Earnings release
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Ericsson | Third quarter report 2026. October 15, 2026. 1 Third quarter report 2026 Strategic highlights – executing well in a challenging environment – Solid customer demand in strategic markets, combined with near-term commercial actions, supported organic growth of 7%*. – Customer wins and deployments across network modernization, differentiated connectivity and mission-critical networks. – Driving portfolio optimization, pricing and efficiency measures to help offset higher component costs and to strengthen competitiveness. Financial highlights – sales growth and cost discipline – Reported sales were SEK 59.5 (56.2) b. Organic* sales increased by 7%* YoY primarily driven by higher sales in Networks. Organic* sales grew in three out of four market areas. – Adjusted1 gross income increased to SEK 28.4 (27.0) b., driven by Mobile Networks. Reported gross income was SEK 28.0 (26.8) b. – Adjusted1 gross margin was 47.7% (48.1%). Networks margin increased, supported by retroactive IPR revenues. Enterprise margin was lower, due to the divestment of iconectiv. Cloud Software and Services margin was stable. Reported gross margin was 47.1% (47.6%). – Adjusted1 EBITA was SEK 10.1 (15.8) b. with a 17.0% (28.1%) margin. Excluding the prior-year period capital gain of SEK 7.6 b., adjusted EBITA increased. Operating expenses decreased YoY. Reported EBITA was SEK 9.2 (15.5) b., with a 15.5% (27.6%) margin. – Net income was SEK 5.8 (11.3) b. and diluted EPS was SEK 1.77 (3.33). Prior-year EPS included a SEK 1.72 per share divestment gain. – Free cash flow before M&A was SEK 4.9 (6.6) b. – Capital returns to shareholders were SEK 4.8 b. of share repurchases. Comment from Per Narvinger, President and CEO We delivered strong third-quarter results, supported by focused execution, the strength of our portfolio, and the trust customers place in Ericsson. During the quarter, I met with many of our customers. A consistent theme was the need for more intelligent and autonomous networks to improve performance, efficiency, robustness and resilience. Ericsson is well positioned, and we are already seeing the efficiency gains from AI-enabled features in our portfolio being deployed in customer networks. Today, we also announced a simplification of our operating structure that will strengthen our customer focus and drive further efficiencies over time. It will enable us to move faster, improve accountability and better support our customers in a changing market. Ericsson has a proud history of shaping global connectivity, and I am excited to lead the company in this period of rapid technology change. Looking ahead, the RAN market is flat, geopolitical uncertainty remains elevated and component costs are a headwind to gross margin next year. We will stay close to our customers, continue to prioritize technology leadership and take disciplined actions to strengthen competitiveness. Ericsson remains well positioned to navigate these challenges and deliver profitable long-term growth, with all segments contributing. SEK b. Q3 2026 Q3 2025 YoY change Q2 2026 QoQ change Jan-Sep 2026 Jan-Sep 2025 YoY change Net sales 59.5 56.2 6% 52.7 13% 161.5 167.4 -4% Organic sales growth*² ⁾ - - 7% - - - - 4% Gross income 28.0 26.8 5% 24.1 16% 75.4 80.0 -6% Gross margin² ⁾ 47.1% 47.6% - 45.8% - 46.7% 47.8% - EBIT 8.9 15.2 -41% 5.9 50% 16.2 27.5 -41% EBIT margin² ⁾ 14.9% 26.9% - 11.2% - 10.0% 16.4% - EBITA² ⁾ 9.2 15.5 -41% 6.3 47% 17.3 28.9 -40% EBITA margin² ⁾ 15.5% 27.6% - 11.9% - 10.7% 17.3% - Net income 5.8 11.3 -49% 4.1 42% 10.8 20.1 -47% EPS diluted, SEK 1.77 3.33 -47% 1.22 45% 3.24 5.94 -45% Free cash flow before M&A² ⁾ 4.9 6.6 -26% 0.4 - 11.2 11.9 -6% Net cash, end of period² ⁾ 60.7 51.9 17% 59.8 1% 60.7 51.9 17% Adjusted financial measures¹ ⁾ ² ⁾ Adjusted gross income 28.4 27.0 5% 25.5 11% 77.6 80.7 -4% Adjusted gross margin 47.7% 48.1% - 48.4% - 48.0% 48.2% - Adjusted EBIT 9.8 15.5 -37% 6.5 50% 21.5 28.7 -25% Adjusted EBIT margin 16.4% 27.5% - 12.4% - 13.3% 17.2% - Adjusted EBITA 10.1 15.8 -36% 6.9 47% 22.6 30.2 -25% Adjusted EBITA margin 17.0% 28.1% - 13.1% - 14.0% 18.0% - * Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations. ¹ ⁾ Adjusted metrics are adjusted to exclude restructuring charges. ² ⁾ Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statement.
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Ericsson | Third quarter report 2026. October 15, 2026. Group results 2 Amounts marked with an ‘*’ in this document represent sales growth adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations, also named organic sales growth. These numbers present performance on a comparable basis to improve the comparability of results between periods. Organic sales growth figures are non-IFRS measures. ‘Adjusted’ metrics are adjusted to exclude restructuring charges and are non-IFRS measures. This is a change in nomenclature only. See ‘Financial statements and other information’ for Alternative performance measures. Group results SEK b. Q3 2026 Q3 2025 YoY change Q2 2026 QoQ change Jan-Sep 2026 Jan-Sep 2025 YoY change Net sales 59.5 56.2 6% 52.7 13% 161.5 167.4 -4% Organic sales growth*¹ ⁾ - - 7% - - - - 4% Gross income 28.0 26.8 5% 24.1 16% 75.4 80.0 -6% Gross margin 47.1% 47.6% - 45.8% - 46.7% 47.8% - Research and development (R&D) expenses -11.8 -11.5 3% -10.5 13% -35.8 -35.8 0% Selling and administrative expenses -7.4 -7.9 -6% -7.7 -4% -23.3 -24.7 -6% Impairment losses on trade receivables 0.1 0.0 52% 0.0 - -0.1 0.1 - Other operating income and expenses 0.1 7.7 -99% 0.1 4% 0.2 7.8 -97% Share of earnings/losses of associated companies 0.0 0.0 - -0.1 - -0.2 0.1 - EBIT 8.9 15.2 -41% 5.9 50% 16.2 27.5 -41% EBIT margin¹ ⁾ 14.9% 26.9% - 11.2% - 10.0% 16.4% - EBITA¹ ⁾ 9.2 15.5 -41% 6.3 47% 17.3 28.9 -40% EBITA margin¹ ⁾ 15.5% 27.6% - 11.9% - 10.7% 17.3% - Financial income and expenses, net -0.9 -0.2 - -0.2 - -1.3 -0.3 - Income tax -2.2 -3.6 -41% -1.7 30% -4.2 -7.1 -41% Net income 5.8 11.3 -49% 4.1 42% 10.8 20.1 -47% Restructuring charges -0.9 -0.3 195% -0.6 49% -5.3 -1.2 - Adjusted financial measures¹ ⁾ Adjusted gross income 28.4 27.0 5% 25.5 11% 77.6 80.7 -4% Adjusted gross margin 47.7% 48.1% - 48.4% - 48.0% 48.2% - Adjusted EBIT 9.8 15.5 -37% 6.5 50% 21.5 28.7 -25% Adjusted EBIT margin 16.4% 27.5% - 12.4% - 13.3% 17.2% - Adjusted EBITA 10.1 15.8 -36% 6.9 47% 22.6 30.2 -25% Adjusted EBITA margin 17.0% 28.1% - 13.1% - 14.0% 18.0% - 1) Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements. Net sales Reported sales increased by 6% YoY to SEK 59.5 (56.2) b. Networks sales increased by 9% to SEK 38.7 b. Cloud Software and Services sales increased by 3% to SEK 15.8 b. Enterprise sales declined by -10% to SEK 4.6 b., reflecting the divestment of iconectiv in Q3 2025. Sales in segment Other were stable at SEK 0.4 b. Organic sales increased by 7%* YoY primarily driven by increased Networks sales. Sales grew in market areas North East Asia, South East Asia, Oceania and India and in market area Europe, Middle East and Africa. Growth was partly offset by a -1%* decline in market area Americas, reflecting lower sales in Latin America. Networks sales increased by 9%* with growth in three of the four market areas. Cloud Software and Services sales grew by 3%*, with growth in three of the four market areas. Sales in segment Enterprise increased by 1%*. IPR licensing revenues increased to SEK 3.9 (3.1) b. The increase was partly driven by retroactive revenue related to previously unlicensed periods. 82% of IPR licensing revenues are reported in segment Networks, with the remainder in Cloud Software and Services. Gross income and margin Gross margin declined slightly to 47.1% (47.6%), reflecting higher restructuring charges and the impact of the divestment of iconectiv. Gross income increased to SEK 28.0 (26.8) b. Higher gross income in Networks and in Cloud Software and Services was partly offset by lower gross income in Enterprise following the divestment of iconectiv. Gross margin and gross income benefited from higher IPR licensing revenues, in part reflecting retroactive revenue related to previously unlicensed periods. Adjusted gross income increased to SEK 28.4 (27.0) b., with a margin of 47.7% (48.1%). Research and development (R&D) expenses R&D expenses increased to SEK -11.8 (-11.5) b., reflecting higher restructuring charges of SEK -0.3 (0.0) b. Cost-reduction actions offset salary increases. Selling and administrative (SG&A) expenses SG&A expenses were SEK -7.4 (-7.9) b., including restructuring charges of SEK -0.3 (-0.1) b. SG&A expenses declined as a result of cost-reduction actions, with the largest reduction in Enterprise. Other operating income and expenses Other operating income and expenses were SEK 0.1 (7.7) b. The prior-year period included a SEK 7.6 b. capital gain from the divestment of iconectiv. Restructuring charges Restructuring charges were SEK -0.9 (-0.3) b. Gross income included SEK -0.4 (-0.3) b. of restructuring charges, while
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Ericsson | Third quarter report 2026. October 15, 2026. Group results 3 operating expenses included SEK -0.5 (0.0) b. of restructuring charges. EBITA EBITA decreased to SEK 9.2 (15.5) b. reflecting a SEK 7.6 b. capital gain in the prior-year period as well as higher restructuring charges. Profitability improved excluding the capital gain. Gross income improved by SEK 1.2 b. while operating expenses decreased by SEK 0.2 b. YoY. The EBITA margin was 15.5% (27.6%). Adjusted EBITA decreased to SEK 10.1 (15.8) b. reflecting the capital gain in the prior-year period. The adjusted EBITA margin was 17.0% (28.1%). EBIT EBIT decreased to SEK 8.9 (15.2) b., reflecting the capital gain in the prior-year period. The EBIT margin was 14.9% (26.9%). Amortization was stable at SEK -0.4 (-0.4) b. Adjusted EBIT decreased to SEK 9.8 (15.5) b. reflecting the capital gain in the prior-year period. The adjusted EBIT margin was 16.4% (27.5%). Financial income and expenses, net Financial income and expenses were SEK -0.9 (-0.2) b. Financial net was negatively affected by provisions related to interest expenses associated with the resolution of tax matters and a currency hedge effect of SEK -0.2 (-0.1) b. Income tax Taxes were SEK -2.2 (-3.6) b. A tax rate of 28% is expected for the full year, mainly reflecting the impact of elevated restructuring costs and provisions for resolutions of tax matters. The effective tax rate in 2025 was 25%. Net income Net income decreased to SEK 5.8 (11.3) b. Diluted EPS was SEK 1.77 (3.33). Employees The number of employees on September 30, 2026, was 85,417 compared with 86,536 on June 30, 2026. On September 30, 2025, the number of employees was 89,898. Financial highlights, year-to-date (Jan-Sep) development Reported sales decreased by -4% to SEK 161.5 (167.4) b. including a negative currency impact of SEK -9.6 b. Sales in Networks declined by -2% to SEK 104.7 (106.8) b. Sales in Cloud Software and Services declined by -1% to SEK 42.4 (42.7) b. Sales in Enterprise declined by -20% to SEK 13.2 (16.5) b., including a SEK -2.7 b. impact from the divestment of iconectiv in 2025. Organic sales increased by 4%*. Sales increased organically in Networks by 4%*, in Cloud Software and Services by 4%* and in Enterprise by 3%*. Organic sales increased in three of the four market areas. Sales in market area Americas declined slightly, reflecting high deliveries in North America in the prior-year period. IPR licensing revenues declined to SEK 10.4 (11.2) b., as the prior-year period benefited from higher revenues related to previously unlicensed periods. Gross income decreased to SEK 75.4 (80.0) b. impacted by lower net sales, a negative currency impact of SEK -4.7 b. and restructuring charges of SEK -2.2 (-0.7) b. Gross margin was 46.7% (47.8%). Adjusted gross income decreased to SEK 77.6 (80.7) b., with a margin of 48.0% (48.2%). Adjusted gross margin was stable in Networks and increased in Cloud Software and Services. Gross margin in Enterprise declined YoY primarily as a result of the divestment of iconectiv. EBITA decreased to SEK 17.3 (28.9) b. with a margin of 10.7% (17.3%), impacted by lower net sales, increased restructuring charges, the divestment of iconectiv, and a negative currency impact of SEK -2.9 b. The prior-year period included a SEK 7.6 b. capital gain from the divestment of iconectiv. Adjusted EBITA decreased to SEK 22.6 (30.2) b., with a margin of 14.0% (18.0%). EBIT decreased to SEK 16.2 (27.5) b., with a margin of 10.0% (16.4%). Adjusted EBIT was SEK 21.5 (28.7) b., with a margin of 13.3% (17.2%). Amortization of intangible assets was SEK -1.1 (-1.5) b. Net income decreased to SEK 10.8 (20.1) b. including restructuring charges of SEK -5.3 (-1.2) b. Diluted EPS decreased to SEK 3.24 (5.94).
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Ericsson | Third quarter report 2026. October 15, 2026. Market area sales 4 Market area sales SEK b. Q3 2026 Q3 2025 YoY change YoY organic growth Q2 2026 QoQ change Jan-Sep 2026 Jan-Sep 2025 YoY change YoY organic growth Americas 19.8 19.8 0% -1% 18.8 5% 55.7 60.5 -8% -1% Europe, Middle East and Africa 17.5 16.7 4% 4% 16.3 7% 48.0 47.4 1% 5% South East Asia, Oceania and India 8.8 7.1 24% 25% 5.4 63% 21.1 19.8 7% 14% North East Asia 4.5 3.8 19% 22% 3.7 22% 11.4 10.8 5% 15% Other 8.9 8.8 1% 7% 8.5 5% 25.2 28.9 -13% 1% Of which IPR 3.9 3.1 24% - 3.4 14% 10.4 11.2 -7% - Total 59.5 56.2 6% 7% 52.7 13% 161.5 167.4 -4% 4% Market Area Americas Sales decreased by -1%* YoY. Networks sales declined slightly, with a slight increase in North America, supported by project phasing, offset by lower sales in Latin America, mainly reflecting timing of rollout services. Cloud Software and Services sales increased due to acceleration of project deliverables. Reported sales were stable YoY. Market Area Europe, Middle East and Africa Sales increased by 4%* YoY. Networks sales grew with increased sales in the Middle East, supported by ongoing network modernization and expansion projects. Sales in Europe declined slightly following the gradual completion of modernization projects. Cloud Software and Services sales increased across Europe, Middle East and Africa, supported by accelerated project deliverables. Reported sales increased by 4% YoY. In the quarter, Ericsson announced a multi-year 5G expansion agreement with stc in Saudi Arabia and began the rollout of a next-generation 5G Core network with VodafoneThree in the UK as part of its long-term partnership. Market Area South East Asia, Oceania and India Sales increased by 25%* YoY. Networks sales increased as a result of the timing of project deliveries in South East Asia and India. Cloud Software and Services sales declined due to project phasing. Reported sales increased by 24% YoY. In the quarter, Ericsson technology was selected for the first stage of Queensland's next-generation rail communications network, providing mission-critical private 5G capabilities for rail operations. Market Area North East Asia Sales increased by 22%* YoY primarily driven by Japan, supported by higher project deliveries in Networks and the timing of project milestones in Cloud Software and Services. Reported sales increased by 19% YoY. In the quarter, NTT DOCOMO selected and began deploying Ericsson's next-generation RAN Compute platform to support 5G Advanced and future AI-driven network capabilities. Market Area Other Market area Other includes IPR licensing revenues and almost all sales in segment Enterprise. Sales increased by 7%* YoY, with sales growth in IPR licensing revenues, in part reflecting retroactive revenue related to previously unlicensed periods, and a positive hedge effect. Reported sales increased by 1% YoY, impacted by the divestment of iconectiv in Q3 2025.
