Ericsson American Depositary Shares (ERIC) are sharply lower as investors digest the company’s first-quarter 2026 report released April 17, 2026. The quarter showed solid underlying demand (6% organic sales growth), but reported figures and profitability were pressured by currency headwinds and restructuring charges, pulling results below what the market was positioned for and driving broad selling in the ADRs. (ericsson.com)

Ericsson reported sales of SEK 49.3 billion versus SEK 55.0 billion a year earlier, with adjusted gross income down to SEK 23.7 billion and adjusted EBITA down to SEK 5.6 billion (11.3% margin). Net income was SEK 0.9 billion and diluted EPS was SEK 0.27, reflecting restructuring charges and currency impacts. (ericsson.com)

Management highlighted currency headwinds as a major drag on gross income and earnings, while EBITA was also hit by restructuring charges during the quarter. The company also flagged increasing input costs—especially semiconductors—partly tied to AI-driven demand, adding another layer of margin pressure that investors are weighing into 2026 expectations. (ericsson.com)

Ericsson reiterated that a share buyback program of up to SEK 15 billion is approved and is expected to commence on April 23, 2026, which could provide incremental demand for shares. Even so, today’s move suggests the market is prioritizing near-term earnings quality and FX sensitivity over capital returns, leaving ERIC trading down hard despite strong free cash flow before M&A of SEK 5.9 billion in the quarter. (ericsson.com)