Telefonaktiebolaget Lm Ericsson Class A · OMXSTO:ERIC_A

Telefonaktiebolaget Lm Ericsson Class A — Ericsson — Q3 2026 Earnings Presentation

21 slides from Telefonaktiebolaget Lm Ericsson Class A's earnings presentation, Oct 15, 2026

  1. Slide 1: Ericsson Third quarter 2026

    Ericsson Third quarter 2026 October 15, 2026 © Telefonaktiebolaget LM Ericsson 2026 | Third quarter report 2026 | October 15, 2026

  2. Slide 2: Third quarter 2026 forward-looking statements

    Third quarter 2026 This presentation contains forward-looking statements. Such statements are based on our current expectations and are subject to risks and uncertainties that could materially affect our business and results. Please read our earnings reports and our most recent annual report for a b

  3. Slide 3: Business Overview

    Business Overview Per Narvinger President and CEO © Telefonaktiebolaget LM Ericsson 2026 | Third quarter report 2026 | October 15, 2026

  4. Slide 4: Key takeaways Q3 2026

    Key takeaways Q3 2026 ● Organic sales grew by 7% Organic1 sales YoY – Solid customer demand in strategic markets – Effective commercial execution, including near-term actions 7% ● EBITA margin increased YoY with good operating leverage, excluding prior year gain Adjusted2 gross margin 47.7% ● Strate

  5. Slide 5: Financial Overview

    Financial Overview Lars Sandström Chief Financial Officer © Telefonaktiebolaget LM Ericsson 2026 | Third quarter report 2026 | October 15, 2026

  6. Slide 6: Sales development Q3 2026

    Sales development Q3 2026 Net sales Organic Cloud SEK growth Software % of Q3-26 Market area billion YoY Networks and Services Enterprise net sales Americas 19.8 -1% 33% Europe, Middle East and Africa 17.5 4% 29% South East Asia, Oceania and India 8.8 25% 15% North East Asia 4.5 22% 8% Other 8.9 7%

  7. Slide 7: Financial update Q3 2026

    Financial update Q3 2026 Financial performance (adjusted) SEK billion Q3 2026 Q3 2025 YoY Change Q2 2026 Organic sales increased 7% YoY • Solid customer demand in strategic markets Net sales 59.5 56.2 6% 52.7 • Successful near-term commercial actions Organic sales growth 7% Gross income 28.4 27.0 5%

  8. Slide 8: Segment Networks Q3 2026

    Segment Networks Q3 2026 46.8 50% 50% 50% 50% 50% 50% 44.2 47% 49% 38.7 35.6 35.7 35.4 32.9 33.0 22% 23% 23% 19% 20% 20% 21% 20% 20% 21% 21% 20% 19% 18% 18% 18% Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Net sales (SEK b.) Adjusted EBITA margin Ro

  9. Slide 9: Segment Cloud Software and Services Q3 2026

    Segment Cloud Software and Services Q3 2026 43% 44% 44% 44% 20.0 40% 41% 19.5 38% 39% 15.3 15.8 14.4 14.7 13.0 19% 11.8 13% 12% 13% 11% 12% 13% 13% 9% 10% 8% 5% 6% 3% 4% 1% Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Net sales (SEK b.) Adjusted EBI

  10. Slide 10: Segment Enterprise Q3 2026

    Segment Enterprise Q3 2026 6.1 5.9 5.5 5.1 4.6 4.5 4.6 4.2 2% 4% 3% 1% -7% -7% -6% -7% Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Net sales (SEK b.) Organic sales growth ● 1% organic sales growth ● Adjusted gross margin of 50.0% (51.6%), reflecting the divestment of iconectiv in Q3 2025 ● Adjus

  11. Slide 11: Cash flow and financial position Q3 2026

    Cash flow and financial position Q3 2026 68.1 15.8 61.2 14.9 59.8 60.7 51.9 16% 16% 14% 38.6 13% 12% 37.8 36.0 12% 11% 11% 6.6 5.9 4.9 2.7 2.6 0.4 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 FCF before M&A (SEK b.) Rolling 4-quarters FCF/sales Net

  12. Slide 12: Outlook

    Outlook1 Increased uncertainty remains in the outlook and in the broader macroeconomic and geopolitical environment. Sales Networks Sales growth in Q4 2026 is expected to be broadly similar to 3-year average seasonality Sales Sales growth in Q4 2026 is expected to be broadly similar to 3-year averag

  13. Slide 13: Closing Remarks

    Closing Remarks Per Narvinger President and CEO © Telefonaktiebolaget LM Ericsson 2026 | Third quarter report 2026 | October 15, 2026

  14. Slide 14: Summary

    Summary ● Executing from a position of strength ● Acting decisively – Addressing higher component costs – Prioritizing technology leadership ● Capturing AI opportunities as network demands increase Well positioned to deliver sustainable, profitable longer-term growth with all segments contributing ©

  15. Slide 15: Q&A

    Q&A

  16. Slide 16: Slide 16

  17. Slide 17: Appendices

    Appendices Appendix 1 – Ericsson Mobility Report, June 2026 Appendix 2 – Ericsson licensing progress Q3 2026 Appendix 3 – More information © Telefonaktiebolaget LM Ericsson 2026 | Third quarter report 2026 | October 15, 2026

  18. Slide 18: Appendix – Ericsson Mobility Report, June 2026

    Appendix 1 – Ericsson Mobility Report, June 2026 Download the report here World Population coverage outside mainland China, by technology 50% 3 billion Half the world outside of 5G subscriptions have now mainland China still lack exceeded 3 billion 5G coverage 22% 2 billion Mobile network data 2 bil

  19. Slide 19: Appendix – Ericsson licensing progress Q3 2026

    Appendix 2 – Ericsson licensing progress Q3 2026 ● Annual recurring revenue of approximately SEK 13.5 b. ● Solid strategic execution in IPR licensing with the new license agreement with a top ten smartphone vendor and several new license agreements in automotive and point of sales ● IPR licensing re

  20. Slide 20: Appendix – More information

    Appendix 3 – More information Latest Event Annual General Meeting 2026 Telefonaktiebolaget LM Ericsson's Annual General Meeting (AGM) 2026 was held on Tuesday, March 31, 2026 Latest Information Third quarter 2026 Annual Report 2025 Ericsson Investor Relations homepage October 15, 2026 The Ericsson A

  21. Slide 21: Forward-looking statements

    Forward-looking statements This report includes forward-looking statements. All statements other than statements of historical fact are forward-looking statements. The words “believe,” “expect,” “foresee,” “anticipate,” “assume,” “intend,” “likely,” “projects,” “may,” “could,” “plan,” “estimate,” “f

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