and subject the Company to 
additional liabilities 
− Ericsson’s goals, strategies, planning assumptions and 
operational or financial performance expectations 
− Macroeconomic conditions, including inflationary 
pressures and effects on customer investments, market 
recovery and growth 
− Ongoing geopolitical and trade uncertainty, including 
challenging global economic conditions, market trends 
and the imposition of tariffs and sanctions 
− Continued growth of mobile communications, the success 
of Ericsson’s existing and targeted customer base, and 
Ericsson’s ability to maintain technology leadership 
− Success in implementing key strategies, including 
improving profitability, leading in 6G, capturing 5G 
market opportunities, capitalizing on network API and 
Enterprise opportunities, incorporation of AI technologies 
into certain products, services and processes, and 
expected benefits from restructuring activities 
− Risks related to cybersecurity and privacy, security and 
data localization 
− Industry trends, future characteristics and development of 
the markets in which Ericsson operates 
− Risks of global operations, including legal and regulatory 
requirements and uncertainties, and unfavorable lawsuits 
and legal proceedings 
− Ericsson’s future liquidity, capital resources, capital 
expenditures, cost savings and profitability, and risks 
related to financial condition 
− The expected demand for Ericsson’s existing and new 
products and services as well as plans to launch new 
products and services, including research and 
development expenditures 
− Ericsson’s ability to deliver on future plans and achieve 
future growth 
− The expected operational or financial performance of 
strategic cooperation activities and joint ventures 
− Risks related to acquisitions and divestments that may be 
disruptive and incur significant expenses, including 
Ericsson’s ability to successfully consummate such 
transactions, protect the value of acquisitions during 
integration, or achieve the value anticipated with an 
acquisition 
− Trends related to Ericsson’s industry, including Ericsson’s 
regulatory environment, competition and customer 
structure 
− Intense competition from existing competitors, and new 
entrants, including vendor consolidation 
− Risks related to the supply chain and single-source or 
highly concentrated third-party suppliers 
− Large, multi-year agreements with limited number of key 
customers, and operator consolidation 
− Risks related to intellectual property, key employees, and 
unforeseen risks and disruptions due to natural or man-
made events 
− Risks related to environmental, social, governance, 
diversity, equity and inclusion and business conduct 
− Other factors included in Ericsson’s filings with the US 
Securities and Exchange Commission (SEC), including the 
factors described throughout this report, included in the 
section Risk factors, and in “Risk Factors” in the Annual 
Report 2025, as updated by subsequent reports filed with 
the SEC.  
 
These forward-looking statements also represent Ericsson’s 
estimates, assumptions and expectations only as of the date that 
they were made, and to the extent they represent third-party data, 
Ericsson has not undertaken to independently verify such third-
party data and does not intend to do so. Given these risks and 
uncertainties, readers are cautioned not to place undue reliance on 
such forward-looking statements and are urged to carefully review 
and consider the various disclosures made in this report and in other 
documents Ericsson files from time to time with Ericsson’s 
regulators that disclose risks and uncertainties that may affect 
Ericsson’s business. Ericsson expressly disclaims a duty to provide 
updates to these forward-looking statements, and the estimates 
and assumptions associated with them, after the date of this report, 
to reflect events or changes in circumstances or changes in 
expectations or the occurrence of anticipated events, whether as a 
result of new information, future events or otherwise, except as 
required by applicable law or stock exchange regulations.

===== SIDA 15 =====

15 Ericsson | First quarter report 2026. April 17, 2026. Financial statements and other information 
 
Financial statements and other information 
 
 
Contents 
Financial statements (unaudited) ....................................................................................................................................................................................................... 16 
Condensed consolidated income statement ..................................................................................................................................................................................................... 16 
Condensed statement of comprehensive income ........................................................................................................................................................................................... 16 
Condensed consolidated balance sheet.............................................................................................................................................................................................................. 17 
Condensed consolidated statement of cash flows ......................................................................................................................................................................................... 18 
Condensed consolidated statement of changes in equity ........................................................................................................................................................................... 19 
Condensed consolidated income statement – isolated quarters .............................................................................................................................................................. 19 
Condensed consolidated statement of cash flows – isolated quarters .................................................................................................................................................. 20 
Condensed Parent Company income statement ............................................................................................................................................................................................. 21 
Condensed Parent Company statement of comprehensive income ........................................................................................................................................................ 21 
Condensed Parent Company balance sheet ..................................................................................................................................................................................................... 22 
Accounting policies and Explanatory notes (unaudited) ............................................................................................................................................................. 23 
Note 1 – Accounting policies and other information ..................................................................................................................................................................................... 23 
Note 2 – Segment information .............................................................................................................................................................................................................................. 24 
Note 3 – Financial income and expenses, net ................................................................................................................................................................................................. 28 
Note 4 – Provisions ..................................................................................................................................................................................................................................................... 29 
Note 5 – Financial risk management .................................................................................................................................................................................................................. 30 
Note 6 – Cash flow ..................................................................................................................................................................................................................................................... 31 
Note 7 – Contingent liabilities and Assets pledged as collateral .............................................................................................................................................................. 31 
Note 8 – Share information ..................................................................................................................................................................................................................................... 32 
Note 9 – Employee information ............................................................................................................................................................................................................................ 32 
Alternative performance measures (unaudited) ............................................................................................................................................................................ 33 
Sales growth adjusted for comparable units and currency ......................................................................................................................................................................... 33 
Items excluding restructuring charges and impairments of goodwill and intangible assets ......................................................................................................... 34 
EBITA and EBITA margin / Adjusted EBITA and Adjusted EBITA margin .......................................................................................................................................... 35 
Rolling four quarters of net sales and adjusted EBITA margin (%) ......................................................................................................................................................... 35 
Gross cash and net cash, end of period ............................................................................................................................................................................................................... 36 
Capital employed ......................................................................................................................................................................................................................................................... 36 
Capital turnover ............................................................................................................................................................................................................................................................ 36 
Return on capital employed ..................................................................................................................................................................................................................................... 37 
Equity ratio ..................................................................................................................................................................................................................................................................... 37 
Return on equity ........................................................................................................................................................................................................................................................... 37 
Operating working capital ........................................................................................................................................................................................................................................ 38 
Free cash flow before M&A / Free cash flow after M&A / Free cash flow before M&A (% of net sales) ................................................................................... 38 
Sales growth by segment adjusted for comparable units and currency ................................................................................................................................................. 39 
Sales growth by market area adjusted for comparable units and currency * ...................................................................................................................................... 39 
Rolling four quarters of net sales by segment .................................................................................................................................................................................................. 39 
Gross margin by segment by quarter ................................................................................................................................................................................................................... 40 
EBIT margin by segment by quarter .................................................................................................................................................................................................................... 40 
EBITA and EBITA margin by segment by quarter .......................................................................................................................................................................................... 41 
Restructuring charges by function ........................................................................................................................................................................................................................ 42 
Restructuring charges by segment........................................................................................................................................................................................................................ 42 
Adjusted gross income and Adjusted gross margin by segment ............................................................................................................................................................... 43 
Adjusted EBIT (loss) and Adjusted EBIT margin by segment ................................................................................................................................................................... 44 
Rolling four quarters of adjusted EBITA margin by segment (%) ............................................................................................................................................................ 44 
Adjusted EBITA and Adjusted EBITA margin by segment.......................................................................................................................................................................... 45 
Operating working capital days ............................................................................................................................................................................................................................. 45

===== SIDA 16 =====

16 Ericsson | First quarter report 2026. April 17, 2026. Financial statements 
 
Financial statements (unaudited) 
Condensed consolidated income statement 
 
1) Based on net income attributable to owners of the Parent Company. 
2) Potential ordinary shares are not considered when their conversion to ordinary shares would improve earnings per share. 
 
 
Condensed statement of comprehensive income  
  
SEK million Note 2026 2025 Change 
Net sales 2 49,332 55,025 -10%
Cost of sales -26,033 -28,488 -9%
Gross income 2 23,299 26,537 -12%
Research and development expenses -13,489 -12,032 12%
Selling and administrative expenses -8,135 -8,621 -6%
Impairment reversals/losses on trade receivables -156 32 -
Operating expenses -21,781 -20,621 6%
Other operating income and expenses 24 8 200%
Share of earnings of associated companies -99 7 -
Earnings before financial items and income tax (EBIT) 2 1,443 5,931 -76%
Financial income and expenses, net 3 -193 -74 161%
Income after financial items 1,250 5,857 -79%
Income tax -362 -1,640 -78%
Net income 887 4,217 -79%
Net income attributable to:
 Owners of the Parent Company 888 4,149
 Non-controlling interests 0 68
Other information
 Average number of shares, basic (million) 8 3,333 3,333
 Earnings per share, basic (SEK) ¹⁾ 8 0. 27 1.25
 Earnings per share, diluted (SEK) ¹⁾ ²⁾ 8 0. 27 1.24
Q1
SEK million 2026 2025
Net income 887 4,217
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit pension plans 173 2,711
Revaluation of credit risk on borrowings 108 28
Tax on items that will not be reclassified to profit or loss -75 -476
Items that have been or may be reclassified to profit or loss
Cash flow hedge reserve
 Gains/losses arising during the period -344 2,929
 Reclassification adjustments on gains/losses included in profit or loss -564 293
Translation reserves
     Changes in translation reserves 2,477 -7,616
     Reclassification to profit or loss -10 -
Share of other comprehensive income of associated companies 29 -50
Tax on items that have been or may be reclassified to profit or loss 187 -664
Total other comprehensive income, net of tax 1,981 -2,845
Total comprehensive income 2,868 1,372
Total comprehensive income attributable to:
 Owners of the Parent Company 2,873 1,215
 Non-controlling interests -5 157
Q1

