Ericsson Enters Partnership With LotusFlare; Acquires Minority Stake

STOCKHOLM, Nov. 11, 2025 /PRNewswire/ — Ericsson today announces that Moti Gyamlani will step down from his role as Senior Vice President and Head of Group Function Global Operations as of January 12, 2026, and remain at Ericsson for a transition period.

Moti Gyamlani has been with the company since 2019 and has served on Ericsson's Executive Team since 2022. A transition plan is underway where the Group structure is simplified and where functions are moved closer to the business.

Börje Ekholm, President and CEO, says: "Moti has done major work in digitally transforming the Company. He has played an important role in simplifying and streamlining our processes and built world class functions, including in shared services and sourcing. I'm grateful for his contributions and wish him all the best in his future endeavor."

Moti Gyamlani says: "After almost seven incredible years at Ericsson, I will now pursue entrepreneurship. It's been an exceptional learning experience to run core operating functions and drive digital and AI transformation for an iconic company like Ericsson. I will be following Ericsson as it continues to execute on the strategy to strengthen its product, market, and operational leadership."

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ABOUT ERICSSON:

Ericsson's high-performing networks provide connectivity for billions of people every day. For nearly 150 years, we've been pioneers in creating technology for communication. We offer mobile communication and connectivity solutions for service providers and enterprises. Together with our customers and partners, we make the digital world of tomorrow a reality. www.ericsson.com

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SOURCE Ericsson

Shares of Vodafone Idea Ltd. gained as much as 7% on Thursday, October 23, extending their winning streak to a third straight session.

According to a Moneycontrol report, the telecom operator is increasingly partnering with Indian network equipment makers such as Tejas Networks, HFCL, and HCLTech to cut costs, speed up network rollouts, and localise its 4G and 5G infrastructure. The move marks a strategic shift toward homegrown telecom technology as the company works on a turnaround plan.

Vodafone Idea has begun trialling 4G and 5G wireless equipment from Tejas Networks in one of its circles and may consider commercial orders based on performance.

"Vodafone Idea wants to work with more Indian vendors for our requirements wherever possible to cut costs and have a faster time to market. We are currently trialling Tejas 4G and 5G equipment in one of the circles. We are seeing if it is a mature technology as per our requirements. If they are good, we will be happy to deploy," the report quoted an official as saying.

Beyond Tejas, Vi is also strengthening its partnerships with other domestic technology firms. HCLTech has been roped in to provide Self-Optimising Network (SON) technology, while HFCL has received a contract to supply IP/MPLS routers for the telco’s 5G network. These Indian vendors will join existing multinational suppliers already working with Vi in several circles.

The company is currently deploying 4G and 5G equipment across 17 priority circles as part of a broader effort to reduce customer churn and improve network experience.

For this expansion, Vodafone Idea had signed a $3.6 billion deal in 2024 with Nokia, Ericsson, and Samsung to supply equipment over three years.

Vi’s full-year capital expenditure (capex) guidance stands at ₹7,500-8,000 crore, with around ₹5,000 crore already utilised in the first half of FY26.

By Adriano Marchese

Telefon AB L.M. Ericsson will receive $3 billion from Export Development Canada to speed up development of key technologies such as artificial intelligence and mobile-network technology.

The Swedish telecommunications-and-networking company on Wednesday said it signed a new partnership agreement with EDC to expand investment in Canadian research and development and to deepen domestic supply chains. The mandate also calls for more efforts to accelerate next-generation technologies including quantum innovation, AI and radio access network, known as Cloud RAN.

Ericsson employs around 3,100 people across Canada, and has R&D centers in Ottawa, Montreal and Toronto. The new three-year partnership will open the door to greater collaboration with Canadian businesses, universities and government partners, said the company.

The partnership builds on Ericsson's 634.8 million Canadian dollar ($451.9 million) R&D agreement that it currently has with the Canadian government, announced in 2024, it said.

