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ERIC
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ERICTelefonaktiebolaget LM Ericsson (publ)
$10.26$33.8B
Overview & Tools
OverviewChart Terminal ↗Visualize
Valuation & Forecasts
Valuation ModelsEstimatesDCF Model
Price & Analyst Data
Analyst TargetsPrice History
Financial Statements
Income StatementBalance SheetCash FlowRatios & Margins
Performance
P/E HistoryRevenue HistoryEarnings HistoryDividend HistoryTotal Return
Discovery & Screens
Live BreakoutsStock ScreenerOwnership
ERIC logo

Telefonaktiebolaget LM Ericsson (publ)

ERIC
NASDAQ · Networking & Telecom Equipment
$10.26
At close - USD
Market Cap$33.78B
P/E12.7x
52W High$13.77
Volume13.13M
OverviewTerminalAnalysisFinancialsValuationEarningsBreakoutsOwnership
VCP Research Verdict2026Q2

Margin Expansion Masks Persistent Revenue Decline Risk

ERIC has executed a successful cost transformation, lifting gross margins from 42.7% in 2024Q1 to 48.4% in 2026Q2 and restoring profitability after a $11.0B loss in 2024Q2.

GrowthDecelerating
ProfitabilityModerate
ValuationAttractive
TechnicalsWeak
Explore valuation models
MARKET ACTION

ERIC price & volume

Price trend, volume and key moving averages

Launch Terminal
Loading chart...
Decision Checklist4 Core Signals

What matters now

The signals most likely to change the investment case.

01

Earnings momentum

8/12 Beats

EPS beat 8 of last 12 quarters

02

Valuation risk

-62% Peers

P/E is 62% below peer median

03

Market leadership

RS 54 · Avg

Average momentum (RS Rating: 54)

04

Weak Trend

Below 200DMA

Price < 200DMA

Next CatalystEstimated earnings · Jan 15
01

Build the investment case

Start with the evidence for owning the stock and the risks that can break the thesis.

EXECUTIVE THESIS

The Investment Case

Full Analysis
Fundamental Trajectory

Revenue has declined for six straight quarters, down 1.3% year-over-year to $54.3B in 2026Q2, yet gross margin expanded to 48.4% from 42.7% in 2024Q1, driving operating margin to 12.3% despite volatile net income that swung from a $11.0B loss in 2024Q2 to a $4.2B profit in 2026Q2.

Analyst Consensus-12.3% target
Hold(40 analysts)
15 Buy22 Hold3 Sell

The Bull Case

Upside Catalysts

Strong upside potential

Analysts project a 12-month target range between $59.67 and $102.30, with a base-case estimate around $85.25, implying significant upside.

Bullish analyst coverage

Multiple sources highlight a bullish thesis on ERIC, suggesting confidence in its growth trajectory.

Undervalued stock

The current price is significantly below the projected target range, indicating potential undervaluation.

The Bear Case

Key Downside Risks

Market performance

Price History →

Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).

YTD Return
ERIC+11.28%
S&P 500 (^GSPC)+7.63%
1-Year Return
ERIC+8.53%
S&P 500 (^GSPC)+9.69%
3-Year Return
ERIC+139.72%
S&P 500 (^GSPC)+65.73%
5-Year Return
ERIC+5.08%
S&P 500 (^GSPC)+54.59%
02

Test the fundamentals

Check whether operating performance supports the current valuation.

