On July 14, Ericsson declined 10.32% in regular trading, trading at $10.455/share, with turnover of $52.1172 million. The drop far exceeded the 4%-5% decline traders had initially anticipated.

On the news front, Ericsson reported Q2 results with key financial metrics missing market expectations. Q2 net sales came in at SEK 52.69 billion, down 6.1% year-over-year, below the consensus estimate of SEK 53.94 billion. Adjusted EBIT was SEK 65.2 billion, missing the estimated SEK 66.4 billion. EPS fell 11% year-over-year to SEK 1.22. Net profit declined 12% to SEK 4.1 billion. The company highlighted that the AI boom is creating component cost inflation, with memory shortages and pricing pressure on chips and ASICs squeezing margins. Additionally, Ericsson issued a warning on network business margin pressure and announced restructuring plans including headcount reductions for the remainder of the year. The stock posted its largest single-day decline since January of last year, as multiple headwinds converged under a new CEO transition.

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