Ericsson Stock: Negative Revenue Growth In Q2, Not A Compelling Buy

  • Telefonaktiebolaget LM Ericsson's Q2 results disappointed, with net sales falling 2% and revenue declines in key regions despite margin improvements and AI investment plans. Organic sales growth was 2%, but overall revenue dropped due to lower network investments in Asia and cautious enterprise strategy prioritizing margins over growth. 5G and AI remain limited catalysts; slow adoption and minimal 5G standalone deployments continue to temper growth expectations for Ericsson in the near term.