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Telefonaktiebolaget LM Ericsson (publ)NasdaqGS:ERIC Stock Report

Market Cap US$36.7b
Share Price
n/a
1Y26.3%
7D-1.6%
1D-0.7%
Portfolio Value
​
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Telefonaktiebolaget LM Ericsson (publ)

NasdaqGS:ERIC Stock Report

Market Cap: US$36.7b

Telefonaktiebolaget LM Ericsson (ERIC) Stock Overview

Provides mobile connectivity solutions to communications service providers, enterprises, and the public sector in the Americas, Europe, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and India. More details

ERIC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance5/6
Financial Health5/6
Dividends3/6

Rewards

Trading at 8.2% below our estimate of its fair value

Earnings grew by 1463.2% over the past year

Trading at good value compared to peers and industry

Risk Analysis

Earnings are forecast to decline by an average of 2.4% per year for the next 3 years

Unstable dividend track record


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Telefonaktiebolaget LM Ericsson (publ) Competitors

Price History & Performance

Summary of share price highs, lows and changes for Telefonaktiebolaget LM Ericsson
Historical stock prices
Current Share PriceSEK 10.79
52 Week HighSEK 13.77
52 Week LowSEK 7.16
Beta0.52
1 Month Change-14.09%
3 Month Change-6.50%
1 Year Change26.35%
3 Year Change100.56%
5 Year Change-17.06%
Change since IPO796.83%

Recent News & Updates

Seeking Alpha • Jun 30

Ericsson: Concerns On Growth/Valuation (Rating Downgrade)

Summary Ericsson is downgraded to a Hold with a new price target of 85 SEK, reflecting concerns over growth and valuation. ERIC's recent outperformance was driven by margin expansion and reduced restructuring costs, but top-line growth remains fundamentally constrained. 2026-2028 forecasts indicate AEPS and revenue headwinds, with hardware still accounting for ~60% of revenue and telco spending cycles winding down. I view the 15B SEK buyback as an inefficient use of capital, with limited impact on WACC and better alternatives available for shareholder value. Read the full article on Seeking Alpha

Recent updates

Seeking Alpha • Jun 30

Ericsson: Concerns On Growth/Valuation (Rating Downgrade)

Summary Ericsson is downgraded to a Hold with a new price target of 85 SEK, reflecting concerns over growth and valuation. ERIC's recent outperformance was driven by margin expansion and reduced restructuring costs, but top-line growth remains fundamentally constrained. 2026-2028 forecasts indicate AEPS and revenue headwinds, with hardware still accounting for ~60% of revenue and telco spending cycles winding down. I view the 15B SEK buyback as an inefficient use of capital, with limited impact on WACC and better alternatives available for shareholder value. Read the full article on Seeking Alpha
Seeking Alpha • Apr 15

Ericsson Jumps On Attractive Results, And Shares Deserve To Rise Further

Summary Ericsson shares rose 8.3% on April 15th due to better-than-expected Q1 2025 financial results, including revenue and EPS and a special dividend announcement. Despite historical volatility from the 5G rollout and macroeconomic factors, Ericsson consistently generates attractive cash flow and is trading at appealing levels, warranting a soft "buy" rating for ERIC shares. Ericsson's diverse global operations, especially in North America and its Networks segment, are key revenue drivers with significant growth potential from future 5G and 6G deployments. Management remains confident in their market position and resilience to economic uncertainties, projecting stable growth in the Networks and Cloud Software and Services segments. Read the full article on Seeking Alpha
Seeking Alpha • Jan 23

Ericsson: Taking Profits (Rating Downgrade)

Summary Ericsson has outperformed expectations with a 17% upside since my last review, driven by strong 3Q24 results and strategic JVs in network APIs. Despite solid financial trends and 5G advancements, I foresee challenges in network sales and margins, prompting a shift from "Buy" to "Hold.". The company's valuation is now too high, with a target of 94 SEK or $8.8, making it prudent to take profits at this juncture. While Ericsson remains fundamentally strong and well-run, its current valuation and market conditions suggest limited upside, justifying a more conservative stance. Read the full article on Seeking Alpha
Seeking Alpha • Oct 15