VALUATION & INTRINSIC VALUE

Valuation Scenarios

Valuation Analysis
Trailing P/E5Y High
17.4x
Forward P/EExpansion
1.7x
EV/EBITDA100th %ile
8.5x
FCF YieldCash Flow
8.5%

Valuation vs 5-Year History

Multiple Range
Metric
Current
5Y Median
Historical Range
Percentile
P/E
17.4x
1.2x
100th· High
EV/EBITDA
8.5x
0.9x
100th· High
Price/FCF
11.7x
1.0x
100th· High
Current Multiple
5Y Median (50th %ile)

Intrinsic Value Scenarios

DCF Projection
Bear$6.61-35.6%
Base (Fair)$10.47+2.0%
Bull$15.82+54.2%
$6.61 Bear$10.47 Base$15.82 Bull
Current Market Price: $10.26
Trades at a 2.0% discount to Base DCF ($10.47)
Open DCF & Valuation Models →Chart Terminal ↗

Growth & profitability

Annual revenue & EPS trend
Revenue FY25
$222.48B-14.2% YoY
Net income FY25
$26.72B+127591.7% YoY
Free cash flow FY25
$28.5B-38.0% YoY
Operating margin FY25
13.8%+10.2 pts YoY
ROIC (FY25)22.3%
Avg ROIC 5Y-
ROE (FY25)26.3%
Piotroski Score6 / 9
Financial Statements →
03

Monitor what changed

Recent results and news deserve attention only when they alter the forward view.

OPERATING RESULTS

Recent Earnings

Earnings History
EPS Beat Rate8/12 (67%)
Revenue Beat Rate6/12 (50%)
QuarterEPS (Act vs Est)Revenue (Act vs Est)
Q4 2026Latest
Oct 15, 2026
$0.18+28.6%
vs $0.14
$6.0B+6.8%
vs $5.6B
Q3 2026
Jul 14, 2026
$0.13+0.0%
vs $0.13
$5.5B-3.2%
vs $5.7B
Q2 2026
Apr 17, 2026
$0.03-73.1%
vs $0.11
$5.4B-1.3%
vs $5.5B
Q1 2026
Jan 23, 2026
$0.27+17.4%
vs $0.23
$7.7B+7.1%
vs $7.2B
Historical baseline: 12 quarters analyzedGAAP / Adjusted
MARKET COVERAGE

Latest News

4 Stories
Business Wire·Oct 27, 2026
Vonage Extends Omnichannel Messaging Platform with Email API, Now Available Within the Vonage Messages API

HOLMDEL, N.J.--(BUSINESS WIRE)--Vonage, part of Ericsson (NASDAQ: ERIC), today announced the launch of Email API within the Vonage Messages API, extending its omnichannel communications platform to include email alongside SMS, MMS, RCS, and WhatsApp. With email now reaching 4.6 billion people worldwide¹ — more than half the global population — and 99 percent of users checking their inbox every day², the channel has never been more critical to enterprise communications strategies. With Email API.

24/7 Wall Street·Oct 26, 2026
Nokia Climbs 3% on Five-Year India R&D Deal; Ericsson Edges Higher

A new India engineering partnership is pushing the AI infrastructure strategy at Nokia (NYSE:NOK | NOK Price Prediction) deeper into its technology base, and the network equipment maker is drawing buyers as a result.

PRNewsWire·Oct 26, 2026
Share buybacks in Ericsson during the period October 19 - October 23, 2026

STOCKHOLM, Oct. 26, 2026 /PRNewswire/ -- During the period October 19 - October 23, 2026, Telefonaktiebolaget LM Ericsson (publ) ("Ericsson") (LEI code 549300W9JLPW15XIFM52) repurchased own Class B shares (ISIN: SE0000108656) as follows: Date Aggregated daily volume (number of shares) Weighted average share price per day (SEK) Total daily transaction value (SEK) 19/10/2026 100,000 103.3559 10,335,590.00 20/10/2026 100,000 103.5269 10,352,690.00 21/10/2026 100,000 103.9775 10,397,750.00 22/10/2026 100,000 101.6631 10,166,310.00 23/10/2026 100,000 103.6445 10,364,450.00 Total 500,000 103.2336 51,616,790.00 The share repurchases are a part of the share buyback program of up to SEK 15,000,000,000 which Ericsson announced on April 16, 2026, and which runs between April 23, 2026, and March 31, 2027, at the latest. The Board of Directors intends to propose to the 2027 Annual General Meeting that the repurchased shares, other than those used to fulfil Ericsson's obligations under its share-related incentive programs, are cancelled.