===== SIDA 17 =====

17 Ericsson | First quarter report 2026. April 17, 2026. Financial statements 
 
 
Condensed consolidated balance sheet 
 
  
Mar 31 Dec 31 
SEK million Note 2026 2025
Assets
Non-current assets  
Intangible assets
 Capitalized development expenses 3,813 3,866
 Goodwill 48,627 46,882
 Customer relationships, IPR and other intangible assets 5,474 5,631
Property, plant and equipment  8,797 8,789
Right-of-use assets 7,023 6,738
Financial assets
 Investments in associated companies 1,415 1,507
 Other investments in shares and participations 5 2,071 1,909
 Customer finance, non-current 5 190 238
 Interest-bearing securities, non-current 5 36,457 37,298
 Other financial assets, non-current 5 6,383 5,960
Deferred tax assets 18,707 16,851
138,958 135,669
Current assets 
Inventories 25,732 23,451
Contract assets 8,526 7,333
Trade receivables 5 39,345 40,327
Customer finance, current 5 1,582 852
Current tax assets 5,007 5,030
Other current receivables 8,153 9,920
Interest-bearing securities, current 5 10,775 12,715
Cash and cash equivalents 5 52,315 43,926
151,435 143,554
Total assets 290,393 279,223
Equity and liabilities
Equity
Stockholders' equity 102,440 109,535
Non-controlling interest in equity of subsidiaries 692 729
103,133 110,264
Non-current liabilities 
Post-employment benefits 18,224 18,648
Provisions, non-current 4 4,822 2,993
Deferred tax liabilities 175 152
Borrowings, non-current 5 21,541 29,165
Lease liabilities, non-current 6,107 5,772
Other non-current liabilities 1,327 1,292
52,196 58,022
Current liabilities
Provisions, current 4 6,981 5,691
Borrowings, current 5 9,865 3,538
Lease liabilities, current 1,777 1,789
Contract liabilities 46,008 36,867
Trade payables 5 26,719 26,335
Current tax liabilities 3,386 2,679
Other current liabilities 40,327 34,038
135,063 110,937
Total equity and liabilities 290,393 279,223

===== SIDA 18 =====

18 Ericsson | First quarter report 2026. April 17, 2026. Financial statements 
 
 
Condensed consolidated statement of cash flows 
 
  
Jan-Dec
SEK million Note 2026 2025 2025
Operating activities
Net income 887 4,217 28,714
Adjustments for 
Taxes 353 1,754 10,074 
Earnings/dividends in associated companies 169 2 57 
Depreciation, amortization and impairment losses 6 1,987 2,750 9,241 
Other -547 115 -8,579
2,849 8,838 39,507
Changes in operating net assets
Inventories -1,730 -2,268 929
Customer finance, current and non-current -622 1,864 3,033
Trade receivables and contract assets 1,283 -312 -4,301
Trade payables -471 -1,572 462
Provisions and post-employment benefits 2,557 -2,315 -1,435
Contract liabilities 8,077 8,596 1,485
Other operating assets and liabilities, net -3,494 -6,830 205
5,600 -2,837 378
Interest received 531 676 2,283
Interest paid -534 -771 -2,205
Taxes paid -1,042 -1,548 -7,009
Cash flow from operating activities 7,403 4,358 32,954
Investing activities
Investments in property, plant and equipment 6 -620 -729 -2,630
Sales of property, plant and equipment 10 39 192
Acquisitions/divestments of subsidiaries and other operations, net -72 -4 10,539
Product development 6 -378 -307 -1,138
Purchase of interest-bearing securities -6,393 -6,520 -38,758
Sales of interest-bearing securities 8,714 5,704 16,688
Other investing activities 599 3,122 3,670
Cash flow from investing activities 1,860 1,305 -11,437
Financing activities
Proceeds from issuance of borrowings - - 398
Repayment of borrowings - -79 -3,538
Dividends paid - - -9,545
Repayment of lease liabilities -459 -593 -2,115
Other financing activities -1,819 -60 577
Cash flow from financing activities -2,278 -732 -14,223
Effect of exchange rate changes on cash 1,403 -4,226 -7,253
Net change in cash and cash equivalents 8,388 705 41
Cash and cash equivalents, beginning of period 43,926 43,885 43,885
Cash and cash equivalents, end of period 52,315 44,590 43,926
Q1

===== SIDA 19 =====

19 Ericsson | First quarter report 2026. April 17, 2026. Financial statements 
 
 
Condensed consolidated statement of changes in equity 
 
 
 
Condensed consolidated income statement – isolated quarters 
 
1) Based on net income attributable to owners of the Parent Company. 
2) Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.   
Jan-Dec
SEK million 2026 2025 2025
Opening balance 110,264 92,983 92,983
Total comprehensive income 2,868 1,372 26,523
Sale/repurchase of own shares -10 - -116
Share issue, net - - 116
Long-term variable compensation plans 43 38 179
Dividends to shareholders -10,031 -9,535 -9,545
Transactions with non-controlling interests - - 124
Closing balance 103,133 84,858 110,264
Jan-Mar
Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 
Net sales 49,332 69,285 56,239 56,132 55,025
Cost of sales -26,033 -36,580 -29,462 -29,483 -28,488
Gross income 23,299 32,705 26,777 26,649 26,537
Research and development expenses -13,489 -13,098 -11,510 -12,212 -12,032
Selling and administrative expenses  -8,135 -8,971 -7,913 -8,180 -8,621
Impairment reversals/losses on trade receivables -156 127 46 34 32
Operating expenses -21,781 -21,942 -19,377 -20,358 -20,621
Other operating income and expenses 24 420 7,715 67 8
Share of earnings of associated companies -99 -22 36 33 7
Earnings before financial items and income tax (EBIT) 1,443 11,161 15,151 6,391 5,931
Financial income and expenses, net -193 -80 -212 34 -74
Income after financial items 1,250 11,081 14,939 6,425 5,857
Income tax -362 -2,510 -3,639 -1,799 -1,640
Net income 887 8,571 11,300 4,626 4,217
    
Net income attributable to:    
 Owners of the Parent Company 888 8,563 11,149 4,567 4,149
 Non-controlling interests - 8 151 59 68
Other information    
 Average number of shares, basic (million) 3,333 3,333 3,333 3,333 3,333
 Earnings per share, basic (SEK) ¹⁾ 0.27 2.57 3.34 1.37 1.25
 Earnings per share, diluted (SEK) ¹⁾ ²⁾ 0.27 2.57 3.33 1.37 1.24
2026 2025

===== SIDA 20 =====

20 Ericsson | First quarter report 2026. April 17, 2026. Financial statements 
 
 
Condensed consolidated statement of cash flows – isolated quarters 
 
 
 
 
  
Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 
Operating activities
Net income 887 8,571 11,300 4,626 4,217
Adjustments for
 Taxes 353 2,724 3,647 1,949 1,754
 Earnings/dividends in associated companies 169 27 50 -22 2
 Depreciation, amortization and impairment losses 1,987 2,185 2,129 2,177 2,750
 Other -547 -735 -7,549 -410 115
2,849 12,772 9,577 8,320 8,838
Changes in operating net assets
Inventories -1,730 3,667 -680 210 -2,268
Customer finance, current and non-current -622 406 372 391 1,864
Trade receivables and contract assets 1,283 -3,288 -889 188 -312
Trade payables -471 1,568 1,102 -636 -1,572
Provisions and post-employment benefits 2,557 1,743 -565 -298 -2,315
Contract liabilities 8,077 -2,913 -2,869 -1,329 8,596
Other operating assets and liabilities, net -3,494 5,175 3,047 -1,187 -6,830
5,600 6,358 -482 -2,661 -2,837
Interest received 531 716 433 458 676
Interest paid -534 -407 -328 -699 - 771
Taxes paid -1,042 -2,932 -1,261 -1,268 -1,548
Cash flow from operating activities 7,403 16,507 7,939 4,150 4,358
Investing activities
Investments in property, plant and equipment -620 -849 -491 -561 -729
Sales of property, plant and equipment 10 56 57 40 39
Acquisitions/divestments of subs. and other operations, net -72 338 10,064 141 -4
Product development -378 -352 -286 -193 -307
Purchase of interest-bearing securities -6,393 -10,310 -9,633 -12,295 -6,520
Sales of interest-bearing securities 8,714 4,867 3,549 2,568 5,704
Other investing activities 599 1,216 -106 -562 3,122
Cash flow from investing activities 1,860 -5,034 3,154 -10,862 1,305
Financing activities
Proceeds from issuance of borrowings - 200 - 198 -
Repayment of borrowings - -3,001 -26 - 432 -79
Dividends paid - -4,734 -1 -4,810 -
Repayment of lease liabilities -459 -461 -507 -554 -593
Other financing activities -1,819 -847 -643 2,127 -60
Cash flow from financing activities -2,278 -8,843 -1,177 -3,471 -732
Effect of exchange rate changes on cash 1,403 -1,399 -841 -787 -4,226
Net change in cash and cash equivalents 8,388 1,231 9,075 -10,970 705
Cash and cash equivalents, beginning of period 43,926 42,695 33,620 44,590 43,885
Cash and cash equivalents, end of period 52,315 43,926 42,695 33,620 44,590
2026 2025