Q3 2024 Earnings: Hold Ericsson

Summary Telefonaktiebolaget LM Ericsson's stock surged post-earnings despite a year-on-year revenue decline, driven by strong expansion in Networks and improved EBIT and EBITDA figures. CEO Börje Ekholm highlighted increased customer momentum in programmable networks and a promising joint venture with 12 major telecom operators. The firm expects network sales to stabilize in Q4, with growth opportunities in 5G, enterprise 5G portfolio, and Intellectual Property Rights revenue. Risks include soft sales in Enterprise Wireless Solutions and initial lag in new product sales, but long-term growth potential remains strong. Read the full article on Seeking Alpha
Seeking Alpha • Aug 18

One Better-Than-Expected Quarter Doesn't Solve Ericsson's Problems

Summary Ericsson posted better-than-expected Q2 results, with revenue declining 7% but beating expectations, driven by a 5G licensing deal that boosted revenue and margins. North American revenue growth is a positive, but guidance suggests that there isn't any fundamental shift underway toward meaningful new deployments. The long-term outlook for Ericsson remains weak, with low single-digit revenue growth and modest operating leverage potential; unless drivers like midband 5G and IIoT really deliver, M&A may be necessary. I can make an argument for Ericsson shares trading as high as $9, but there's also a bear case that could send them back to $5 or below, and weak long-term growth prospects are a real issue. Read the full article on Seeking Alpha
Seeking Alpha • Jun 25

Ericsson Off The Bottom, But Hardly Thriving

Summary Ericsson has achieved some positives over the last year, including better-than-expected cost-cutting performance and a $14B-plus equipment win with AT&T. Ericsson's Open RAN win may ease concerns that it was moving too slowly in positioning itself for Open RAN demand, but margins on Open RAN business are a key unknown. Ericsson's other businesses like Cloud Software & Services and Enterprise show little obvious growth potential, and enterprise-relevant solutions are increasingly important. These shares don't look particularly pricey, but unless Open RAN margins are surprisingly good, it's tough to get very excited about the potential. Read the full article on Seeking Alpha
Seeking Alpha • Apr 16

Ericsson: An Earnings Review Following Q1 2024

Summary Ericsson's Q1 2024 results show positive signs of a turnaround, with increased gross margin and EBITDA margin. The company's Enterprise segment performed well, with stable sales and growth in Enterprise Wireless. Ericsson's outlook for the remainder of the fiscal year is generally positive, although challenges in the mobile networks segment remain. Read the full article on Seeking Alpha

Shareholder Returns

ERICUS CommunicationsUS Market
7D-1.6%-1.3%1.6%
1Y26.3%68.5%18.6%

Return vs Industry: ERIC underperformed the US Communications industry which returned 68.5% over the past year.

Return vs Market: ERIC exceeded the US Market which returned 18.6% over the past year.

Price Volatility

Is ERIC's price volatile compared to industry and market?
ERIC volatility
ERIC Average Weekly Movement5.6%
Communications Industry Average Movement10.4%
Market Average Movement7.3%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.2%

Stable Share Price: ERIC has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: ERIC's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
187687,521E. Ekholmwww.ericsson.com

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to communications service providers, enterprises, and the public sector in the Americas, Europe, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and India. It operates through Networks; Cloud Software and Services; Enterprise; and Other segments. The Networks segment offers hardware, software, and service offerings for intelligent, reliable and flexible 5G networks.

Telefonaktiebolaget LM Ericsson (publ) Fundamentals Summary

How do Telefonaktiebolaget LM Ericsson's earnings and revenue compare to its market cap?
ERIC fundamental statistics
Market capUS$36.68b
Earnings (TTM)US$2.61b
Revenue (TTM)US$23.94b
14.1x
P/E Ratio
1.5x
P/S Ratio

Is ERIC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
ERIC income statement (TTM)
RevenueSEK 230.99b
Cost of RevenueSEK 120.00b
Gross ProfitSEK 110.98b
Other ExpensesSEK 85.82b
EarningsSEK 25.17b

Last Reported Earnings

Mar 31, 2026

Next Earnings Date

Jul 14, 2026

Earnings per share (EPS)7.57
Gross Margin48.05%
Net Profit Margin10.90%
Debt/Equity Ratio30.5%

How did ERIC perform over the long term?

See historical performance and comparison

Dividends

2.8%
Current Dividend Yield
40%
Payout Ratio

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/07/05 15:43
End of Day Share Price 2026/07/02 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Telefonaktiebolaget LM Ericsson (publ) is covered by 51 analysts. 19 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullABG Sundal Collier
Richard KramerArete Research Services LLP
John EadeArgus Research Company