Ericsson has returned to growth in its North American market.
The vendor, which signed a lucrative five-year contract worth $14 billion to build AT&T's Open RAN network in the US last year, said sales were up 55 percent year-on-year during the third quarter.
Following the company's announcement of its third-quarter earnings, shares rose nine percent, the highest level since April 2022.
"We see signs that the overall market is stabilizing with North America, as an early adopter market, returning to growth," said Börje Ekholm, president and CEO.
"While the market development is ultimately in the hands of our customers, we are working to deliver operational excellence regardless of market conditions. Our Q3 results demonstrate our progress, with strong gross margin expansion and free cash flow, benefiting from our commercial discipline and operational efficiency actions."
The company's upbeat report on its latest earnings cuts a different one to earlier this year, when its Q1 earnings dropped by 14 percent, impacted largely due to weaker demand for its RAN products in North America. This wasn't unique to Ericsson, as Nokia suffered similar issues.
However, the vendor noted at the time that it expected to stabilize in the second half of the year, and to "benefit from recent contract wins and the normalization of customer inventory levels in North America."
Overall, Nokia reported that its net sales dropped four percent YoY to SEK 61.8 billion ($5.96 bn) but beat estimates of SEK 61.6 billion ($5.94 bn).
Other markets including Europe and Latin America remained flat. Meanwhile, growth in India has slowed, although the company has recently penned 5G deals with Vodafone Idea and Bharti Airtel.