===== SIDA 21 =====

21 Ericsson | First quarter report 2026. April 17, 2026. Financial statements 
 
 
Condensed Parent Company income statement 
 
 
Condensed Parent Company statement of comprehensive income 
 
 
  
Jan-Dec
SEK million 2026 2025 2025
Net sales - - -
Cost of sales - - -
Gr
oss income - - -
Operating expenses -243 -437 -1,692
Other operating income and expenses 685 657 2,600
EBIT 442 220 908
Financial net 374 62 30,408
Income after financial items 816 282 31,316
Transfers to (-) / from untaxed reserves - - -528
Income tax -110 -69 -499
Net income 706 213 30,289
Q1
Jan-Dec
SEK million 2026 2025 2025
Net income 706 213 30,289
Other comprehensive income, net of tax - - -
Total comprehensive income 706 213 30, 289
Q1

===== SIDA 22 =====

22 Ericsson | First quarter report 2026. April 17, 2026. Financial statements 
 
 
Condensed Parent Company balance sheet 
 
 
Mar 31 Dec 31 
SEK million 2026 2025
Assets
Fixed assets
Intangible assets 146 151
Tangible assets 297 300
Financial assets ¹⁾ 134,496 135,029
134,939 135,480
Current assets 
Receivables 16,060 19,323
Short-term investments 10,649 12,651
Cash and cash equivalents 39,174 27,807
65,883 59,781
Total assets 200,822 195,261
Stockholders' equity, provisions and liabilities
Equity
Restricted equity 48,351 48,351
Non-restricted equity 33,770 43,051
82,121 91,402
Provisions 57 60
Non-current liabilities 21,537 29,164
Current liabilities 97,107 74,635
Total stockholders' equity, provisions and liabilities 200,822 195,261
¹⁾ Of which interest-bearing securities, non-current 36, 457 37,298

===== SIDA 23 =====

23 Ericsson |  First quarter report 2026. April 17, 2026. Accounting policies and Explanatory notes      
 
 
Accounting policies and Explanatory notes 
(unaudited) 
Note 1 – Accounting policies and other information 
The Group 
This condensed consolidated interim financial report for the reporting period ended March 31, 2026, has been prepared in accordance with 
International Accounting Standard IAS 34 “Interim Financial Reporting”. The term “IFRS Accounting Standards” used in this document 
refers to IFRS® Accounting standards as issued by the International Accounting Standards Board (IASB) as well as interpretations of these 
standards as issued by IASB’s Standards Interpretation Committee (SIC) and IFRS Interpretations Committee (IFRIC). The accounting 
policies adopted are consistent with those of the annual report for the year ended December 31, 2025, and should be read in conjunction 
with that annual report. Amendments to IFRS Accounting Standards that became effective during 2026 do not have a material impact on 
the result and financial position of the Company. 
Other 
Rounding differences may occur in the summation of amounts.

===== SIDA 24 =====

24 Ericsson |  First quarter report 2026. April 17, 2026. Accounting policies and Explanatory notes      
 
 
Note 2 – Segment information 
Net sales by segment by quarter 
 
   
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Networks 32,937 44,200 35,424 35,747 35,643
 Of which Products 25,549 33,275 26,531 27,622 28,060
 Of which Services 7,388 10,925 8,893 8,125 7,583
Cloud Software and Services 11,833 20,031 15,346 14,363 12,975
 Of which Products 4,295 8,459 5,431 5,407 4,719
 Of which Services 7,539 11,572 9,915 8,956 8,256
Enterprise 4,168 4,578 5,058 5,548 5,933
Other 393 476 411 474 474
Total 49,332 69,285 56,239 56,132 55,025
Sequential change, percent Q1  Q4 Q3 Q2 Q1 
Networks -25% 25% -1% 0% -24%
 Of which Products -23% 25% -4% -2% -23%
 Of which Services -32% 23% 9% 7% -26%
Cloud Software and Services -41% 31% 7% 11% -33%
 Of which Products -49% 56% 0% 15% -40%
 Of which Services -35% 17% 11% 8% -29%
Enterprise -9% -9% -9% -6% -3%
Other -17% 16% -13% 0% -17%
Total -29% 23% 0% 2% -25%
Year over year change, percent Q1  Q4 Q3 Q2 Q1 
Networks -8% -6% -11% -5% 6%
 Of which Products -9% -9% -15% -3% 10%
 Of which Services -3% 7% 1% -11% -9%
Cloud Software and Services -9% 3% 3% -5% -1%
 Of which Products -9% 8% 4% 12% 4%
 Of which Services -9% -1% 2% -14% -3%
Enterprise -30% -25% -20% -14% -1%
Other -17% -16% -19% -6% -20%
Total -10% -5% -9% -6% 3%
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 32,937 151,014 106,814 71,390 35,643
 Of which Products 25,549 115,488 82,213 55,682 28,060
 Of which Services 7,388 35,526 24,601 15,708 7,583
Cloud Software and Services 11,833 62,715 42,684 27,338 12,975
 Of which Products 4,295 24,016 15,557 10,126 4,719
 Of which Services 7,539 38,699 27,127 17,212 8,256
Enterprise 4,168 21,117 16,539 11,481 5,933
Other 393 1,835 1,359 948 474
Total 49,332 236,681 167,396 111,157 55,025
Year over year change, percent Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks -8% -5% -4% 0% 6%
 Of which Products -9% -5% -4% 3% 10%
 Of which Services -3% -2% -6% -10% -9%
Cloud Software and Services -9% 0% -1% -3% -1%
 Of which Products -9% 7% 7% 8% 4%
 Of which Services -9% -4% -5% -9% -3%
Enterprise -30% -15% -12% -8% -1%
Other -17% -16% -15% -14% -20%
Total -10% -5% -4% -2% 3%
2026 2025
2026 2025
2026 2025
2026 2025
2026 2025

===== SIDA 25 =====

25 Ericsson |  First quarter report 2026. April 17, 2026. Accounting policies and Explanatory notes      
 
 
Gross income by segment by quarter 
 
 
 
EBIT (loss) by segment by quarter 
 
 
  
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Networks 16,359 21,648 17,705 17,638 18,112
Cloud Software and Services 4,907 8,636 6,463 5,964 5,069
Enterprise 2,039 2,386 2,609 3,045 3,338
Other -6 35 0 2 18
Total 23,299 32,705 26,777 26,649 26,537
2026 2025
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 16,359 75,103 53,455 35,750 18,112
Cloud Software and Services 4,907 26,132 17,496 11,033 5,069
Enterprise 2,039 11,378 8,992 6,383 3,338
Other -6 55 20 20 18
Total 23,299 112,668 79,963 53,186 26,537
2026 2025
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Networks 3,283 9,318 7,075 6,376 7,040
Cloud Software and Services 3 3,364 1,721 840 71
Enterprise -1,844 -1,526 6,649 -870 -1,014
Other 1 5 -294 45 -166
Total 1,443 11,161 15,151 6,391 5,931
2026 2025
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 3,283 29,809 20,491 13,416 7,040
Cloud Software and Services 3 5,996 2,632 911 71
Enterprise -1,844 3,239 4,765 -1,884 -1,014
Other 1 -410 -415 -121 -166
Total 1,443 38,634 27,473 12,322 5,931
2026 2025

===== SIDA 26 =====

26 Ericsson |  First quarter report 2026. April 17, 2026. Accounting policies and Explanatory notes      
 
 
Net sales by market area by quarter * 
 
 
 
 
 
 
* Q1-Q3 2025 have been restated to reflect changes in the market area structure. On February 25, 2025, the new market area structure was announced, and during Q4 2025 one additional country 
was added to Americas.  
  
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Americas 17,077 22,928 19,837 19,809 20,859
Europe, Middle East and Africa ¹⁾ ²⁾ 14,298 23,350 16, 730 16,193 14,475
South East Asia, Oceania and India 6,946 8,986 7,097 5,505 7,226
North East Asia 3,122 5,205 3,825 3,766 3,215
Other ¹⁾ ²⁾ 7,888 8,816 8,750 10,859 9, 250
Total 49,332 69,285 56,239 56,132 55,025
¹⁾ Of which in Sweden 781 1,374 863 686 461
²⁾ Of which in EU 7,081 10,663 8,213 8,223 7,566
2026 2025
Sequential change, percent Q1  Q4 Q3 Q2 Q1 
Americas -26% 16% 0% -5% -19%
Europe, Middle East and Africa ¹  ² -39% 40% 3% 12% -34%
South East Asia, Oceania and India -23% 27% 29% -24% -14%
North East Asia -40% 36% 2% 17% -55%
Other ¹  ² -11% 1% -19% 17% -4%
Total -29% 23% 0% 2% -25%
¹  Of which in Sweden -43% 59% 26% 49% -23%
²  Of which in EU -34% 30% 0% 9% -31%
2026 2025
Year over year change, percent Q1  Q4 Q3 Q2 Q1 
Americas -18% -11% -16% 0% 26%
Europe, Middle East and Africa ¹⁾ ²⁾ -1% 7% - 1% -6% -5%
South East Asia, Oceania and India -4% 6% -8% -28% -16%
North East Asia -3% -27% 4% -17% -6%
Other ¹⁾ ²⁾ -15% -9% -13% 4% - 3%
Total -10% -5% -9% -6% 3%
¹⁾ Of which in Sweden 69% 130% 100% 18% -37%
²⁾ Of which in EU -6% -2% 1% -4% 0%
2026 2025
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Americas 17,077 83,433 60,505 40,668 20,859
Europe, Middle East and Africa ¹⁾ ²⁾ 14,298 70,748 47, 398 30,668 14,475
South East Asia, Oceania and India 6,946 28,814 19,828 12,731 7,226
North East Asia 3,122 16,011 10,806 6,981 3,215
Other ¹⁾ ²⁾ 7,888 37,675 28,859 20,109 9, 250
Total 49,332 236,681 167,396 111,157 55,025
¹⁾ Of which in Sweden 781 3,384 2,010 1,147 461
²⁾ Of which in EU 7,081 34,665 24,002 15,789 7,566
2026 2025
Year to date, year over year change, percent Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Americas -18% -3% 1% 12% 26%
Europe, Middle East and Africa ¹⁾ ²⁾ -1% -1% - 4% -6% -5%
South East Asia, Oceania and India -4% -11% -17% -22% -16%
North East Asia -3% -15% -7% -13% -6%
Other ¹⁾ ²⁾ -15% -5% -4% 1% - 3%
Total -10% -5% -4% -2% 3%
¹⁾ Of which in Sweden 69% 45% 15% -13% -37%
²⁾ Of which in EU -6% -2% -1% -2% 0%
2026 2025

