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Ericsson's first-half net profit decreased by 43 percent

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Ericsson's first-half net profit decreased by 43 percent
사진: jornaleconomico.sapo.pt

핵심 요약

  • Ericsson's 2026 first-half net profit fell by 43.4 percent, declining to 446 million euro.
  • The group's net sales decreased by 8.2 percent, standing at 9.23 billion euro.
  • Company shares fell by 10.3 percent on the Stockholm Stock Exchange following the financial results.
  • Current CEO Börje Ekholm will hand over his position to Per Narvinger as of 1 October.

숫자로 보기

43.4 percent net profit drop446 million euro net profit8.2 percent sales decline10.3 percent share drop

Swedish telecommunications equipment manufacturer Ericsson announced that it achieved a net profit of 4.93 billion Swedish krona (446 million euro) in the first six months of 2026. This figure indicates a 43.4 percent decrease compared to the same period of the previous year. Restructuring costs of approximately 395 million euro were decisive in the company's contraction.

The group's net sales for the January-June period also decreased by 8.2 percent, standing at 102 billion krona (9.23 billion euro). On a segment basis, network business revenues declined by 7.6 percent, while the enterprise business experienced a sharp 25 percent drop. Geographically, the company's sales in America fell by 12 percent as a result of North American operators reducing their investments following the initial 5G rollout.

Following the news, Ericsson shares lost 10.3 percent in value in the first minutes on the Stockholm Stock Exchange; afterwards, the decline slowed to 7 percent levels. The slowing down of 5G infrastructure investments by major operators and competition regarding chip access with the artificial intelligence sector resulted in a limited period of decline. The company's current CEO, Börje Ekholm, will hand over his position to Per Narvinger, head of the Networks unit, on 1 October.

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Why did Ericsson's profit drop so much?
Compared to the previous year, profitability fell sharply due to the company's high restructuring costs of 395 million euro.
In which regions were the company's sales most affected?
Although North America stands out where operators reduced their 5G investments, the enterprise business segment also experienced a significant contraction of 25 percent.
Is there a management change following this decline in the company?
Yes; current CEO Börje Ekholm will hand over his position to Per Narvinger, head of the Networks division, on 1 October.

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