Changes in US stocks | Q2 net profit fell 12% year on year. Ericsson (ERIC.US) opened, plummeted by more than 11%

The Zhitong Finance App learned that on Tuesday, Ericsson (ERIC.US) opened, plummeted by more than 11%, down 22% from the high in early June, and is now at $10.41. According to the news, Ericsson announced financial results for the second quarter of 2026. Driven by a decline in patent licensing revenue, net sales for the quarter fell 6.1% year on year to 52.69 billion SEK (approximately US$5.61 billion), lower than market expectations of 53.61 billion kroner. However, the adjusted gross margin bucked the trend and rose to 48.4%, exceeding the market estimate of 47.9%; the adjusted EBITA was 6.9 billion kroner, higher than the consensus estimate of 6.71 billion kroner, and the adjusted EBITA profit margin of 13.1% was also higher than the forecast of 12.5%. Net profit fell 12% year over year to SEK 4.1 billion. Outgoing CEO Börje Ekholm said in a statement: “The second-quarter results fully reflect the strength and strict execution of our product portfolio.”

Looking ahead to the third quarter, Ericsson expects online business sales growth to be higher than the average seasonal pattern of the past three years, and the adjusted gross margin forecast range is 48% to 50%. Free cash flow before mergers and acquisitions plummeted 85% year-on-year to 400 million kroner this quarter, and the cash flow situation still requires attention.