Telecom equipment maker Ericsson reported 6 percent lower revenue in the second quarter of 2026 as weaker intellectual property (IPR) licensing income and currency headwinds offset growth in several regional markets. The company generated SEK 52.7 billion in revenue during Q2 2026, compared with SEK 56.1 billion in the corresponding quarter of 2025.
Borje Ekholm, President and CEO of Ericsson, said the company has taken measures to address rising component costs and expects those actions to have a greater impact in the coming quarters.
“We took action to mitigate component cost inflation. As the impact builds in the coming quarters, we will continue to pursue internal measures and pricing actions to help offset the effect. We also expect some pressure on Networks adjusted gross margin in Q3 due to higher volumes of network rollout projects,” Borje Ekholm said.
Ericsson’s Networks business remained its largest segment, though revenue declined 8 percent to SEK 33.0 billion, reflecting lower IPR licensing revenue.
The Cloud Software and Services business performed better, with revenue increasing 3 percent to SEK 14.7 billion. Growth was supported by core network upgrades across Europe, project deliveries in the Middle East and Africa, higher software sales in North East Asia, and accelerated project deliveries across other markets.
The Enterprise business reported a 19 percent decline in revenue to SEK 4.5 billion, mainly due to a SEK 1.0 billion impact from the divestment of iconectiv completed in 2025.
Ericsson India posts healthy organic growth
Indian telecom market has contributed 4 percent of the global revenue for the network maker in Q2 2026 as compared with 8 percent in Q1 2026. In 2025, India contributed 5 percent to its global revenue.
Ericsson highlighted strength in its South East Asia, Oceania and India market, where underlying demand remained resilient despite lower reported revenue.
Organic sales in the region increased 4 percent during Q2 2026, while reported revenue declined 2 percent to SEK 5.4 billion, compared with SEK 5.5 billion in Q2 2025, reflecting currency impacts and other factors.
For the first half of 2026, the region generated SEK 12.4 billion in revenue versus SEK 12.7 billion in the same period of 2025. Although reported revenue fell 3 percent, organic sales increased 8 percent, indicating continued demand for Ericsson’s telecom infrastructure and software solutions across India and neighboring markets.
Ericsson attributed the regional growth to stronger Mobile Networks sales driven by the timing of project deliveries in South East Asia. The company also reported higher Cloud Software and Services revenue due to project deliverables, contributing to overall regional growth.
South East Asia, Oceania and India was one of only three market areas to deliver positive organic sales growth during the quarter.
Within the Mobile Networks segment, Ericsson reported organic sales growth across South East Asia, Oceania and India, helping offset declines in other regions. Excluding lower IPR licensing revenue, Mobile Networks sales were broadly stable year-on-year.
The company also said Cloud Software and Services recorded sales growth across all market areas, including South East Asia, Oceania and India, driven by accelerated project deliveries and continued investment in network modernization.
BABURAJAN KIZHAKEDATH
