Ericsson has picked its networks chief, Per Narvinger, to take over as CEO from October 1, the Swedish telecoms giant announced on Tuesday.

Narvinger, who joined Ericsson in 1997, will replace Borje Ekholm, who led the company for more than nine years. The board said the succession was "well prepared and orderly" as part of its leadership planning.

"This is a pivotal time in our industry. As AI continues to industrialise, this will increasingly require advanced connectivity solutions, an area where Ericsson is leading," Narvinger said in a statement.

Ericsson shares dipped nearly 0.6% to around 113.90 kronor ($12.1) after the announcement, even as the Stockholm Stock Exchange rose overall.

"Today, Ericsson is driving the transformation of mobile connectivity by changing how networks are used and commercialised, and we are leading the industry into the next stage of AI: the physical AI era," outgoing CEO Ekholm said.

Major telecom equipment makers like Ericsson and Nokia are trying to ride the AI boom to offset decline or stagnation in their traditional mobile network business. The companies see AI-powered connectivity as a new revenue source.

Narvinger has spent nearly three decades at Ericsson, working his way up through the ranks. He became head of the networks business, the company's biggest division, in 2021. His promotion signals continuity — the board chose an insider rather than an outsider.

Ekholm took over Ericsson in 2017 when the company was struggling after a bribery scandal in several countries, including Nigeria. Under his leadership, Ericsson settled with US authorities in 2019, paying over $1 billion in penalties. He also streamlined operations and focused on 5G network contracts.

Now Narvinger's job is to push Ericsson into what the company calls the "physical AI era" — where AI controls machines, robots, and autonomous systems in factories and cities, all connected by telecom networks.

Ericsson's traditional business of selling mobile network gear to telecom operators has slowed as 5G rollouts peak in many markets. The company needs new growth areas, and AI-driven connectivity is its biggest bet.

Narvinger takes over at a time when competitors like Nokia are also pivoting to AI. Huawei, Ericsson's biggest rival, is largely shut out of Western markets due to security concerns, which gives Ericsson an opening.

The CEO change comes as Ericsson faces questions about its exposure to China, where it has a significant business but faces pressure from Beijing to use local suppliers. The company also continues to deal with legacy issues from past corruption probes.

Narvinger declined to give specific financial targets in the announcement. But he made clear his priority: make Ericsson the go-to network provider for the AI age.

  • Per Narvinger becomes Ericsson CEO from October 1, 2026
  • He replaces Borje Ekholm, who led the company for over nine years
  • Narvinger joined Ericsson in 1997 and has worked there for 29 years
  • He has been head of Ericsson's networks division since 2021
  • Ericsson shares fell 0.6% to 113.90 kronor on the announcement
  • The Stockholm Stock Exchange rose overall on Tuesday
  • Ericsson paid over $1 billion in US penalties in 2019 over bribery in several countries including Nigeria