Revenue growth remains in negative territory at -0.9% for 2026Q1, though the company has successfully defended its gross margin at 48.1% through a strategic shift toward software and licensing.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 229.49B | 222.48B | 259.37B | 249.8B | 274.27B | 244.54B | 206.97B | 218.11B | 218.04B | 201.14B | 237.48B | 246.13B | 234B | 226.68B | 220.72B | 239.45B | 191.32B | 192.91B | 218.85B | 179.91B | 171.25B | 161.43B | 118.99B | 117.64B | 146.08B | 231.73B | 275.55B | 215.19B | 184.58B | 168.57B | 125.81B |
| Revenue Growth % | -6.48% | -14.22% | 3.83% | -8.92% | 12.16% | 18.15% | -5.11% | 0.03% | 8.4% | -15.3% | -3.51% | 5.18% | 3.23% | 2.7% | -7.82% | 25.16% | -0.83% | -11.85% | 21.64% | 5.06% | 6.08% | 35.67% | 1.15% | -19.47% | -36.96% | -15.9% | 28.05% | 16.58% | 9.5% | 34% | 27.38% |
| Cost of Goods Sold | 119.22B | 115.37B | 142.79B | 150.77B | 159.64B | 138.2B | 122.85B | 136.39B | 141.24B | 151.7B | 164.91B | 161.68B | 151.52B | 151.49B | 153.34B | 155.08B | 118.93B | 124.07B | 140.2B | 111.75B | 99.25B | 91.17B | 67.35B | 78.83B | 98.85B | 173.82B | 181.7B | 125.76B | 105.33B | 98.35B | 70.06B |
| COGS % of Revenue | - | 51.86% | 55.05% | 60.36% | 58.21% | 56.51% | 59.36% | 62.53% | 64.78% | 75.42% | 69.44% | 65.69% | 64.75% | 66.83% | 69.47% | 64.76% | 62.16% | 64.31% | 64.06% | 62.11% | 57.95% | 56.48% | 56.6% | 67.01% | 67.66% | 75.01% | 65.94% | 58.44% | 57.06% | 58.34% | 55.69% |
| Gross Profit | 110.27B | 107.11B | 116.57B | 99.03B | 114.63B | 106.34B | 84.12B | 81.72B | 76.8B | 49.45B | 72.57B | 84.45B | 82.48B | 75.19B | 67.38B | 84.37B | 72.39B | 68.84B | 78.64B | 68.16B | 72B | 70.26B | 51.64B | 38.81B | 47.24B | 57.91B | 93.85B | 89.43B | 79.25B | 70.22B | 55.75B |
| Gross Margin % | 48.05% | 48.14% | 44.95% | 39.64% | 41.79% | 43.49% | 40.64% | 37.47% | 35.22% | 24.58% | 30.56% | 34.31% | 35.25% | 33.17% | 30.53% | 35.24% | 37.84% | 35.69% | 35.94% | 37.89% | 42.05% | 43.52% | 43.4% | 32.99% | 32.34% | 24.99% | 34.06% | 41.56% | 42.94% | 41.66% | 44.31% |
| Gross Profit Growth % | - | -8.12% | 17.71% | -13.61% | 7.8% | 26.41% | 2.94% | 6.4% | 55.32% | -31.86% | -14.07% | 2.39% | 9.7% | 11.59% | -20.14% | 16.55% | 5.15% | -12.46% | 15.38% | -5.33% | 2.48% | 36.06% | 33.06% | -17.85% | -18.43% | -38.3% | 4.94% | 12.85% | 12.86% | 25.97% | 23.49% |
| Operating Expenses | 78.76B | 76.36B | 107.22B | 82.02B | 83.66B | 71.99B | 57.81B | 60.65B | 66.11B | 63.24B | 58.24B | 57.81B | 61.38B | 52.94B | 52.1B | 59.48B | 51.28B | 48.66B | 56.27B | 47.44B | 44.06B | 40.43B | 31.05B | 50.03B | 51.31B | 84.99B | 62.46B | 71.86B | 59.97B | 51.37B | 45B |
