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Telefonaktiebolaget LM Ericsson Class B (ERIC)
NASDAQ:ERIC
Earnings Data
Report Date
Apr 17, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.12Last Year’s EPS
0.13Same Quarter Last Year
Moderate Sell
Based on 3 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call reported multiple clear operational and financial improvements: sustained margin expansion (nine consecutive quarters), strong adjusted gross margins (~48%), solid organic growth (Q4 organic +6%), improved segment profitability (notably Networks and Cloud Software & Services), a robust net cash position (>SEK 61B) and a sizeable shareholder distribution program (SEK 25B). These positives are tempered by meaningful currency headwinds that reduced reported sales (~‑5%), a year‑on‑year decline in cash flow versus a particularly strong 2024, a flattish RAN market outlook for 2026, elevated restructuring charges and some regional/segment softness (Northeast Asia, Latin America, Enterprise reporting affected by the iconectiv sale). Overall the company conveys disciplined execution, a constructive strategy for new growth areas (mission‑critical, 5G core, enterprise) and confidence in its balance sheet, while acknowledging near‑term headwinds and costs associated with restructuring and market uncertainty.Company Guidance
Strong Profitability and Margin Expansion
Adjusted EBITA margin reached ~18% for Q4 and full year 2025 (18.3% reported in Q4), representing the ninth consecutive quarter of year-on-year EBITA margin expansion and tracking close to the long-term 15%–18% target (18.1% for the full year; 14.9% excluding the ~3 percentage point benefit from the iconectiv gain).
High Adjusted Gross Margin
Adjusted gross margin was 48% in Q4 and 48.1% for the full year, supported by cost-reduction measures and operational excellence, with Networks reaching ~49.6% (Q4) and full-year Networks gross margin ~50%.
Organic Revenue Growth
Organic net sales grew 6% year‑on‑year in Q4 and 2% for the full year 2025, with organic growth across all segments and notable strength in Cloud Software & Services (organic +12% in Q4).
Robust Cash and Cash Generation
Net cash position exceeded SEK 61 billion (SEK 61.2B) at year end, with cash flow before M&A of SEK 14.9 billion in Q4 and SEK 26.8 billion for the full year; cash flow to net sales was 11%, inside the 9%–12% target range.
Segment Operational Improvements
Networks delivered organic sales growth of 4% in Q4 and an adjusted EBITA margin of 22.8% (Q4), while Cloud Software & Services reported organic growth of 12% (Q4), adjusted gross margin of 44.3% and an adjusted EBITA margin of 18.6%—both at multi-quarter highs.
Shareholder Returns and Capital Allocation
Board proposed increased ordinary dividend of SEK 3 per share and a share buyback program of up to SEK 15 billion, totaling ~SEK 25 billion—the largest shareholder distribution in company history—reflecting strong balance sheet capacity.
Cost Reductions and Headcount Actions
Operating expenses (excl. restructuring) fell to SEK 21.4 billion in Q4 (about SEK 2 billion lower YoY) and full-year operating expenses dropped SEK 7.4 billion YoY; the company reduced headcount by ~5,000 over the past year and is pursuing further reductions to improve structural margins.
Market Wins and Product Traction
Meaningful contract activity with front‑runner customers (e.g., Telstra, Vodafone) and strategic inroads in Japan; fixed wireless access reached ~150 million global subscribers in 2025; mission‑critical, 5G core and enterprise use cases are highlighted as growth engines.
ERIC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
ERIC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Jan 23, 2026 | $9.58 | $10.43 | +8.87% |
Oct 14, 2025 | $8.17 | $9.85 | +20.56% |
Jul 15, 2025 | $7.75 | $7.13 | -7.90% |
Apr 15, 2025 | $7.36 | $7.97 | +8.32% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Telefonaktiebolaget LM Ericsson Class B (ERIC) report earnings?
Telefonaktiebolaget LM Ericsson Class B (ERIC) is schdueled to report earning on Apr 17, 2026, Before Open (Confirmed).
What is Telefonaktiebolaget LM Ericsson Class B (ERIC) earnings time?
Telefonaktiebolaget LM Ericsson Class B (ERIC) earnings time is at Apr 17, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is ERIC EPS forecast?
ERIC EPS forecast for the fiscal quarter 2026 (Q1) is 0.12.
