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Sep 30
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Ericsson Q3 2025 Earnings Report
Ericsson posted a strong Q3 2025, with improved margins and significant capital gains from a key divestment.
Key Takeaways
Ericsson reported solid earnings in Q3 2025, driven by margin improvements across networks and cloud services, alongside a SEK 7.6 billion gain from the iconectiv divestment. Despite a decline in revenue, operational efficiency contributed to a substantial boost in net income.
Net income surged to SEK 11.3 billion, largely due to the iconectiv divestment gain.
Gross and EBITA margins improved, reflecting strong cost controls and operational execution.
Cloud Software and Services grew organically by 9%, highlighting momentum in core networks.
Free cash flow before M&A reached SEK 6.6 billion despite lower year-over-year cash flow.
Ericsson
Ericsson
Ericsson Revenue by Segment
Ericsson Revenue by Geographic Location
Revenue by Segment
Networks Revenue
CapyFin.comCloud Software & Svcs Revenue
CapyFin.comEnterprise Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comSE Asia/Oceania/India Revenue
CapyFin.comNorth East Asia Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Ericsson expects stable RAN markets and Enterprise sales to stabilize in Q4 2025, with continued focus on operational efficiency and shareholder returns.
Positive Outlook
- Enterprise organic sales expected to stabilize in Q4.
- RAN market expected to remain broadly stable.
- Strong recurring free cash flow supports higher shareholder distributions.
- Continued gross margin strength anticipated in Networks and Cloud Software.
- Further benefits expected from operational efficiency and cost reductions.
Challenges Ahead
- Currency headwinds remain a key challenge.
- Lower customer investments in India impacting regional performance.
- Intense competition in Latin America and South East Asia.
- IPR licensing revenue declined compared to Q3 2024.
- Legal uncertainties in ongoing investigations may impact financial outlook.
Revenue & Expenses
Visualization of income flow from segment revenue to net income