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Telefonaktiebolaget LM Ericsson Class B (ERIC)
NASDAQ:ERIC
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Telefonaktiebolaget LM Ericsson (ERIC) Price & Analysis

3,416 Followers

ERIC Stock Chart & Stats

$12.16
$0.06(0.73%)
At close: 4:00 PM EST
$12.16
$0.06(0.73%)

Bulls Say, Bears Say

Bulls Say
Cash Generation QualityFree cash flow tracking ~92–93% of net income implies high earnings quality and strong cash conversion. Durable FCF supports sustained capital returns, buybacks and reinvestment, and provides buffer versus cyclical revenue swings over the next several quarters.
Balance-sheet Strength / Net CashA substantial net cash position (~SEK 68.1bn) and manageable leverage give Ericsson financial flexibility to fund R&D, absorb cyclical downturns, pursue strategic initiatives or return capital. This reduces refinancing risk and supports multi‑quarter execution of margin programs.
Software & Services Margin ExpansionImproving cloud software margins reflect a shift toward higher‑margin, recurring revenue. Sustainable software margin expansion boosts overall profitability resilience, reduces dependence on low‑margin hardware cycles, and supports multi‑period margin targets and cash generation.
Bears Say
Top-line DeclineNegative revenue growth in 2025 and TTM signals weakening demand or pricing pressure that can limit operating‑leverage gains. Persistent top‑line contraction undermines margin sustainability and complicates meeting mid‑term revenue and EBITA targets without structural market share gains.
Input Cost Inflation RiskAnticipated semiconductor and memory cost inflation poses a durable margin risk: these components are critical to RAN products and are hard to immediately pass through in a competitive operator market. Sustained cost pressure could erode improved gross margins over multiple quarters.
Enterprise Segment LossesA sizable, recurring loss in Enterprise undermines Ericsson's diversification into enterprise networks. Turning this segment profitable requires execution and investment; continued drag could consume cash, distract management, and limit the durability of group margin improvements.

Telefonaktiebolaget LM Ericsson News

ERIC FAQ

What was Telefonaktiebolaget LM Ericsson Class B’s price range in the past 12 months?
Telefonaktiebolaget LM Ericsson Class B lowest stock price was $7.16 and its highest was $13.77 in the past 12 months.
    What is Telefonaktiebolaget LM Ericsson Class B’s market cap?
    Telefonaktiebolaget LM Ericsson Class B’s market cap is $41.43B.
      When is Telefonaktiebolaget LM Ericsson Class B’s upcoming earnings report date?
      Telefonaktiebolaget LM Ericsson Class B’s upcoming earnings report date is Jul 14, 2026 which is in 28 days.
        How were Telefonaktiebolaget LM Ericsson Class B’s earnings last quarter?
        Telefonaktiebolaget LM Ericsson Class B released its earnings results on Apr 17, 2026. The company reported $0.03 earnings per share for the quarter, missing the consensus estimate of $0.113 by -$0.083.
          Is Telefonaktiebolaget LM Ericsson Class B overvalued?
          According to Wall Street analysts Telefonaktiebolaget LM Ericsson Class B’s price is currently Overvalued. Get more investment ideas with TipRanks Premium
            Does Telefonaktiebolaget LM Ericsson Class B pay dividends?
            Telefonaktiebolaget LM Ericsson Class B pays a Semiannually dividend of $0.161 which represents an annual dividend yield of 2.51%. See more information on Telefonaktiebolaget LM Ericsson Class B dividends here
              What is Telefonaktiebolaget LM Ericsson Class B’s EPS estimate?
              Telefonaktiebolaget LM Ericsson Class B’s EPS estimate is 0.14.
                How many shares outstanding does Telefonaktiebolaget LM Ericsson Class B have?
                Telefonaktiebolaget LM Ericsson Class B has 3,071,530,800 shares outstanding.
                  What happened to Telefonaktiebolaget LM Ericsson Class B’s price movement after its last earnings report?
                  Telefonaktiebolaget LM Ericsson Class B reported an EPS of $0.03 in its last earnings report, missing expectations of $0.113. Following the earnings report the stock price went down -6.497%.
                    Which hedge fund is a major shareholder of Telefonaktiebolaget LM Ericsson Class B?
                    Currently, no hedge funds are holding shares in ERIC
                    What is the TipRanks Smart Score and how is it calculated?
                    Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                      Company Description

