On July 14, Ericsson fell 7.59% in pre-market trading to $10.83/share, with turnover of $120,800. The decline was triggered by the company's Q2 earnings report, which missed market expectations on both revenue and profit while management issued a warning on network business margin pressure.

Specifically, Q2 net sales came in at SEK 52.69 billion ($5.422 billion), down 6.1% year-over-year and below the consensus estimate of SEK 53.86 billion. Adjusted EBIT was SEK 65.2 billion, missing the SEK 66.4 billion estimate. EPS declined 11% year-over-year to SEK 1.22. Net profit fell 12% to SEK 4.1 billion. The company cited AI-driven demand crowding out chip supply, with memory shortages and ASIC pricing pressure pushing up telecom equipment costs. Management also announced restructuring plans including layoffs for the remainder of the year. The actual decline far exceeded the 4%-5% drop traders had initially anticipated upon the revenue miss, as multiple headwinds compounded investor concerns.

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