Ericsson's Gross Margin Trend Is Positive -- Market Talk

Dow Jones
Oct 14

0716 GMT - Ericsson reported healthy gross margin progression in the networks business, Jefferies analyst Janardan Menon writes. North American network sales declined following previous AT&T contract deliveries, while Latin America was also weak amid intense competition from Chinese vendors. However, the group adjusted gross margin was above expectations at 48.1%, led by networks at 50%, Menon adds. Gross margin was also healthy in the enterprise and cloud software & services divisions. "We regard the strengthening gross margin trend across divisions as positive." Ericsson is guiding its fourth quarter networks gross margin to a 49%-51% range, higher than Jefferies' 49% at the mid-point. Shares rise 9.2%. (dominic.chopping@wsj.com)

 

(END) Dow Jones Newswires

October 14, 2025 03:16 ET (07:16 GMT)

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