Write to Adriano Marchese at adriano.marchese@wsj.com

Ericsson reported another quarter of strong profitability, with steady revenue, sustainable margins and shareholder returns set to rise, Citi analysts Andrew M. Gardiner and Daniel Schafei write. The market has been anticipating an increase in returns, but Citi thinks the confirmation is positive. Ericsson's end markets remain tough, with stable revenue the goal, rather than growth. However, the company is executing strongly in such an environment, delivering gross margins ahead of guidance and consensus, and holding on to operating expenditure savings to deliver better-than-forecast earnings, Citi adds. Mobile networks profit was strong, even with a more challenging regional mix, and management said margins are at a new long-term level, suggesting that the bearish thesis of declining networks margins is unlikely to appear soon. Shares fall 0.5%. (dominic.chopping@wsj.com)

Ericsson ERIC reported mixed third-quarter 2025 results, with adjusted earnings beating the Zacks Consensus Estimate but revenues missing the same. ERIC’s top line was affected by weakness in the South East Asia, Oceania and India regions. Focus on improving operational efficiency, cost optimization and a robust portfolio boosted the gross margin.

Net Income

Ericsson recorded a net income of SEK 11.3 billion ($1.19 billion) or SEK 3.33 (35 cents) per share against a loss of SEK 3.9 billion or SEK 1.14 per share in the prior-year quarter. Capital gain from iconective disinvestment boosted the bottom line. Adjusted earnings were 16 cents, which beat the Zacks Consensus Estimate of 13 cents.

Ericsson Price, Consensus and EPS Surprise

Ericsson price-consensus-eps-surprise-chart | Ericsson Quote

Revenues

Ericsson generated SEK 56.2 billion ($5.8 billion) in revenues, down 9% year over year. Weakness in South East Asia, Oceania and India impacted the sales growth. The line missed the Zacks Consensus Estimate of $5.89 billion.

Segment Results

Networks segment generated SEK 35.4 billion ($3.72 billion), down 11% from the year-ago quarter’s tally of SEK 40 billion. The top line missed our revenue estimate of SEK 36.6 billion. The segment’s gross margin improved to 50% from 48.3% in the year-ago quarter. It benefited from cost reduction and improved operational efficiency. Sales declined in the Americas, South East Asia, Oceania and India. Sales growth in Japan, Europe, the Middle East and Africa partially reversed this trend.

Cloud Software and Services revenues increased 3% year over year to SEK 15.3 billion ($1.6 billion), slightly beating our estimate of SEK 14.5 billion. Gross margin improved to 42.1% from 37% in the prior-year quarter. Sales grew in multiple regions.

Enterprise segment generated SEK 5.1 billion ($536 million), down 20% from the year-ago quarter’s tally of SEK 6.3 billion, owing to declining sales in the Global Communication Platform and disinvestment of iconective. Net sales missed our revenue estimate of SEK 5.56 billion. Adjusted gross margin was 51.6% compared with 52.4% in the year-ago quarter.

Other revenues were SEK 0.4 billion ($42 million), matching the figure of the prior-year quarter.

Region-wise, South-East Asia, Oceania and India registered revenues of SEK 7.1 billion ($746 million), down from SEK 7.7 billion in the prior-year quarter. Revenues from North East Asia decreased 4% year over year to SEK 3.8 billion ($399 million). Net sales from the Americas were 19.8 billion ($2.08 billion), down 15% year over year.

Europe, Middle East and African markets witnessed a 1% year-over-year decline to SEK 16.72 billion ($1.75 billion). Revenues from other regions increased to SEK 8.8 billion ($1 billion) from SEK 10.1 billion in the prior-year quarter.

Other Details

Gross income, excluding restructuring charges, declined to SEK 26.8 billion ($3 billion) from the year-ago figure of SEK 28.2 billion. Adjusted gross margin was 48.1% compared with 46.3% in the year-earlier quarter.

Cash Flow and Liquidity

Ericsson generated SEK 7.9 billion ($830 million) cash from operating activities during the quarter. As of Sept. 30, 2025, the company had net cash of SEK 51.9 billion ($5.51 billion) and SEK 19.3 billion in liabilities for post-employment benefits.

Outlook

For the fourth quarter of 2025, revenues from the Networks, Cloud Software and Services segment are expected to be broadly similar to the three-year average seasonality. The gross margin in the Networks segment is likely to be in the range of 49-51%. Restructuring charges are projected to remain at elevated levels.

ERIC’s Zacks Rank & Stocks to Consider

Ericsson currently has a Zacks Rank #3 (Hold).

Ubiquiti Inc. UI has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here..