| OpEx % of Revenue | - | 34.32% | 41.34% | 32.83% | 30.5% | 29.44% | 27.93% | 27.81% | 30.32% | 31.44% | 24.52% | 23.49% | 26.23% | 23.35% | 23.61% | 24.84% | 26.8% | 25.22% | 25.71% | 26.37% | 25.73% | 25.04% | 26.1% | 42.53% | 35.13% | 36.68% | 22.67% | 33.4% | 32.49% | 30.47% | 35.77% |
| Selling, General & Admin | 31.86B | 30.99B | 53.44B | 36.27B | 35.94B | 27.85B | 22.81B | 23.72B | 27.21B | 31.02B | 29.35B | 28.45B | 27.64B | 25.26B | 24.48B | 26.69B | 23.8B | 24.17B | 26.61B | 22.21B | 20.24B | 17.73B | 13.76B | 23.86B | 30.04B | 45.86B | 48.37B | 41.24B | 33.06B | 28.36B | 40.78B |
| SG&A % of Revenue | - | 13.93% | 20.6% | 14.52% | 13.1% | 11.39% | 11.02% | 10.87% | 12.48% | 15.42% | 12.36% | 11.56% | 11.81% | 11.15% | 11.09% | 11.15% | 12.44% | 12.53% | 12.16% | 12.35% | 11.82% | 10.98% | 11.57% | 20.28% | 20.56% | 19.79% | 17.55% | 19.16% | 17.91% | 16.82% | 32.41% |
| Research & Development | 46.9B | 45.38B | 53.78B | 45.75B | 47.72B | 44.14B | 35B | 36.93B | 38.9B | 32.22B | 28.89B | 29.36B | 33.75B | 27.67B | 27.63B | 32.8B | 29.07B | 30.28B | 33.37B | 25.36B | 23.82B | 22.7B | 17.29B | 27.11B | 29.39B | 46.62B | 42.23B | 33.09B | 28.05B | 24.36B | 0 |
| R&D % of Revenue | - | 20.4% | 20.73% | 18.32% | 17.4% | 18.05% | 16.91% | 16.93% | 17.84% | 16.02% | 12.17% | 11.93% | 14.42% | 12.21% | 12.52% | 13.7% | 15.19% | 15.7% | 15.25% | 14.1% | 13.91% | 14.06% | 14.53% | 23.05% | 20.12% | 20.12% | 15.32% | 15.38% | 15.2% | 14.45% | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -6.16M | 0 | 0 | 0 | -1.58B | -5.79B | 3.71B | -130.3M | 0 | 0 | 0 | 22.92B | 21.92B | 38.38B | 20.23B | 38.78B | 31.91B | 27.01B | 45B |
| Operating Income | 31.51B | 30.74B | 9.36B | 17.01B | 30.97B | 34.34B | 26.31B | 21.07B | 10.69B | -13.8B | 14.33B | 26.64B | 21.11B | 22.25B | 15.28B | 24.89B | 21.11B | 20.18B | 22.37B | 20.72B | 27.94B | 29.83B | 20.59B | -11.23B | -21.35B | -27.08B | 31.39B | 17.57B | 19.29B | 18.85B | 10.75B |
| Operating Margin % | 13.73% | 13.82% | 3.61% | 6.81% | 11.29% | 14.04% | 12.71% | 9.66% | 4.9% | -6.86% | 6.04% | 10.83% | 9.02% | 9.82% | 6.92% | 10.39% | 11.03% | 10.46% | 10.22% | 11.52% | 16.32% | 18.48% | 17.3% | -9.54% | -14.61% | -11.69% | 11.39% | 8.16% | 10.45% | 11.18% | 8.55% |
| Operating Income Growth % | - | 228.63% | -45.01% | -45.07% | -9.81% | 30.54% | 24.84% | 97.05% | 177.52% | -196.25% | -46.21% | 26.25% | -5.16% | 45.66% | -38.61% | 17.88% | 4.59% | -9.78% | 7.99% | -25.86% | -6.32% | 44.91% | 283.36% | 47.4% | 21.19% | -186.27% | 78.68% | -8.9% | 2.3% | 75.37% | 32.9% |
