Ericsson shares gain after 7% organic sales growth

Telecoms & Networks Telecoms Written by: Ian Lyall 11:04 Thu 15 Oct 2026 --> Edited by: Angela Harmantas Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business output at the Daily... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Ericsson (ADR) ( NASDAQ:ERIC ) View Price & Profile Ericsson shares gain after 7% organic sales growth Published: 11:04 15 Oct 2026 EDT Ericsson (ADR) (NASDAQ:ERIC) shares rose 9% to $10.43 after the Swedish telecommunications equipment maker reported 7% organic sales growth in the third quarter, led by demand for mobile networks. Net sales increased 6% year on year to SEK 59.5 billion in the three months to September, while the Networks division recorded 9% organic growth. The results showed stronger underlying profitability than the headline figures suggested, as the previous year's performance included a SEK 7.6 billion capital gain from the sale of iconectiv. Reported operating profit before amortisation and impairment fell 41% to SEK 9.2 billion, while adjusted EBITA, which excludes restructuring charges, declined to SEK 10.1 billion from SEK 15.8 billion. However, adjusted EBITA increased when the previous year's divestment gain was excluded, as higher gross income and lower operating expenses supported performance. Net income fell 49% to SEK 5.8 billion, compared with SEK 11.3 billion a year earlier, while the reported gross margin eased to 47.1% from 47.6%. Ericsson's Networks division benefited from higher intellectual property rights licensing revenue and increased project deliveries in Japan and India, helping offset weaker sales in Latin America. Free cash flow before mergers and acquisitions fell to SEK 4.9 billion from SEK 6.6 billion, although the company ended September with SEK 60.7 billion in net cash. Chief executive Per Narvinger said customer demand for more intelligent and autonomous networks was supporting the business, with artificial intelligence-enabled features already being deployed in customer networks. The outlook remains challenging, however, as Ericsson expects the radio access network equipment market to remain flat in 2026 and warned that higher component costs would pressure gross margins next year. The company expects the Networks division's adjusted gross margin to range between 49% and 51% in the fourth quarter, while restructuring charges are expected to remain elevated in 2026. Continue reading