STOCKHOLM--Sweden's Ericsson is due to report second-quarter earnings on Tuesday. Here is what you need to know:

NET PROFIT: The telecom-equipment maker is expected to post a net profit of 4.14 billion Swedish kronor ($428.4 million), according to a consensus provided by FactSet, compared with 4.63 billion kronor in the same period a year prior.

SALES: A FactSet forecast expects sales to fall 3.9% to 53.94 billion kronor from 56.13 billion kronor a year earlier. The weakening of the Swedish krona and U.S. dollar is expected to have a small positive impact on sales, Jefferies analysts said.

The stock is up around 43% over the last 12 months and trades at 111.05 kronor on Monday.

WHAT TO WATCH:

--Growth is expected to remain subdued due to continued weakness in U.S. mobile investments, J.P. Morgan analysts said. The company expects sales in North America to decline in line with the mid-single-digit percentage fall in the first quarter, with J.P. Morgan adding that it's most likely due to U.S. investments slowing as most of the 5G rollout is complete. "The European and Indian markets could, however, drive some growth."

--Ericsson guided for a second-quarter adjusted gross margin in the networks unit of 49% to 51%. Jefferies expects the company to report a margin of 50% but to guide to 49% for the third quarter due to the headwind from rising component prices. "Given the ongoing strengthening of memory prices, gross margins are likely to remain pressured in 4Q26 as well."

--The company said last month that longtime CEO Borje Ekholm had decided to step down, with company veteran Per Narvinger taking the helm on Oct. 1. Jefferies expects the news to be a key focus during the conference call. "At this stage we do not expect any material change in strategy from Mr. Narvinger," Jefferies says.

--Given the investor positioning on mobile networks business growth, J.P. Morgan says that if Ericsson achieves consensus expectations, the stock could react positively to it.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

July 13, 2026 06:52 ET (10:52 GMT)

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