Ericsson stock jumps after Q3 2026 earnings beat estimates

Ericsson (ERIC) reported Q3 2026 earnings, highlighting flat RAN market conditions and rising component costs due to AI demand. Sales in the Americas declined 1% YoY, and adjusted gross margin in Enterprise fell to 50%. CEO Per Narvinger expects 2027 to be a transition year with potential gross margin dilution if cost pressures aren't mitigated.

Ericsson (ERIC) reported Q3 2026 net sales of SEK 59.5 billion, up 7% YoY. Networks sales grew 9% YoY to SEK 38.7 billion, with stable margins. Cloud Software and Services sales increased 3% YoY. Enterprise sales declined 10% due to a prior divestment. The company faces higher component costs but is implementing mitigation strategies. EBITA was SEK 10.1 billion, with a 17% margin. Cash flow before M&A was SEK 4.9 billion.

ERICSSON LM TELEPHONE CO (ERIC) furnished an SEC Form 6-K — earnings release. Ericsson | Third quarter report 2026 . October 15, 2026 . 1 Third quarter report 2026 Strategic highlights – executing well in a challenging environment – Solid customer demand in strategic markets, combined with near-term commercial actions, supported organic growth of 7%*. – Cu

Ericsson (NASDAQ:ERIC) shares rose 9% after reporting 7% organic sales growth in Q3, driven by mobile network demand. Net sales increased 6% to SEK 59.5 billion, with Networks division up 9%. Adjusted EBITA declined but improved excluding a prior-year divestment gain. Net income fell 49% to SEK 5.8 billion. CEO Per Narvinger cited strong demand for AI-enabled networks but warned of market challenges and margin pressures.

Ericsson reported Q3 sales of SEK59.5B ($5.97B), up 6%, and adjusted EBITA of SEK10.1B, beating expectations. Growth was driven by network demand in India, Japan, and the Middle East, while AI investments increased component costs, posing a 2027 margin challenge. Shares rose ~10%.

Verizon (VZ) and Ericsson (ERIC) stocks rose on Thursday after announcing a successful real-world 6G test. The companies completed a 6G field call in the 7 GHz band, moving the technology from lab tests to real-world use. Verizon's stock increased by 2.19%, while Ericsson's stock surged by 9.03%. Analysts give Verizon a Moderate Buy rating with a $49.77 price target, while Ericsson has a Moderate Sell rating with a $9.60 price target.