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Dec 31, 2025
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Ericsson Q4 2025 Earnings Report
Ericsson reported solid execution with positive net income and organic growth across all segments.
Key Takeaways
Ericsson delivered strong Q4 results with organic sales growth, particularly in Cloud Software and Services. Net income rose significantly year-over-year, supported by improved margins and lower operating expenses.
Net income reached SEK 8.6 billion, up from SEK 4.9 billion the previous year.
Cloud Software and Services segment achieved 12% organic sales growth.
Adjusted EBITA margin improved to 18.3%.
Free cash flow before M&A was SEK 14.9 billion.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Ericsson expects the RAN market to remain flat in 2026, while targeting growth in mission critical and enterprise markets. The company plans to increase investments in defense and optimize costs to sustain margins and cash flow.
Positive Outlook
- RAN market expected to remain stable in 2026.
- Enterprise and mission critical markets forecasted to grow.
- Company to maintain strong R&D investments in AI-native networks.
- Operational cost optimization will continue.
- Board proposed dividend increase and SEK 15B share buyback.
Challenges Ahead
- Reduced network investments in key markets like India and Latin America.
- IPR licensing revenue slightly declined YoY.
- Enterprise segment continues to face profitability challenges.
- Currency headwinds impacted gross income and margins.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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