Ericsson reports 7 percent organic growth as Ericsson stock holds EUR 9.28

Published on 10/20/2026 at 09:48 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Ericsson posted 7 percent organic growth in Q3 2026. Ericsson stock stood at EUR 9.28 on October 20, 2026 during trading.

Quarterly growth and cost pressure

Ericsson reported SEK 59.5 billion in sales and 7 percent organic growth on October 15, 2026.
Adjusted EBITA margin reached 17.0 percent in the third quarter of 2026.
Ericsson stock trades at EUR 9.28 at 9:38 a.m. CEST at Lang & Schwarz on October 20, 2026.

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Ericsson (ISIN SE0000108656) reported SEK 59.5 billion in third-quarter sales and 7 percent organic growth on October 15, 2026. The figures showed stronger Networks demand, while higher component costs remained a pressure point for the company.

Q3 sales reach SEK 59.5 billion

According to Ericsson, reported sales rose from SEK 56.2 billion in the third quarter of 2025 to SEK 59.5 billion in the third quarter of 2026. Organic sales increased 7 percent year over year and grew in three of four market areas.

The operating picture was mixed. Reported gross income increased 5 percent year over year to SEK 28.0 billion, but reported net income fell 49 percent to SEK 5.8 billion because the prior-year period included a SEK 7.6 billion capital gain from a divestment.

What does the margin signal?

Adjusted EBITA reached SEK 10.1 billion in the third quarter, equal to a 17.0 percent margin. The comparable adjusted EBITA margin was 28.1 percent a year earlier, but that comparison included the divestment gain; Ericsson said adjusted EBITA increased when that one-off effect was excluded.

Management also reported SEK 4.9 billion in free cash flow before acquisitions and divestments for the quarter. The company said higher component costs would weigh on gross margin next year, making cost discipline a key test after the sales improvement.

Analyst expectations remain divided. Markets Insider reported on October 16, 2026 that BofA raised its Ericsson target from SEK 77 to SEK 87 while keeping an Underperform rating. The report cited concern that memory component costs could have a larger effect in 2027.

Stock price during trading

The next investor test is the companys ability to convert Networks demand into margin improvement while component expenses rise. That makes the 17.0 percent adjusted EBITA margin and the 7 percent organic growth rate more informative than the lower reported net income alone.

Ericsson stock was trading at EUR 9.28 at Lang & Schwarz on October 20, 2026 at 9:38 a.m. CEST. The further course of trading is shown by the continuously updated real-time quote of Ericsson stock.