Ericsson Beats Q1 Earnings Forecasts Despite Tariff Concerns

Ericsson (BS:ERICAs) delivered stronger-than-expected Q1 results, with adjusted operating earnings rising 44% year-over-year to 6.2 billion Swedish crowns ($636 million), far surpassing the analyst consensus of 4.44 billion crowns, according to an LSEG poll. The telecom equipment maker’s robust gross income helped fuel the performance, even as it braces for potential U.S. tariffs—its largest market accounting for 29% of total revenue.

The Sweden-based company has been balancing reduced 5G spending in Europe by expanding in regions like India and North America. Notably, revenue from North America surged 20% compared to the same period last year, helping offset declines in other markets. Total net sales reached 55 billion crowns in the first quarter, up 3% from a year earlier, though slightly below the 55.7 billion crown forecast.

Despite the earnings beat, Ericsson remains cautious amid looming U.S. import tariffs that could impact future telecom gear sales. Analysts warn that if tariffs raise prices, telecom providers may delay equipment purchases to avoid cost burdens being passed on to consumers.

With the global telecom market facing uncertainties, Ericsson’s diversified geographic footprint and strong quarterly performance position it well—though the long-term impact of trade policy remains a key risk. Investors and industry watchers will continue to monitor how the company navigates evolving market conditions and geopolitical challenges.