Ericsson reported a drop in sales for the second consecutive quarter, with the telecom equipment giant restructuring internally to “mitigate component cost inflation.”
The vendor’s second quarter (Q2) earnings for 2026 saw net sales for the period April to June drop by six percent Year-on-Year (YoY), while organic sales growth fell by one percent. In North America, its Networks sales also dropped by one percent, though that dip was partly offset by continued growth in Latin America.
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It was a more positive story for Ericsson’s Cloud Software and Services sales, which increased three percent to $1.51 billion (14.7 billion Swedish kronor). The segment was buoyed by demand in North America, while Europe also helped drive growth due to core 5G network upgrades in multiple markets.
Ericsson’s Networks unit, however, saw an eight percent YoY drop in sales to $3.4 billion (33 billion kronor). Gross income for the segment unit fell by nine percent, with soon-to-depart CEO Börje Ekholm telling investors that it expects “some pressure” on Networks' adjusted gross margin for the next quarter due to “higher volumes of network rollout projects.”
