Ericsson Beats Q2 Forecasts, Boosts AI Investment

Swedish telecom giant Ericsson (BS:ERICAs) reported stronger-than-expected second-quarter results, signaling a potential turnaround driven by cost efficiencies and a strategic focus on artificial intelligence. The company posted an adjusted operating profit of 7.0 billion Swedish crowns ($728.5 million), far exceeding analysts’ average estimate of 6.1 billion, according to an LSEG poll. This marks a significant recovery from the 11.9 billion crown loss recorded in the same quarter last year.

Ericsson attributed the earnings rebound to improved operational performance and ongoing restructuring efforts. The company has been trimming costs amid weak global demand for 5G equipment, particularly in North America, its key market. Despite these challenges, the firm continues to invest in long-term growth areas, including artificial intelligence, signaling confidence in AI’s potential to transform network management and boost efficiency.

CEO Börje Ekholm confirmed that Ericsson will increase AI-related investments, seeing it as a key driver for future innovation in telecom infrastructure. The firm is focusing on integrating AI into its product offerings to improve automation, reduce costs for operators, and enhance network performance.

While macroeconomic uncertainty and slower 5G rollouts remain a concern, Ericsson’s solid quarterly performance suggests resilience in its core business. The company’s efforts to streamline operations, reduce overhead, and explore new revenue streams—particularly through AI—position it for a stronger second half of the year.

Ericsson’s share price rose in early trading following the announcement, reflecting investor optimism about its profitability path and AI ambitions. With global telecoms increasingly turning to AI for smarter networks, Ericsson’s strategy could give it a competitive edge in the evolving digital infrastructure landscape.