Ericsson Q1 2026 Results Miss Forecasts, Shares Fall

Swedish telecommunications equipment maker Ericsson reported first-quarter 2026 financial results on Friday that missed analyst expectations, leading to a 1.6 percent drop in its Stockholm-listed shares during early trading. The company's American depositary receipts fell 3 percent to 11.79 in premarket U.S. trading.

Adjusted operating profit came in at 5.2 billion Swedish crowns, below the 5.4 billion crowns forecasted by analysts. Revenue declined 10 percent from the year-earlier period to 49.3 billion crowns, short of the 50.7 billion crowns projection. Net income plunged 79 percent to 887 million crowns from 4.22 billion crowns a year ago, while earnings per share registered 0.0285, trailing the expected 0.1152.

The results were heavily influenced by currency fluctuations, with the stronger Swedish krona creating a 7.8 billion crowns headwind on reported sales. Despite this, Ericsson achieved 6 percent organic revenue growth across its three main operating divisions. Chief Financial Officer Lars Sandström attributed the variance largely to these translation effects.

Additional pressures stemmed from rising input costs, particularly for semiconductors, driven by surging demand...