Ericsson Q3 2026: I Was Wrong About Margins, But I'm Not Buying

Impact · against what's priced in

Ericsson's quarterly margin beats provide a short-term lift but fail to catalyze a structural re-rating. The gains in the Networks and Cloud Software divisions are offset by persistent concerns regarding pricing power and rising input costs heading into 2027.

ERIC+0.10

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In context

The 50.3% gross margin in Networks and 12.8% adjusted EBITA in Cloud Software exceed guidance, but these gains are tempered by rising component costs and limited pricing power.

Read from the article alone

• ERICNew
• earnings▲7%
• guidance
• margins
• networks
• profitability
• software
• telecom