Ericsson reports 7% organic growth as it reshapes operating structure

Reported sales reached 59.5 billion SEK, up from 56.2 billion SEK in the same period last year. The growth was primarily fueled by strong performance in the Networks segment, where customer demand for differentiated connectivity remained robust. However, net income fell to 5.8 billion SEK, compared to 11.3 billion SEK in the previous year, which had been bolstered by a significant one-time divestment gain.

President and CEO Per Narvinger attributed the performance to disciplined execution and the deployment of AI-enabled features within their portfolio. To maintain this trajectory, the company is simplifying its operating structure to increase agility and accountability. While management remains cautious about geopolitical uncertainty and the flat RAN market, they continue to prioritize long-term profitability through strict cost management and portfolio optimization.