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Ericsson | Third quarter report 2026. October 15, 2026. Segment results 5 Segment Results Mobile Networks – Segment Networks SEK b. Q3 2026 Q3 2025 YoY change Q2 2026 Net sales 38.7 35.4 9% 33.0 Of which IPR licensing revenues3.2 2.6 24% 2.8 Organic sales growth - - 9% - Gross income 19.3 17.7 9% 16.0 Gross margin 49.8% 50.0% - 48.3% EBIT 8.4 7.1 19% 6.0 EBIT margin 21.8% 20.0% - 18.2% EBITA 8.4 7.1 19% 6.0 EBITA margin 21.8% 20.0% - 18.3% Restructuring charges -0.5 -0.1 - 0.2 Adjusted financial measures Adjusted gross income 19.4 17.8 10% 16.6 Adjusted gross margin 50.3% 50.1% - 50.4% Adjusted EBIT 8.9 7.2 25% 5.8 Adjusted EBIT margin 23.1% 20.2% - 17.6% Adjusted EBITA 9.0 7.2 25% 5.8 Adjusted EBITA margin 23.1% 20.3% - 17.7% Breakdown of sales into products, services and IPR licensing is available in note 2. Net sales Sales increased by 9%* YoY. Organic sales growth was driven by higher sales in market areas North East Asia, South East Asia, Oceania and India and Europe, Middle East and Africa. Sales declined slightly in market area Americas. Sales were also supported by higher IPR licensing revenues, including retroactive revenue related to previously unlicensed periods. Reported sales increased by 9% to SEK 38.7 (35.4) b. In North East Asia and South East Asia, Oceania and India, growth was primarily driven by the timing of project deliveries in Japan and India. Sales grew in Europe, Middle East and Africa, supported by ongoing network modernization and expansion in the Middle East, partly offset by a slight decline in Europe following the gradual completion of modernization projects. Sales in market area Americas declined slightly, with slight growth in North America offset by lower sales in Latin America. Gross income and margin Adjusted gross income increased to SEK 19.4 (17.8) b. Adjusted gross margin was 50.3% (50.1%), including a positive impact from product mix and retroactive IPR licensing revenues, partly offset by increased component costs. EBITA Adjusted EBITA increased to SEK 9.0 (7.2) b., driven by higher sales. R&D expenses increased slightly to support the strategy to build high-performance programmable networks, offset by lower SG&A expenses. The adjusted EBITA margin was 23.1% (20.3%). For the rolling four quarters, net sales were SEK 148.9 b. and the adjusted EBITA margin was 21.0%. Mobile Networks – Segment Cloud Software and Services SEK b. Q3 2026 Q3 2025 YoY change Q2 2026 Net sales 15.8 15.3 3% 14.7 Of which IPR licensing revenues0.7 0.6 24% 0.6 Organic sales growth - - 3% - Gross income 6.7 6.5 4% 5.9 Gross margin 42.4% 42.1% - 39.8% EBIT 1.7 1.7 0% 1.1 EBIT margin 10.9% 11.2% - 7.8% EBITA 1.7 1.7 0% 1.1 EBITA margin 10.9% 11.2% - 7.8% Restructuring charges -0.3 -0.2 - -0.7 Adjusted financial measures Adjusted gross income 6.9 6.7 3% 6.5 Adjusted gross margin 43.5% 43.6% - 44.1% Adjusted EBIT 2.0 1.9 6% 1.8 Adjusted EBIT margin 12.8% 12.5% - 12.4% Adjusted EBITA 2.0 1.9 6% 1.8 Adjusted EBITA margin 12.8% 12.5% - 12.4% Breakdown of sales into products, services and IPR licensing is available in note 2. Net sales Sales increased by 3%* YoY. Organic sales increased in market areas Americas, in Europe, Middle East and Africa and in North East Asia, while sales declined in South East Asia, Oceania and India. Sales were supported by higher IPR licensing revenues, including retroactive revenue related to previously unlicensed periods. Reported sales increased by 3% to SEK 15.8 (15.3) b. Services sales accounted for 62% (65%) of sales. Sales increased in market areas Americas and Europe, Middle East and Africa, driven by accelerated project deliverables. Sales increased in market area North East Asia, reflecting the delivery of project milestones in Japan. Sales in South East Asia, Oceania and India declined due to project phasing. Gross income and margin Adjusted gross income increased to SEK 6.9 (6.7) b. Adjusted gross margin was stable at 43.5% (43.6%), with improvements in delivery performance. EBITA Adjusted EBITA was SEK 2.0 (1.9) b. EBITA was supported by higher sales. Increased R&D investments were largely offset by lower SG&A expenses. The adjusted EBITA margin was 12.8% (12.5%). For the rolling four quarters, net sales were SEK 62.4 b. and the adjusted EBITA margin was 13.1%.
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Ericsson | Third quarter report 2026. October 15, 2026. Segment results 6 Enterprise – Segment Enterprise SEK b. Q3 2026 Q3 2025 YoY change Q2 2026 Net sales 4.6 5.1 -10% 4.5 Organic sales growth - - 1% - Gross income 2.3 2.6 -13% 2.3 Gross margin 50.0% 51.6% - 50.7% EBIT -1.0 6.6 - -1.2 EBIT margin -21.2% 131.5% - -27.1% EBITA -0.6 7.0 - -0.9 EBITA margin -13.9% 138.1% - -19.8% Restructuring charges -0.1 0.0 - -0.1 Adjusted financial measures Adjusted gross income 2.3 2.6 -13% 2.3 Adjusted gross margin 50.0% 51.6% - 50.9% Adjusted EBIT -0.9 6.7 - -1.2 Adjusted EBIT margin -19.3% 132.0% - -25.9% Adjusted EBITA -0.5 7.0 - -0.8 Adjusted EBITA margin -12.1% 138.7% - -18.7% Net sales Sales increased by 1%* YoY, driven by growth in Technologies and New Businesses. Reported sales decreased by -10% YoY to SEK 4.6 (5.1) b., reflecting the divestment of iconectiv in Q3 2025. Sales in Global Communications Platform were broadly stable as sales growth in CPaaS and Network Powered Solutions largely offset declines in legacy Applications. Sales in Enterprise Wireless Solutions declined slightly, as continued subscriptions growth was offset by customer hardware order phasing. Gross income and margin Adjusted gross income was SEK 2.3 (2.6) b., reflecting the divestment of iconectiv in Q3 2025. The adjusted gross margin was 50.0% (51.6%). EBITA (loss) Adjusted EBITA (loss) was SEK -0.5 (7.0) b., supported by ongoing efficiency measures. The prior-year period included a SEK 7.6 b. capital gain from the divestment of iconectiv. Adjusted EBITA margin was -12.1% (138.7%). For the rolling four quarters, net sales were SEK 17.8 b. and the adjusted EBITA margin was -22.2%. Segment Other SEK b. Q3 2026 Q3 2025 YoY change Q2 2026 Net sales 0.4 0.4 -4% 0.4 Organic sales growth - - -5% - Gross income -0.3 0.0 - 0.0 Gross margin -68.4% 0.0% - 0.5% EBIT -0.3 -0.3 - 0.0 EBIT margin -81.6% -71.5% - -3.4% EBITA -0.3 -0.3 - 0.0 EBITA margin -81.5% -71.3% - -3.4% Restructuring charges 0.0 0.0 - -0.1 Adjusted financial measures Adjusted gross income -0.3 0.0 - 0.1 Adjusted gross margin -65.6% 1.0% 13.3% Adjusted EBIT -0.3 -0.3 - 0.0 Adjusted EBIT margin -78.8% -70.6% - 10.9% Adjusted EBITA -0.3 -0.3 - 0.0 Adjusted EBITA margin -78.8% -70.3% - 10.9% Net sales Reported sales were stable at SEK 0.4 (0.4) b. Gross income and margin Adjusted gross income was SEK -0.3 (0.0) b., reflecting a non- cash impairment charge of SEK -0.3 b. related to Red Bee Media. EBITA (loss) Adjusted EBITA (loss) was SEK -0.3 (-0.3) b. reflecting the impairment charge. In the prior-year period EBITA was impacted by a revaluation of the Ericsson Ventures portfolio. For the rolling four quarters, net sales were SEK 1.7 b. hfl dfi i l ii
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Ericsson | Third quarter report 2026. October 15, 2026. Cash flow and financial position 7 Cash flow and financial position Free cash flow bridge, SEK b. Q3 2026 Q3 2025 Q2 2026 Jan-Sep 2026 Jan-Sep 2025 Adjusted EBITA 10.1 15.8 6.9 22.6 30.2 Depreciation and amortization of non-acquired assets 1.8 1.8 1.6 5.1 5.6 Restructuring charges -0.9 -0.3 -0.6 -5.3 -1.2 Changes in operating net assets -3.7 -0.5 -4.4 -2.5 -6.0 Interest paid/received, taxes paid, and other -0.8 -8.9 -1.6 -4.0 -12.1 Cash flow from operating activities 6.5 7.9 1.9 15.8 16.4 Net capex and other investing activities -1.1 -0.8 -1.0 -3.2 -2.9 Repayment of lease liabilities -0.5 -0.5 -0.5 -1.4 -1.7 Free cash flow before M&A 4.9 6.6 0.4 11.2 11.9 Cash flow from operating activities 6.5 7.9 1.9 15.8 16.4 Cash flow from investing activities 1.2 3.2 -3.7 -0.7 -6.4 Cash flow from financing activities 0.4 -1.2 -9.2 -11.1 -5.4 SEK b. Sep 30 2026 Sep 30 2025 Jun 30 2026 Gross cash 98.0 88.4 91.3 - Borrowings, current 9.5 6.7 9.5 - Borrowings, non-current 27.8 29.9 22.0 Net cash 60.7 51.9 59.8 Equity 111.3 102.5 104.8 Equity ratio (%) 36.9% 36.3% 36.4% Capital turnover (times) 1.4 1.5 1.4 Return on capital employed (%) 16.5% 22.5% 20.7% Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements. Cash flow Cash flow from operating activities was SEK 6.5 (7.9) b. driven by earnings and impacted by increased operating net assets. Quarterly cash flow from operating activities decreased compared to the prior-year period. Earnings decreased, reflecting the contribution from the divestment of iconectiv in the prior-year period. Working capital also increased, with higher inventories, reflecting timing of project deliveries and higher component prices. Cash flow from investing activities was SEK 1.2 (3.2) b. driven by purchases of interest-bearing securities. The prior-year period had a one-time impact of the iconectiv divestment. Cash flow from financing activities was SEK 0.4 (-1.2) b. including SEK 4.5 b. of share repurchases and SEK 5.5 b. of proceeds from new borrowings, reflecting a EUR 500 m. bond issuance in September. Financial position Gross cash increased sequentially by SEK 6.7 b. to SEK 98.0 b., supported by free cash flow before M&A of SEK 4.9 b. and proceeds from new borrowings, partly offset by share repurchases. Net cash increased sequentially by SEK 0.8 b. to SEK 60.7 b. The average maturity of parent company borrowings was 2.9 years as of September 30, 2026, compared with 2.5 years as of June 30, 2026. Liabilities for post-employment benefits decreased sequentially to SEK 14.3 b. from SEK 18.0 b. The Swedish defined benefit obligation (DBO) was calculated using a discount rate based on the yields of Swedish government bonds. If the discount rate had been based on Swedish covered mortgage bonds, the liability for post-employment benefits would have been approximately SEK 6.6 b., which is SEK 7.7 b. lower than current DBO. d i
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Ericsson | Third quarter report 2026. October 15, 2026. Key data points 8 Key data points Market Dell’Oro estimates that the global RAN equipment market will remain stable in 2026. Source: Dell’Oro Mobile RAN Quarterly Report Q126, May 2026. Ericsson Net sales Reported average seasonality last 3 years (2023–2025), %. Q4 → Q1Q1 → Q2Q2 → Q3Q3 → Q4 Networks -25% +4% +1% +17% Cloud Software and Services -33% +13% +3% +29% Net sales may show large variations between quarters, including currency changes. IPR licensing revenues Annualized recurring IPR licensing revenues were approximately SEK 13.5 b. IPR licensing revenue growth opportunities remain in new market segments. Optimizing the terms and value of new agreements and renewals will remain a priority. Currency exposure Currency exposure may vary significantly from quarter to quarter. In 2025, approximately half of net sales were USD-denominated, over 15% of net sales were EUR-denominated, and five other currencies (INR, JPY, GBP, CNY, AUD) contributed approximately 15% of net sales. Further currency information is available at: https://www.ericsson.com/en/investors/financial-reports-and- presentations/foreign-exchange-rates Amortization of intangible assets Amortization of intangible assets is expected to be around SEK -0.4 b. per quarter in segment Enterprise. Restructuring charges Restructuring charges for 2026 are expected to be at elevated levels. Segments Increased uncertainty remains in the outlook and in the broader macroeconomic and geopolitical environment. The Q4 2026 outlook assumes currency rates of USD:SEK 10.0, EUR:SEK 11.3. Networks Sales growth in Q4 2026 is expected to be broadly similar to 3- year average seasonality. Adjusted gross margin in Q4 2026 is expected to be in the range of 49% to 51%. Cloud Software and Services Sales growth in Q4 2026 is expected to be broadly similar to 3- year average seasonality. Parent Company
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Ericsson | Third quarter report 2026. October 15, 2026. Parent Company 9 Income after financial items January – September 2026, was SEK 30.1 (28.9) b. At the end of the quarter, gross cash (cash, cash equivalents plus interest-bearing securities, current and non-current) amounted to SEK 82.7 (76.3) b. There was an increase in intercompany lending of SEK 1.0 b. and an increase in intercompany borrowing of SEK 5.7 b. in the quarter. At the end of the quarter, non-restricted equity amounted to SEK 54.7 (41.1) b., and total equity amounted to SEK 103.0 (89.4) b. During the quarter, Ericsson repurchased 49,225,701 Class B shares for a total consideration of SEK 4.8 b. in accordance with the AGM authorization. Repurchases year-to-date amounted to 78,761,682 Class B shares for SEK 8.1 b. Repurchased shares are held as treasury shares and presented as a deduction from equity. As of September 30, 2026, Ericsson held 114,080,663 treasury shares (38,002,276 as of Dec 31, 2025). Repurchased shares are reflected as a reduction in the average number of shares outstanding and in the calculation of earnings per share. Other information
