Ericsson's Q2 2025 earnings call highlighted solid growth in key regions like the Americas and significant improvements in EBITA margins across segments, driven by operational efficiencies and strategic initiatives. However, challenges remain with sales declines in specific regions, currency headwinds, and a temporary investment pause in India affecting overall performance. Despite these challenges, the ongoing advancements in AI and cost reduction measures position Ericsson well for future growth.

Company Guidance -

Q3 2025

In the second quarter of 2025, Ericsson reported solid financial results with a 2% organic sales growth and a notable 3-year high in the EBITA margin at 13.2%. The gross margin was recorded at 48%, an improvement influenced by favorable product mix and cost-reduction initiatives. The company faced FX headwinds of approximately SEK 5 billion year-over-year, yet managed to achieve positive EBITA in their Cloud Software and Services for the fifth consecutive quarter. Ericsson's net sales totaled SEK 56.1 billion, with a reported 6% decline due to currency impacts. The adjusted gross margin increased to 48%, with broad margin improvement across all segments. The company highlighted strong performance in the Americas with a 10% sales increase, while sales in regions like Southeast Asia, Australia, and India saw declines. Ericsson continues to focus on strategic initiatives, including the expansion of 5G stand-alone networks and AI investments, positioning themselves for long-term growth despite a dynamic macroeconomic environment.

Organic Growth and Margin Improvement

Ericsson achieved a 2% organic sales growth and a 3-year high EBITA margin of 13.2% in Q2 2025, reflecting strong execution against strategic priorities.

Positive EBITA for Cloud Software and Services

For the fifth consecutive quarter, Cloud Software and Services reported positive EBITA, showcasing continuous improvement in the segment.

Strong Performance in Americas

Sales in the Americas increased by 10% year-over-year, with good growth in North America attributed to previous contract wins.

Cost Reduction and Operational Efficiency

Ericsson reduced its total number of employees by 6% over the last year and lowered operating expenses by SEK 3 billion compared to the previous year.

AI and Technological Advancements

Ericsson increased investments in AI, establishing an AI factory consortium in Sweden, positioning it as a key part of network design and operation.

Telefonaktiebolaget LM Ericsson (ERIC) Earnings, Revenues Date & History

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ERIC Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 14, 2025	2025 (Q3)	0.13 / -	0.11	―	―	―
Jul 15, 2025	2025 (Q2)	0.11 / 0.14	-0.317	144.48% (+0.46)
Apr 15, 2025	2025 (Q1)	0.07 / 0.13	0.07	80.00% (+0.06)
Jan 24, 2025	2024 (Q4)	0.20 / 0.13	0.097	36.08% (+0.04)
Oct 15, 2024	2024 (Q3)	0.10 / 0.11	-0.844	113.03% (+0.95)
Jul 12, 2024	2024 (Q2)	0.04 / -0.32	-0.021	-1409.52% (-0.30)
Apr 16, 2024	2024 (Q1)	0.02 / 0.07	0.044	59.09% (+0.03)
Jan 23, 2024	2023 (Q4)	0.11 / 0.10	0.177	-45.20% (-0.08)
Oct 17, 2023	2023 (Q3)	0.04 / -0.84	0.14	-702.86% (-0.98)
Jul 14, 2023	2023 (Q2)	-0.04 / -0.02	0.127	-116.54% (-0.15)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

ERIC Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jul 15, 2025	$7.84	$7.22	-7.91%
Apr 15, 2025	$7.45	$8.07	+8.32%
Jan 24, 2025	$8.80	$7.54	-14.32%
Oct 15, 2024	$7.46	$8.44	+13.14%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.