Ericsson sales drop 6% in Q2-2025 as telecoms slash Capex

Ericsson has posted 6 percent drop in sales to SEK 56.1 billion in Q2-2025 as compared with SEK 59.8 billion in Q2-2024 as telecom operators slashed their Capex in several markets.

Ericsson 5G Radio for Airtel
Ericsson 5G Radio for Airtel

Ericsson’s CEO Borje Ekholm said: “We are increasing AI investments, including in our Sweden AI factory consortium. AI is key to accelerating innovation, as well as driving internal operational efficiencies. The ecosystem for network APIs continues to grow, and Aduna expanded its Network API reach to all three major service providers in Japan.”

Ericsson India has reported sales of SEK 2.244 billion in Q2-2025. Ericsson India has contributed 4 percent of its total sales in Q2-2025 as compared with 7 percent in Q1-2025 and 6 percent in Q2-2024.

Ericsson said networks sales declined 5 percent to SEK 35.7 billion. Cloud Software and Services sales fell 5 percent to SEK 14.4 billion. Enterprise sales dropped 14 percent to SEK 5.5 billion.

Ericsson’s revenue across key markets in Q2 2025 reflected varying regional dynamics:

Americas revenue remained flat at SEK 19.8 billion. Growth in North America was driven by performance in Networks and Cloud Software and Services, benefiting from earlier contract wins. However, this was offset by a significant decline in Latin America, where customer network investments remained low amid intensified competition.

Europe, Middle East, and Africa (EMEA) posted revenue of SEK 16.2 billion, a 6 percent decline. Europe recorded modest growth supported by network modernization projects. In contrast, the Middle East and Africa experienced a decline due to timing of project deliveries and exits from certain managed services contracts. During the quarter, Ericsson signed a 5G Radio Access Network expansion agreement with e& UAE and a 5G network slicing orchestration agreement with the Orange Group in Europe.

South East Asia, Oceania, and India recorded the steepest decline, with revenue falling to SEK 5.5 billion, a 28 percent drop, largely due to reduced network investments in India and increased competition in Southeast Asia. Cloud Software and Services were affected by the timing of project deliveries. Ericsson signed a multi-year Network Operations Center Managed Services deal with Bharti Airtel during the quarter.

North East Asia revenue fell 17 percent to SEK 3.8 billion, indicating softness in the region without further specified drivers. Other markets saw growth, with revenue increasing by 4 percent YoY to SEK 10.9 billion.

Ericsson said the number of employees on June 30, 2025, was 91,937 compared with 92,866 on March 31, 2025.

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