Catenaa, Monday, October 20, 2025- Ericsson posted third-quarter sales of SEK56.2 billion ($5.9 billion) and an EBITA of SEK15.5 billion, both ahead of analysts’ expectations, despite a 2% organic revenue decline from last year driven by a slowdown in North America.
Adjusted EBITA margin rose sharply to 28.1% from 12.6%, reflecting strong operational execution across the group.
CEO Börje Ekholm highlighted 9% organic growth in Cloud Software and Services, driven by core network sales, while mobile networks revenue fell 5% to SEK35.4 billion.
Enterprise segment revenue dropped 7% to SEK5.1 billion, weighed down by lower sales at Vonage and the absence of Iconectiv following last year’s divestment.
Despite regional challenges, investors responded positively, lifting Ericsson shares nearly 14% at the time of reporting. The company also signaled a potential dividend increase, supported by its strengthened cash position after the Iconectiv sale.
The board will announce recommendations for distribution in the Q4 report ahead of the annual general meeting.
Looking ahead, Ericsson anticipates stabilization in the Enterprise segment and continued steady performance in the RAN market. Recent wins, including a pan-European network upgrade with Vodafone and earlier UK contracts, provide additional optimism for future revenue.
Preliminary industry data from Dell’Oro indicates that global telecom equipment revenues rose 4% year-on-year in the first half of 2025, driven by improving market conditions outside China.
While Ericsson’s Q3 results exceeded expectations, the company remains exposed to North American market fluctuations and will rely on ongoing operator spending and network upgrade contracts to sustain growth.