===== SIDA 27 =====

27 Ericsson |  First quarter report 2026. April 17, 2026. Accounting policies and Explanatory notes      
 
 
Net sales by market area by segment 
 
 
1) Includes primarily IPR licensing revenues and a major part of segment Enterprise. 
 
 
 
 
 
  
SEK million Networks
Cloud Software 
and Services Enterprise Other Total
Americas 13,682 3,335 60 0 17,077
Europe, Middle East and Africa 8,942 5,175 181 0 14,298
South East Asia, Oceania and India 5,074 1,858 13 0 6,946
North East Asia 2,370 751 1 0 3,122
Other ¹⁾ 2,868 713 3,914 393 7,888
Total 32,937 11,833 4,168 393 49,332
Share of total 67% 24% 8% 1% 100%
Q1 2026
Sequential change, percent Networks
Cloud Software 
and Services Enterprise Other Total
Americas -20% -41% -69% -100% - 26%
Europe, Middle East and Africa -38% -40% -26% - - 39%
South East Asia, Oceania and India -15% -38% 30% - - 23%
North East Asia -29% -60% -50% - - 40%
Other -15% -17% -5% -18% - 11%
Total -25% -41% -9% -17% - 29%
Q1 2026
Year over year change, percent Networks
Cloud Software 
and Services Enterprise Other Total
Americas -21% -5% -52% - -18%
Europe, Middle East and Africa 8% -13% -25% - -1%
South East Asia, Oceania and India -3% -7% 86% - -4%
North East Asia 1% -13% -86% - -3%
Other 12% 9% -30% -17% -15%
Total -8% -9% -30% -17% -10%
Q1 2026

===== SIDA 28 =====

28 Ericsson |  First quarter report 2026. April 17, 2026. Accounting policies and Explanatory notes      
 
 
Top 5 countries in sales 
 
 
 
 
1) Based on Jan-Mar 2026. Includes IPR licensing revenues. 
 
 
 
IPR licensing revenues by segment by quarter 
 
 
 
Note 3 – Financial income and expenses, net 
Financial income and expenses, net 
 
 
 
  
Country, percentage of net sales¹⁾ Q 1   Q4  Q3  Q2  Q1  
United States 39% 36% 40% 44% 45%
India 8% 5% 5% 4% 7%
United Kingdom 4% 4% 4% 4% 4%
Japan 4% 4% 3% 3% 3%
China 3% 3% 3% 4% 3%
20252026
Country, percentage of net sales¹⁾ J an-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
United States 39% 41% 43% 44% 45%
India 8% 5% 5% 6% 7%
United Kingdom 4% 4% 4% 4% 4%
Japan 4% 4% 3% 3% 3%
China 3% 3% 4% 4% 3%
20252026
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Networks 2,569 2,733 2,569 3,987 2,606
Cloud Software and Services 564 600 564 875 572
Total 3,133 3,333 3,133 4,862 3,178
2026 2025
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 2,569 11,895 9,162 6,593 2,606
Cloud Software and Services 564 2,611 2,011 1,447 572
Total 3,133 14,506 11,173 8,040 3,178
2026 2025
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Financial income 585 620 662 579 619
Financial expenses -594 -580 -735 -927 -805
Net foreign exchange gains/losses -184 -120 -139 382 112
Total -193 -80 -212 34 -74
2026 2025
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Financial income 585 2,480 1,860 1,198 619
Financial expenses -594 -3,047 -2,467 -1,732 -805
Net foreign exchange gains/losses -184 235 355 494 112
Total -193 -332 -252 -40 -74
2026 2025

===== SIDA 29 =====

29 Ericsson |  First quarter report 2026. April 17, 2026. Accounting policies and Explanatory notes      
 
 
Note 4 – Provisions 
Provisions 
 
 
 
 
 
 
 
  
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Opening balance 8,684 7,823 8,652 9,093 11,715
Additions 6,016 3,005 847 1,830 1,055
Utilization -2,898 -1,605 -1,311 -1,853 -3,009
Of which restructuring -546 -721 -813 -837 -1,201
Reversal of excess amounts -171 -357 -370 -273 -256
Reclassification, translation difference and other 172 -182 5 -145 -412
Closing balance 11,803 8,684 7,823 8,652 9,093
Of which restructuring 4,956 1,889 1,710 2,429 2,720
2026 2025
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Opening balance 8,684 11,715 11,715 11,715 11,715
Additions 6,016 6,737 3,732 2,885 1,055
Utilization -2,898 -7,778 -6,173 -4,862 -3,009
Of which restructuring -546 -3,572 -2,851 -2,038 -1,201
Reversal of excess amounts -171 -1,256 -899 -529 -256
Reclassification, translation difference and other 172 -734 -552 -557 -412
Closing balance 11,803 8,684 7,823 8,652 9,093
Of which restructuring 4,956 1,889 1,710 2,429 2,720
2026 2025

===== SIDA 30 =====

30 Ericsson |  First quarter report 2026. April 17, 2026. Accounting policies and Explanatory notes      
 
 
Note 5 – Financial risk management 
There have been no changes to the fair value hierarchy categorization from that presented in the latest Annual Report. Where Level 2 and 
Level 3 fair value hierarchies apply, the inputs and valuation methods used remained unchanged. The book values and fair values of 
financial instruments are as follows: 
Financial instruments 
 
 
1) Year to date movements of customer finance receivables are as follows: additions of SEK 5.9 billion, disposals and repayments of SEK 5.2 billion. No material revaluation impact in the current period 
(< SEK 0.1 billion). 
2) Total Cash and cash equivalent is SEK 52.3 (43.9 on Dec 31, 2025) billion, of which SEK 33.6 (25.3 on Dec 31, 2025) billion relating to Cash equivalents are presented in the table above. 
 
 
Exchange rates used in the consolidation 
 
  
SEK billion
Carrying 
value Level 1 Level 2 Level 3 Carrying 
value Level 1 Level 2 Level 3
Assets at fair value through profit or loss
  Customer finance ¹⁾ 1.8 - - 1.8 1.1 - - 1.1
  Interest-bearing securities 47.1 43.8 3.3 - 49.9 45.4 4.5 -
  Cash equivalents ²⁾ 33.6 - 33.6 - 25.3 - 25.3 -
  Other financial assets 2.1 - - 2.1 1.9 - - 1.9
  Other current assets 1.2 - 1.2 2.9 - 2.9 -
Assets at fair value through OCI
  Trade receivables 39.3 - - 39.3 40.3 - - 40.3
Assets at amortized costs
  Interest-bearing securities 0.1 - - - 0.1 - - -
  Other financial assets 0.1 - - - 0.1 - - -
Total financial assets 125.3 121.6
Financial liabilities at designated FVTPL
  Parent company borrowings -30.1 -18.8 -11.3 - -29.6 -18.8 -10.8 -
Financial liabilities at FVTPL
  Other current liabilities -0.4 - -0.4 - -0.2 - -0.2 -
Liabilities at amortized cost
  Trade payables -26.7 - - - -26.3 - - -
  Borrowings -1.3 - - - -3.1 - - -
Total financial liabilities -58.5 -59.2
2026 2025
Mar 31 Dec 31 
Fair value hierarchy level Fair value hierarchy level
Jan-Dec
2026 2025 2025
SEK/EUR - closing rate 10.97 10.85  10. 82 
SEK/USD - closing rate 9.57 10.03  9. 19 
Jan-Mar

===== SIDA 31 =====

31 Ericsson |  First quarter report 2026. April 17, 2026. Accounting policies and Explanatory notes      
 
 
Note 6 – Cash flow 
Information on investments 
Investments in assets subject to depreciation, amortization, impairment and write-downs
 
 
 
Note 7 – Contingent liabilities and Assets pledged as collateral 
Contingent liabilities and Assets pledged as collateral 
  
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Additions
 Property, plant and equipment 620 849 491 561 729
 Capitalized development expenses 378 352 286 193 307
 IPR, brands and other intangible assets 35 48 81 301 57
Total 1,033 1,249 858 1,055 1,093
Depreciation, amortization and impairment losses
 Property, plant and equipment 735 814 812 826 1,029
 Capitalized development expenses 436 446 449 451 444
 Goodwill, IPR, brands and other intangible assets 344 439 365 373 721
 Right-of-use assets 471 486 503 527 556
Total 1,986 2,185 2,129 2,177 2,750
2026 2025
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Additions
 Property, plant and equipment 620 2,630 1,781 1,290 729
 Capitalized development expenses 378 1,138 786 500 307
 IPR, brands and other intangible assets 35 487 439 358 57
Total 1,033 4,255 3,006 2,148 1,093
Depreciation, amortization and impairment losses
 Property, plant and equipment 735 3,481 2,667 1,855 1,029
 Capitalized development expenses 436 1,790 1,344 895 444
 Goodwill, IPR, brands and other intangible assets 344 1,898 1,459 1,094 721
 Right-of-use assets 471 2,072 1,586 1,083 556
Total 1,986 9,241 7,056 4,927 2,750
2026 2025
Mar 31 Dec 31 
SEK million 2026 2025
Contingent liabilities 4, 223 4,091
Assets pledged as collateral 8,812 8,695

===== SIDA 32 =====

32 Ericsson |  First quarter report 2026. April 17, 2026. Accounting policies and Explanatory notes      
 
 
Note 8 – Share information 
Number of shares and earnings per share 
 
1) Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.  
2) Based on net income attributable to owners of the Parent Company. 
 
