Ericsson Reports Profit Boost and Sales Drop in Q3

Ericsson reported solid business results for the third quarter of 2025. However, as profits increased, sales declined.

The sale of Iconectiv generated a profit boost for the company, although the vendor’s top line was impacted by declines in its Network and Enterprise divisions, as well as unfavorable currency movements. Ericsson booked a net profit of SEK11.3 billion ($1.2 billion) for the quarter, including a SEK7.6 billion capital gain from the sale of its number portability and data exchange services subsidiary Iconectiv, which was completed in August 2025. In 3Q24, it made a profit of SEK3.9 billion.

Ericsson’s net sales dropped 9% year-on-year to SEK56.2 billion, with Network sales declining 11% and Enterprise sales down 20%, though the latter was impacted by the loss of Iconectiv. In its Networks division, the vendor noted growth in EMEA and North-East Asia was offset by declines elsewhere. It also pointed to weak sales in India as customer network investments remained low.

Its Cloud Software and Services unit booked a 3% increase in sales. Positive performance in this division was attributed by the company’s CEO, Borje Ekholm, to growth in core networks. Ericsson’s top line was also hit by a SEK4.2 billion year-on-year currency impact. Ekholm said that the company expects Enterprise organic sales to stabilize in Q4 and the RAN market to remain broadly stable.