| EBITDA | 38.17B | 37.75B | 19.84B | 26.52B | 39.61B | 41.83B | 32.61B | 27.87B | 15.52B | -5.52B | 23.81B | 36.83B | 31.29B | 32.38B | 24.53B | 34.34B | 29.54B | 27.43B | 30.87B | 28.91B | 34.84B | 36.29B | 26.8B | -2.84B | -14.79B | -19.34B | 42.41B | 24.95B | 25.37B | 24.64B | 15.41B |
| EBITDA Margin % | 16.63% | 16.97% | 7.65% | 10.62% | 14.44% | 17.11% | 15.75% | 12.78% | 7.12% | -2.74% | 10.03% | 14.97% | 13.37% | 14.28% | 11.11% | 14.34% | 15.44% | 14.22% | 14.11% | 16.07% | 20.35% | 22.48% | 22.52% | -2.41% | -10.13% | -8.35% | 15.39% | 11.59% | 13.74% | 14.61% | 12.25% |
| EBITDA Growth % | 8.35% | 90.27% | -25.18% | -33.06% | -5.3% | 28.3% | 17% | 79.62% | 381.13% | -123.18% | -35.35% | 17.7% | -3.35% | 32% | -28.58% | 16.25% | 7.69% | -11.13% | 6.77% | -17.02% | -3.98% | 35.43% | 1043.77% | 80.81% | 23.52% | -145.61% | 70% | -1.67% | 2.97% | 59.9% | 29.8% |
| D&A (Non-Cash Add-back) | 6.66B | 7B | 10.48B | 9.5B | 8.64B | 7.49B | 6.3B | 6.8B | 4.82B | 8.28B | 9.48B | 10.19B | 10.19B | 10.12B | 9.25B | 9.46B | 8.43B | 7.25B | 8.5B | 8.2B | 6.9B | 6.46B | 6.21B | 8.39B | 6.55B | 7.74B | 11.01B | 7.38B | 6.08B | 5.78B | 4.66B |
| EBIT | 35.95B | 38.82B | 6.67B | -18.95B | 26.81B | 32.9B | 26.48B | 11.01B | 500.53M | -33.81B | 6.02B | 21.75B | 17.92B | 18.58B | 11.55B | 20.92B | 16.09B | 7.34B | 20.16B | 28.95B | 35.63B | 35.45B | 25.18B | -11.22B | -4.08B | -27.08B | 31.39B | 17.57B | 19.29B | 18.85B | 10.75B |
| Net Interest Income | -383.33M | -532.97M | -1.07B | -1.49B | -1.24B | -1.45B | -1.27B | -940.73M | -1.47B | -1.42B | -1.72B | -1.52B | -900.16M | -439.66M | -47.48M | 246.91M | -474.18M | -307.38M | -1.43B | -329.58M | -622.82M | -44.66M | -806.06M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 2.43B | 2.33B | 2.63B | 1.8B | 724.21M | 378.94M | 708.94M | 1.34B | 599.81M | 5.88M | 34.14M | 383.76M | 731.83M | 968.04M | 1.63B | 2.05B | 763.02M | 1.2B | 687.14M | 1.15B | 725.67M | 2.51B | 2.87B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 2.82B | 2.86B | 3.7B | 3.29B | 1.97B | 1.83B | 1.98B | 2.28B | 2.07B | 1.43B | 1.76B | 1.9B | 1.63B | 1.41B | 1.68B | 1.8B | 1.24B | 1.51B | 2.12B | 1.48B | 1.35B | 2.55B | 3.68B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 1.67B | 5.26B | -6.65B | -39.13B | -6.12B | -3.55B | -2.07B | -12.66B | -12.21B | -21.42B | -10.04B | -6.84B | -4.88B | -5.21B | -5.41B | -5.76B | -6.26B | -14.35B | -4.33B | 8.72B | 6.33B | 4.95B | 910.65M | -1.06B | -2.03B | -3.22B | -2.5B | -1.2B | -1.06B | -1.55B | -605.26M |