The proposed dividend for 2025 of SEK 3.00 per share was approved by the AGM 31 March 2026.  The first of two equal dividend payments 
of SEK 1.50 per share was made on 9 April 2026, and the second will be made with a record date of 29 September 2026, with an expected 
payment date of 2 October 2026. 
The AGM resolved to approve the Board of Directors’ proposal on authorization for the Board of Directors to, on one or several occasions 
prior to the AGM 2027, decide on the purchase of the Company’s own shares of series B. The number of shares purchased must at no time 
result in the Company’s holding exceeding 10 percent of all the shares in the Company. 
 
Note 9 – Employee information 
Number of employees 
 
 
  
Jan-Dec
2026 2025 2025
Number of shares, end of period (million) 3,371 3,348   3,371 
 Of which class A-shares (million) 262 262   262 
 Of which class B-shares (million) 3,110 3,086   3, 110 
Number of treasury shares, end of period (million) 38 16   38 
Number of shares outstanding, basic, end of period (million) 3,333 3,333   3,333 
Numbers of shares outstanding, diluted, end of period (million) 3,343 3,340   3,342 
Average number of treasury shares (million) 38 16   31 
Average number of shares outstanding, basic (million) 3,333 3,333   3,333 
Average number of shares outstanding, diluted (million) ¹⁾ 3,343 3, 340   3,342 
Earnings per share, basic (SEK) ²⁾ 0.27 1. 25   8.53 
Earnings per share, diluted (SEK) ¹⁾ 0.27 1. 24   8.51 
Q1
End of period Mar 31  Dec 31 Sep 30 Jun 30 Mar 31 
Americas 14,537 15,050 15,346 15,926 15,857
Europe, Middle East and Africa ¹⁾ 38,548 39,045 39,489 40,413 40, 677
South East Asia, Oceania and India 25,100 25,189 25,358 25,591 25,991
North East Asia 9,336 9,542 9,705 10,007 10,341
Total 87,521 88,826 89,898 91,937 92,866
¹⁾ Of which in Sweden 12,615 12,806 12,967 13,476 13,222
2026 2025

===== SIDA 33 =====

33 Ericsson | First quarter report 2026. April 17, 2026. Alternative performance measures      
 
 
 
 
 
Alternative performance measures (unaudited)
In this section, the Company presents its Alternative Performance 
Measures (APMs), which are not recognized measures of financial 
performance under IFRS. The presentation of APMs has limitations 
as analytical tools and should not be considered in isolation or as a 
substitute for related financial measures prepared in accordance 
with IFRS. 
APMs are presented to enhance an investor’s evaluation of ongoing 
operating results, to aid in forecasting future periods and to 
facilitate meaningful comparison of results between periods. 
Management uses these APMs to, among other things, evaluate 
ongoing operations in relation to historical results, for internal 
planning and forecasting purposes and in the calculation of certain 
performance-based compensation. APMs should not be viewed as 
substitutes for income statement or cash flow items computed in 
accordance with IFRS.  
This section also includes a reconciliation of the APMs to the most 
directly reconcilable line items in the financial statements. For more 
information about non-IFRS key operating measures, see Ericsson 
Annual Report 2025. 
 
Sales growth adjusted for comparable units and currency 
Sales growth adjusted for the impact of acquisitions and divestments as well as the effects of foreign currency fluctuations. Also named 
organic sales growth. 
 
 
  
Isolated quarters, year over year change, SEK million Q1  Q4 Q3 Q2 Q1 
Reported net sales 49,332 69,285 56,239 56,132 55,025
 Acquired business - - - - -
 Net FX impact 7,755 6,801 4,213 4,672 -1,817
Current period net sales, excluding acquired business & FX impact 57,087 76,086 60,452 60,804 53,208
Prior year period net sales adjusted for acquired & divested business 53,903 71,474 61,794 59,848 53,325
Organic sales growth (%) 6% 6% -2% 2% 0%
2026 2025
Year to date, year over year change, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Reported net sales 49,332 236,681 167,396 111,157 55,025
 Acquired business - - - - -
 Net FX impact 7,755 13,869 7,068 2,855 -1,817
Current period net sales, excluding acquired business & FX impact 57,087 250,550 174,464 114,012 53,208
Prior year period net sales adjusted for acquired & divested business 53,903 246,441 174,967 113,173 53,325
Organic sales growth (%) 6% 2% 0% 1% 0%
2026 2025

===== SIDA 34 =====

34 Ericsson  |  First quarter report 2026. April 17, 2026. Alternative performance measures 
 
 
Items excluding restructuring charges and impairments of goodwill and intangible assets 
Gross income, operating expenses, and EBIT are presented excluding restructuring charges, and for certain measures, as a percentage of net 
sales. EBIT is also presented excluding restructuring charges and impairments of goodwill and intangible assets. 
 
  
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Gross income 23,299 32,705 26,777 26,649 26,537
Net sales 49,332 69,285 56,239 56,132 55,025
Gross margin (%) 47.2% 47.2% 47.6% 47.5% 48.2%
Gross income 23,299 32,705 26,777 26,649 26,537
Restructuring charges included in cost of sales 435 538 271 310 158
Adjusted gross income 23,734 33,243 27,048 26,959 26,695
Net sales 49,332 69,285 56,239 56,132 55,025
Adjusted gross margin (%) 48.1% 48.0% 48.1% 48.0% 48.5%
Operating expenses -21,781 -21,942 -19,377 -20,358 -20,621
Restructuring charges included in R&D expenses 2,595 300 -41 300 20
Restructuring charges included in selling and administrative expenses 738 259 73 46 103
Operating expenses excluding restructuring charges -18,448 -21,383 -19,345 -20,012 -20,498
EBIT 1,443 11,161 15,151 6,391 5,931
Net sales 49,332 69,285 56,239 56,132 55,025
EBIT margin (%) 2.9% 16.1% 26.9% 11.4% 10.8%
EBIT 1,443 11,161 15,151 6,391 5,931
Total restructuring charges 3,768 1,097 303 656 281
Adjusted EBIT 5,211 12,258 15,454 7,047 6,212
Net sales 49,332 69,285 56,239 56,132 55,025
Adjusted EBIT margin (%) 10.6% 17.7% 27.5% 12.6% 11.3%
Adjusted EBIT 5,211 12,258 15,454 7,047 6,212
Impairment of goodwill and intangible assets - - - - -
Adjusted EBIT excluding impairments of goodwill and intangible assets 5,211 12,258 15,454 7,047 6,212
Net sales 49,332 69,285 56,239 56,132 55,025
Adjusted EBIT margin excluding impairments of goodwill and intangible assets (%) 10.6% 17.7% 27.5% 12.6% 11.3%
2026 2025
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Gross income 23,299 112,668 79,963 53,186 26,537
Net sales 49,332 236,681 167,396 111,157 55,025
Gross margin (%) 47.2% 47.6% 47.8% 47.8% 48.2%
Gross income 23,299 112,668 79,963 53,186 26,537
Restructuring charges included in cost of sales 435 1,277 739 468 158
Adjusted gross income 23,734 113,945 80,702 53,654 26,695
Net sales 49,332 236,681 167,396 111,157 55,025
Adjusted gross margin (%) 48.1% 48.1% 48.2% 48.3% 48.5%
Operating expenses -21,781 -82,298 -60,356 -40,979 -20,621
Restructuring charges included in R&D expenses 2,595 579 279 320 20
Restructuring charges included in selling and administrative expenses 738 481 222 149 103
Operating expenses excluding restructuring charges -18,448 -81,238 -59,855 -40,510 -20,498
EBIT 1,443 38,634 27,473 12,322 5,931
Net sales 49,332 236,681 167,396 111,157 55,025
EBIT margin (%) 2.9% 16.3% 16.4% 11.1% 10.8%
EBIT 1,443 38,634 27,473 12,322 5,931
Total restructuring charges 3,768 2,337 1,240 937 281
Adjusted EBIT 5,211 40,971 28,713 13,259 6,212
Net sales 49,332 236,681 167,396 111,157 55,025
Adjusted EBIT margin (%) 10.6% 17.3% 17.2% 11.9% 11.3%
       
Adjusted EBIT 5,211 40,971 28,713 13,259 6,212
Impairment of goodwill and intangible assets - - - - -
Adjusted EBIT excluding impairments of goodwill and intangible assets 5,211 40,971 28,713 13,259 6,212
Net sales 49,332 236,681 167,396 111,157 55,025
Adjusted EBIT margin excluding impairments of goodwill and intangible assets (%) 10.6% 17.3% 17.2% 11.9% 11.3%
2026 2025

===== SIDA 35 =====

35 Ericsson  |  First quarter report 2026. April 17, 2026. Alternative performance measures 
 
 
EBITA and EBITA margin / Adjusted EBITA and Adjusted EBITA margin 
Earnings before interest, income tax, amortizations and write-downs of acquired intangibles (including goodwill) also expressed as a 
percentage of net sales.  
Adjusted EBITA also expressed as a percentage of net sales.  
 