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Ericsson | Third quarter report 2026. October 15, 2026. Other Information 10 Legal proceedings involving governmental authorities In February 2022, Ericsson publicly disclosed that an internal investigation in 2019 included a review of the conduct of Ericsson employees, vendors and suppliers in Iraq during the period between 2011 to 2019. The investigators could not determine the ultimate recipients of any payments, nor identify that any Ericsson employee was directly involved in financing terrorist organizations. The Company’s 2019 internal Iraq investigation did not conclude that Ericsson made or was responsible for any payments to any terrorist organization. The Company continues to fully cooperate with the US Department of Justice (DOJ) in its investigation into matters discussed in the 2019 internal Iraq investigation report and related topics concerning historical conduct in jurisdictions including Iraq and Syria and continues to be in discussion with the government on these matters. As additional information continues to be identified and evaluated in continued cooperation with the DOJ during its ongoing investigation, it is expected that there will not be any conclusive determinations on the outcome until the investigation is completed. The scope and duration of the investigation remain uncertain. In April 2019, Ericsson was informed by China’s State Administration for Market Regulation Anti-monopoly Bureau (SAMR) that SAMR has initiated an investigation into Ericsson’s patent licensing practices in China. Ericsson is cooperating with the investigation, which is still in a fact-finding phase. The next steps include continued fact-finding and meetings with SAMR in order to facilitate the authority’s assessment and conclusions. In case of adverse findings, SAMR has the power to impose behavioral and financial remedies. Legal proceedings not involving governmental authorities In August 2022, a civil lawsuit was filed in the United States District Court for the District of Columbia against Telefonaktiebolaget LM Ericsson and Ericsson Inc. (collectively, the “Ericsson defendants”). The lawsuit was brought by US military service members, employees of US government contractors and other civilians who were killed or injured in terrorist attacks in Iraq, Afghanistan and Syria from 2005 to 2021, as well as by their family members. The lawsuit asserts claims against the Ericsson defendants under the U.S. Anti-Terrorism Act alleging that the Ericsson defendants made payments that ultimately aided the terrorist organizations that committed, planned or authorized the attacks. In November 2022, the Ericsson defendants filed a motion to dismiss the complaint. On December 20, 2022, plaintiffs filed an amended complaint, which added additional plaintiffs, including a plaintiff injured in Turkey, and also named Ericsson AB (collectively with the Ericsson defendants, the “Ericsson corporate defendants”), former CEO Börje Ekholm and a former employee (who has not been served with process) as additional defendants and also asserted additional allegations and claims. In March 2023, the Ericsson corporate defendants and Mr. Ekholm filed motions to dismiss the amended complaint. Plaintiffs filed their oppositions to defendants’ motions to dismiss the amended complaint in June 2023, and defendants filed reply briefs in support of their motions to dismiss in July 2023. All briefing has been submitted, and resolution of the matter is pending with the District Court. All defendants will continue to vigorously defend this matter. In February 2024, a second civil lawsuit also alleging violations of the U.S. Anti-Terrorism Act was filed in the United States District Court for the District of Columbia. The lawsuit was filed by the same law firm and involves substantially similar factual allegations and claims as those made in the Anti- Terrorism Act lawsuit originally filed in August 2022, and similarly names the same Ericsson corporate defendants, former President and CEO Börje Ekholm and a former employee as defendants. The new lawsuit was brought by additional US military service members, employees of US government contractors and other civilians who were killed or injured in terrorist attacks in Iraq, Afghanistan, Syria, Turkey, Niger, and France from 2005 to 2021, as well as by their family members. The District Court for the District of Columbia has stayed the proceedings in this matter pending its decision on the motions to dismiss in the earlier-filed suit. The defendants will vigorously defend this matter. In November 2025, a third civil lawsuit also alleging violations of the US Anti-Terrorism Act was filed in the US District Court for the District of Columbia. The lawsuit was filed by a law firm not involved in the August 2022 and February 2024 lawsuits and involves substantially similar factual allegations and claims to those made in the Anti-Terrorism Act lawsuits filed in August 2022 and February 2024, and similarly names the same Ericsson corporate defendants, former CEO Börje Ekholm and a former employee as defendants. The new lawsuit was brought by additional US military service members, employees of US government contractors and other civilians who were killed or injured in terrorist attacks in France, Afghanistan, and Belgium from 2012 to 2018, as well as by their family members. The District Court for the District of Columbia has stayed the proceedings in this matter pending its decision on the motions to dismiss in the earlier-filed suit. The defendants will vigorously defend this matter. In March 2026, a fourth civil lawsuit also alleging violations of the US Anti-Terrorism Act was filed in the US District Court for the District of Columbia. The lawsuit involves substantially similar factual allegations and claims to those made in the Anti-Terrorism Act lawsuits filed in August 2022, February 2024, and November 2025, and similarly names the same Ericsson corporate defendants, former CEO Börje Ekholm and a former employee as defendants. The new lawsuit was brought by additional US military service members and civilians who were killed or injured in terrorist attacks in Afghanistan, Iraq, Niger, Tajikistan and Turkey from 2005 to 2018, as well as by their family members. The District Court for the District of Columbia has stayed the proceedings in this matter pending its decision on the motions to dismiss in the earlier-filed suit. The defendants will vigorously defend this matter. In September 2026, a fifth civil lawsuit also alleging violations of the US Anti-Terrorism Act was filed in the US District Court for the District of Columbia. The lawsuit involves substantially similar factual allegations and claims to those made in the Anti-Terrorism Act lawsuits filed in August 2022, February 2024, November 2025, and March 2026, and similarly names the same Ericsson corporate defendants, former CEO Börje Ekholm and a former employee as defendants. The new lawsuit was brought by a new set of plaintiffs. The defendants will vigorously defend this matter. Beginning on August 4, 2023, a number of civil lawsuits have been filed against Telefonaktiebolaget LM Ericsson in Solna District Court, Sweden. 93 claimants have filed suit, which are coordinated and financed by a UK-based litigation funder. The claimants consist of a group of non-Swedish funds and financial institutions that allegedly are or have been shareholders of the Company. Their damages claims are primarily based on alleged PRESS RELEASES October 15 Ericsson announces simplification of Group structure and
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Ericsson | Third quarter report 2026. October 15, 2026. Other Information 11 inadequate disclosure of the contents of the Company’s 2019 internal Iraq investigation report. Ericsson filed its statement of defense on March 15, 2024. On February 14, 2025, the District Court ordered Ericsson to produce the 2019 internal Iraq investigation report to the claimants’ external counsel. Ericsson appealed the decision and on August 15, 2025, the Court of Appeal overturned the District Court’s decision. The claimants appealed, but on March 12, 2026, the Supreme Court refused leave to appeal. Proceedings on the merits of the case have now resumed in the District Court. Ericsson will continue to vigorously defend this matter. The Company actively manages its IPR portfolio and its need for third-party licenses and is involved from time to time, in the ordinary course of business, in litigation related thereto, as plaintiff, defendant and other capacities. In addition to the proceedings discussed above, the Company is, and in the future may be, involved in various other regulatory investigations, enforcement actions, lawsuits, claims (including claims by third-parties the Company has indemnified against infringement liability or provided guarantees to) and proceedings incidental to the ordinary course of business and transactions. July 21 2026 Ericsson announces change to the Executive Team 2026 changes to the Executive Team Information on the share buyback program and related press releases is available on the Ericsson investor website at: Share buyback program Risk factors Ericsson is exposed to a number of risks in its activities. To stimulate identification and support cross-functional treatment
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Ericsson | Third quarter report 2026. October 15, 2026. Risk factors 12 within the Ericsson Group, risks are grouped in a number of categories, including, for example, risks relating to technology, IPR, compliance, project execution, operations, supply chain and sourcing concentration, products and services, customer concentration, treasury and accounting, the geopolitical environment, M&A, cybersecurity and occupational health and safety. Ericsson’s risk management is embedded into strategy development and operational processes, and material Group risks are regularly assessed and reviewed by executives as required by Ericsson’s Material Group Risk Protocol to ensure accountability, effectiveness, efficiency, business continuity and compliance. Risks are defined in both a short-term and long-term perspective and are related to long-term objectives and strategic direction as well as to short-term objectives. Risk factors and uncertainties of relevance to Ericsson are described in the Ericsson Annual Report 2025 and in the Annual Report on Form 20-F for the year ended December 31, 2025 (in the following, the “Annual Report 2025”). See also the risks set out in the section titled “Forward-looking statements.” Date for next report: January 22, 2027. Editor’s note Media and analyst briefing Ericsson invites media, investors and analysts to a conference call and live video webcast at 09:00 AM CEST on October 15, Investors Daniel Morris, Vice President, Head of Investor Relations
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Ericsson | Third quarter report 2026. October 15, 2026. Editor's note 13 2026. Link to the webcast, dial-in to audio conference, supporting material and replay will be available at: www.ericsson.com/investors and www.ericsson.com/newsroom For further information, please contact: Lars Sandström, Senior Vice President, Chief Financial Officer Phone: +46 72 161 20 04 E-mail: investor.relations@ericsson.com Peter Borsos, Vice President, Head of Group Communications Phone: +46 70 317 68 00 E-mail: media.relations@ericsson.com Telefonaktiebolaget LM Ericsson Org. number: 556016-0680 Torshamnsgatan 21 SE-164 83 Stockholm Phone: +46 10 719 00 00 www.ericsson.com Phone: +44 7386 657217 Lena Häggblom, Director, Investor Relations Phone: +46 72 593 27 78 Guido Carlo Ferrante Investor Relations Phone: +46 72 467 52 59 E-mail: investor.relations@ericsson.com Media Ralf Bagner, Head of Media Relations Phone: +46 76 128 47 89 Corporate Communications Phone: +46 10 719 69 92 E-mail: media.relations@ericsson.com Forward-looking statements This report includes forward-looking statements. All statements other than statements of historical fact are forward-looking statements. The words “believe,” “expect,” “foresee,” “anticipate,” “assume,” “intend,” “likely,” “projects,” “may,” “could,” “plan,” “estimate,”“forecast,”“will,”“should,”“would,”“predict,”“aim,” financial condition – The expected demand for Ericsson's existing and new products and services as well as plans to launch new products and services including research and development expenditures
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Ericsson | Third quarter report 2026. October 15, 2026. Forward-looking statements 14 estimate, forecast, will, should, would, predict, aim, “ambition,” “seek,” “potential,” “target,” “might,” “continue,” or, in each case, their negative or variations, and similar words or expressions are used to identify forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially and adversely from those expressed in, or implied or projected by, the forward- looking statements, including, in particular the following: – Potential material additional liability resulting from past conduct, including allegations of past conduct that remains unresolved or unknown in multiple jurisdictions, including Iraq and Syria, which remains the subject of ongoing investigations by Ericsson and US governmental authorities – Risks related to internal controls and governance, including the potential to incur material liability in connection with internal controls surrounding payments made to third parties in connection with past conduct in multiple jurisdictions, including Iraq, which remains the subject of ongoing investigations by Ericsson and US governmental authorities – The risk that the ongoing investigations by Ericsson and US governmental authorities result in a conclusion by Ericsson or US governmental authorities that the Company’s past conduct included making or having responsibility for making payments to a terrorist organization or other improper payments, which could lead to material additional liability – Risks related to the Company's ongoing compliance with obligations under the National Security Agreement entered into in connection with Ericsson’s acquisition of Vonage Holdings Corp. (Vonage), which may adversely affect the Vonage business and subject the Company to additional liabilities – Ericsson's goals, strategies, planning assumptions and operational or financial performance expectations – Macroeconomic conditions, including inflationary pressures and effects on customer investments, market recovery and growth – Ongoing geopolitical and trade uncertainty, including challenging global economic conditions, market trends and the imposition of tariffs and sanctions – Continued growth of mobile communications, the success of Ericsson's existing and targeted customer base, and Ericsson's ability to maintain technology leadership – Success in implementing key strategies, including improving profitability, leading in 6G, capturing 5G market opportunities, capitalizing on network API and Enterprise opportunities, incorporation of AI technologies into certain products, services and processes and expected benefits from restructuring activities – Risks related to cybersecurity and privacy, security and data localization – Industry trends, future characteristics and development of the markets in which Ericsson operates – Risks of global operations, including legal and regulatory requirements and uncertainties, and unfavorable lawsuits and legal proceedings – Ericsson's future liquidity, capital resources, capital expenditures, cost savings and profitability, and risks related to expenditures – Ericsson's ability to deliver on future plans and achieve future growth – The expected operational or financial performance of strategic cooperation activities and joint ventures – Risks related to acquisitions and divestments that may be disruptive and incur significant expenses, including Ericsson's ability to successfully consummate such transactions, protect the value of acquisitions during integration, or achieve the value anticipated with an acquisition – Trends related to Ericsson's industry, including Ericsson's regulatory environment, competition and customer structure – Intense competition from existing competitors, and new entrants, including vendor consolidation – Risks related to the supply chain and single-source or highly concentrated third-party suppliers – Large, multi-year agreements with limited number of key customers, and operator consolidation – Risks related to intellectual property, key employees, and unforeseen risks and disruptions due to natural or man-made events – Risks related to environmental, social, governance, diversity, equity and inclusion and business conduct – Other factors included in Ericsson's filings with the US Securities and Exchange Commission (SEC), including the factors described throughout this report, included in the section Risk factors, and in “Risk Factors” in the Annual Report 2025, as updated by subsequent reports filed with the SEC. These forward-looking statements also represent Ericsson's estimates, assumptions and expectations only as of the date that they were made, and to the extent they represent third-party data, Ericsson has not undertaken to independently verify such third-party data and does not intend to do so. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements and are urged to carefully review and consider the various disclosures made in this report and in other documents Ericsson files from time to time with Ericsson's regulators that disclose risks and uncertainties that may affect Ericsson's business. Ericsson expressly disclaims a duty to provide updates to these forward- looking statements, and the estimates and assumptions associated with them, after the date of this report, to reflect events or changes in circumstances or changes in expectations or the occurrence of anticipated events, whether as a result of new information, future events or otherwise, except as required by applicable law or stock exchange regulations. Auditors’ Review Report Introduction We have reviewed the condensed interim financial information (interim report) of Telefonaktiebolaget LM Ericsson (publ.) as of September 30, 2026, and the nine months period then ended. The Board of Directors and the CEO are responsible for the preparation and presentation of this interim report in accordance
