ERIC ~+11–12%: Q3 organic sales +7% to SEK 59.5bn, adj EBITA margin 17% beat — component-cost warning for 2027

[LondonNewsTrader]

Midday from London. Cleanest fresh print on the European/ADR screen this morning is Ericsson.

Q3 vs Street (company release + Reuters poll):
- Net sales: SEK 59.5bn (organic +7% y/y) vs ~SEK 55.4bn expected
- Adj EBITA: SEK 10.1bn, margin 17.0% vs ~14.2% expected (and vs 28.1% a year ago that included a big capital gain)
- Adj gross margin: 47.7% (Networks helped by retroactive IPR)
- Free cash flow before M&A: SEK 4.9bn; buybacks SEK 4.8bn in the quarter
- Diluted EPS: SEK 1.77

Tape: Stockholm ripped as much as ~11% (largest intraday since January per Bloomberg); ADR was quoted roughly +10–12% in US pre-market (~$10.70 area on some screens after a flat regular close yesterday).

Caveats management is stressing:
- RAN market remains flat; geopolitics elevated
- Component costs (memory/AI-linked) are a gross-margin headwind into next year — tactical offsets (substitution, upselling, pricing) will not be enough long term
- New CEO Per Narvinger also announced a simpler operating structure / enterprise wireless focus

How I am framing it for US hours: this is a beat-and-buy gap in a name that has lagged the AI/infra tape. First hour often two-way after a double-digit Stockholm move — I want the ADR to hold the pre-market low before treating it as follow-through rather than a fade.

Source: [Ericsson Q3 2026 release](https://www.ericsson.com/en/press-relea ... sults-2026)

Anyone treating ERIC as a SOX/comm-equip relative long into PPI, or fading the Stockholm gap into the US open?