Swedish telecoms giant Ericsson reported a sharp rise in first-quarter net profit on Tuesday, buoyed by strong North American sales ahead of new trade tariffs. However, the company cautioned that it is still vulnerable to the ongoing global trade war.
Ericsson’s net profit jumped 61% year-on-year to 4.2 billion kronor ($430.7 million), with total sales rising 3% to 55 billion kronor—slightly below analyst expectations.
Sales in the Americas grew by 20%, offsetting weaker performance in other regions. The company credited strong network investments and previously secured contracts in North America, partially driven by uncertainty surrounding new tariffs.
“Sales in Networks grew strongly in North America, reflecting contract wins and accelerated investments linked to tariff uncertainty,” Ericsson said in its earnings release.
**North America: A Strategic Market**
The region remains crucial for Ericsson, making up nearly one-third of its global revenue. Earlier this month, U.S. President Donald Trump introduced a 10% tariff on global imports. Although he delayed plans for further tariffs—including a 20% duty on EU goods—the trade tensions continue to influence market behavior.
“In a volatile global trade environment, we’re focused on what we can control—delivering for our customers,” said CEO Börje Ekholm. “We’re not immune, but we’re resilient, with diversified production near key markets and the flexibility to adapt.”
