Ericsson taps internal networks chief Per Narvinger as next CEO

This internal appointment signals strategic continuity as the vendor landscape shifts from 5G buildouts to AI-driven network optimization. Narvinger’s background in Cloud Software and Networks positions him to lead Ericsson’s transition from a hardware-centric vendor to a software-led provider of intelligent connectivity, which is essential for low-latency streaming and high-bandwidth video processing. The move comes as telecom equipment makers face a 'flattish' radio access network (RAN) market, forcing a focus on higher-margin enterprise and mission-critical services. Watch for whether Narvinger maintains Ekholm's aggressive cost-optimization targets while scaling R&D for AI-native 6G and autonomous networking platforms.

The leadership change follows a period of financial and operational repositioning for Ericsson. Per RCR Wireless in April 2026, the company saw organic sales rise 6% year-on-year in Q1 2026, though a significant currency impact led to an 10% decline in reported revenue to SEK 49.33 billion. Despite these currency headwinds, the Networks segment maintained a robust adjusted gross margin of 50.4%, underscoring the resilience of the division Narvinger currently leads as operators prioritize modernizing infrastructure for AI-heavy workloads.

Technologically, Ericsson is doubling down on software-driven performance to offset stagnant hardware demand. Per Mobile Europe in June 2026, the company recently launched 'AI in RAN,' a software subscription suite that reportedly improves downlink throughput by up to 20% and spectral efficiency by 10%. This allows service providers to optimize existing 5G investments for agentic AI and immersive video experiences without immediate hardware replacements, a key pillar of the 'AI-native' strategy Narvinger is expected to accelerate.

According to the Ericsson Mobility Report from June 2026, global 5G subscriptions have surpassed 3 billion, yet the industry faces a 'traffic inversion' where uplink demand is growing faster than downlink due to generative AI and user-generated video. Narvinger’s experience in both cloud and network segments is critical as Ericsson models suggest AI-driven traffic could cause uplink demands to spike threefold by 2031. His tenure will likely be defined by how effectively Ericsson monetizes this shift through differentiated connectivity and network slicing.