 
 
Additionally, Ericsson provides forward-looking targets for adjusted EBITA margin and Free cash flow before M&A as a percentage of net 
sales, which are non-IFRS financial measures. Ericsson has not provided quantitative reconciliation of these targets to the most directly 
comparable IFRS measures because certain information needed to reconcile these non-IFRS financial measures to the most comparable 
IFRS financial measures are dependent on specific items or impacts that are not yet determined, are subject to incarcerating and variability 
in timing and amount due to their nature, are outside of Ericsson’s control or cannot be predicted, including items and impacts such as 
currency exchange rate changes, acquisitions and disposals, and charges such as impairments or acquisition related charges. Accordingly, 
reconciliation of these non-IFRS forward-looking financial measures are not available without unreasonable efforts. Such unavailable 
reconciling items could significantly impact our results of operations and financial condition. 
 
 
Rolling four quarters of net sales and adjusted EBITA margin (%) 
Net sales, EBITA margin and restructuring charges as a sum of last four quarters. 
  
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Net income 887 8,571 11,300 4,626 4,217
Income tax 362 2,510 3,639 1,799 1,640
Financial income and expenses, net 193 80 212 -34 74
Amortizations and write-downs of acquired intangibles 344 440 365 372 721
 Of which segment Enterprise 307 406 338 346 389
EBITA 1,788 11,601 15,516 6,763 6,652
Net sales 49,332 69,285 56,239 56,132 55,025
EBITA margin (%) 3.6% 16.7% 27.6% 12.0% 12.1%
Restructuring charges 3,768 1,097 303 656 281
Adjusted EBITA 5,556 12,698 15,819 7,419 6,933
Adjusted EBITA margin (%) 11.3% 18.3% 28.1% 13.2% 12.6%
2026 2025
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Net income 887 28,714 20,143 8,843 4,217
Income tax 362 9,588 7,078 3,439 1,640
Financial income and expenses, net 193 332 252 40 74
Amortizations and write-downs of acquired intangibles 344 1,898 1,458 1,093 721
 Of which segment Enterprise 307 1,479 1,073 735 389
EBITA 1,788 40,532 28,931 13,415 6,652
Net sales 49,332 236,681 167,396 111,157 55,025
EBITA margin (%) 3.6% 17.1% 17.3% 12.1% 12.1%
Restructuring charges 3,768 2,337 1,240 937 281
Adjusted EBITA 5,556 42,869 30,171 14,352 6,933
Adjusted EBITA margin (%) 11.3% 18.1% 18.0% 12.9% 12.6%
2026 2025
Rolling four quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Net sales 230,988 236,681 240,309 245,864 249,580
EBITA 35,668 40,532 37,554 28,241 23,904
Restructuring charges 5,824 2,337 2,866 4,116 5,088
Adjusted EBITA 41,492 42,869 40,420 32,357 28,992
Adjusted EBITA margin (%) 18.0% 18.1% 16.8% 13.2% 11.6%
2026 2025

===== SIDA 36 =====

36 Ericsson  |  First quarter report 2026. April 17, 2026. Alternative performance measures 
 
 
Gross cash and net cash, end of period 
Gross cash: Cash and cash equivalents plus interest-bearing securities (current and non-current). 
Net cash: Cash and cash equivalents plus interest-bearing securities (current and non-current) less borrowings (current and non-current). 
 
 
Capital employed 
Total assets less non-interest-bearing provisions and liabilities (which includes non-current provisions, deferred tax liabilities, contract 
liabilities, other non-current liabilities, current provisions, trade payables, current tax liabilities and other current liabilities). 
 
 
Capital turnover 
Rolling four quarters of net sales divided by five-point average for capital employed. 
The definition is updated from Q1 2025. Prior periods are updated accordingly. Refer to the clarification provided at the beginning of the APM section. 
 
 
 
  
SEK million Q1  Q4 Q3 Q2 Q1 
Cash and cash equivalents 52,315 43,926 42,695 33,620 44,590
 + Interest-bearing securities, current 10,775 12,715 8,345 6,790 5,147
 + Interest-bearing securities, non-current 36,457 37,298 37,370 32,859 24,436
Gross cash, end of period 99,547 93,939 88,410 73,269 74,173
 - Borrowings, current 9,865 3,538 6,680 7,285 5,597
 - Borrowings, non-current 21,541 29,165 29,872 29,944 29,929
Net cash, end of period 68,141 61,236 51,858 36,040 38,647
2026 2025
SEK million Q1  Q4 Q3 Q2 Q1 
Total assets 290,393 279,223 282,476 270,555 277,978
Less: Non-interest-bearing provisions and liabilities 
 Provisions, non-current 4,822 2,993 2,478 2,365 2,541
 Deferred tax liabilities 175 152 1,349 1,390 1,365
 Other non-current liabilities 1,327 1,292 899 870 888
 Provisions, current 6,981 5,691 5,345 6,287 6,552
 Contract liabilities 46,008 36,867 40,642 44,370 46,757
 Trade payables 26,719 26,335 25,352 24,804 26,450
 Current tax liabilities 3,386 2,679 6,069 3,609 2,664
 Other current liabilities 40,327 34,038 34,605 32,521 41,655
Capital employed 160,647 169,176 165,737 154,339 149,106
       
2026 2025
SEK million Q1  Q4 Q3 Q2 Q1 
Net sales, rolling four quarters 230,988 236,681 240,309 245,864 249,580
Average capital employed, rolling five quarters
    Capital employed at end of period -4 149,106 162,967 153,610 156,496 177,181
    Capital employed at end of period -3 154,339 149,106 162,967 153,610 156,496
    Capital employed at end of period -2 165,737 154,339 149,106 162,967 153,610
    Capital employed at end of period -1 169,176 165,737 154,339 149,106 162,967
 Capital employed at end of period  160,647 169,176 165,737 154,339 149,106
 Average capital employed, rolling five quarters 159,801 160,265 157,152 155,304 159, 872
Capital turnover (times) 1.4 1.5 1.5 1.6 1.6
2026 2025

===== SIDA 37 =====

37 Ericsson  |  First quarter report 2026. April 17, 2026. Alternative performance measures 
 
 
Return on capital employed 
Rolling four quarters of EBIT divided by five-point average for capital employed. 
The definition is updated from Q1 2025. Prior periods are updated accordingly. Refer to the clarification provided at the beginning of the APM section. 
 
 
 
Equity ratio 
Equity expressed as a percentage of total assets. 
 
 
Return on equity 
Annualized net income attributable to owners of the Parent Company as a percentage of average stockholders’ equity. 
Annualization factor of four is used for isolated quarter. 
Annualization factor of four is used for Jan-Mar, two is used for Jan-Jun, 4/3 is used for Jan-Sep and one is used for Jan-Dec. 
 
 
 
  
SEK million Q1  Q4 Q3 Q2 Q1 
EBIT, rolling four quarters 34,146 38,634 35,431 26,054 6,144
Average capital employed, rolling five quarters
    Capital employed at end of period -4 149,106 162,967 153,610 156,496 177,181
    Capital employed at end of period -3 154,339 149,106 162,967 153,610 156,496
    Capital employed at end of period -2 165,737 154,339 149,106 162,967 153,610
    Capital employed at end of period -1 169,176 165,737 154,339 149,106 162,967
    Capital employed at end of period  160,647 169,176 165,737 154,339 149,106
 Average capital employed, rolling five quarters 159,801 160,265 157,152 155,304 159,872
Return on capital employed (%) 21.4% 24.1% 22.5% 16.8% 3.8% 
20252026
SEK million Q1  Q4 Q3 Q2 Q1 
Total equity 103,133 110,264 102,494 85,699 84,858
Total assets 290,393 279,223 282,476 270,555 277,978
Equity ratio (%) 35.5% 39.5% 36.3% 31.7% 30.5%
2026 2025
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Net income attributable to owners of the Parent Company 888 8,563 11,149 4,567 4,149
Annualized 3,551 34,252 44,596 18,268 16,596
Average stockholders' equity
 Stockholders' equity, beginning of period 109,535 102,658 86,748 86,039 94,284
 Stockholders' equity, end of period 102,440 109,535 102,658 86,748 86,039
 Average stockholders' equity 105,988 106,097 94,703 86,394 90,162
Return on equity (%) 3.4% 32.3% 47.1% 21.1% 18.4%
2026 2025
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Net income attributable to owners of the Parent Company 888 28,428 19,865 8,716 4,149
Annualized 3,551 28,428 26,487 17,432 16,596
Average stockholders' equity
 Stockholders' equity, beginning of period 109,535 94,284 94,284 94,284 94,284
 Stockholders' equity, end of period 102,440 109,535 102,658 86,748 86,039
 Average stockholders' equity 105,988 101,910 98,471 90,516 90,162
Return on equity (%) 3.4% 27.9% 26.9% 19.3% 18.4%
2026 2025

===== SIDA 38 =====

38 Ericsson  |  First quarter report 2026. April 17, 2026. Alternative performance measures 
 
 
Operating working capital  
Inventories, contract assets, trade receivables, customer finance (current and non-current), advances to suppliers and prepaid expenses less 
contract liabilities and trade payables.  
 
