Ericsson reported Q1 2026 net income of SEK 0.9 billion, down 79% year-over-year from SEK 4.2 billion, as a strong Swedish krona and surging chip costs eroded the telecom equipment maker's bottom line. Reported revenue fell 10% to SEK 49.3 billion, though organic growth remained a positive 6%. CEO Börje Ekholm singled out "increasing input costs, especially in semiconductors, caused in part by AI demand" as a persistent headwind, per Reuters. Free cash flow before M&A more than doubled to SEK 5.9 billion; the board approved a SEK 15 billion share buyback.