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Ericsson | Third quarter report 2026. October 15, 2026. Auditors' Review Report 15 with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review. Scope of review We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing practices in Sweden. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim report is not, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company. Stockholm, October 15, 2026 Deloitte AB Jonas Ståhlberg Authorized Public Accountant Financial statements and other information
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Ericsson | Third quarter report 2026. October 15, 2026. Financial statements and other information 16 Contents Financial statements (unaudited) 17 Condensed consolidated income statement 17 Condensed consolidated statement of comprehensive income 17 Condensed consolidated balance sheet 18 Condensed consolidated statement of cash flows 19 Condensed consolidated statement of changes in equity 20 Condensed consolidated income statement – isolated quarters 20 Condensed consolidated statement of cash flows – isolated quarters 21 Condensed Parent Company income statement 22 Condensed Parent Company statement of comprehensive income 22 Condensed Parent Company balance sheet 23 Accounting policies and Explanatory notes (unaudited) 24 Note 1 – Accounting policies and other information 24 Note 2 – Segment information 25 Note 3 – Financial income and expenses, net 29 Note 4 – Provisions 29 Note 5 – Financial risk management 30 Note 6 – Cash flow 31 Note 7 – Contingent liabilities and Assets pledged as collateral 31 Note 8 – Share information 32 Note 9 – Employee information 32 Alternative performance measures (unaudited) 33 Sales growth adjusted for comparable units and currency 33 Items excluding restructuring charges and impairments of goodwill and intangible assets 34 EBITA and EBITA margin / Adjusted EBITA and Adjusted EBITA margin 35 Rolling four quarters of net sales and adjusted EBITA margin (%) 35 Gross cash and net cash, end of period 36 Capital employed 36 Capital turnover 36 Return on capital employed 36 Equity ratio 37 Return on equity 37 Operating working capital 37 Free cash flow before M&A / Free cash flow after M&A / Free cash flow before M&A (% of net sales) 38 Sales growth by segment adjusted for comparable units and currency 38 Sales growth by market area adjusted for comparable units and currency 39 Rolling four quarters of net sales by segment 39 Gross margin by segment by quarter 39 EBIT margin by segment by quarter 39 EBITA and EBITA margin by segment by quarter 40 Restructuring charges by function 40 Restructuring charges by segment 41 Adjusted gross income and Adjusted gross margin by segment 41 Adjusted EBIT and Adjusted EBIT margin by segment 42 Rolling four quarters of adjusted EBITA margin by segment (%) 42 Operating working capital days 43 Financial statements (unaudited) Condensed consolidated income statement SEK million Note 2026 2025 Change 2026 2025 Net sales 2 59,478 56,239 6% 161,500 167,396 Cost of sales -31,488 -29,462 7% -86,089 -87,433 Gross income 2 27,990 26,777 5% 75,411 79,963 Research and development expenses -11,841 -11,510 3% -35,810 -35,754 Selling and administrative expenses -7,411 -7,913 -6% -23,283 -24,714 Impairment reversals/losses on trade receivables 69 46 52% -107 112
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Ericsson | Third quarter report 2026. October 15, 2026. Financial statements 17 Q3 Jan-SepOperating expenses -19,183 -19,377 -1% -59,200 -60,356 Other operating income and expenses¹ ⁾ 93 7,715 -99% 206 7,790 Share of earnings/losses of associated companies -37 36 - -192 76 Earnings before financial items and income tax (EBIT) 2 8,864 15,151 -41% 16,226 27,473 Financial income and expenses, net 3 -910 -212 - -1,282 -252 Income after financial items 7,954 14,939 -47% 14,944 27,221 Income tax -2,157 -3,639 -41% -4,184 -7,078 Net income 5,797 11,300 -49% 10,760 20,143 Net income attributable to: Owners of the Parent Company 5,806 11,149 10,740 19,865 Non-controlling interests -10 151 20 278 Other information Average number of shares, basic (million) 8 3,269 3,333 3,305 3,333 Earnings per share, basic (SEK)² ⁾ 8 1.78 3.34 3.25 5.96 Earnings per share, diluted (SEK)² ⁾ ³ ⁾ 8 1.77 3.33 3.24 5.94 ¹ ⁾ Jan-Sep 2025 and Q3 2025 includes a gain of SEK 7.6 billion due to the divestment of iconectiv. ² ⁾ Based on net income attributable to owners of the Parent Company.³ ⁾ Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share. Condensed consolidated statement of comprehensive income Q3 Jan-Sep SEK million 2026 2025 2026 2025 Net income 5,797 11,300 10,760 20,143 Other comprehensive income Items that will not be reclassified to profit or loss Remeasurements of defined benefit pension plans 4,531 5,698 5,141 4,881 Revaluation of credit risk on borrowings 34 -93 21 -2 Tax on items that will not be reclassified to profit or loss -793 -1,143 -921 -1,130 Items that have been or may be reclassified to profit or loss Cash flow hedge reserve Gains/losses arising during the period -186 29 -607 4,684 Reclassification adjustments on gains/losses included in profit or loss -455 -59 -1,587 263 Translation reserves Changes in translation reserves 2,096 -1,029 5,558 -10,927 Reclassification to profit or loss – 1,304 -10 1,358 Share of other comprehensive income of associated companies 10 -8 116 -64 Tax on items that have been or may be reclassified to profit or loss 132 6 452 -1,019 Total other comprehensive income, net of tax 5,369 4,705 8,163 -1,956 Total comprehensive income 11,166 16,005 18,922 18,187 Total comprehensive income attributable to: Owners of the Parent Company 11,110 15,872 18,841 17,758 Non-controlling interests 55 133 81 429 Condensed consolidated balance sheet Assets Non-current assets Intangible assets Capitalized development expenses 3,611 3,866 Goodwill 50,647 46,882 Customer relationships, IPR and other intangible assets 5,032 5,631 Property, plant and equipment 8,889 8,789 Right-of-use assets 7,123 6,738 Financial assets Investments in associated companies 1,387 1,507 Other investments in shares and participations 5 2,166 1,909 Customer finance, non-current 5 6 238
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Ericsson | Third quarter report 2026. October 15, 2026. Financial statements 18 SEK million Note Sep 30 2026 Dec 31 2025 Interest-bearing securities, non-current 5 39,175 37,298 Other financial assets, non-current 5 7,338 5,960 Deferred tax assets 18,514 16,851 143,887 135,669 Current assets Inventories 35,404 23,451 Contracts assets 8,855 7,333 Trade receivables 5 38,846 40,327 Customer finance, current 5 1,913 852 Current tax assets 5,466 5,030 Other current receivables 8,347 9,920 Interest-bearing securities, current 5 7,697 12,715 Cash and cash equivalents 5 51,087 43,926 157,614 143,554 Total assets 301,501 279,223 Equity and liabilities Equity Stockholders' equity 110,482 109,535 Non-controlling interest in equity of subsidiaries 773 729 111,255 110,264 Non-current liabilities Post-employment benefits 14,277 18,648 Provisions, non-current 4 4,253 2,993 Deferred tax liabilities 240 152 Borrowings, non-current 5 27,816 29,165 Lease liabilities, non-current 6,268 5,772 Other non-current liabilities 1,396 1,292 54,251 58,022 Current liabilities Provisions, current 4 7,781 5,691 Borrowings, current 5 9,455 3,538 Lease liabilities, current 1,795 1,789 Contract liabilities 40,548 36,867 Trade payables 5 30,380 26,335 Current tax liabilities 6,276 2,679 Other current liabilities 39,760 34,038 135,995 110,937 Total equity and liabilities 301,501 279,223 Condensed consolidated statement of cash flows SEK million Note 2026 2025 2026 2025 Operating activities Net income 5,797 11,300 10,760 20,143 Adjustments for Taxes 2,459 3,647 4,463 7,350 Earnings/dividends in associated companies 140 50 373 30 Depreciation, amortization and impairment losses 6 2,155 2,129 6,130 7,056 Other -135 -7,549 -1,213 -7,844 10,415 9,577 20,512 26,735 Changes in operating net assets Inventories -4,086 -680 -10,438 -2,738 Customer finance, current and non-current -192 372 -719 2,627 Trade receivables and contract assets -355 -889 3,444 -1,013
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Ericsson | Third quarter report 2026. October 15, 2026. Financial statements 19 Q3 Jan-SepTrade payables 613 1,102 1,809 -1,106 Provisions and post-employment benefits 770 -565 2,637 -3,178 Contract liabilities -5,399 -2,869 1,302 4,398 Other operating assets and liabilities, net 4,922 3,047 -558 -4,970 -3,728 -482 -2,524 -5,980 Interest received 687 433 1,956 1,567 Interest paid -273 -328 -1,438 -1,798 Taxes paid -632 -1,261 -2,701 -4,077 Cash flow from operating activities 6,469 7,939 15,805 16,447 Investing activities Investments in property, plant and equipment 6 -846 -491 -2,104 -1,781 Sales of property, plant and equipment 84 57 117 136 Acquisitions/divestments of subsidiaries and other operations, net 6 10,064 -304 10,201 Product development 6 -291 -286 -1,053 -786 Purchase of interest-bearing securities -9,370 -9,633 -29,311 -28,448 Sales of interest-bearing securities 12,843 3,549 33,545 11,821 Other investing activities -1,216 -106 -1,543 2,454 Cash flow from investing activities 1,209 3,154 -652 -6,403 Financing activities Proceeds from issuance of borrowings 5,505 – 5,633 198 Repayment of borrowings – -26 -207 -537 Dividends paid 0 -1 -5,037 -4,811 Repayment of lease liabilities -461 -507 -1,433 -1,654 Repurchase of own shares -4,526 – -7,760 -116 Other financing activities -161 -643 -2,333 1,540 Cash flow from financing activities 357 -1,177 -11,137 -5,380 Effect of exchange rate changes on cash 1,361 -841 3,144 -5,854 Net change in cash and cash equivalents 9,396 9,075 7,160 -1,190 Cash and cash equivalents, beginning of period 41,691 33,620 43,926 43,885 Cash and cash equivalents, end of period 51,087 42,695 51,087 42,695 Condensed consolidated statement of changes in equity Jan-Sep SEK million 2026 2025 Opening balance 110,264 92,983 Total comprehensive income 18,922 18,187 Sale/repurchase of own shares -8,045 -116 Share issue, net – 116 Long-term variable compensation plans 155 115 Dividends to shareholders¹ ⁾ -10,042 -9,545 Transactions with non-controlling interests – 754 Closing balance 111,255 102,494 ¹ ⁾ Jan-Sep includes SEK 5,004 (4,769) million of dividend approved by the Annual General Meeting on March 31, 2026, which was paid out on October 2 2026. Condensed consolidated income statement – isolated quarters Isolated quarters, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Net sales 59,478 52,691 49,332 69,285 56,239 56,132 55,025
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Ericsson | Third quarter report 2026. October 15, 2026. Financial statements 20 2026 2025Cost of sales -31,488 -28,568 -26,033 -36,580 -29,462 -29,483 -28,488 Gross income 27,990 24,122 23,299 32,705 26,777 26,649 26,537 Research and development expenses -11,841 -10,480 -13,489 -13,098 -11,510 -12,212 -12,032 Selling and administrative expenses -7,411 -7,736 -8,135 -8,971 -7,913 -8,180 -8,621 Impairment reversals/losses on trade receivables 69 -20 -156 127 46 34 32 Operating expenses -19,183 -18,237 -21,781 -21,942 -19,377 -20,358 -20,621 Other operating income and expenses¹ ⁾ 93 90 24 420 7,715 67 8 Share of earnings/losses of associated companies -37 -56 -99 -22 36 33 7 Earnings before financial items and income tax (EBIT) 8,864 5,919 1,443 11,161 15,151 6,391 5,931 Financial income and expenses, net -910 -178 -193 -80 -212 34 -74 Income after financial items 7,954 5,741 1,250 11,081 14,939 6,425 5,857 Income tax -2,157 -1,665 -362 -2,510 -3,639 -1,799 -1,640 Net income 5,797 4,076 887 8,571 11,300 4,626 4,217 Net income attributable to: Owners of the Parent Company 5,806 4,046 888 8,563 11,149 4,567 4,149 Non-controlling interests -10 30 0 8 151 59 68 Other information Average number of shares, basic (million) 3,269 3,313 3,333 3,333 3,333 3,333 3,333 Earnings per share, basic (SEK)² ⁾ 1.78 1.22 0.27 2.57 3.34 1.37 1.25 Earnings per share, diluted (SEK)² ⁾ ³ ⁾ 1.77 1.22 0.27 2.57 3.33 1.37 1.24 ¹ ⁾ Q3 2025 includes a gain of SEK 7.6 billion due to the divestment of iconectiv. ² ⁾ Based on net income attributable to owners of the Parent Company. ³ ⁾ Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share. Condensed consolidated statement of cash flows – isolated quarters Isolated quarters, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Operating activities Net income 5,797 4,076 887 8,571 11,300 4,626 4,217 Adjustments for Taxes 2,459 1,652 353 2,724 3,647 1,949 1,754 Earnings/dividends in associated companies 140 64 169 27 50 -22 2 Depreciation, amortization and impairment losses 2,155 1,988 1,987 2,185 2,129 2,177 2,750 Other -135 -531 -547 -735 -7,549 -410 115 10,415 7,249 2,849 12,772 9,577 8,320 8,838 Changes in operating net assets Inventories -4,086 -4,622 -1,730 3,667 -680 210 -2,268 Customer finance, current and non-current -192 94 -622 406 372 391 1,864 Trade receivables and contract assets -355 2,516 1,283 -3,288 -889 188 -312 Trade payables 613 1,667 -471 1,568 1,102 -636 -1,572 Provisions and post-employment benefits 770 -690 2,557 1,743 -565 -298 -2,315
