- Despite declining revenues, Ericsson improves margins and strengthens its financial position.
- Partnership with Vodafone secures the company a dominant role as radio network supplier across several key European markets.
- Despite declining revenues, Ericsson improves margins and strengthens its financial position.
- Partnership with Vodafone secures the company a dominant role as radio network supplier across several key European markets.
Ericsson released its financial results for the third quarter of 2025, which exceeded market expectations despite a 9% decline in revenue compared to the same period last year. After the data release and announcement of the partnership with Vodafone, the company’s stock price on the market increased by approximately 15%.
Key financial figures:
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Operating profit (EBIT) reached approximately $1.62 billion, surpassing analyst forecasts of around $1.48 billion
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Revenues fell by 9% to nearly $5.95 billion
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Gross margin increased to 48.1%, indicating improved operational efficiency
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EBITA margin stood at 27.6%, supported in part by a one-time gain of about $730 million from the sale of the iconectiv business
Despite the revenue decline, Ericsson highlights improved profitability and a strong financial position, enabling continued investment and growth. The company secured important contracts in India, Japan, and the UK, and its 5G Open RAN solutions have been recognized as some of the most innovative in the industry.
Source: xStation5
Key deal with Vodafone
Additionally, Ericsson announced a five-year contract with Vodafone aimed at upgrading the operator’s network infrastructure across several European markets. Under the agreement, Ericsson will be the exclusive radio access network (RAN) supplier for Vodafone in Ireland, the Netherlands, and Portugal, while maintaining a leading supplier role in Germany, Romania, and Egypt.
The deal includes deploying advanced 5G equipment and software, including Ericsson’s Intelligent Automation Platform and AI-based rApps applications. These technologies are designed to automate network optimization, improve energy efficiency, and enhance multi-vendor network management.
Germany will be the first market to implement these solutions, with work scheduled to begin in Q4 2025. This agreement expands on Ericsson’s existing partnership with Vodafone, which includes a SEK 12.5 billion contract for 5G network development in the UK.
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