Swedish telecoms equipment manufacturer, Ericsson, narrowly missed profit forecasts for Q1 2026, with adjusted EBITA falling 20% year-on-year to SEK 5.6 billion, a margin of 11.3% against 12.6% in Q1 2025, slightly missing analyst expectations. North America, the North American market that drove the 20%+ surge in revenues a year ago, saw a decline as prior-year pull-forward investment unwinds. CEO Börje Ekholm attributed the decline to rising semiconductor input costs, partly driven by AI demand. The company's largest business segment, Communications, saw revenue fall 8% on a reported basis, with a gross margin narrowing to 48.1% from 48.5%. The company expects the global radio access network equipment market to remain stable in 2026.