Ericsson reported fourth-quarter earnings per share of $0.28, comfortably above consensus estimates, while generating approximately $7.68 billion in revenue. Although revenue declined 5% year-over-year due to regional market softness, the company’s disciplined cost management lifted adjusted EBITA margin to 18.3%, up from 14.1% in the prior year. Net income nearly doubled, rising from $545 million in Q4 2024 to $958 million in Q4 2025, and EBITDA grew to $1.45 billion, reflecting strong operational leverage.

Operational improvements across Mobile Networks and Cloud Software & Services drove gross margin expansion to 48.0%, up 170 basis points year-over-year. Free cash flow before M&A totaled $750 million for the quarter, supporting a net cash position of $2.59 billion at December 31, 2025. Ericsson’s strategic focus on R&D continued, with investments dedicated to AI-native, secure and autonomous network solutions, ensuring leadership in 5G core and mission-critical applications.

Building on the recent divestment of its U.S. Iconectiv business, Ericsson has proposed a dividend increase and a SEK 15 billion ($1.7 billion) share buyback program for 2026. The board’s return-of-capital plan underscores confidence in sustained free cash generation. Looking ahead, Ericsson expects the RAN market to remain flat in 2026, with growth opportunities in enterprise and defense segments. Management plans to further optimize costs while selectively increasing investments to support margin resilience and long-term value creation.