Ericsson Demonstrates AI Drone Tracking in Q2 Results Report

July 14, 2026
Ericsson reported second-quarter results for 2026, highlighting an AI-enabled drone tracking demonstration using existing cell towers and maintaining solid financial metrics with an adjusted gross margin of 48.4%.

Ericsson announced in a press release its financial results for the second quarter of 2026, reporting an adjusted gross margin of 48.4% supported by improved performance in its Mobile Networks segment and disciplined operational execution. Reported sales reached SEK 52.7 billion compared with SEK 56.1 billion in the same quarter last year.

The company reported adjusted EBITA of SEK 6.9 billion with a 13.1% margin, and a net income of SEK 4.1 billion. Capital returns to shareholders totaled SEK 8.2 billion for the quarter, including SEK 3.2 billion in share repurchases. Free cash flow before mergers and acquisitions was SEK 0.4 billion.

Operationally, Ericsson demonstrated AI-enabled drone sensing and tracking using existing cell towers at a stadium in Texas during a major global sporting event. The company said the demonstration reflects its efforts to strengthen its portfolio for the next phase of AI connectivity developments. CEO Börje Ekholm stated that Ericsson will continue implementing pricing actions and internal measures to offset component cost inflation while preparing for higher network rollout activity in the coming quarters.

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