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.

Ericsson shares have dropped 13.8% over the past three months, prompting investors to assess whether this represents a buying opportunity. The Swedish telecom equipment maker faces headwinds from cautious carrier capital spending and uneven demand across regions. Second-quarter sales declined 6% year-over-year to SEK 52.7 billion, with organic sales falling 1%. Lower intellectual property licensing revenues contributed to the decline following a one-off benefit in the prior year. Despite revenue pressures, Ericsson maintained profitability through cost discipline. Adjusted gross margin improved to 48.4% from 48.0% a year earlier, supported by operational execution and stronger performance in its Mobile Networks business. The company continues investing in 5G infrastructure, network slicing, and AI-driven connectivity solutions. However, competitive pricing and measured carrier spending on network deployments may constrain near-term growth as operators focus on returns from existing 5G investments.

Ericsson's shares plunged 12% on 14 January after the company warned that rising memory chip costs will pressure future margins. The telecom equipment maker now competes with AI data centres for DRAM chips, as three suppliers — SK Hynix, Samsung, and Micron — control over 95% of global production. Second-quarter results met expectations, with adjusted earnings per share of SEK 1.22 and gross margin rising to 48.4%. However, free cash flow fell to SEK 0.4 billion from SEK 2.6 billion year-on-year due to inventory buildup. Management forecast third-quarter gross margins of 48–50%, down from second-quarter levels, citing component inflation through 2026 and into 2027. Ericsson now trades at 14.45 times forward earnings. Jefferies maintained a Hold rating with a SEK 98 target price.