Ericsson reported a 9% drop in net sales for Q3 2025, reaching SEK 56.2 billion (US$5.1 billion), as currency headwinds and lower organic sales impacted results.

Gross income fell 5% year-on-year to SEK 26.8 billion (US$2.4 billion), while adjusted gross margin improved to 48.1%, up from 46.3% in the same quarter last year.

The company recorded a net income of SEK 11.3 billion (US$1 billion), boosted by a SEK 7.6 billion (US$680 million) capital gain from the sale of iconectiv.

Free cash flow before mergers and acquisitions dropped 49% to SEK 6.6 billion (US$590 million).

Ericsson saw growth in three out of four market areas, with Cloud Software and Services sales up 9% on an organic basis.

The company, based in Sweden, cited strong commercial agreements in India, Japan, and the UK during the quarter.

Ericsson ended the period with net cash of SEK 51.9 billion (US$4.7 billion), up 103% year-on-year.

🔗 Source: Ericsson

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