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Ericsson | Third quarter report 2026. October 15, 2026. Financial statements 21 2026 2025Contract liabilities -5,399 -1,376 8,077 -2,913 -2,869 -1,329 8,596 Other operating assets and liabilities, net 4,922 -1,985 -3,494 5,175 3,047 -1,187 -6,830 -3,728 -4,397 5,600 6,358 -482 -2,661 -2,837 Interest received 687 739 531 716 433 458 676 Interest paid -273 -631 -534 -407 -328 -699 -771 Taxes paid -632 -1,028 -1,042 -2,932 -1,261 -1,268 -1,548 Cash flow from operating activities 6,469 1,932 7,403 16,507 7,939 4,150 4,358 Investing activities Investments in property, plant and equipment -846 -637 -620 -849 -491 -561 -729 Sales of property, plant and equipment 84 23 10 56 57 40 39 Acquisitions/divestments of subs. and other operations, net 6 -238 -72 338 10,064 141 -4 Product development -291 -384 -378 -352 -286 -193 -307 Purchase of interest-bearing securities -9,370 -13,548 -6,393 -10,310 -9,633 -12,295 -6,520 Sales of interest-bearing securities 12,843 11,988 8,714 4,867 3,549 2,568 5,704 Other investing activities -1,216 -926 599 1,216 -106 -562 3,122 Cash flow from investing activities 1,209 -3,721 1,860 -5,034 3,154 -10,862 1,305 Financing activities Proceeds from issuance of borrowings 5,505 128 – 200 – 198 – Repayment of borrowings – -207 – -3,001 -26 -432 -79 Dividends paid 0 -5,037 – -4,734 -1 -4,810 – Repayment of lease liabilities -461 -513 -459 -461 -507 -554 -593 Repurchase of own shares -4,526 -3,224 -10 -6 – -116 – Other financing activities -161 -362 -1,809 -841 -643 2,243 -60 Cash flow from financing activities 357 -9,216 -2,278 -8,843 -1,177 -3,471 -732 Effect of exchange rate changes on cash 1,361 381 1,403 -1,399 -841 -787 -4,226 Net change in cash and cash equivalents 9,396 -10,624 8,388 1,231 9,075 -10,970 705 Cash and cash equivalents, beginning of period 41,691 52,315 43,926 42,695 33,620 44,590 43,885 Cash and cash equivalents, end of period 51,087 41,691 52,315 43,926 42,695 33,620 44,590 Condensed Parent Company income statement Q3 Jan-Sep SEK million 2026 2025 2026 2025 Net sales – – – – Cost of sales – – – – Gross income – – – – Operating expenses -192 -371 -733 -1,237 Other operating income and expenses 688 640 2,137 1,956 EBIT 496 269 1,404 719 Financial net 637 9,295 28,741 28,149 Income after financial items 1,133 9,564 30,145 28,868 Transfers to (-) / from untaxed reserves – – – – Income tax -88 -335 -522 -514 Net income 1,045 9,229 29,623 28,354 Condensed Parent Company statement of comprehensive income
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Ericsson | Third quarter report 2026. October 15, 2026. Financial statements 22 Q3 Jan-SepSEK million 2026 2025 2026 2025 Net income 1,045 9,229 29,623 28,354 Other comprehensive income, net of tax – – – – Total comprehensive income 1,045 9,229 29,623 28,354 Condensed Parent Company balance sheet Assets Fixed assets Intangible assets 135 151 Tangible assets 315 300 Financial assets¹ ⁾ 137,950 135,029 138,400 135,480 Current assets Receivables 18,991 19,323 Short-term investments 7,510 12,651 Cash and cash equivalents 36,040 27,807 62,541 59,781 Total assets 200,941 195,261 Stockholders' equity, provisions and liabilities Equity Restricted equity 48,351 48,351 Non-restricted equity 54,672 43,051 103,023 91,402
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Ericsson | Third quarter report 2026. October 15, 2026. Financial statements 23 SEK million Sep 30 2026 Dec 31 2025Provisions 121 60 Non-current liabilities 27,838 29,164 Current liabilities 69,959 74,635 Total stockholders' equity, provisions and liabilities 200,941 195,261 ¹ ⁾ Of which interest-bearing securities, non-current 39,175 37,298 Accounting policies and Explanatory notes (unaudited) Note 1 – Accounting policies and other information Accounting policies for the Group This condensed consolidated interim financial report for the reporting period ended September 30, 2026, has been prepared in accordance with International Accounting Standard IAS 34 “Interim Financial Reporting”. The term “IFRS Accounting Standards” used in this document refers to IFRS® Accounting standards as issued by the International Accounting Standards Board (IASB) as well as interpretations of these standards as issued by IASB’s Standards Interpretation Committee (SIC) and IFRS Interpretations Committee (IFRIC). The accounting policies adopted are consistent with those of the annual report for the year ended December 31, 2025, and should be read in entity’s assets, liabilities, equity, income, and expenses. The new standard’s biggest impact is on the statement of profit or loss (income statement), where it includes more specific guidance on how the statement of profit or loss shall be presented mandating certain income and expense classification and subtotals to be presented. – Impact at transition: The standard is effective for the annual periods beginning on or after January 1, 2027. The Company will apply the new standard as from January 1, 2027. At transition, the Company will apply the new presentation and disclosure requirements retrospectively for all periods presented. As the standard only impacts the presentation and disclosure requirements, and not the measurement of any items presented in the financial statements, there will be no effect on retained earnings at transition date. The largest effect is on the presentation of the income statement where certain items such as foreign exchange differences will be classified differently within
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Ericsson | Third quarter report 2026. October 15, 2026. Accounting policies and Explanatory notes 24 conjunction with that annual report. Amendments to IFRS Accounting Standards that became effective during 2026 do not have a material impact on the result and financial position of the Company. New accounting standards and interpretations IASB has issued the following new standard with effective date of January 1, 2027: – In April 2024, IASB issued a new standard, IFRS 18 that will replace IAS 1 Presentation of Financial Statements. The standard sets out the requirements for the presentation and disclosure of information in the financial statements to ensure better comparability, consistency and faithful representation of an the income statement. In addition, there will be new subtotals introduced such as Operating profit. Accordingly, the information for prior years will be restated. The transition note will include a bridge between the IAS 1 presentation and the new IFRS 18 presentation when the standard is applied. – The Company is still assessing the detailed impact that the transition to IFRS 18 will have on the financial statements. Other Rounding differences may occur in the summation of amounts. Note 2 – Segment information Net sales by segment by quarter 2026 2025 Isolated quarters, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Networks 38,696 33,047 32,937 44,200 35,424 35,747 35,643 Of which Products 30,956 24,684 25,549 33,275 26,531 27,622 28,060 Of which Services 7,740 8,363 7,388 10,925 8,893 8,125 7,583 Cloud Software and Services 15,829 14,732 11,833 20,031 15,346 14,363 12,975 Of which Products 5,975 5,569 4,295 8,459 5,431 5,407 4,719 Of which Services 9,853 9,163 7,539 11,572 9,915 8,956 8,256 Enterprise 4,560 4,490 4,168 4,578 5,058 5,548 5,933 Other 393 422 393 476 411 474 474 Total 59,478 52,691 49,332 69,285 56,239 56,132 55,025 Sequential change, percent Q3 Q2 Q1 Q4 Q3 Q2 Q1 Networks 17% 0% -25% 25% -1% 0% -24% Of which Products 25% -3% -23% 25% -4% -2% -23% Of which Services -7% 13% -32% 23% 9% 7% -26% Cloud Software and Services 7% 25% -41% 31% 7% 11% -33% Of which Products 7% 30% -49% 56% 0% 15% -40% Of which Services 8% 22% -35% 17% 11% 8% -29%
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Ericsson | Third quarter report 2026. October 15, 2026. Accounting policies and Explanatory notes 25 2026 2025Enterprise 2% 8% -9% -9% -9% -6% -3% Other -7% 7% -17% 16% -13% 0% -17% Total 13% 7% -29% 23% 0% 2% -25% 2026 2025 Year over year change, percent Q3 Q2 Q1 Q4 Q3 Q2 Q1 Networks 9% -8% -8% -6% -11% -5% 6% Of which Products 17% -11% -9% -9% -15% -3% 10% Of which Services -13% 3% -3% 7% 1% -11% -9% Cloud Software and Services 3% 3% -9% 3% 3% -5% -1% Of which Products 10% 3% -9% 8% 4% 12% 4% Of which Services -1% 2% -9% -1% 2% -14% -3% Enterprise -10% -19% -30% -25% -20% -14% -1% Other -4% -11% -17% -16% -19% -6% -20% Total 6% -6% -10% -5% -9% -6% 3% 2026 2025 Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 104,680 65,984 32,937 151,014 106,814 71,390 35,643 Of which Products 81,189 50,233 25,549 115,488 82,213 55,682 28,060 Of which Services 23,491 15,751 7,388 35,526 24,601 15,708 7,583 Cloud Software and Services 42,394 26,566 11,833 62,715 42,684 27,338 12,975 Of which Products 15,839 9,863 4,295 24,016 15,557 10,126 4,719 Of which Services 26,556 16,702 7,539 38,699 27,127 17,212 8,256 Enterprise 13,219 8,658 4,168 21,117 16,539 11,481 5,933 Other 1,208 815 393 1,835 1,359 948 474 Total 161,500 102,022 49,332 236,681 167,396 111,157 55,025 2026 2025 Year over year change, percent Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks -2% -8% -8% -5% -4% 0% 6% Of which Products -1% -10% -9% -5% -4% 3% 10% Of which Services -5% 0% -3% -2% -6% -10% -9% Cloud Software and Services -1% -3% -9% 0% -1% -3% -1% Of which Products 2% -3% -9% 7% 7% 8% 4% Of which Services -2% -3% -9% -4% -5% -9% -3% Enterprise -20% -25% -30% -15% -12% -8% -1% Other -11% -14% -17% -16% -15% -14% -20% Total -4% -8% -10% -5% -4% -2% 3% Gross income by segment by quarter 2026 2025 Isolated quarters, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Networks 19,272 15,975 16,359 21,648 17,705 17,638 18,112 Cloud Software and Services 6,707 5,868 4,907 8,636 6,463 5,964 5,069 Enterprise 2,280 2,276 2,039 2,386 2,609 3,045 3,338 Other -269 2 -6 35 0 2 18 Total 27,990 24,122 23,299 32,705 26,777 26,649 26,537 2026 2025 Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 51,606 32,334 16,359 75,103 53,455 35,750 18,112 Cloud Software and Services 17,483 10,776 4,907 26,132 17,496 11,033 5,069 Enterprise 6,595 4,315 2,039 11,378 8,992 6,383 3,338 Other -273 -4 -6 55 20 20 18 Total 75,411 47,421 23,299 112,668 79,963 53,186 26,537 EBIT by segment by quarter Isolated quarters, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Networks 8,420 6,006 3,283 9,318 7,075 6,376 7,040 Cloud Software and Services 1,730 1,142 3 3,364 1,721 840 71 Enterprise -966 -1,215 -1,844 -1,526 6,649 -870 -1,014
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Ericsson | Third quarter report 2026. October 15, 2026. Accounting policies and Explanatory notes 26 2026 2025Other -321 -14 1 5 -294 45 -166 Total 8,864 5,919 1,443 11,161 15,151 6,391 5,931 2026 2025 Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 17,710 9,290 3,283 29,809 20,491 13,416 7,040 Cloud Software and Services 2,875 1,146 3 5,996 2,632 911 71 Enterprise -4,025 -3,059 -1,844 3,239 4,765 -1,884 -1,014 Other -334 -14 1 -410 -415 -121 -166 Total 16,226 7,362 1,443 38,634 27,473 12,322 5,931 Net sales by market area by quarter 2026 2025 Isolated quarters, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Americas 19,817 18,821 17,077 22,928 19,837 19,809 20,859 Europe, Middle East and Africa¹ ⁾ ² ⁾ 17,452 16,261 14,298 23,350 16,730 16,193 14,475 South East Asia, Oceania and India 8,788 5,407 6,946 8,986 7,097 5,505 7,226 North East Asia 4,540 3,734 3,122 5,205 3,825 3,766 3,215 Other¹ ⁾ ² ⁾ 8,881 8,467 7,888 8,816 8,750 10,859 9,250 Total 59,478 52,691 49,332 69,285 56,239 56,132 55,025 ¹ ⁾ Of which in Sweden 581 688 781 1,374 863 686 461 ² ⁾ Of which in EU 7,574 7,526 7,081 10,663 8,213 8,223 7,566 2026 2025 Sequential change, percent Q3 Q2 Q1 Q4 Q3 Q2 Q1 Americas 5% 10% -26% 16% 0% -5% -19% Europe, Middle East and Africa¹ ⁾ ² ⁾ 7% 14% -39% 40% 3% 12% -34% South East Asia, Oceania and India 63% -22% -23% 27% 29% -24% -14% North East Asia 22% 20% -40% 36% 2% 17% -55% Other¹ ⁾ ² ⁾ 5% 7% -11% 1% -19% 17% -4% Total 13% 7% -29% 23% 0% 2% -25% ¹ ⁾ Of which in Sweden -16% -12% -43% 59% 26% 49% -23% ² ⁾ Of which in EU 1% 6% -34% 30% 0% 9% -31% Year over year change, percent Q3 Q2 Q1 Q4 Q3 Q2 Q1
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Ericsson | Third quarter report 2026. October 15, 2026. Accounting policies and Explanatory notes 27 2026 2025Americas 0% -5% -18% -11% -16% 0% 26%Europe, Middle East and Africa¹ ⁾ ² ⁾ 4% 0% -1% 7% -1% -6% -5% South East Asia, Oceania and India 24% -2% -4% 6% -8% -28% -16% North East Asia 19% -1% -3% -27% 4% -17% -6% Other¹ ⁾ ² ⁾ 1% -22% -15% -9% -13% 4% -3% Total 6% -6% -10% -5% -9% -6% 3% ¹ ⁾ Of which in Sweden -33% 0% 69% 130% 100% 18% -37% ² ⁾ Of which in EU -8% -8% -6% -2% 1% -4% 0% 2026 2025 Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Americas 55,715 35,898 17,077 83,433 60,505 40,668 20,859 Europe, Middle East and Africa¹ ⁾ ² ⁾ 48,011 30,559 14,298 70,748 47,398 30,668 14,475 South East Asia, Oceania and India 21,141 12,352 6,946 28,814 19,828 12,731 7,226 North East Asia 11,396 6,856 3,122 16,011 10,806 6,981 3,215 Other¹ ⁾ ² ⁾ 25,237 16,356 7,888 37,675 28,859 20,109 9,250 Total 161,500 102,022 49,332 236,681 167,396 111,157 55,025 ¹ ⁾ Of which in Sweden 2,050 1,469 781 3,384 2,010 1,147 461 ² ⁾ Of which in EU 22,181 14,607 7,081 34,665 24,002 15,789 7,566 2026 2025 Year to date, year over year change, percent Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Americas -8% -12% -18% -3% 1% 12% 26% Europe, Middle East and Africa¹ ⁾ ² ⁾ 1% 0% -1% -1% -4% -6% -5% South East Asia, Oceania and India 7% -3% -4% -11% -17% -22% -16% North East Asia 5% -2% -3% -15% -7% -13% -6% Other¹ ⁾ ² ⁾ -13% -19% -15% -5% -4% 1% -3% Total -4% -8% -10% -5% -4% -2% 3% ¹ ⁾ Of which in Sweden 2% 28% 69% 45% 15% -13% -37% ² ⁾ Of which in EU -8% -7% -6% -2% -1% -2% 0% Net sales by market area by segment Q3 2026 Jan-Sep 2026 SEK million Networks Cloud Software and ServicesEnterprise Other Total Networks Cloud Software and ServicesEnterprise Other Total Americas 14,998 4,769 49 0 19,817 42,827 12,724 164 0 55,715 Europe, Middle East and Africa 10,198 6,990 264 0 17,452 28,608 18,702 701 0 48,011 South East Asia, Oceania and India 6,482 2,299 7 0 8,788 15,024 6,087 30 0 21,141 North East Asia 3,615 924 1 0 4,540 8,848 2,544 4 0 11,396 Other¹ ⁾ 3,403 846 4,239 393 8,881 9,372 2,337 12,320 1,207 25,237 Total 38,696 15,829 4,560 393 59,478 104,680 42,394 13,219 1,208 161,500 Share of total 65% 27% 8% 1% 100% 65% 26% 8% 1% 100% 1) Includes primarily IPR licensing revenues and a major part of segment Enterprise. Q3 2026 Sequential change, percent Networks Cloud Software and ServicesEnterprise Other Total Americas 6% 3% -10% - 5% Europe, Middle East and Africa 8% 7% 3% 3% 7% South East Asia, Oceania and India 87% 19% -33% - 63% North East Asia 26% 6% 0% - 22% Other 10% 9% 2% -7% 5% Total 17% 7% 2% -7% 13% Cloud Cloud
