Telecom equipment giant Ericsson reported a 5 percent decline in sales for the fourth quarter of 2025, with revenues totaling SEK 69.3 billion. The full-year 2025 sales also fell 5 percent to SEK 236.7 billion, compared with SEK 247.9 billion in 2024, reflecting challenges in the Networks and Enterprise segments.
Segment Performance
In Q4-2025, Ericsson’s Networks segment sales decreased 6 percent to SEK 44.2 billion, while Cloud Software and Services grew 3 percent to SEK 20.0 billion. Enterprise sales saw a steep decline of 25 percent to SEK 4.6 billion, largely due to a SEK 1.1 billion impact from the divestment of iconectiv in Q3-2025. The Other segment contributed SEK 0.5 billion.
For the full year, Networks sales fell 5 percent to SEK 151.0 billion, Cloud Software and Services remained stable at SEK 62.7 billion, and Enterprise sales dropped 15 percent to SEK 21.1 billion, including a SEK 1.6 billion negative impact from the iconectiv divestment.
Regional Sales Overview
Ericsson’s top telecom markets by revenue are the United States (36 percent of total sales), followed by India (5 percent), the United Kingdom (4 percent), Japan (4 percent), and China (3 percent).
Americas: SEK 22.9 billion in Q4, SEK 83.4 billion for 2025
Europe, Middle East and Africa (EMEA): SEK 23.4 billion in Q4, SEK 70.7 billion for 2025
South East Asia, Oceania and India: SEK 9 billion in Q4, SEK 28.8 billion for 2025
North East Asia: SEK 5.2 billion in Q4, SEK 16 billion for 2025
Other (including IPR): SEK 8.8 billion in Q4 (IPR: SEK 3.3 billion), SEK 37.7 billion for 2025 (IPR: SEK 14.5 billion)
Workforce Update
The company’s workforce decreased to 88,826 employees at the end of December 2025, down from 89,898 in September 2025 and 94,236 in December 2024.
Outlook
Analyst firm Dell’Oro estimates that the global RAN equipment market will remain stable in 2026.
Ericsson highlighted uncertainty in its revenue outlook due to tariff changes and macroeconomic factors. For Q1-2026, Networks sales are expected to follow their three-year average seasonal growth, with an adjusted gross margin forecasted between 49 percent and 51 percent. Cloud Software and Services sales are expected to grow below the three-year average seasonal trend.
Ericsson’s Q4 and 2025 results highlight the ongoing pressure on Networks and Enterprise segments, while growth in Cloud Software and Services suggests strategic areas for future expansion. Currency fluctuations also contributed to the overall revenue decline, impacting the company’s global operations.
BABURAJAN KIZHAKEDATH