Network vendor Ericsson reported mixed results for its second quarter.

Net sales were down by six percent year-on-year (YoY), though have jumped two percent from the first quarter of this year.

The vendor reported net sales of SEK56.1 billion ($5.8 billion) for the three months up until the end of June.

Ericsson said that growth in North America allowed it to offset declines in other market areas, including India, where network investment levels have dropped.

“Our Q2 results demonstrate solid execution of our strategic and operational priorities. We achieved a three-year high in adjusted EBITA margin, supported by continued efficiency actions. We have structurally lowered our cost base and are strongly focused on delivering further efficiencies," said Börje Ekholm, president and CEO.

"It is encouraging that America’s growth continues, and that Europe has stabilized," he added.

Although Ekholm noted the company's performance in Europe has stabilized, the vendor blamed its slim growth in Europe on the recent US tariffs.

As reported by DCD sister publication SDxCentral, Ericsson CFO Lars Sandström told analysts that the company expects “difficult” results for the rest of 2025 once the EU is hit with a 30 percent tariff on imports from August.

Ericsson previously warned during its first quarter earnings that the tariffs imposed by President Donald Trump would have an impact on the company's performance for this quarter and potentially beyond.

The company's network division slumped five percent YoY to SEK35.7 billion ($3.6bn), while Ericsson's cloud software and service division also reported a five percent drop for the quarter to SEK14.2 billion ($1.4bn).

Ericsson detailed growth around Fixed Wireless Access (FWA), reporting that its global FWA customer base has now surpassed 160 million.

However, Ekholm acknowledged that penetration of 5G Standalone remains "limited," though he does note that 5G SA will be needed to "fully support AI use cases at the Edge," and sees opportunities for network slicing to drive 5G SA.

Ekholm added that Ericsson will increase its AI investments, which he sees as a big driver for operational efficiencies.

He noted that Ericsson is still in the early stages of understanding AI, but expects it to be a key driver for the business, both on traffic and how Ericsson operates networks.