Ericsson reports 7 percent growth. Margin pressure tests Ericsson stock at EUR 9.89

Published on 10/27/2026 at 15:28 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Third-quarter sales rose 6 percent to SEK 59.48 billion, while adjusted EBITA margin fell to 17.0 percent. Ericsson stock costs EUR 9.89 on October 27, 2026.

Ericsson growth meets margin pressure

Ericsson reported 7 percent organic sales growth in the third quarter of 2026, but adjusted gross margin fell to 47.7 percent.
Reported sales increased 6 percent year over year to SEK 59.48 billion, while adjusted EBITA margin declined to 17.0 percent.
Ericsson stock was trading at EUR 9.89 at Lang & Schwarz on October 27, 2026 at 3:12 p.m. CEST.

Ericsson, SE0000108656, Illustration mit AI erstellt.

Ericsson (ISIN SE0000108656) reported 7 percent organic sales growth in the third quarter of 2026, but adjusted gross margin fell to 47.7 percent, sharpening the market question around cost pressure. The figures come from Ericsson in its October 15, 2026 results release.

Growth did not lift margins

Reported sales reached SEK 59.48 billion in the third quarter, up 6 percent from SEK 56.24 billion a year earlier. Adjusted EBITA fell 36 percent to SEK 10.12 billion, while adjusted EBITA margin dropped to 17.0 percent from 28.1 percent.

The comparison is distorted by a SEK 7.6 billion capital gain in the prior-year period, which Ericsson excluded from its adjusted figures. Even so, the adjusted gross margin slipped from 48.1 percent to 47.7 percent, showing that higher sales have not yet produced broader margin expansion.

Component costs are the next test

Ericsson said the radio access network market is flat and that component costs will be a headwind to gross margin next year. The company also said pricing, portfolio optimization and efficiency measures are intended to offset that pressure, according to Ericsson.

Net income fell 49 percent year over year to SEK 5.80 billion, while free cash flow before mergers and acquisitions declined 26 percent to SEK 4.90 billion. Net cash nevertheless increased 17 percent to SEK 60.69 billion at the end of the quarter.

Stock price and investor view

For investors, the important distinction is between demand and profitability. Networks drove the sales increase, but the lower margin and the company warning on component costs leave execution and pricing power as the key measures for the next update.

Ericsson stock was trading at EUR 9.89 at Lang & Schwarz on October 27, 2026 at 3:12 p.m. CEST. The further course of trading is shown by the continuously updated real-time quote of Ericsson stock.