Ericsson reported fourth-quarter earnings per share of SEK 2.57, up 78% year-over-year, and delivered revenue of SEK 69.3 billion. Both metrics exceeded the consensus forecasts of analysts at leading Nordic brokerages. The company’s net income jumped from SEK 4.9 billion in Q4 2024 to SEK 8.6 billion in Q4 2025, driven by margin expansion and disciplined cost management.

Adjusted EBITA rose 24% year-over-year to SEK 12.7 billion, representing an 18.3% margin compared with 14.1% a year earlier. Free cash flow before M&A reached SEK 14.9 billion, supported by contributions from all three segments and operational efficiencies. Net cash at year-end increased to SEK 61.2 billion, up 62% from the prior year.

Organic sales grew 6% in Q4, led by a 12% uplift in the Cloud Software and Services division. Mobile Networks margins improved by 20 basis points sequentially, offsetting a 5% reported sales decline in the North East Asian market. Management attributed performance to targeted investments in mission-critical networks and the 5G core portfolio.

The board proposed a dividend of SEK 3.00 per share and a SEK 15 billion share buyback program, reflecting strong balance-sheet health following the Iconectiv divestment. Ericsson also maintained its R&D spend at 18% of sales, prioritizing AI-native, secure and autonomous network capabilities to sustain its technology leadership.