Ericsson narrowly misses Q1 profit forecasts as North America unwind

The Swedish telecoms equipment maker narrowly missed profit forecasts, with adjusted EBITA falling 20% year-on-year to SEK 5.6 billion.

North America, which drove a 20%+ surge in Q1 2025, declined sharply as prior-year pull-forward investment unwinds. CEO Ekholm blames rising semiconductor input costs, partly driven by AI demand.

Ericsson reported a sharp fall in profitability for the first quarter of 2026 on Thursday, as the North American market that propelled the Swedish telecoms equipment maker’s results a year ago shifted into reverse.

Adjusted earnings before interest, tax and amortisation, EBITA, Ericsson’s preferred measure of underlying profitability, fell 20% year-on-year to SEK 5.6 billion, with a margin of 11.3% against 12.6% in Q1 2025, slightly missing analyst expectations.

On a reported basis, which includes restructuring charges related to ongoing headcount reductions, EBITA fell 73% to SEK 1.8 billion.

Networks, Ericsson’s largest business segment ...