# Ericsson Reports 7% Organic Sales Growth and Strategic Asian Unit Merger New CEO Per Narvinger streamlines operations while navigating geopolitical uncertainty and rising component costs. - **Source:** [The Next Web](https://brifing.si/source/afe24b20-b275-4c19-b9a6-8bb3c8babae7) - **Published:** 2026-10-17 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/1590cd1b-63d7-4745-8ffc-5913b0e2a590 ## Strong Quarterly Financial Performance Ericsson reported third-quarter adjusted EBITA of SEK 10.1 billion, significantly outperforming analyst expectations of SEK 7.93 billion. Reported sales reached SEK 59.5 billion, up from SEK 56.2 billion a year earlier. Organic sales, excluding currency effects and divestments, grew by 7%, primarily driven by robust performance within the Networks business area. ## Market Reaction and Share Gains Following the earnings announcement, Ericsson shares surged by 11% in Stockholm, marking the largest intraday gain since January 23. This rally brings the company's total share price increase for the year to 18%. Investors responded positively to the organic growth figures despite the decline in net income to SEK 5.8 billion. ## Strategic Structural Reorganization Starting January 1, 2027, Ericsson will consolidate its North East Asia and South East Asia, Oceania, and India units into a single Asia-Pacific market area. Patrick Johansson, currently leading EMEA, will head this new division. This simplification aims to create a leaner executive team and improve focus on regional competitive dynamics. ## Enterprise Wireless Business Shift The Enterprise Wireless Solutions unit will be dismantled to streamline operations. Neutral Host and Private 5G solutions will integrate into the Networks business area, while Wireless WAN will operate as a standalone entity under Yossi Cohen. Three executive team members will transition out of their current roles by the end of December. ## Navigating Rising Component Costs CFO Lars Sandström confirmed that Ericsson utilized short-term product development measures to mitigate rising component costs. The company plans to pass these expenses to customers upon contract renewals. CEO Per Narvinger noted that some recent demand was driven by customers purchasing equipment early to avoid anticipated price increases in the near future. ## Competitive Pressures from Starlink CEO Per Narvinger identified Elon Musk’s Starlink as a growing challenge to traditional telecom operators. The structural changes in Asia are specifically designed to help Ericsson compete more effectively against satellite-based connectivity providers. By focusing on regional efficiency, the company intends to maintain its market position against these emerging, disruptive infrastructure alternatives. ## Industry Context and Rivalry While Ericsson remains a pure-play supplier for telecom operators, its Finnish rival Nokia has shifted focus toward networking equipment for AI data centers. Nokia is actively integrating Nvidia chips into its radio access networks. Ericsson’s strategy remains centered on core telecom infrastructure, even as it faces a flat RAN market outlook. ## Future Outlook and Challenges Looking ahead, Ericsson faces significant headwinds, including elevated geopolitical uncertainty and stagnant RAN market conditions. Component costs remain a primary concern for gross margins in the coming year. The company’s ability to execute its new organizational structure while managing these external pressures will be critical for sustaining its recent growth momentum. ## Sources covering this story - https://thenextweb.com/news/ericsson-q3-2026-narvinger-apac-restructure — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._