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Ericsson | Third quarter report 2026. October 15, 2026. Accounting policies and Explanatory notes 28 Q3 2026 Jan-Sep 2026Year over year change, percent NetworksSoftware and ServicesEnterprise Other Total NetworksSoftware and ServicesEnterprise Other Total Americas -1% 5% -43% - 0% -10% 1% -44% -100% -8% Europe, Middle East and Africa 3% 5% 55% - 4% 2% 0% 11% - 1% South East Asia, Oceania and India 46% -13% -30% -100% 24% 13% -6% -18% -100% 7% North East Asia 19% 18% -13% - 19% 6% 5% -59% - 5% Other 21% 15% -11% -4% 1% -1% -3% -21% -11% -13% Total 9% 3% -10% -4% 6% -2% -1% -20% -11% -4% Top 5 countries in sales 2026 2025 Country, percentage of net sales¹ ⁾ Q3 Q2 Q1 Q4 Q3 Q2 Q1 USA 38% 40% 39% 36% 40% 44% 45% India 5% 4% 8% 5% 5% 4% 7% United Kingdom 4% 5% 4% 4% 4% 4% 4% Japan 5% 4% 4% 4% 3% 3% 3% China 4% 4% 3% 3% 3% 4% 3% 2026 2025 Country, percentage of net sales¹ ⁾ Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar USA 39% 40% 39% 41% 43% 44% 45% India 6% 6% 8% 5% 5% 6% 7% United Kingdom 4% 5% 4% 4% 4% 4% 4% Japan 4% 4% 4% 4% 3% 3% 3% China 3% 3% 3% 3% 4% 4% 3% 1) Based on Jan-Sep 2026. Includes IPR licensing revenues. IPR licensing revenues by segment by quarter 2026 2025 Isolated quarters, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Networks 3,191 2,796 2,569 2,733 2,569 3,987 2,606 Cloud Software and Services 700 614 564 600 564 875 572 Total 3,891 3,410 3,133 3,333 3,133 4,862 3,178 2026 2025 Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 8,556 5,365 2,569 11,895 9,162 6,593 2,606 Cloud Software and Services 1,878 1,178 564 2,611 2,011 1,447 572 Total 10,434 6,543 3,133 14,506 11,173 8,040 3,178 Note 3 – Financial income and expenses, net Financial income and expenses, net 2026 2025 Isolated quarters, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Financial income 554 732 585 620 662 579 619 Financial expenses -1,216 -680 -594 -580 -735 -927 -805 Net foreign exchange gains/losses -248 -229 -184 -120 -139 382 112 Total -910 -178 -193 -80 -212 34 -74 2026 2025 Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Financial income 1,870 1,316 585 2,480 1,860 1,198 619 Financial expenses -2,491 -1,274 -594 -3,047 -2,467 -1,732 -805 Net foreign exchange gains/losses -661 -414 -184 235 355 494 112 Total -1,282 -372 -193 -332 -252 -40 -74 Note 4 – Provisions Provisions Isolated quarters, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Opening balance 11,163 11,803 8,684 7,823 8,652 9,093 11,715 Additions 2,093 1,265 6,016 3,005 847 1,830 1,055 Utilization -1,153 -1,815 -2,898 -1,605 -1,311 -1,853 -3,009 Of which restructuring -754 -1,064 -546 -721 -813 -837 -1,201
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Ericsson | Third quarter report 2026. October 15, 2026. Accounting policies and Explanatory notes 29 2026 2025Reversal of excess amounts -48 -217 -171 -357 -370 -273 -256 Reclassification, translation difference and other -21 126 172 -182 5 -145 -412 Closing balance 12,034 11,163 11,803 8,684 7,823 8,652 9,093 Of which restructuring 3,915 4,017 4,956 1,889 1,710 2,429 2,720 2026 2025 Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Opening balance 8,684 8,684 8,684 11,715 11,715 11,715 11,715 Additions 9,374 7,281 6,016 6,737 3,732 2,885 1,055 Utilization -5,865 -4,713 -2,898 -7,778 -6,173 -4,862 -3,009 Of which restructuring -2,364 -1,610 -546 -3,572 -2,851 -2,038 -1,201 Reversal of excess amounts -436 -388 -171 -1,256 -899 -529 -256 Reclassification, translation difference and other 277 298 172 -734 -552 -557 -412 Closing balance 12,034 11,163 11,803 8,684 7,823 8,652 9,093 Of which restructuring 3,915 4,017 4,956 1,889 1,710 2,429 2,720 Note 5 – Financial risk management There have been no changes to the fair value hierarchy categorization from that presented in the latest Annual Report. Where Level 2 and Level 3 fair value hierarchies apply, the inputs and valuation methods used remained unchanged. The book values and fair values of financial instruments are as follows: Financial instruments Fair value hierarchy level Fair value hierarchy level Carrying value Level 1 Level 2 Level 3 Carrying value Level 1 Level 2 Level 3 Assets at fair value through profit or loss Customer finance¹ ⁾ 1.9 1.9 1.1 – – 1.1 Interest-bearing securities 46.7 42.2 4.5 – 49.9 45.4 4.5 – Cash equivalents² ⁾ 33.2 – 33.2 – 25.3 – 25.3 – Other financial assets 2.2 0.1 – 2.1 1.9 – – 1.9 Other current assets 0.3 – 0.3 – 2.9 – 2.9 – Assets at fair value through OCI Trade receivables 38.8 – – 38.8 40.3 – – 40.3 Assets at amortized costs Interest-bearing securities 0.2 – – – 0.1 – – – Other financial assets 0.0 – – – 0.1 – – – Total financial assets 123.3 121.6 Financial liabilities at designated FVTPL Parent company borrowings -36.8 -19.5 -17.3 – -29.6 -18.8 -10.8 – Financial liabilities at FVTPL
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Ericsson | Third quarter report 2026. October 15, 2026. Accounting policies and Explanatory notes 30 SEK billion Sep 30 2026 Dec 31 2025 Other current liabilities -0.7 – -0.7 – -0.2 – -0.2 – Liabilities at amortized cost Trade payables -30.4 – – – -26.3 – – – Borrowings -0.5 – – – -3.1 – – – Total financial liabilities -68.4 -59.2 1) Year to date movements of customer finance receivables are as follows: additions of SEK 17.1 billion, disposals and repayments of SEK 16.4 billion. No material revaluation impact in the current period (< SEK 0.1 billion). 2) Total Cash and cash equivalent is SEK 51.1 (43.9 on Dec 31, 2025) billion, of which SEK 33.2 (SEK 25.3 on Dec 31, 2025) billion relating to Cash equivalents are presented in the table above. Exchange rates used in the consolidation Jan-Sep Jan-Dec Closing rates to SEK 2026 2025 2025 EUR 11.33 11.06 10.82 USD 9.97 9.42 9.19 Note 6 – Cash flow Information on investments Investments in assets subject to depreciation, amortization, impairment and write-downs 2026 2025 Isolated quarters, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Additions Property, plant and equipment 846 637 620 849 491 561 729 Capitalized development expenses 291 384 378 352 286 193 307 IPR, brands and other intangible assets 52 36 35 48 81 301 57 Total 1,190 1,058 1,033 1,249 858 1,055 1,093 Depreciation, amortization and impairment losses Property, plant and equipment 824 698 735 814 812 826 1,029 Capitalized development expenses 452 426 436 446 449 451 444 Goodwill, IPR, brands and other intangible assets 364 358 344 439 365 373 721 Right-of-use assets 515 506 471 486 503 527 556 Total 2,155 1,988 1,986 2,185 2,129 2,177 2,750 Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Additions Property, plant and equipment 2,104 1,257 620 2,630 1,781 1,290 729 Capitalized development expenses 1,053 762 378 1,138 786 500 307 IPR, brands and other intangible assets 124 72 35 487 439 358 57 Total 3,281 2,091 1,033 4,255 3,006 2,148 1,093 Depreciation, amortization and impairment losses Property, plant and equipment 2,257 1,433 735 3,481 2,667 1,855 1,029 Capitalized development expenses 1,314 862 436 1,790 1,344 895 444 Goodwill, IPR, brands and other intangible assets 1,066 702 344 1,898 1,459 1,094 721 Right-of-use assets 1,493 978 471 2,072 1,586 1,083 556
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Ericsson | Third quarter report 2026. October 15, 2026. Accounting policies and Explanatory notes 31 2026 2025Total 6,130 3,975 1,986 9,241 7,056 4,927 2,750 Note 7 – Contingent liabilities and Assets pledged as collateral Contingent liabilities and Assets pledged as collateral SEK million Sep 30 2026 Dec 31 2025 Contingent liabilities 4,344 4,091 Assets pledged as collateral 8,966 8,695 Note 8 – Share information Number of shares and earnings per share Q3 Jan-Sep 2026 2025 2026 2025 Number of shares, end of period (million) 3,371 3,371 3,371 3,371 Of which class A-shares (million) 262 262 262 262 Of which class B-shares (million) 3,110 3,110 3,110 3,110 Number of treasury shares, end of period (million) 114 38 114 38 Number of shares outstanding, basic, end of period (million) 3,257 3,333 3,257 3,333 Numbers of shares outstanding, diluted, end of period (million) 3,267 3,342 3,267 3,342 Average number of treasury shares (million) 103 38 65 28 Average number of shares outstanding, basic (million) 3,269 3,333 3,305 3,333 Average number of shares outstanding, diluted (million)¹ ⁾ 3,278 3,342 3,314 3,342 Earnings per share, basic (SEK)² ⁾ 1.78 3.34 3.25 5.96 Earnings per share, diluted (SEK)¹ ⁾ ² ⁾ 1.77 3.33 3.24 5.94 1) Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share. 2) Based on net income attributable to owners of the Parent Company. The proposed dividend for 2025 of SEK 3.00 per share was approved by the AGM on March 31, 2026. The first of two equal dividend payments of SEK 1.50 per share was made on April 9, 2026, and the second was made on October 2, 2026. The AGM resolved to approve the Board of Directors' proposal on authorization for the Board of Directors to, on one or several occasions prior to the AGM 2027, decide on the repurchase of the Company's own shares of series B. The number of shares purchased must at no time result in the Company's holding exceeding 10 percent of all the shares in the Company. During the quarter, Ericsson repurchased 49,225,701 Class B shares for a total consideration of SEK 4.8 b. in accordance with the AGM authorization. Repurchases year-to-date amounted to 78,761,682 Class B shares for SEK 8.1 b. Repurchased shares are held as treasury shares and presented as a deduction from equity. As of September 30, 2026, Ericsson held 114,080,663 treasury shares (38,002,276 as of Dec 31, 2025). Repurchased shares are reflected as a reduction in the average number of shares outstanding and in the calculation of earnings per share.
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Ericsson | Third quarter report 2026. October 15, 2026. Accounting policies and Explanatory notes 32 Note 9 – Employee information Number of employees 2026 2025 End of period Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Americas 13,815 14,136 14,537 15,050 15,346 15,926 15,857 Europe, Middle East and Africa¹ ⁾ 37,744 38,308 38,548 39,045 39,489 40,413 40,677 South East Asia, Oceania and India 24,923 25,050 25,100 25,189 25,358 25,591 25,991 North East Asia 8,935 9,042 9,336 9,542 9,705 10,007 10,341 Total 85,417 86,536 87,521 88,826 89,898 91,937 92,866 ¹ ⁾ Of which in Sweden 12,634 13,013 12,615 12,806 12,967 13,476 13,222 Alternative performance measures (unaudited) In this section, the Company presents its Alternative Performance Measures (APMs), which are not recognized measures of financial performance under IFRS Accounting Standards. The presentation of APMs has limitations as analytical tools and should not be considered in isolation or as a substitute for related financial measures prepared in accordance with IFRS Accounting Standards. APMs are presented to enhance an investor’s evaluation of ongoing operating results, to aid in forecasting future periods and to facilitate meaningful comparison of results between periods. Management uses these APMs to, among other things, evaluate ongoing operations in relation to historical results, for internal planning and forecasting purposes and in the calculation of certain performance-based compensation. APMs should not be viewed as substitutes for income statement or cash flow items computed in accordance with IFRS Accounting Standards. This section also includes a reconciliation of the APMs to the most directly reconcilable line items in the financial statements. For more information about non-IFRS key operating measures, see Ericsson Annual Report 2025. Sales growth adjusted for comparable units and currency Sales growth adjusted for the impact of acquisitions and divestments as well as the effects of foreign currency fluctuations. Also named organic sales growth. 2026 2025 Isolated quarters, year over year change, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Reported net sales 59,478 52,691 49,332 69,285 56,239 56,132 55,025 Acquired business – – – – – – – Net FX impact -4 1,821 7,755 6,801 4,213 4,672 -1,817 Current period net sales, excluding acquired business & FX impact 59,474 54,511 57,087 76,086 60,452 60,804 53,208 Prior year period net sales adjusted for acquired & divested business 55,682 55,121 53,903 71,474 61,794 59,848 53,325 Organic sales growth (%) 7% -1% 6% 6% -2% 2% 0% Year to date, year over year change, SEK million Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Reported net sales 161,500 102,022 49,332 236,681 167,396 111,157 55,025 Acquired business – – – – – – – Net FX impact 9,572 9,576 7,755 13,869 7,068 2,855 -1,817
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Ericsson | Third quarter report 2026. October 15, 2026. Alternative performance measures 33 2026 2025Current period net sales, excluding acquired business & FX impact 171,073 111,598 57,087 250,550 174,464 114,012 53,208 Prior year period net sales adjusted for acquired & divested business 164,705 109,024 53,903 246,441 174,967 113,173 53,325 Organic sales growth (%) 4% 2% 6% 2% 0% 1% 0% Items excluding restructuring charges and impairments of goodwill and intangible assets Gross income, operating expenses, and EBIT are presented excluding restructuring charges, and for certain measures, as a percentage of net sales. EBIT is also presented excluding restructuring charges and impairments of goodwill and intangible assets. 2026 2025 Isolated quarters, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Gross income 27,990 24,122 23,299 32,705 26,777 26,649 26,537 Net sales 59,478 52,691 49,332 69,285 56,239 56,132 55,025 Gross margin (%) 47.1% 45.8% 47.2% 47.2% 47.6% 47.5% 48.2% Gross income 27,990 24,122 23,299 32,705 26,777 26,649 26,537 Restructuring charges included in cost of sales 361 1,359 435 538 271 310 158 Adjusted gross income 28,351 25,481 23,734 33,243 27,048 26,959 26,695 Net sales 59,478 52,691 49,332 69,285 56,239 56,132 55,025 Adjusted gross margin (%) 47.7% 48.4% 48.1% 48.0% 48.1% 48.0% 48.5% Operating expenses -19,183 -18,237 -21,781 -21,942 -19,377 -20,358 -20,621 Restructuring charges included in R&D expenses 281 -882 2,595 300 -41 300 20 Restructuring charges included in selling and administrative expenses 251 124 738 259 73 46 103 Operating expenses excluding restructuring charges -18,651 -18,995 -18,995 -21,383 -19,345 -20,012 -20,498 EBIT 8,864 5,919 1,443 11,161 15,151 6,391 5,931 Net sales 59,478 52,691 49,332 69,285 56,239 56,132 55,025 EBIT margin (%) 14.9% 11.2% 2.9% 16.1% 26.9% 11.4% 10.8% EBIT 8,864 5,919 1,443 11,161 15,151 6,391 5,931 Total restructuring charges 893 601 3,768 1,097 303 656 281 Adjusted EBIT 9,757 6,520 5,211 12,258 15,454 7,047 6,212 Net sales 59,478 52,691 49,332 69,285 56,239 56,132 55,025 Adjusted EBIT margin (%) 16.4% 12.4% 10.6% 17.7% 27.5% 12.6% 11.3% Adjusted EBIT 9,757 6,520 5,211 12,258 15,454 7,047 6,212 Impairment of goodwill and intangible assets – 2 – – – – – Adjusted EBIT excluding impairments of goodwill and intangible assets 9,757 6,521 5,211 12,258 15,454 7,047 6,212 Net sales 59,478 52,691 49,332 69,285 56,239 56,132 55,025 j g g p g g (%) 16.4% 12.4% 10.6% 17.7% 27.5% 12.6% 11.3%