Defense World·Oct 25, 2026
Ericsson (NASDAQ:ERIC) Stock Has Average Price Target of $9.60

Ericsson (NASDAQ: ERIC - Get Free Report) has received an average recommendation of "Hold" from the six brokerages that are covering the stock, Marketbeat reports. One research analyst has rated the stock with a sell recommendation, four have assigned a hold recommendation and one has given a buy recommendation to the company. The average 12-month price

Filtered for Telefonaktiebolaget LM Ericsson (publ)More Headlines
04

Compare before deciding

Benchmark ERIC against direct peers instead of judging its metrics in isolation.

Peers Comparison

Key metrics vs top competitors for Telefonaktiebolaget LM Ericsson (publ) (ERIC)

Full Screener →
CompanyPriceMarket CapP/E RatioRev Growth (1Y)Net MarginROEDiv Yield
ERIC logoERICTelefonaktiebolaget LM Ericsson (publ)Current
$10.26$33.78B12.65-14.22%12.01%26.28%2.65%
NOK logoNOKNokia Oyj
$7.66$44.01B62.313.48%3.8%3.66%2.01%
CSCO logoCSCOCisco Systems, Inc.
$93.85$369.9B28.1811.77%20.95%27.39%1.75%
HPE logoHPEHewlett Packard Enterprise Company
$44.76$59.26B-1003.4814.06%6.57%10.85%1.34%
VIAV logoVIAVViavi Solutions Inc.
$28.47$7.02B189.808.39%-2%-3.16%—
CIEN logoCIENCiena Corporation
$243.39$34.45B286.3418.79%10.87%22.82%—

Compare ERIC vs Peers

Telefonaktiebolaget LM Ericsson (publ) (ERIC) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.

Closest Rival

vs NOK

Most directly comparable listed peer for ERIC.

Scale Benchmark

vs AVGO

Larger-name benchmark to compare ERIC against a more recognizable public peer.

Peer Set

Compare Top 5

vs NOK, CSCO, HPE, VIAV

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ERIC Frequently Asked Questions

Telefonaktiebolaget LM Ericsson (publ) (ERIC) stock FAQ — growth, dividends, profitability & financials explained

Growth & Financials
What is Telefonaktiebolaget LM Ericsson (publ)'s revenue?

Telefonaktiebolaget LM Ericsson (publ) (ERIC) reported $232.83B in revenue over the trailing twelve months. Revenue was $222.48B in fiscal year 2025. That is 77% more than the $125.81B of fiscal year 1996.

How fast is Telefonaktiebolaget LM Ericsson (publ) growing?

Telefonaktiebolaget LM Ericsson (publ) (ERIC) revenue fell by 14.2% in fiscal year 2025, compared with the prior fiscal year.

Is ERIC profitable?

Yes. Telefonaktiebolaget LM Ericsson (publ) (ERIC) earned $19.29B in net income over the trailing twelve months (a 8.3% net margin).

Dividend & Returns
Does ERIC pay dividends?

Yes. Telefonaktiebolaget LM Ericsson (publ) (ERIC) pays a dividend that yields 2.65% at the current price, a moderate yield.

What is ERIC's return on equity?

Telefonaktiebolaget LM Ericsson (publ) (ERIC) had a return on equity (ROE) of 26.3% in fiscal year 2025. That is well above the market's typical 10-15%.

What is Telefonaktiebolaget LM Ericsson (publ)'s free cash flow?

Telefonaktiebolaget LM Ericsson (publ) (ERIC) generated $28.51B in free cash flow over the trailing twelve months.

What if you invested $1,000 in ERIC back in 1996?

Total return calculator · dividends reinvested · 30+ years of data

See returns →