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Ericsson braces for component cost hit after third-quarter profit beat

By Thomson Reuters Oct 15, 2026 | 12:20 AM

STOCKHOLM, Oct 15 (Reuters) – Telecom gear maker Ericsson on Thursday reported a smaller-than-expected drop in third-quarter ​core profit as efficiency ‌measures helped offset higher component costs, but warned that such costs would affect margins next year.

• Operating profit before ‌amortisation ​and restructuring costs was ⁠10.1 billion crowns ($1.01 ⁠billion) against a year-earlier 15.8 billion and a mean forecast of 7.87 billion in a poll ​of analysts provided by Ericsson

• The Swedish group said component costs ⁠rose in the quarter

• “Looking ⁠ahead, the RAN (Radio Access ​Network) market is flat, geopolitical uncertainty ​remains elevated and component costs are ‌a headwind to gross margin,” new CEO Per Narvinger said in a statement

• Ericsson in July warned it was ⁠under pressure from rising memory chip costs due to surging AI demand

• Adjusted ⁠EBITA ‌margin narrowed to 17.0% from 28.1% ⁠against a forecast 14.2%

• ​Organic ‌sales rose 7% to ​59.5 billion ⁠crowns, beating a forecast 55.4 billion and Ericsson said sales in North America increased slightly supported by project phasing

(Reporting by Anna Ringstrom, editing by ​Terje Solsvik)