Ericsson’s U.S.-listed ADRs are falling as the market digests the company’s first-quarter 2026 earnings update released April 17, 2026. The selloff is being driven by a reported revenue shortfall and a sharp year-over-year drop in reported profitability, with currency headwinds and restructuring costs dominating the takeaway despite positive organic growth and stronger cash flow.

For Q1 2026, Ericsson reported sales of SEK 49.3 billion versus SEK 55.0 billion a year earlier, while citing 6% organic growth. Net income fell to SEK 0.9 billion from SEK 4.2 billion, and EBITA was heavily impacted by SEK 3.8 billion in restructuring charges; adjusted profitability also reflected meaningful FX pressure on margins. The combination of weaker reported sales, lower earnings power, and a cost-reset narrative is pushing investors to reprice near-term expectations.

Ericsson’s board approved a share buyback program of up to SEK 15 billion, with repurchases expected to begin April 23, 2026 at the earliest. While the authorization signals confidence and provides a demand backstop, the market reaction suggests investors are prioritizing the earnings and margin trajectory over capital returns right now—especially with FX and input-cost inflation still clouding near-term visibility.

Attention now shifts to whether Ericsson can stabilize reported sales in Networks and keep margins from eroding further if currency moves remain unfavorable and restructuring actions continue. Investors will also track management’s tone on demand by region and cost inflation tied to semiconductors, plus the pace and execution of the buyback once it starts later this week.