3Q26: Print strong on the back of strong Networks growth and margin resilience, but risks associated with weak RAN market have not passed

Ericsson's 3Q print was very strong, with the Networks business unit growing 9% YoY, significantly above expectations and much higher than the combined growth seen in 1H26. Management attributed the strength to: i) share gains in Japan coupled with stronger demand in India; ii) customer pre-buying on expectations of price increases from component price inflation; and iii) active upselling to higher-value products and software to offset component cost inflation. Only the first is structural, while the latter two are likely to fade, especially in 2027;