Ericsson Reports Q1 2026 Profit Decline Amid North America Market Shift
Ericsson's Q1 2026 adjusted EBITA decreased 20% year-on-year to SEK 5.6 billion, narrowly missing forecasts. The decline is attributed to reduced investments in North America following a strong performance in Q1 2025, compounded by rising semiconductor costs driven by AI demand.
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In Q1 2026, Ericsson's adjusted EBITA experienced a 20% year-on-year decline to SEK 5.6 billion, with profitability margins dropping to 11.3%. This downturn contrasts sharply with Q1 2025, where the Americas region had recorded a 26% increase, primarily due to significant investments from US telecoms.
Overall, reported EBITA plummeted 73% to SEK 1.8 billion, impacted by restructuring charges linked to ongoing job cuts. While North America faced a downturn, sales grew in other regions such as Europe and Asia, partially offsetting losses. The company anticipates stability in the global radio access network equipment market for 2026, despite increased costs from semiconductor competition driven by AI demands.
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