                      Telefonaktiebolaget LM Ericsson Class B

                      Telefonaktiebolaget LM Ericsson (publ), along with its various subsidiaries, operates as a global supplier of communication infrastructure, software, and service solutions, primarily serving the telecommunications industry and other diverse sectors. The company's business is organized into four distinct segments: Networks, Digital Services, Managed Services, and Emerging Business and Other. The Networks division focuses on delivering cutting-edge radio access network (RAN) solutions for a wide array of network spectrums, encompassing robust integrated hardware and software, complete antenna and transport systems, and a full spectrum of services for network setup and ongoing maintenance. Digital Services provides advanced software-driven solutions for critical functions like business support systems (BSS), operational support systems (OSS), communication platforms, core network architecture, and cloud infrastructure. The Managed Services segment offers telecom operators an extensive range of provisions, including comprehensive network and IT management, network design and optimization, and application development and maintenance. Finally, the Emerging Business and Other segment encompasses innovative ventures such as Internet of Things (IoT) technologies, iconectiv, Cradlepoint (known for its wireless edge WAN 4G and 5G enterprise solutions), Red Bee Media, MediaKind, and other developing enterprises. Established in 1876 and based in Stockholm, Sweden, Ericsson maintains a substantial worldwide footprint, with operations spanning North America, Europe and Latin America, the Middle East and Africa, Southeast Asia, Oceania, India, Northeast Asia, and numerous other international markets.

                      Telefonaktiebolaget LM Ericsson (ERIC) Earnings & Revenues

                      ERIC Company Deck

                      ERIC Earnings Call

                      Q1 2026
                      0:00 / 0:00
                      Earnings Call Sentiment|Positive
                      The call presents a constructive operational picture: healthy organic growth (6%), robust gross margins (group 48.1%, Networks 50.4%), improving software margins, strong cash generation (net cash SEK 68.1bn) and a sizable SEK 15bn buyback. These positives are tempered by material FX headwinds (reported sales down 10% and SEK 7.8bn FX impact), an unacceptable Enterprise loss (adjusted EBITA -SEK 1.4bn) and looming input cost pressure from semiconductors/memory that may hit in H2. Management emphasized supply‑chain resilience, margin levers (pricing, product substitution, service efficiencies) and ongoing cost programs, but some cost savings will show with a delay. Overall, operational momentum and financial flexibility outweigh the near‑term headwinds, though risks remain from currency, component inflation and elevated restructuring costs.View all ERIC earnings summaries

                      ERIC Stock 12 Month Forecast

                      Average Price Target

                      $10.60
                      ▼(-12.83% Downside)
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<span style=\"color:#828080\" class=\"mb3 mt2 fonth8_semibold\"> Hold</span>\n            <div class=\"flexrcb px3 displayflex fonth9_semibold\"><span  style=\"color:#199ca5\">Buy 0,\t&nbsp; </span>\n              <span  style=\"color:#828080\">Hold 3, \t&nbsp;</span>\n              <span  style=\"color:#912767\">Sell 0</span>\n      ","marker":{"lineColor":"#828080","enabled":true,"symbol":"circle"}},{"y":8.362,"date":1751328000000,"info":" <span style=\"color:#828080\" class=\"mb3 mt2 fonth8_semibold\"> Hold</span>\n            <div class=\"flexrcb px3 displayflex fonth9_semibold\"><span  style=\"color:#199ca5\">Buy 0,\t&nbsp; </span>\n              <span  style=\"color:#828080\">Hold 3, \t&nbsp;</span>\n              <span  style=\"color:#912767\">Sell 0</span>\n      ","marker":{"lineColor":"#828080","enabled":true,"symbol":"circle"}},{"y":7.091,"date":1754006400000,"info":" <span style=\"color:#828080\" class=\"mb3 mt2 fonth8_semibold\"> Hold</span>\n            <div class=\"flexrcb px3 displayflex fonth9_semibold\"><span  style=\"color:#199ca5\">Buy 0,\t&nbsp; </span>\n              <span  style=\"color:#828080\">Hold 4, \t&nbsp;</span>\n              <span  style=\"color:#912767\">Sell 0</span>\n      ","marker":{"lineColor":"#828080","enabled":true,"symbol":"circle"}},{"y":7.697,"date":1756684800000,"info":" <span style=\"color:#828080\" class=\"mb3 mt2 fonth8_semibold\"> Hold</span>\n            <div class=\"flexrcb px3 displayflex fonth9_semibold\"><span  style=\"color:#199ca5\">Buy 0,\t&nbsp; </span>\n              <span  style=\"color:#828080\">Hold 5, \t&nbsp;</span>\n              <span  style=\"color:#912767\">Sell 0</span>\n      ","marker":{"lineColor":"#828080","enabled":true,"symbol":"circle"}},{"y":8.259,"date":1759276800000,"info":" <span style=\"color:#912767\" class=\"mb3 mt2 fonth8_semibold\"> Strong Sell</span>\n            <div class=\"flexrcb px3 displayflex fonth9_semibold\"><span  style=\"color:#199ca5\">Buy 0,\t&nbsp; 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