Ericsson cites ‘solid’ demand as Q3 operating profit beats forecasts

Stockholm: Swedish telecoms giant Ericsson posted Thursday a 49 percent drop in net profit for the third quarter from a year earlier, when the group benefited from a one-time gain from the sale of a US business.

But profit on ordinary operations beat analyst expectations thanks to “solid customer demand in strategic markets”, the company said.

Nonetheless, the group has faced soaring semiconductor prices as a result of the surge in AI-linked demand, and it warned that geopolitical risks and rising component costs were “a headwind to gross margin next year”.