Ericsson AB reported a first-quarter profit that exceeded analysts' expectations, with a net profit of 4.149 billion Swedish kronor ($375 million), marking a 62.1% increase from the previous year. The company's revenue reached 55.03 billion kronor, slightly below the anticipated 55.51 billion kronor, but its adjusted earnings before interest and taxes (EBIT) of 6.21 billion kronor surpassed the expected 5.09 billion kronor. The surge in profit was driven by increased spending on Ericsson's 5G equipment by mobile operators, particularly in North America, where sales grew by 20% due to accelerated network investments ahead of anticipated tariffs by President Trump. Despite the strong performance, CEO Börje Ekholm cautioned about the potential impact of tariffs on the company's network business, estimating a negative effect of about one percentage point on the gross margin. Ericsson's gross margin for the quarter stood at 48.5%, higher than the forecasted 45.9%. The company's networks adjusted operating margin was 20.1%, also above the expected 17.4%. Looking forward, Ericsson anticipates second-quarter network sales growth to be similar to the three-year average, with an adjusted gross margin expected to be between 48% and 50%. Despite the positive financial results, Ericsson remains cautious about the future due to ongoing trade tensions and macroeconomic volatility. The company has been diversifying its supply chain to mitigate potential disruptions, including building a factory in Texas to supply 5G equipment to U.S. customers. CFO Lars Sandström noted that the company has increased production to secure components across borders, with Ericsson's shares closing at 73.60 kronor on the Stockholm exchange.