Ericsson reported 7% organic sales growth and higher operating profitability for the third quarter of 2026, it said on an earnings call on October 15, 2026. Chief executive officer Per Narvinger said rising semiconductor costs, driven by demand for artificial intelligence hardware, are squeezing the flat radio access network market. Product substitution and upselling protected margins this quarter, but he warned these steps will not be enough long term, and broader price increases are expected in 2027. Ericsson is also folding its stand-alone enterprise wireless division into other units. It is moving neutral host and enterprise private 5G networks into its core network segment to speed up profitability. The company holds a net cash buffer of SEK 60.7 billion.

Ericsson reported a 36% fall in third-quarter adjusted operating profit on Thursday. The Swedish telecom warned that rising component costs and geopolitical uncertainty would weigh on its outlook. Adjusted EBITA dropped to 10.1 billion Swedish crowns ($1.1 billion) from 15.8 billion crowns a year earlier. Net sales rose 6% to 59.5 billion crowns, with organic growth of 7%. Chief executive Per Narvinger said component costs would pressure gross margins next year. Ericsson will continue cutting costs and simplify its operating structure. Sales at Networks, its largest business, rose 9% to 38.7 billion crowns. Enterprise sales fell 10% to 4.6 billion crowns, partly due to the iconectiv divestment. For the fourth quarter, Ericsson expects an adjusted gross margin of 49% to 51%.

Ericsson has been selected by Cellnex Poland to modernise and expand its Radio Access Network, strengthening its position in Europe's 5G infrastructure market. The agreement includes radios, RAN compute modules, microwave links, antennas and enclosures. The deployment aims to improve network coverage, speeds and reliability across urban and rural areas whilst reducing site footprint, energy consumption and tower load. Cellnex Poland cited rising data traffic as driving the need for modernisation and network densification. Post-deployment, Cellnex will become Ericsson's lead customer for the MINI-LINK 6356 E-band radio, designed for high-capacity microwave backhaul with improved power efficiency. The project will also feature Ericsson's Transport Automation Controller, enabling AI-driven automation and network management.