Negotiating margin headwinds

研报英文原文证据摘录

Negotiating margin headwinds

Sweden | Comm. Equipment

Ericsson EquityJulyResearch15, 2026

ESTIMATE CHANGENegotiating margin headwinds

Following Ericsson's guide for a small decline to 49% in its Q3 Networks RATING HOLD

gross margin, the focus is on the direction of the gross margin in Q4 and into PRICE SEK112.75^

2027. We forecast a further decline to 48% in Q4, followed by stabilisation. PRICE TARGET | % TO PT SEK98.00 | -13%

We expect the share price to remain lacklustre until there is confidence on 52W HIGH-LOW SEK128.45 - SEK69.90

the direction of the gross margin. Over the next few months we also expect FLOAT (%) | ADV MM (USD) 86.9% | 105.19

the focus to shift to potential changes in direction or strategy under the new MARKET CAP SEK375.5B | $38.8B

CEO. TICKER ERICB SS

^Prior trading day's closing price unless otherwise

noted.

Network roll-out puts pressure on Q3 gross margin: Ericsson has guided its Q3 Networks

gross margin to decline to 49% at the mid-point, after being in the 49.5% to 51% range in the

previous six quarters. The share price has historically been highly sensitive to the direction of FY (Dec) CHANGE TO JEFe JEF vs CONS

its gross margin, as once again evident the double-digit post-results share price decline. While 2026 2027 2026 2027

the market was expecting the gross margin to come under pressure due to rising component REV* <-1% -1% -2% NM

prices, Ericsson flagged an increase in Network rollout projects as the primary cause of its EPS -20% -18% -8% -4%

lower Q3 gross margin. We believe large network rollout projects are unlikely to be completed

within a quarter and expect these roll-outs to impact the margin in Q4 as well, before possibly

easing from H1-27. At the same time the impact from higher component prices is likely to