1) Part of Other current receivables in the consolidated balance sheet. 
 
Free cash flow before M&A / Free cash flow after M&A / Free cash flow before M&A (% of net sales) 
Free cash flow before M&A: Cash flow from operating activities less net capital expenditures, other investments (excluding M&A) and 
repayment of lease liabilities.  
Free cash flow after M&A: Cash flow from operating activities less net capital expenditures, other investments and repayment of  
lease liabilities. 
Free cash flow before M&A (% of net sales): Free cash flow before M&A as a percentage of net sales. 
 
 
 
1) Other investments is part of the line item Other investing activities in the Consolidated cash flow statement. The differences are movements in other interest-bearing assets, which are not to be part 
of the definition of Free cash flow. 
  
SEK million Mar 31  Dec 31 Sep 30 Jun 30 Mar 31 
Inventories 25,732 23,451 27,519 27,068 27,649
Contract assets 8,526 7,333 7,494 6,618 5,735
Trade receivables 39,345 40,327 38,136 39,107 41,428
Customer finance, current 1,582 852 1,290 1,879 2,396
Customer finance, non-current 190 238 242 78 27
Advance payments to suppliers ¹⁾ 44 46 39 41 46
Prepaid expenses ¹⁾ 3,015 2,390 2,443 3,025 3,749
Less: Contract liabilities 46,008 36,867 40,642 44,370 46,757
Less: Trade payables 26,719 26,335 25,352 24,804 26,450
Operating working capital 5,709 11,435 11,169 8,642 7,823
2026 2025
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Cash flow from operating activities 7,403 16,507 7,939 4,150 4,358
Net capital expenditures and other investments (excl. M&A)
 Investments in property, plant and equipment -620 -849 -491 -561 -729
 Sales of property, plant and equipment 10 56 57 40 39
 Product development -378 -352 -286 -193 -307
 Other investments ¹⁾ -36 -47 -81 -301 -64
 Repayment of lease liabilities -459 -462 -507 -554 -593
Free cash flow before M&A 5,921 14,853 6,631 2,581 2,704
 Acquisitions/divestments of subs and other operations, net -72 338 10,064 141 -4
Free cash flow after M&A 5,849 15,191 16,695 2,722 2,700
Net sales 49,332 69,285 56,239 56,132 55,025
Free cash flow before M&A (% of net sales) 12.0% 21.4% 11.8% 4.6% 4.9%
2026 2025
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Cash flow from operating activities 7,403 32,954 16,447 8,508 4,358
Net capital expenditures and other investments (excl. M&A)
 Investments in property, plant and equipment -620 -2,630 -1,781 -1,290 -729
 Sales of property, plant and equipment 10 192 136 79 39
 Product development -378 -1,138 -786 -500 -307
 Other investments ¹⁾ -36 -493 -446 -365 -64
 Repayment of lease liabilities -459 -2,116 -1,654 -1,147 -593
Free cash flow before M&A 5,921 26,769 11,916 5,285 2,704
 Acquisitions/divestments of subs and other operations, net -72 10,539 10,201 137 -4
Free cash flow after M&A 5,849 37,308 22,117 5,422 2,700
Net sales 49,332 236,681 167,396 111,157 55,025
Free cash flow before M&A (% of net sales) 12.0% 11.3% 7.1% 4.8% 4.9%
2026 2025

===== SIDA 39 =====

39 Ericsson  |  First quarter report 2026. April 17, 2026. Alternative performance measures 
 
 
Sales growth by segment adjusted for comparable units and currency 
 
 
 
 
Sales growth by market area adjusted for comparable units and currency * 
 
 
* Q1-Q3 2025 have been restated to reflect changes in the market area structure. On February 25, 2025, the new market area structure was announced, and during Q4 2025 one additional country 
was added to Americas. 
 
Rolling four quarters of net sales by segment 
 
  
Isolated quarter, year over year change, percent Q1  Q4 Q3 Q2 Q1 
Networks 7% 4% -5% 3% 3%
Cloud Software and Services 4% 12% 9% 1% - 3%
Enterprise 4% 2% -7% -6% -7%
Other -2% -10% -15% -1% -23%
Total 6% 6% -2% 2% 0%
2026 2025
Year to date, year over year change, percent Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 7% 1% 0% 3% 3%
Cloud Software and Services 4% 6% 2% - 1% -3%
Enterprise 4% -5% -7% -6% -7%
Other -2% -13% -14% -13% -23%
Total 6% 2% 0% 1% 0%
2026 2025
Isolated quarter, year over year change, percent Q1  Q4 Q3 Q2 Q1 
Americas -2% -1% -8% 10% 20%
Europe, Middle East and Africa 10% 13% 3% -1% -7%
South East Asia, Oceania and India 12% 19% 1% -22% -17%
North East Asia 15% -16% 10% -15% -8%
Other 12% 13% -2% 15% -6%
Total 6% 6% -2% 2% 0%
2026 2025
Year to date, year over year change, percent Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Americas -2% 4% 6% 14% 20%
Europe, Middle East and Africa 10% 3% -2% -4% -7%
South East Asia, Oceania and India 12% -4% -13% -19% -17%
North East Asia 15% -9% -5% -12% -8%
Other 12% 5% 3% 5% -6%
Total 6% 2% 0% 1% 0%
2026 2025
Rolling four quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Networks 148,308 151,014 153,611 158,203 160,135
Cloud Software and Services 61,573 62,715 62,141 61,748 62,565
Enterprise 19,352 21,117 22,629 23,890 24,826
Other 1,754 1,835 1,928 2,023 2,054
Total 230,988 236,681 240,309 245,864 249,580
2026 2025

===== SIDA 40 =====

40 Ericsson  |  First quarter report 2026. April 17, 2026. Alternative performance measures 
 
 
Gross margin by segment by quarter 
 
 
 
EBIT margin by segment by quarter 
 
 
 
  
Isolated quarters, as percentage of net sales Q1  Q4 Q3 Q2 Q1 
Networks 49.7% 49.0% 50.0% 49.3% 50.8%
Cloud Software and Services 41.5% 43.1% 42.1% 41.5% 39.1%
Enterprise 48.9% 52.1% 51.6% 54.9% 56.3%
Other -1.5% 7.4% 0.0% 0.4% 3.8%
Total 47.2% 47.2% 47.6% 47.5% 48.2%
2026 2025
Year to date, as percentage of net sales Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 49.7% 49.7% 50.0% 50.1% 50.8%
Cloud Software and Services 41.5% 41.7% 41.0% 40.4% 39.1%
Enterprise 48.9% 53.9% 54.4% 55.6% 56.3%
Other -1.5% 3.0% 1.5% 2.1% 3.8%
Total 47.2% 47.6% 47.8% 47.8% 48.2%
2026 2025
Isolated quarters, as percentage of net sales Q1  Q4 Q3 Q2 Q1 
Networks 10.0% 21.1% 20.0% 17.8% 19.8%
Cloud Software and Services 0.0% 16.8% 11.2% 5.8% 0.5%
Enterprise -44.2% -33.3% 131.5% -15.7% -17.1%
Other 0.3% 1.1% -71.5% 9.5% -35.0%
Total 2.9% 16.1% 26.9% 11.4% 10.8%
2026 2025
Year to date, as percentage of net sales Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 10.0% 19.7% 19.2% 18.8% 19.8%
Cloud Software and Services 0.0% 9.6% 6.2% 3.3% 0.5%
Enterprise -44.2% 15.3% 28.8% -16.4% -17.1%
Other 0.3% -22.3% -30.5% -12.8% -35.0%
Total 2.9% 16.3% 16.4% 11.1% 10.8%
2026 2025

===== SIDA 41 =====

41 Ericsson  |  First quarter report 2026. April 17, 2026. Alternative performance measures 
 
 
EBITA and EBITA margin by segment by quarter 
 
 
 
 
 
  
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Networks 3,315 9,348 7,096 6,397 7,367
Cloud Software and Services 9 3,368 1,726 845 76
Enterprise -1,537 -1,120 6,987 -524 -625
Other 1 5 -293 45 -166
Total 1,788 11,601 15,516 6,763 6,652
2026 2025
Isolated quarters, as percentage of net sales Q1  Q4 Q3 Q2 Q1 
Networks 10.1% 21.1% 20.0% 17.9% 20.7%
Cloud Software and Services 0.1% 16.8% 11.2% 5.9% 0.6%
Enterprise -36.9% -24.5% 138.1% -9.4% -10.5%
Other 0.3% 1.1% -71.3% 9.5% -35.0%
Total 3.6% 16.7% 27.6% 12.0% 12.1%
2026 2025
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 3,315 30,208 20,860 13,764 7,367
Cloud Software and Services 9 6,015 2,647 921 76
Enterprise -1,537 4,718 5,838 -1,149 -625
Other 1 -409 -414 -121 -166
Total 1,788 40,532 28,931 13,415 6,652
2026 2025
Year to date, as percentage of net sales Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 10.1% 20.0% 19.5% 19.3% 20.7%
Cloud Software and Services 0.1% 9.6% 6.2% 3.4% 0.6%
Enterprise -36.9% 22.3% 35.3% -10.0% -10.5%
Other 0.3% -22.3% -30.5% -12.8% -35.0%
Total 3.6% 17.1% 17.3% 12.1% 12.1%
2026 2025

