Ericsson Struggles in India, Stock Declines After Weak Q4 Report

Ericsson stock dropped following the Swedish telecom giant’s weak fourth-quarter earnings in India. The company missed analyst estimates, saying that weakness in demand from the Indian market and macroeconomic pressures for its disappointing earnings.

According to Yahoo Finance, Ericsson said in a statement on Friday, 24th February 2025 that the adjusted earnings before tax and interest were at $894 million, a 33% rise from last year. The analysts expected a revenue of $943 million in a survey by Bloomberg but the Swedish company was unable to meet their expectations.

Chief Executive Officer of Ericsson, Börje Ekholm said, “We see further signs that the overall RAN market is now stabilizing, with strong growth in North America supporting a return to Networks sales growth.”

Ericsson Q4 Results Fall Short

Earnings reports from Ericsson showed revenue numbers fell below projected targets. The radio access network business slowed down to become the primary reason for revenue falling short. Ericsson sales in India declined due to the slowing of 5G spending after the rollout in 2022.

The Indian market where Ericsson initially gained an advantage from its early 5G deployments now shows signs of market stabilizing. Lower spending by telecom operators has reduced company revenues which caused market sentiment to shift and decrease in Ericsson share prices.

According to the Chief Financial Officer of Ericsson, Lars Sandström. “India is stabilizing, but no big recovery in that sense yet,” he said in an interview.

RAN Market Challenges and Global Slowdown

Slowing telecommunications investments and increase in competition from rivals Huawei and Nokia created difficulties for Ericsson in the global Radio Access Network business. After a severe downturn in India’s wireless market, operators are prioritizing revenue from current networks instead of constructing new infrastructure.

The company’s CEO Börje Ekholm acknowledged these hurdles but stuck to optimistic long-term predictions in discussing the company’s future growth prospects. He said, “While short-term market conditions remain tough, we believe in the sustained demand for 5G and digital transformation across industries.”

Ericsson Stock Drop Reflects Investor Concerns

The lesser-than-expected numbers released by Ericsson led to a sharp decline in stock prices since investor reactions were negative. Ericsson share price dropped sharply across European markets as investors expressed doubts regarding its ability to sustain growth in important markets.

While facing the uncertainty Ericsson maintains its efforts to generate new revenue streams and solidify its role in worldwide 5G development. Tech-led innovation and strategic business relationships serve as the foundational pillars for future expansion.

Ericsson must navigate through a crucial market transition period after facing ongoing hurdles in India alongside weakening telecom sector global conditions.