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Ericsson | Third quarter report 2026. October 15, 2026. Alternative performance measures 34 2026 2025Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Gross income 75,411 47,421 23,299 112,668 79,963 53,186 26,537 Net sales 161,500 102,022 49,332 236,681 167,396 111,157 55,025 Gross margin (%) 46.7% 46.5% 47.2% 47.6% 47.8% 47.8% 48.2% Gross income 75,411 47,421 23,299 112,668 79,963 53,186 26,537 Restructuring charges included in cost of sales 2,156 1,794 435 1,277 739 468 158 Adjusted gross income 77,567 49,216 23,734 113,945 80,702 53,654 26,695 Net sales 161,500 102,022 49,332 236,681 167,396 111,157 55,025 Adjusted gross margin (%) 48.0% 48.2% 48.1% 48.1% 48.2% 48.3% 48.5% Operating expenses -59,200 -40,017 -21,781 -82,298 -60,356 -40,979 -20,621 Restructuring charges included in R&D expenses 1,994 1,713 2,595 579 279 320 20 Restructuring charges included in selling and administrative expenses 1,112 861 738 481 222 149 103 Operating expenses excluding restructuring charges -56,094 -37,443 -18,448 -81,238 -59,855 -40,510 -20,498 EBIT 16,226 7,362 1,443 38,634 27,473 12,322 5,931 Net sales 161,500 102,022 49,332 236,681 167,396 111,157 55,025 EBIT margin (%) 10.0% 7.2% 2.9% 16.3% 16.4% 11.1% 10.8% EBIT 16,226 7,362 1,443 38,634 27,473 12,322 5,931 Total restructuring charges 5,262 4,369 3,768 2,337 1,240 937 281 Adjusted EBIT 21,488 11,731 5,211 40,971 28,713 13,259 6,212 Net sales 161,500 102,022 49,332 236,681 167,396 111,157 55,025 Adjusted EBIT margin (%) 13.3% 11.5% 10.6% 17.3% 17.2% 11.9% 11.3% Adjusted EBIT 21,488 11,731 5,211 40,971 28,713 13,259 6,212 Impairment of goodwill and intangible assets 2 2 – – – – – Adjusted EBIT excluding impairments of goodwill and intangible assets 21,490 11,733 5,211 40,971 28,713 13,259 6,212 Net sales 161,500 102,022 49,332 236,681 167,396 111,157 55,025 j g g p g g (%) 13.3% 11.5% 10.6% 17.3% 17.2% 11.9% 11.3% EBITA and EBITA margin / Adjusted EBITA and Adjusted EBITA margin Earnings before interest, income tax, amortizations and write-downs of acquired intangibles (including goodwill) also expressed as a percentage of net sales. Adjusted EBITA also expressed as a percentage of net sales. 2026 2025 Isolated quarters, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Net income 5,797 4,076 887 8,571 11,300 4,626 4,217 Income tax 2,157 1,665 362 2,510 3,639 1,799 1,640 Financial income and expenses, net 910 178 193 80 212 -34 74 Amortizations and write-downs of acquired intangibles 364 358 344 440 365 372 721 Of which segment Enterprise 333 327 307 406 338 346 389 EBITA 9,228 6,277 1,788 11,601 15,516 6,763 6,652 Net sales 59,478 52,691 49,332 69,285 56,239 56,132 55,025 EBITA margin (%) 15.5% 11.9% 3.6% 16.7% 27.6% 12.0% 12.1% Restructuring charges 893 601 3,768 1,097 303 656 281 Adjusted EBITA 10,121 6,878 5,556 12,698 15,819 7,419 6,933 Adjusted EBITA margin (%) 17.0% 13.1% 11.3% 18.3% 28.1% 13.2% 12.6% Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Net income 10,760 4,963 887 28,714 20,143 8,843 4,217 Income tax 4,184 2,027 362 9,588 7,078 3,439 1,640 Financial income and expenses, net 1,282 372 193 332 252 40 74 Amortizations and write-downs of acquired intangibles 1,066 702 344 1,898 1,458 1,093 721 Of which segment Enterprise 966 634 307 1,479 1,073 735 389 EBITA 17,292 8,065 1,788 40,532 28,931 13,415 6,652 Net sales 161,500 102,022 49,332 236,681 167,396 111,157 55,025
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Ericsson | Third quarter report 2026. October 15, 2026. Alternative performance measures 35 2026 2025EBITA margin (%) 10.7% 7.9% 3.6% 17.1% 17.3% 12.1% 12.1% Restructuring charges 5,262 4,369 3,768 2,337 1,240 937 281 Adjusted EBITA 22,554 12,433 5,556 42,869 30,171 14,352 6,933 Adjusted EBITA margin (%) 14.0% 12.2% 11.3% 18.1% 18.0% 12.9% 12.6% Additionally, Ericsson provides forward-looking targets for adjusted EBITA margin and Free cash flow before M&A as a percentage of net sales, which are non-IFRS financial measures. Ericsson has not provided quantitative reconciliation of these targets to the most directly comparable IFRS measures because certain information needed to reconcile these non-IFRS financial measures to the most comparable IFRS financial measures are dependent on specific items or impacts that are not yet determined, are subject to incarcerating and variability in timing and amount due to their nature, are outside of Ericsson’s control or cannot be predicted, including items and impacts such as currency exchange rate changes, acquisitions and disposals, and charges such as impairments or acquisition related charges. Accordingly, reconciliation of these non-IFRS forward-looking financial measures are not available without unreasonable efforts. Such unavailable reconciling items could significantly impact our results of operations and financial condition. Rolling four quarters of net sales and adjusted EBITA margin (%) Net sales, EBITA margin and restructuring charges as a sum of last four quarters. 2026 2025 Rolling four quarters, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Net sales 230,785 227,546 230,988 236,681 240,309 245,864 249,580 EBITA 28,893 35,182 35,668 40,532 37,554 28,241 23,904 Restructuring charges 6,359 5,769 5,824 2,337 2,866 4,116 5,088 Adjusted EBITA 35,253 40,950 41,492 42,869 40,420 32,357 28,992 Adjusted EBITA margin (%) 15.3% 18.0% 18.0% 18.1% 16.8% 13.2% 11.6% Gross cash and net cash, end of period Gross cash: Cash and cash equivalents plus interest-bearing securities (current and non-current). Net cash: Cash and cash equivalents plus interest-bearing securities (current and non-current) less borrowings (current and non- current). 2026 2025 SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Cash and cash equivalents 51,087 41,691 52,315 43,926 42,695 33,620 44,590 + Interest-bearing securities, current 7,697 12,413 10,775 12,715 8,345 6,790 5,147 + Interest-bearing securities, non-current 39,175 37,193 36,457 37,298 37,370 32,859 24,436 Gross cash, end of period 97,958 91,297 99,547 93,939 88,410 73,269 74,173 - Borrowings, current 9,455 9,468 9,865 3,538 6,680 7,285 5,597 - Borrowings, non-current 27,816 21,990 21,541 29,165 29,872 29,944 29,929 Net cash, end of period 60,687 59,839 68,141 61,236 51,858 36,040 38,647 Capital employed Total assets less non-interest-bearing provisions and liabilities (which includes non-current provisions, deferred tax liabilities, contract liabilities, other non-current liabilities, current provisions, trade payables, current tax liabilities and other current liabilities). 2026 2025 SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Total assets 301,501 287,899 290,393 279,223 282,476 270,555 277,978 Less: Non-interest-bearing provisions and liabilities Provisions, non-current -4,253 -4,037 -4,822 -2,993 -2,478 -2,365 -2,541 Deferred tax liabilities -240 -173 -175 -152 -1,349 -1,390 -1,365 Other non-current liabilities -1,396 -1,355 -1,327 -1,292 -899 -870 -888 Provisions, current -7,781 -7,126 -6,981 -5,691 -5,345 -6,287 -6,552 Contract liabilities -40,548 -45,133 -46,008 -36,867 -40,642 -44,370 -46,757 Trade payables -30,380 -28,925 -26,719 -26,335 -25,352 -24,804 -26,450 Current tax liabilities -6,276 -4,669 -3,386 -2,679 -6,069 -3,609 -2,664 Other current liabilities -39,760 -34,231 -40,327 -34,038 -34,605 -32,521 -41,655 Capital employed 170,866 162,250 160,647 169,176 165,737 154,339 149,106 Capital turnover Rolling four quarters of net sales divided by five-point average for capital employed.
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Ericsson | Third quarter report 2026. October 15, 2026. Alternative performance measures 36 2026 2025SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Net sales, rolling four quarters 230,785 227,546 230,988 236,681 240,309 245,864 249,580 Average capital employed, rolling five quarters Capital employed at end of period -4 165,737 154,339 149,106 162,967 153,610 156,496 177,181 Capital employed at end of period -3 169,176 165,737 154,339 149,106 162,967 153,610 156,496 Capital employed at end of period -2 160,647 169,176 165,737 154,339 149,106 162,967 153,610 Capital employed at end of period -1 162,250 160,647 169,176 165,737 154,339 149,106 162,967 Capital employed at end of period 170,866 162,250 160,647 169,176 165,737 154,339 149,106 Average capital employed, rolling five quarters 165,735 162,430 159,801 160,265 157,152 155,304 159,872 Capital turnover (times) 1.4 1.4 1.4 1.5 1.5 1.6 1.6 Return on capital employed Rolling four quarters of EBIT divided by five-point average for capital employed. 2026 2025 SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 EBIT, rolling four quarters 27,387 33,675 34,146 38,634 35,431 26,054 6,144 Average capital employed, rolling five quarters Capital employed at end of period -4 165,737 154,339 149,106 162,967 153,610 156,496 177,181 Capital employed at end of period -3 169,176 165,737 154,339 149,106 162,967 153,610 156,496 Capital employed at end of period -2 160,647 169,176 165,737 154,339 149,106 162,967 153,610 Capital employed at end of period -1 162,250 160,647 169,176 165,737 154,339 149,106 162,967 Capital employed at end of period 170,866 162,250 160,647 169,176 165,737 154,339 149,106 Average capital employed, rolling five quarters 165,735 162,430 159,801 160,265 157,152 155,304 159,872 Return on capital employed (%) 16.5% 20.7% 21.4% 24.1% 22.5% 16.8% 3.8% Equity ratio Equity expressed as a percentage of total assets. 2026 2025 SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Total equity 111,255 104,764 103,133 110,264 102,494 85,699 84,858 Total assets 301,501 287,899 290,393 279,223 282,476 270,555 277,978 Equity ratio (%) 36.9% 36.4% 35.5% 39.5% 36.3% 31.7% 30.5% Return on equity Annualized net income attributable to owners of the Parent Company as a percentage of average stockholders’ equity. Annualization factor of four is used for isolated quarter. Annualization factor of four is used for Jan-Mar, two is used for Jan-Jun, 4/3 is used for Jan-Sep and one is used for Jan-Dec. 2026 2025 Isolated quarters, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Net income attributable to owners of the Parent Company 5,806 4,046 888 8,563 11,149 4,567 4,149 Annualized 23,225 16,182 3,551 34,252 44,596 18,268 16,596 Average stockholders' equity Stockholders' equity, beginning of period 104,047 102,440 109,535 102,658 86,748 86,039 94,284 Stockholders' equity, end of period 110,482 104,047 102,440 109,535 102,658 86,748 86,039 Average stockholders' equity 107,264 103,243 105,988 106,097 94,703 86,394 90,162 Return on equity (%) 21.7% 15.7% 3.4% 32.3% 47.1% 21.1% 18.4% 2026 2025 Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Net income attributable to owners of the Parent Company 10,740 4,933 888 28,428 19,865 8,716 4,149 Annualized 14,319 9,867 3,551 28,428 26,487 17,432 16,596 Average stockholders' equity Stockholders' equity, beginning of period 109,535 109,535 109,535 94,284 94,284 94,284 94,284 Stockholders' equity, end of period 110,482 104,047 102,440 109,535 102,658 86,748 86,039 Average stockholders' equity 110,008 106,791 105,988 101,910 98,471 90,516 90,162 Return on equity (%) 13.0% 9.2% 3.4% 27.9% 26.9% 19.3% 18.4% Operating working capital Inventories, contract assets, trade receivables, customer finance (current and non-current), advances to suppliers and prepaid expenses less contract liabilities and trade payables.
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Ericsson | Third quarter report 2026. October 15, 2026. Alternative performance measures 37 2026 2025SEK million Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Inventories 35,404 30,718 25,732 23,451 27,519 27,068 27,649 Contract assets 8,855 8,225 8,526 7,333 7,494 6,618 5,735 Trade receivables 38,846 37,921 39,345 40,327 38,136 39,107 41,428 Customer finance, current 1,913 1,657 1,582 852 1,290 1,879 2,396 Customer finance, non-current 6 26 190 238 242 78 27 Advance payments to suppliers¹ ⁾ 43 39 44 46 39 41 46 Prepaid expenses¹ ⁾ 2,508 2,868 3,015 2,390 2,443 3,025 3,749 Less: Contract liabilities -40,548 -45,133 -46,008 -36,867 -40,642 -44,370 -46,757 Less: Trade payables -30,380 -28,925 -26,719 -26,335 -25,352 -24,804 -26,450 Operating working capital 16,646 7,398 5,709 11,435 11,169 8,642 7,823 1) Part of Other current receivables in the consolidated balance sheet. Free cash flow before M&A / Free cash flow after M&A / Free cash flow before M&A (% of net sales) Free cash flow before M&A: Cash flow from operating activities less net capital expenditures, other investments (excluding M&A) and repayment of lease liabilities. Free cash flow after M&A: Cash flow from operating activities less net capital expenditures, other investments and repayment of lease liabilities. Free cash flow before M&A (% of net sales): Free cash flow before M&A as a percentage of net sales. 2026 2025 Isolated quarters, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Cash flow from operating activities 6,469 1,932 7,403 16,507 7,939 4,150 4,358 Net capital expenditures and other investments (excl. M&A) Investments in property, plant and equipment -846 -637 -620 -849 -491 -561 -729 Sales of property, plant and equipment 84 23 10 56 57 40 39 Product development -291 -384 -378 -352 -286 -193 -307 Other investments¹ ⁾ -52 -36 -36 -47 -81 -301 -64 Repayment of lease liabilities -461 -513 -459 -462 -507 -554 -593 Free cash flow before M&A 4,902 385 5,921 14,853 6,631 2,581 2,704 Acquisitions/divestments of subs and other operations, net 6 -238 -72 338 10,064 141 -4 Free cash flow after M&A 4,908 147 5,849 15,191 16,695 2,722 2,700 Net sales 59,478 52,691 49,332 69,285 56,239 56,132 55,025 Free cash flow before M&A (% of net sales) 8.2% 0.7% 12.0% 21.4% 11.8% 4.6% 4.9% 2026 2025 Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Cash flow from operating activities 15,805 9,336 7,403 32,954 16,447 8,508 4,358 Net capital expenditures and other investments (excl. M&A) Investments in property, plant and equipment -2,104 -1,257 -620 -2,630 -1,781 -1,290 -729 Sales of property, plant and equipment 117 33 10 192 136 79 39 Product development -1,053 -762 -378 -1,138 -786 -500 -307 Other investments¹ ⁾ -124 -72 -36 -493 -446 -365 -64 Repayment of lease liabilities -1,433 -971 -459 -2,116 -1,654 -1,147 -593 Free cash flow before M&A 11,207 6,306 5,921 26,769 11,916 5,285 2,704 Acquisitions/divestments of subs and other operations, net -304 -309 -72 10,539 10,201 137 -4 Free cash flow after M&A 10,904 5,996 5,849 37,308 22,117 5,422 2,700 Net sales 161,500 102,022 49,332 236,681 167,396 111,157 55,025 Free cash flow before M&A (% of net sales) 6.9% 6.2% 12.0% 11.3% 7.1% 4.8% 4.9% 1) Other investments is part of the line item Other investing activities in the Consolidated cash flow statement. The differences are movements in other interest-bearing assets, which are not to be part of the definition of Free cash flow.
