Ericsson reported weaker Q2 2026 sales and cash flow as lower IPR licensing revenue weighed on results; a PRNewswire notice later said SueWallSt was probing potential securities law violations after the shares fell more than 13%.
Ericsson reported Q2 2026 net sales of SEK 52.7 billion, down 6% year over year, while organic sales slipped 1% as lower IPR licensing revenue offset growth in three of four market areas. Adjusted gross margin improved to 48.4% from 48.0% and adjusted EBITA was SEK 6.9 billion with a 13.1% margin, while net income was SEK 4.1 billion and free cash flow before M&A fell to SEK 0.4 billion. The company returned SEK 8.2 billion to shareholders in the quarter, including SEK 3.2 billion of share repurchases, and said it expects some pressure on Networks adjusted gross margin in Q3 due to higher network rollout volumes. Separately, a July 15, 2026 PRNewswire notice from SueWallSt, powered by Levi & Korsinsky LLP, said it was investigating potential securities law violations after Ericsson's results missed analyst expectations and ERIC shares fell more than 13% on July 14, 2026.