Ericsson Q1 Profit Misses Estimates on North America Slump
Ericsson reported a first-quarter profit of 5.2 billion crowns, missing analyst forecasts. A sales decline in North America offset growth in other markets.
The telecommunications firm ERICSSON LM-B SHS reported its first-quarter financial results for 2026, revealing a core profit that fell slightly short of market expectations. Based in Sweden, the company faced a sales decline in North America that partially offset growth in other international regions. Adjusted operating profit, excluding restructuring charges, reached 5.2 billion Swedish crowns ($566 million), which was below the 5.4 billion crowns projected by analysts in an Infront poll.
The downturn in the North American market was attributed to uncertainty surrounding trade tariffs and the conclusion of prior large-scale network investments by major carriers. While Ericsson observed expansion in several other global markets, these gains were not sufficient to fully bridge the gap created by the slowing activity in one of its most critical regions.
The financial report highlights the ongoing challenges within the global networking infrastructure sector as companies navigate macroeconomic pressures. At the time of the reporting, the exchange rate was approximately 9.1869 Swedish crowns to the U.S. dollar.
