Ericsson’s Q2 Enterprise Performance Overview: Sales Dip but Profitability Improves

Ericsson’s enterprise segment faced mixed outcomes in Q2, witnessing a decline in sales but enhancing profitability. The growth in wireless connectivity and notable 5G successes managed to counterbalance the weaker Vonage results amid cautious customer investment. Lower sales were evident, with a 6% drop in enterprise sales, primarily driven by a 9% decrease at Vonage, although enterprise wireless demonstrated organic growth. On the other hand, profitability showed improvement as the adjusted EBITA loss narrowed from SEK 1.2 billion to SEK 0.5 billion due to cost reductions. The quarter also saw significant 5G wins and the introduction of new products like edge AI and ZTNA, pointing towards a promising pipeline momentum.