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