Ericsson reports fourth quarter results and full-year results 2025, finding Q4 saw 12% growth in segment cloud software and services.
Sales increased for the telco company by 6% year-on-year in the fourth quarter, with markets across Europe, the Middle East and Africa growing, in addition to South East Asia and India.
The company added it had benefitted from cost cuts and the sale of its iconectiv business.
Such growth led to Ericsson launching a share buyback this morning, as the company’s cash position sharply improved. The Board will propose an increased dividend of SEK 3.00 per share, and will also seek a mandate for a share buyback of SEK 15 b, Ericsson said.
“Our Q4 results demonstrate solid execution of our strategy priorities. It is encouraging that we delivered organic growth in a flattish RAN market environment through our efforts in mission critical networks, 5G core and Enterprise,” said Börje Ekholm, President and CEO at Ericsson.
Operational actions Ericsson has taken in recent years have now led to improved margins and cash flow for the company, with a ninth consecutive quarter of year-over-year adjusted EBITA margin expansion.
R&D investments to extend technology leadership have continued the company’s success, it said, as it keeps focus on AI-native, secure and autonomous networks. Moving further into 2026, Ekholm said Ericsson expects the RAN market to be flat, but that mission critical and enterprise markets where the company is well-positioned are expected to grow.
“In this environment, we plan to increase investments in defence during 2026 while continuing to optimise our cost base to support margins and cash flow generation,” he said.
It is expected that Ericsson could regain ground in Europe after the European Commission proposed phasing out high-risk suppliers in critical business sectors.
In order to maintain growth amid US import tariffs being introduced, Ericsson moved quickly to restructure to support its weaker 5G investments. In Central and Eastern Europe, in addition to Latin America, the company expects 5G subscription penetration to grow by more than 50% up to 2031.
The company also said at the start of the year it would be cutting 1,600 jobs in Sweden to protect its competitive position.
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