In the last reported quarter, it delivered an earnings surprise of 82.47%. Ubiquiti spends significantly on research and development (R&D) activities for developing innovative products and state-of-the-art technology to expand its addressable market and remain at the cutting edge of networking technology. The company believes its new product pipeline will help it increase average selling prices for high-performance, best-value products, thus raising the top line. Ubiquiti is witnessing healthy traction in the Enterprise Technology segment.

Corning Incorporated GLW currently carries a Zacks Rank #2. In the last reported quarter, it delivered an earnings surprise of 5.26%.

Corning’s competitive strength lies in its focus on innovation. The growing adoption of innovative optical connectivity products for generative AI applications is expected to be a key growth driver in its Optical Communication segment. Some of its businesses stand to benefit from government regulations. For example, the fiber optic business is a direct beneficiary of the government-mandated bridging of the digital divide across the United States.

Celestica CLS carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 12.1%. CLS delivered an earnings surprise of 7.71%, on average, in the trailing four quarters.

The growing proliferation of AI-based applications and generative AI tools across industries presents a solid growth opportunity for Celestica. In addition, a diligent focus on product diversification and increasing its presence in high-value markets is a tailwind.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

By Jules Rimmer

Bearish sentiment toward the stock likely contributed to the sharp spike in the share price Tuesday

Ericsson's earnings beat estimates, triggering a sharp rally in the stock.

The third-quarter earnings of Ericsson (SE:ERIC.B), better known simply as Ericsson, exceeded consensus expectations, triggering a 14% jump in the price of the more liquid and actively traded B shares, and will most likely persuade analysts to up their profit forecasts for the remainder of 2025 and into 2026. Suggestions from Chief Executive Borje Ekholm that there may be "scope for increased shareholder distributions" - meaning higher dividends or share buybacks - were also welcomed.

Net profits at 11.15 billion Swedish krona were 11% ahead of analysts polled by FactSet.

JPMorgan and UBS assessed the latest set of results from the Swedish telecom and software-services provider, which reported Tuesday morning. Taking into account these figures and management guidance, JPMorgan said it anticipates low-single-digit upgrades to estimates for the stock. It has a neutral rating on the stock with a target price of SEK 93. That offered plenty of upside before this morning's sudden reappraisal of prospects by traders.

UBS, meanwhile, has been bearish on the stock, reflected by a sell recommendation and target price of just SEK 57.00 - some 30% below current levels on the stock in the market. However, UBS noted "strong execution continues" and cited management flagging that "operational excellence and cost efficiency actions (are) driving gross margins to strong, sustainable levels." Based on these numbers and the commentary, UBS said it expects analysts' 2025 and 2026 earnings-per-share estimates to be updated and improved gradually by low-to-mid single digits.

CEO Ekholm noted a one-off gain of SEK 7.6 billion (roughly $800 million) from the sale of Iconectiv, a connectivity-services business, and mentioned that cost-savings initiatives were enhancing profitability. Gross margins of 50.1% just beat the 48%-50% guidance. Ekholm predicted a fourth-quarter performance broadly in line with the past three years.

JPMorgan analysts, led by Sandeep Deshpande, attributed the bulk of the earnings beat to strong performance and better margins in the Cloud Software and Services division, leading to an overall improvement in earnings before interest, taxes and amortization that was 5.3% ahead of consensus.

UBS analyst Francois-Xavier Bouvignies observed that the group's best areas for revenue growth were northeast Asia, up 10%, and Europe, up 3% - but a decline in revenue across the Americas of 8% was the weak spot. This was explained by Ekholm as a reflection of an unfavorable year-over-year comparison after a major deal with AT&T (T) in 2024.

Even after Tuesday's jump in trading and 25% rally in the last three months, Ericsson B shares are essentially unchanged on the year. Uncertainty around the tariff regime and the overall growth environment globally caused a major slump in the share price from SEK 90 to 70 in April.

Sentiment toward the stock, as today's price spike suggests, was relatively downbeat. Of the two dozen or so analyst recommendations on FactSet, only a quarter gave Ericsson B shares a buy or equivalent, while the majority were hold calls. The average target price of SEK 79.95 is more than 10% below the market price. The U.S.-listed ADRs (ERIC) were trading up 14% in premarket trading.

-Jules Rimmer

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