Ericsson Projects Growth for 2026, Anticipates More Job Cuts

Ericsson (NASDAQ: ERIC) reported organic sales its 4Q25 and full-year 2025 were up six percent year-over-year, and two percent YoY, respectively, in a year where the global wireless networking market exhibited low single-digit growth, according to Inside Towers Intelligence. Ericsson reported total sales for full-year 2025 of $26.3 billion, down five percent YoY.

By product line, Networks generated sales of $16.8 billion, down 5 percent YoY; Networks accounted for 64 percent of total sales. Cloud Software and Services, contributing 26 percent of sales, remained level YoY at $7 billion. Enterprise sales were $2.3 billion, down 25 percent YoY and added nine percent to sales. The company reported organic sales growth in all three segments in Q4, with 12 percent growth in the Cloud Software and Services segment.

Regionally, the Americas are Ericsson’s biggest market, accounting for nearly $10 billion or 35 percent of sales but with sales declining three percent YoY. The company reported a six percent year-over-year rise in total 4Q25 sales, with growth in Europe, the Middle East and Africa, along with South East Asia, Oceania and India, while North East Asia declined.

“It is encouraging that we delivered organic growth in a flattish RAN market environment through our efforts in mission critical networks, 5G core and Enterprise,” commented Börje Ekholm, Ericsson CEO. “The operational actions we have taken in recent years have resulted in improved margins and cash flow.”

The company maintained its high level of research and development investment throughout the year totaling $5.4 billion or 21 percent of sales. “R&D investments to extend technology leadership continued, with a focus on AI-native, secure, and autonomous mobile networks,” Ekholm added.

“For 2026, we expect the RAN market to be flat,” Ekholm said. “Mission critical and enterprise markets, where we are well positioned, are expected to grow. In this environment, we plan to increase investments in defense during 2026 while continuing to optimize our cost base to support margins and cash flow generation.”

Ekholm expects the company to continue cutting jobs beyond the recently announced 1,600 job cuts in Sweden, Inside Towers reported. “We have reduced the headcount … by 5,000 over the past year, and we expect to continue reducing headcount going forward,” Ekholm said.

Ericsson’s results were well received. Its share price was up over 8 percent in trading on Friday.

By John Celentano, Inside Towers Business Editor