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Ericsson | Third quarter report 2026. October 15, 2026. Alternative performance measures 38 Sales growth by segment adjusted for comparable units and currency 2026 2025 Isolated quarter, year over year change, percent Q3 Q2 Q1 Q4 Q3 Q2 Q1 Networks 9% -4% 7% 4% -5% 3% 3% Cloud Software and Services 3% 5% 4% 12% 9% 1% -3% Enterprise 1% 3% 4% 2% -7% -6% -7% Other -5% -6% -2% -10% -15% -1% -23% Total 7% -1% 6% 6% -2% 2% 0% 2026 2025 Year to date, year over year change, percent Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 4% 1% 7% 1% 0% 3% 3% Cloud Software and Services 4% 5% 4% 6% 2% -1% -3% Enterprise 3% 4% 4% -5% -7% -6% -7% Other -4% -4% -2% -13% -14% -13% -23% Total 4% 2% 6% 2% 0% 1% 0% Sales growth by market area adjusted for comparable units and currency 2026 2025 Isolated quarter, year over year change, percent Q3 Q2 Q1 Q4 Q3 Q2 Q1 Americas -1% -1% -2% -1% -8% 10% 20% Europe, Middle East and Africa 4% 2% 10% 13% 3% -1% -7% South East Asia, Oceania and India 25% 4% 12% 19% 1% -22% -17% North East Asia 22% 8% 15% -16% 10% -15% -8% Other 7% -12% 12% 13% -2% 15% -6% Total 7% -1% 6% 6% -2% 2% 0% 2026 2025 Year to date, year over year change, percent Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Americas -1% -2% -2% 4% 6% 14% 20% Europe, Middle East and Africa 5% 6% 10% 3% -2% -4% -7% South East Asia, Oceania and India 14% 8% 12% -4% -13% -19% -17% North East Asia 15% 11% 15% -9% -5% -12% -8% Other 1% -1% 12% 5% 3% 5% -6% Total 4% 2% 6% 2% 0% 1% 0% Rolling four quarters of net sales by segment 2026 2025 Rolling four quarters, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Networks 148,880 145,608 148,308 151,014 153,611 158,203 160,135 Cloud Software and Services 62,425 61,943 61,573 62,715 62,141 61,748 62,565 Enterprise 17,796 18,294 19,352 21,117 22,629 23,890 24,826 Other 1,684 1,702 1,754 1,835 1,928 2,023 2,054 Total 230,785 227,546 230,988 236,681 240,309 245,864 249,580 Gross margin by segment by quarter 2026 2025 Isolated quarters, as percentage of net sales Q3 Q2 Q1 Q4 Q3 Q2 Q1 Networks 49.8% 48.3% 49.7% 49.0% 50.0% 49.3% 50.8% Cloud Software and Services 42.4% 39.8% 41.5% 43.1% 42.1% 41.5% 39.1% Enterprise 50.0% 50.7% 48.9% 52.1% 51.6% 54.9% 56.3% Other -68.4% 0.5% -1.5% 7.4% 0.0% 0.4% 3.8% Total 47.1% 45.8% 47.2% 47.2% 47.6% 47.5% 48.2%
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Ericsson | Third quarter report 2026. October 15, 2026. Alternative performance measures 39 2026 2025Year to date, as percentage of net sales Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 49.3% 49.0% 49.7% 49.7% 50.0% 50.1% 50.8% Cloud Software and Services 41.2% 40.6% 41.5% 41.7% 41.0% 40.4% 39.1% Enterprise 49.9% 49.8% 48.9% 53.9% 54.4% 55.6% 56.3% Other -22.6% -0.5% -1.5% 3.0% 1.5% 2.1% 3.8% Total 46.7% 46.5% 47.2% 47.6% 47.8% 47.8% 48.2% EBIT margin by segment by quarter 2026 2025 Isolated quarters, as percentage of net sales Q3 Q2 Q1 Q4 Q3 Q2 Q1 Networks 21.8% 18.2% 10.0% 21.1% 20.0% 17.8% 19.8% Cloud Software and Services 10.9% 7.8% 0.0% 16.8% 11.2% 5.8% 0.5% Enterprise -21.2% -27.1% -44.2% -33.3% 131.5% -15.7% -17.1% Other -81.6% -3.4% 0.3% 1.1% -71.5% 9.5% -35.0% Total 14.9% 11.2% 2.9% 16.1% 26.9% 11.4% 10.8% 2026 2025 Year to date, as percentage of net sales Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 16.9% 14.1% 10.0% 19.7% 19.2% 18.8% 19.8% Cloud Software and Services 6.8% 4.3% 0.0% 9.6% 6.2% 3.3% 0.5% Enterprise -30.4% -35.3% -44.2% 15.3% 28.8% -16.4% -17.1% Other -27.7% -1.7% 0.3% -22.3% -30.5% -12.8% -35.0% Total 10.0% 7.2% 2.9% 16.3% 16.4% 11.1% 10.8% EBITA and EBITA margin by segment by quarter 2026 2025 Isolated quarters, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Networks 8,449 6,034 3,315 9,348 7,096 6,397 7,367 Cloud Software and Services 1,732 1,146 9 3,368 1,726 845 76 Enterprise -633 -888 -1,537 -1,120 6,987 -524 -625 Other -320 -14 1 5 -293 45 -166 Total 9,228 6,277 1,788 11,601 15,516 6,763 6,652 2026 2025 Isolated quarters, as percentage of net sales Q3 Q2 Q1 Q4 Q3 Q2 Q1 Networks 21.8% 18.3% 10.1% 21.1% 20.0% 17.9% 20.7% Cloud Software and Services 10.9% 7.8% 0.1% 16.8% 11.2% 5.9% 0.6% Enterprise -13.9% -19.8% -36.9% -24.5% 138.1% -9.4% -10.5% Other -81.5% -3.4% 0.3% 1.1% -71.3% 9.5% -35.0% Total 15.5% 11.9% 3.6% 16.7% 27.6% 12.0% 12.1% 2026 2025 Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 17,798 9,349 3,315 30,208 20,860 13,764 7,367 Cloud Software and Services 2,886 1,154 9 6,015 2,647 921 76 Enterprise -3,059 -2,425 -1,537 4,718 5,838 -1,149 -625 Other -334 -13 1 -409 -414 -121 -166 Total 17,292 8,065 1,788 40,532 28,931 13,415 6,652 2026 2025 Year to date, as percentage of net sales Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 17.0% 14.2% 10.1% 20.0% 19.5% 19.3% 20.7% Cloud Software and Services 6.8% 4.3% 0.1% 9.6% 6.2% 3.4% 0.6% Enterprise -23.1% -28.0% -36.9% 22.3% 35.3% -10.0% -10.5% Other -27.6% -1.6% 0.3% -22.3% -30.5% -12.8% -35.0% Total 10.7% 7.9% 3.6% 17.1% 17.3% 12.1% 12.1% Restructuring charges by function 2026 2025 Isolated quarters, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Cost of sales -361 -1,359 -435 -538 -271 -310 -158 Research and development expenses -281 882 -2,595 -300 41 -300 -20 Selling and administrative expenses -251 -124 -738 -259 -73 -46 -103 Total -893 -601 -3,768 -1,097 -303 -656 -281
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Ericsson | Third quarter report 2026. October 15, 2026. Alternative performance measures 40 2026 2025Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Cost of sales -2,156 -1,794 -435 -1,277 -739 -468 -158 Research and development expenses -1,994 -1,713 -2,595 -579 -279 -320 -20 Selling and administrative expenses -1,112 -861 -738 -481 -222 -149 -103 Total -5,262 -4,369 -3,768 -2,337 -1,240 -937 -281 Restructuring charges by segment 2026 2025 Isolated quarters, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Networks -502 198 -3,052 -710 -79 -109 -108 of which cost of sales -176 -671 -226 -270 -45 -67 -55 of which operating expenses -326 869 -2,826 -440 -34 -42 -53 Cloud Software and Services -297 -688 -620 -349 -193 -538 -74 of which cost of sales -174 -626 -205 -240 -222 -243 -102 of which operating expenses -123 -62 -415 -109 29 -295 28 Enterprise -83 -50 -96 -5 -27 -9 -97 of which cost of sales -1 -8 -5 -1 0 0 1 of which operating expenses -83 -43 -91 -4 -27 -9 -98 Other -11 -60 0 -33 -4 0 -2 of which cost of sales -11 -54 0 -27 -4 0 -2 of which operating expenses 0 -6 0 -6 0 0 0 Total -893 -601 -3,768 -1,097 -303 -656 -281 2026 2025 Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks -3,356 -2,854 -3,052 -1,006 -296 -217 -108 of which cost of sales -1,073 -897 -226 -437 -167 -122 -55 of which operating expenses -2,283 -1,957 -2,826 -569 -129 -95 -53 Cloud Software and Services -1,605 -1,308 -620 -1,154 -805 -612 -74 of which cost of sales -1,005 -831 -205 -807 -567 -345 -102 of which operating expenses -600 -477 -415 -347 -238 -267 28 Enterprise -230 -147 -96 -138 -133 -106 -97 of which cost of sales -13 -13 -5 0 1 1 1 of which operating expenses -217 -134 -91 -138 -134 -107 -98 Other -71 -60 0 -39 -6 -2 -2 of which cost of sales -65 -54 0 -33 -6 -2 -2 of which operating expenses -6 -6 0 -6 0 0 0 Total -5,262 -4,369 -3,768 -2,337 -1,240 -937 -281 Adjusted gross income and Adjusted gross margin by segment 2026 2025 Isolated quarters, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Networks 19,447 16,647 16,585 21,918 17,750 17,705 18,167 Cloud Software and Services 6,881 6,494 5,112 8,876 6,685 6,207 5,171 Enterprise 2,281 2,284 2,044 2,387 2,609 3,045 3,337 Other -258 56 -6 62 4 2 20 Total 28,351 25,481 23,734 33,243 27,048 26,959 26,695
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Ericsson | Third quarter report 2026. October 15, 2026. Alternative performance measures 41 2026 2025Isolated quarters, as percentage of net sales Q3 Q2 Q1 Q4 Q3 Q2 Q1 Networks 50.3% 50.4% 50.4% 49.6% 50.1% 49.5% 51.0% Cloud Software and Services 43.5% 44.1% 43.2% 44.3% 43.6% 43.2% 39.9% Enterprise 50.0% 50.9% 49.0% 52.1% 51.6% 54.9% 56.2% Other -65.6% 13.3% -1.5% 13.0% 1.0% 0.4% 4.2% Total 47.7% 48.4% 48.1% 48.0% 48.1% 48.0% 48.5% 2026 2025 Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 52,679 33,231 16,585 75,540 53,622 35,872 18,167 Cloud Software and Services 18,488 11,607 5,112 26,939 18,063 11,378 5,171 Enterprise 6,608 4,328 2,044 11,378 8,991 6,382 3,337 Other -208 50 -6 88 26 22 20 Total 77,567 49,216 23,734 113,945 80,702 53,654 26,695 2026 2025 Year to date, as percentage of net sales Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 50.3% 50.4% 50.4% 50.0% 50.2% 50.2% 51.0% Cloud Software and Services 43.6% 43.7% 43.2% 43.0% 42.3% 41.6% 39.9% Enterprise 50.0% 50.0% 49.0% 53.9% 54.4% 55.6% 56.2% Other -17.2% 6.1% -1.5% 4.8% 1.9% 2.3% 4.2% Total 48.0% 48.2% 48.1% 48.1% 48.2% 48.3% 48.5% Adjusted EBIT and Adjusted EBIT margin by segment 2026 2025 Isolated quarters, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Networks 8,922 5,808 6,335 10,028 7,154 6,485 7,148 Cloud Software and Services 2,027 1,830 623 3,713 1,914 1,378 145 Enterprise -882 -1,165 -1,748 -1,521 6,676 -861 -917 Other -310 46 1 38 -290 45 -164 Total 9,757 6,520 5,211 12,258 15,454 7,047 6,212 2026 2025 Isolated quarters, as percentage of net sales Q3 Q2 Q1 Q4 Q3 Q2 Q1 Networks 23.1% 17.6% 19.2% 22.7% 20.2% 18.1% 20.1% Cloud Software and Services 12.8% 12.4% 5.3% 18.5% 12.5% 9.6% 1.1% Enterprise -19.3% -25.9% -41.9% -33.2% 132.0% -15.5% -15.5% Other -78.8% 10.9% 0.3% 8.0% -70.6% 9.5% -34.6% Total 16.4% 12.4% 10.6% 17.7% 27.5% 12.6% 11.3% 2026 2025 Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 21,065 12,143 6,335 30,815 20,787 13,633 7,148 Cloud Software and Services 4,480 2,454 623 7,150 3,437 1,523 145 Enterprise -3,795 -2,912 -1,748 3,377 4,898 -1,778 -917 Other -263 47 1 -371 -409 -119 -164 Total 21,488 11,731 5,211 40,971 28,713 13,259 6,212 2026 2025 Year to date, as percentage of net sales Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 20.1% 18.4% 19.2% 20.4% 19.5% 19.1% 20.1% Cloud Software and Services 10.6% 9.2% 5.3% 11.4% 8.1% 5.6% 1.1% Enterprise -28.7% -33.6% -41.9% 16.0% 29.6% -15.5% -15.5% Other -21.8% 5.7% 0.3% -20.2% -30.1% -12.6% -34.6% Total 13.3% 11.5% 10.6% 17.3% 17.2% 11.9% 11.3% Rolling four quarters of adjusted EBITA margin by segment (%) 2026 2025 Rolling four quarters, as percentage of net sales Q3 Q2 Q1 Q4 Q3 Q2 Q1 Networks 21.0% 20.2% 20.3% 20.7% 20.4% 20.4% 19.3% Cloud Software and Services 13.1% 13.1% 12.4% 11.4% 8.5% 6.1% 4.0% Enterprise -22.2% 19.8% 20.4% 23.0% 21.2% -12.6% -15.0% Other -13.3% -12.0% -11.7% -20.2% -46.5% -30.4% -35.5% Total 15.3% 18.0% 18.0% 18.1% 16.8% 13.2% 11.6%
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Ericsson | Third quarter report 2026. October 15, 2026. Alternative performance measures 42 Adjusted EBITA and Adjusted EBITA margin by segment 2026 2025 Isolated quarters, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Networks 8,951 5,836 6,367 10,058 7,175 6,506 7,475 Cloud Software and Services 2,029 1,834 629 3,717 1,919 1,383 150 Enterprise -550 -838 -1,441 -1,115 7,014 -515 -528 Other -309 46 1 38 -289 45 -164 Total 10,121 6,878 5,556 12,698 15,819 7,419 6,933 2026 2025 Isolated quarters, as percentage of net sales Q3 Q2 Q1 Q4 Q3 Q2 Q1 Networks 23.1% 17.7% 19.3% 22.8% 20.3% 18.2% 21.0% Cloud Software and Services 12.8% 12.4% 5.3% 18.6% 12.5% 9.6% 1.2% Enterprise -12.1% -18.7% -34.6% -24.4% 138.7% -9.3% -8.9% Other -78.8% 10.9% 0.3% 8.0% -70.3% 9.5% -34.6% Total 17.0% 13.1% 11.3% 18.3% 28.1% 13.2% 12.6% 2026 2025 Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 21,154 12,202 6,367 31,214 21,156 13,981 7,475 Cloud Software and Services 4,491 2,463 629 7,169 3,452 1,533 150 Enterprise -2,828 -2,279 -1,441 4,856 5,971 -1,043 -528 Other -263 47 1 -370 -408 -119 -164 Total 22,554 12,433 5,556 42,869 30,171 14,352 6,933 2026 2025 Year to date, as percentage of net sales Jan-Sep Jan-Jun Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 20.2% 18.5% 19.3% 20.7% 19.8% 19.6% 21.0% Cloud Software and Services 10.6% 9.3% 5.3% 11.4% 8.1% 5.6% 1.2% Enterprise -21.4% -26.3% -34.6% 23.0% 36.1% -9.1% -8.9% Other -21.7% 5.8% 0.3% -20.2% -30.0% -12.6% -34.6% Total 14.0% 12.2% 11.3% 18.1% 18.0% 12.9% 12.6% Operating working capital days Inventory turnover days (ITO): Five quarter average inventory divided by four quarter rolling absolute value of cost of sales excluding restructuring charges multiplied by 365, expressed as number of days. Days sales outstanding (DSO): Five quarter average of contract assets, trade receivables and customer finance (current and non-current) less contract liabilities divided by four quarter rolling net sales multiplied by 365, expressed as number of days. Days payables outstanding (DPO): Five quarter average of advances to suppliers and prepaid expenses less trade payables divided by four quarter rolling absolute value of cost of sales excluding restructuring charges multiplied by 365, expressed as number of days. Operating working capital days: ITO plus DSO less DPO Q3 Q2 Q1 Q4 Q3 Q2 Q1 Inventory turnover days (ITO) 87 83 80 79 80 80 81
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Ericsson | Third quarter report 2026. October 15, 2026. Alternative performance measures 43 2026 2025Days sales outstanding (DSO) 11 9 9 12 11 14 17 Less: Days payables outstanding (DPO) -76 -73 -70 -71 -68 -66 -64 Operating working capital days 22 19 19 20 23 28 34