Ericsson's Mobile Network Sales Drive Revenue Growth in Q3 2026

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Ericsson reported a 6% revenue increase in Q3 2026, led by a 9% rise in its Networks division sales. CEO Per Narvinger highlighted challenges ahead in 2027, including a stagnant RAN market and component costs, while announcing a strategic group restructuring.

Ericsson has announced a revenue increase in the third quarter of 2026, driven primarily by higher sales in its Networks division and efforts to improve operational efficiency. The Swedish telecom equipment provider reported a 6% year-on-year revenue growth, reaching 59.5 billion Swedish krona (approximately 5.2 billion euros). Sales in the Networks division rose by 9% to 38.7 billion krona (about 3.4 billion euros).

The company's software and cloud services segment also grew by 3%, achieving 15.8 billion krona (around 1.4 billion euros), while the enterprise segment saw a 10% decline to 4.6 billion krona (roughly 400 million euros), partly due to the divestment of iconectiv.

Geographically, sales increased in most regions, including Asia and Europe, although challenges in Latin America partially offset these gains. Intellectual property license revenues rose to 3.9 billion krona (approximately 340 million euros), up from 3.1 billion krona, supported in part by retroactive income from previously unlicensed products.

However, Ericsson's net profit fell by 49%, totaling 5.8 billion krona (about 510 million euros) for the quarter.

Per Narvinger, who recently succeeded Börje Ekholm as CEO after formerly leading the Networks division, remarked that he spent the quarter engaging with customers. A recurring theme was the demand for smarter and more autonomous networks to enhance performance, efficiency, robustness, and resilience.

Looking ahead, Narvinger warned of challenges in 2027, citing a stagnant radio access network (RAN) market, ongoing geopolitical uncertainties, and rising component costs as factors that could hinder gross margins. Nevertheless, he expressed confidence that disciplined action and a focus on technological leadership would position Ericsson well for long-term profitable growth.

In tandem with the results announcement, Ericsson unveiled a new organizational structure designed to better leverage its R&D capabilities and boost cost efficiency. Starting in early 2027, a new Asia-Pacific Market Area will consolidate Northeast Asia, Southeast Asia, Oceania, and India into one unit, aiming for more effective regional operations. Patrick Johansson, currently head of the Europe, Middle East, and Africa (EMEA) market area, will lead this new division, with his EMEA successor appointment underway.

Additionally, Ericsson is restructuring its Enterprise Wireless Solutions business to focus more on indoor solutions, transferring existing unit portfolios to other group divisions like Networks.

This strategic refocusing underscores Ericsson's intent to navigate a complex market environment while continuing to drive innovation in mobile network technology.