===== SIDA 42 =====

42 Ericsson  |  First quarter report 2026. April 17, 2026. Alternative performance measures 
 
 
Restructuring charges by function 
 
 
 
Restructuring charges by segment 
 
 
  
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Cost of sales -435 -538 -271 -310 -158
Research and development expenses -2,595 -300 41 -300 -20
Selling and administrative expenses -738 -259 -73 -46 -103
Total -3,768 -1,097 -303 -656 -281
2026 2025
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Cost of sales -435 -1,277 -739 -468 -158
Research and development expenses -2,595 -579 -279 -320 -20
Selling and administrative expenses -738 -481 -222 -149 -103
Total -3,768 -2,337 -1,240 -937 -281
2026 2025
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Networks -3,052 -710 -79 -109 -108
 of which cost of sales -226 -270 -45 -67 -55
 of which operating expenses -2,826 -440 -34 -42 -53
Cloud Software and Services -620 -349 -193 -538 -74
 of which cost of sales -205 -240 -222 -243 -102
 of which operating expenses -415 -109 29 -295 28
Enterprise -96 -5 -27 -9 -97
 of which cost of sales -5 -1 0 0 1
 of which operating expenses -91 -4 -27 -9 -98
Other 0 -33 -4 0 -2
 of which cost of sales 0 -27 -4 0 -2
 of which operating expenses 0 -6 0 0 0
Total -3,768 -1,097 -303 -656 -281
2026 2025
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks -3,052 -1,006 -296 -217 -108
 of which cost of sales -226 -437 -167 -122 -55
 of which operating expenses -2,826 -569 -129 -95 -53
Cloud Software and Services -620 -1,154 -805 -612 -74
 of which cost of sales -205 -807 -567 -345 -102
 of which operating expenses -415 -347 -238 -267 28
Enterprise -96 -138 -133 -106 -97
 of which cost of sales -5 0 1 1 1
 of which operating expenses -91 -138 -134 -107 -98
Other 0 -39 -6 -2 -2
 of which cost of sales 0 -33 -6 -2 -2
 of which operating expenses 0 -6 0 0 0
Total -3,768 -2,337 -1,240 -937 -281
2026 2025

===== SIDA 43 =====

43 Ericsson  |  First quarter report 2026. April 17, 2026. Alternative performance measures 
 
 
Adjusted gross income and Adjusted gross margin by segment 
 
 
 
 
  
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Networks 16,585 21,918 17,750 17,705 18,167
Cloud Software and Services 5,112 8,876 6,685 6,207 5,171
Enterprise 2,044 2,387 2,609 3,045 3,337
Other -6 62 4 2 20
Total 23,734 33,243 27,048 26,959 26,695
2026 2025
Isolated quarters, as percentage of net sales Q1  Q4 Q3 Q2 Q1 
Networks 50.4% 49.6% 50.1% 49.5% 51.0%
Cloud Software and Services 43.2% 44.3% 43.6% 43.2% 39.9%
Enterprise 49.0% 52.1% 51.6% 54.9% 56.2%
Other -1.5% 13.0% 1.0% 0.4% 4.2%
Total 48.1% 48.0% 48.1% 48.0% 48.5%
2026 2025
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 16,585 75,540 53,622 35,872 18,167
Cloud Software and Services 5,112 26,939 18,063 11,378 5,171
Enterprise 2,044 11,378 8,991 6,382 3,337
Other -6 88 26 22 20
Total 23,734 113,945 80,702 53,654 26,695
2026 2025
Year to date, as percentage of net sales Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 50.4% 50.0% 50.2% 50.2% 51.0%
Cloud Software and Services 43.2% 43.0% 42.3% 41.6% 39.9%
Enterprise 49.0% 53.9% 54.4% 55.6% 56.2%
Other -1.5% 4.8% 1.9% 2.3% 4.2%
Total 48.1% 48.1% 48.2% 48.3% 48.5%
2026 2025

===== SIDA 44 =====

44 Ericsson  |  First quarter report 2026. April 17, 2026. Alternative performance measures 
 
 
Adjusted EBIT (loss) and Adjusted EBIT margin by segment 
 
 
 
 
 
Rolling four quarters of adjusted EBITA margin by segment (%) 
 
 
  
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Networks 6,335 10,028 7,154 6,485 7,148
Cloud Software and Services 623 3,713 1,914 1,378 145
Enterprise -1,748 -1,521 6,676 -861 -917
Other 1 38 -290 45 -164
Total 5,211 12,258 15,454 7,047 6,212
2026 2025
Isolated quarters, as percentage of net sales Q1  Q4 Q3 Q2 Q1 
Networks 19.2% 22.7% 20.2% 18.1% 20.1%
Cloud Software and Services 5.3% 18.5% 12.5% 9.6% 1.1%
Enterprise -41.9% -33.2% 132.0% -15.5% -15.5%
Other 0.3% 8.0% -70.6% 9.5% -34.6%
Total 10.6% 17.7% 27.5% 12.6% 11.3%
2026 2025
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 6,335 30,815 20,787 13,633 7,148
Cloud Software and Services 623 7,150 3,437 1,523 145
Enterprise -1,748 3,377 4,898 -1,778 -917
Other 1 -371 -409 -119 -164
Total 5,211 40,971 28,713 13,259 6,212
2026 2025
Year to date, as percentage of net sales Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 19.2% 20.4% 19.5% 19.1% 20.1%
Cloud Software and Services 5.3% 11.4% 8.1% 5.6% 1.1%
Enterprise -41.9% 16.0% 29.6% -15.5% -15.5%
Other 0.3% -20.2% -30.1% -12.6% -34.6%
Total 10.6% 17.3% 17.2% 11.9% 11.3%
2026 2025
Rolling four quarters, as percentage of net sales Q1  Q4 Q3 Q2 Q1 
Networks 20.3% 20.7% 20.4% 20.4% 19.3%
Cloud Software and Services 12.4% 11.4% 8.5% 6.1% 4.0%
Enterprise 20.4% 23.0% 21.2% -12.6% -15.0%
Other -11.7% -20.2% -46.5% -30.4% -35.5%
Total 18.0% 18.1% 16.8% 13.2% 11.6%
2026 2025

===== SIDA 45 =====

45 Ericsson  |  First quarter report 2026. April 17, 2026. Alternative performance measures 
 
 
Adjusted EBITA and Adjusted EBITA margin by segment 
 
 
 
 
 
Operating working capital days 
Inventory turnover days (ITO): Five quarter average inventory divided by four quarter rolling absolute value of cost of sales excluding 
restructuring charges multiplied by 365, expressed as number of days. 
Days sales outstanding (DSO): Five quarter average of contract assets, trade receivables and customer finance (current and non-current) 
less contract liabilities divided by four quarter rolling net sales multiplied by 365, expressed as number of days. 
Days payables outstanding (DPO): Five quarter average of advances to suppliers and prepaid expenses less trade payables divided by four 
quarter rolling absolute value of cost of sales excluding restructuring charges multiplied by 365, expressed as number of days. 
Operating working capital days: ITO plus DSO less DPO 
 
 
 
 
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Networks 6,367 10,058 7,175 6,506 7,475
Cloud Software and Services 629 3,717 1,919 1,383 150
Enterprise -1,441 -1,115 7,014 -515 -528
Other 1 38 -289 45 -164
Total 5,556 12,698 15,819 7,419 6,933
2026 2025
Isolated quarters, as percentage of net sales Q1  Q4 Q3 Q2 Q1 
Networks 19.3% 22.8% 20.3% 18.2% 21.0%
Cloud Software and Services 5.3% 18.6% 12.5% 9.6% 1.2%
Enterprise -34.6% -24.4% 138.7% -9.3% -8.9%
Other 0.3% 8.0% -70.3% 9.5% -34.6%
Total 11.3% 18.3% 28.1% 13.2% 12.6%
2026 2025
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 6,367 31,214 21,156 13,981 7,475
Cloud Software and Services 629 7,169 3,452 1,533 150
Enterprise -1,441 4,856 5,971 -1,043 -528
Other 1 -370 -408 -119 -164
Total 5,556 42,869 30,171 14,352 6,933
2026 2025
Year to date, as percentage of net sales Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 19.3% 20.7% 19.8% 19.6% 21.0%
Cloud Software and Services 5.3% 11.4% 8.1% 5.6% 1.2%
Enterprise -34.6% 23.0% 36.1% -9.1% -8.9%
Other 0.3% -20.2% -30.0% -12.6% -34.6%
Total 11.3% 18.1% 18.0% 12.9% 12.6%
2026 2025
Q1  Q4 Q3 Q2 Q1 
Inventory turnover days (ITO) 80 79 80 80 81
Days sales outstanding (DSO) 9 12 11 14 17
Less: Days payables outstanding (DPO) 70 71 68 66 64
Operating working capital days 19 20 23 28 34
2026 2025