Ericsson exceeded analyst expectations in the first quarter of 2025, reporting a 44% rise in adjusted core earnings year-on-year, despite looming uncertainty around potential U.S. tariffs on telecom equipment. The Swedish telecom giant reported 6.2 billion Swedish crowns ($636 million) in adjusted core earnings, beating the market forecast of 4.44 billion crowns, according to a recent analyst poll.
Resilient Profitability Despite External Pressures
The stronger results were driven by higher gross income margins, as the company continued to optimize costs and benefit from operational efficiencies. The positive surprise signals that Ericsson remains resilient in the face of geopolitical and trade-related headwinds, particularly as the United States—its largest market—considers new tariffs on foreign telecom products as part of President Donald Trump’s broader trade agenda.
Tariff Concerns on the Horizon
While Ericsson didn’t disclose specific details on how U.S. tariff proposals might affect its business, company officials acknowledged that growing protectionist policies could impact cross-border supply chains, pricing, and project deployments in key markets.
With President Trump pushing for a more domestically sourced 5G infrastructure and mulling increased duties on imported telecom components, firms like Ericsson may face higher costs or potential delays in equipment sales and installations across the U.S.
