Ericsson Reported Mixed Results for 2Q25

Ericsson reported a mixed set of second-quarter 2025 results. Company CEO Borje Ekholm pointed to an uptick in sales in North America and reduced costs, but US tariffs and a slowdown in revenue from India impacted the vendor’s top line.

In its earnings statement, Ericsson reported revenue of SEK56.1 billion ($5.8 billion), a 6% decline. The vendor said the main reason for lower sales lies in weak sales in India, as operators held off on new network investments. The company, however, did swing back to profit, with net income of SEK4.6 billion following a loss of almost SEK11 billion in the same period in 2024 when it was hit by an impairment charge related to cloud unit Vonage. The company stated its profit margin was impacted by US tariffs, and it would attempt to balance production across the world as the situation develops.

Revenue from Networks dropped 5% to SEK35.7 billion, while Cloud Software and Services experienced the same rate of decline to SEK14.4 billion. IPR licensing revenue increased from SEK3.9 billion to SEK4.9 billion, mainly driven by higher gains from previously unlicensed periods. Ekholm said the quarter demonstrated solid execution of strategic and operational priorities and was encouraging that America’s growth continues and that Europe has stabilised. “We have structurally lowered our cost base and are strongly focused on delivering further efficiencies,” he added.

Looking ahead, the vendor warned that increased uncertainty around tariffs and the broader macroeconomic environment was impacting its outlook. It said sales from Networks are expected to be below the three-year average seasonality, and restructuring charges for 2025 are to remain at elevated levels.