Operating profit excluding restructuring charges rose unexpectedly to about $394 million, despite a 15% sales drop.
Ericsson said the gain included a one-off payment from the resolution of a commercial dispute.
Its profit figure was up from a year before and well ahead of analyst forecasts.
The telecoms equipment maker also said Tuesday it expects sales to stabilize in the second half of the year, as customers look to spend again.
The Swedish group pointed to recent contract wins and normalizing customer inventory levels in North America.
But it also predicted that the market for some 5G network gear would keep falling at least through the end of the year.
Telecoms equipment makers like Ericsson and rival Nokia have been hit by a drop in spending by customers.
They've spent less on 5G equipment amid high interest rates and an uncertain economic outlook.
One leading analyst said Tuesday's results showed "another extremely challenging quarter for Ericsson."
They expect this to continue into next year due to investment cuts among telecom companies.
Ericsson in January predicted markets outside China would keep weakening this year.
It also announced new layoffs in March, having slashed costs and shed thousands of jobs in 2023.
