Ericsson Shares Surge Despite Q2 Sales Decline

Ericsson's shares surged 8% to their highest level since September 2022, driven by a smaller-than-expected 7% decline in Q2 net sales to 59.8 billion Swedish kronor. The company reported a significant loss of 11 billion kronor, contrasting last year's 597 million kronor loss, but adjusted EBITA rose 10% to 4.05 billion kronor. CEO Börje Ekholm highlighted growth in North America, with sales up 14%, and noted strong gross margin expansion. Despite the challenging market, Ericsson remains focused on optimizing its business and targeting key growth markets like India. Analysts found the results encouraging, particularly the improved margins and cost-cutting measures.