| Pretax Income | 33.18B | 36B | 2.71B | -22.12B | 24.86B | 30.79B | 24.24B | 8.41B | -1.51B | -35.22B | 4.3B | 19.81B | 16.23B | 17.05B | 9.87B | 19.12B | 14.85B | 5.83B | 18.04B | 29.44B | 34.28B | 34.78B | 21.5B | -12.29B | -23.37B | -30.3B | 28.9B | 16.37B | 18.22B | 17.3B | 10.15B |
| Pretax Margin % | 14.46% | 16.18% | 1.04% | -8.85% | 9.06% | 12.59% | 11.71% | 3.86% | -0.69% | -17.51% | 1.81% | 8.05% | 6.94% | 7.52% | 4.47% | 7.99% | 7.76% | 3.02% | 8.24% | 16.36% | 20.02% | 21.55% | 18.07% | -10.45% | -16% | -13.08% | 10.49% | 7.61% | 9.87% | 10.26% | 8.06% |
| Income Tax | 8.18B | 9.01B | 2.32B | 2.64B | 5.55B | 6.6B | 8.54B | 6.64B | 4.98B | -3.45B | 2.27B | 6.18B | 4.79B | 4.91B | 4.11B | 5.86B | 4.28B | 1.98B | 5.82B | 8.23B | 9.1B | 8.77B | 6.85B | -1.46B | -4.32B | -9.04B | 7.73B | 4.25B | 5.42B | 5.78B | 3.04B |
| Effective Tax Rate % | 24.67% | 25.03% | 85.55% | -11.94% | 22.34% | 21.44% | 35.24% | 79% | -328.98% | 9.8% | 52.93% | 31.19% | 29.52% | 28.8% | 41.68% | 30.64% | 28.82% | 33.89% | 32.27% | 27.97% | 26.55% | 25.22% | 31.86% | 11.87% | 18.48% | 29.84% | 26.74% | 25.96% | 29.73% | 33.43% | 29.97% |
| Net Income | 24.78B | 26.72B | 20.93M | -25.08B | 18.91B | 23.89B | 15.57B | 2.13B | -6.75B | -31.9B | 1.83B | 13.51B | 11.87B | 11.97B | 5.6B | 12.87B | 10.49B | 3.43B | 11.81B | 20.92B | 25B | 25.85B | 15.81B | -10.83B | -19.05B | -21.26B | 21.17B | 12.12B | 13.05B | 12B | 7.1B |
| Net Margin % | 10.8% | 12.01% | 0.01% | -10.04% | 6.9% | 9.77% | 7.52% | 0.98% | -3.1% | -15.86% | 0.77% | 5.49% | 5.07% | 5.28% | 2.54% | 5.37% | 5.48% | 1.78% | 5.4% | 11.63% | 14.6% | 16.02% | 13.29% | -9.21% | -13.04% | -9.17% | 7.68% | 5.63% | 7.07% | 7.12% | 5.65% |
| Net Income Growth % | 1579.37% | 127591.67% | 100.08% | -232.64% | -20.83% | 53.42% | 629.68% | 131.6% | 78.83% | -1842.78% | -86.45% | 13.74% | -0.79% | 113.87% | -56.51% | 22.7% | 205.66% | -70.95% | -43.56% | -16.31% | -3.31% | 63.49% | 245.99% | 43.14% | 10.39% | -200.42% | 74.68% | -7.13% | 8.7% | 68.95% | 31.86% |
| Net Income (Continuing) | 24.99B | 26.99B | 391.33M | -24.76B | 19.3B | 24.19B | 15.7B | 1.77B | -6.49B | -31.76B | 2.02B | 13.63B | 11.44B | 12.14B | 5.75B | 13.26B | 10.57B | 3.86B | 12.22B | 21.21B | 25.18B | 26.01B | 14.65B | -10.83B | -19.05B | -21.26B | 21.17B | 12.12B | 13.05B | 12B | 7.1B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 688.17M | 729.01M | -1.3B | -1.26B | -1.48B | -1.67B | -1.49B | -660.66M | 803.8M | 649.91M | 678.66M | 838.88M | 902.87M | 1.44B | 1.61B | 2.16B | 1.68B | 1.16B | 1.26B | 938.96M | 802.44M | 849.28M | 1.05B | 2.3B | 2.48B | 3.53B | 2.78B | 2.18B | 2.05B | 4.42B | 3.41B |
| EPS (Diluted) | 7.41 | 8.00 | 0.01 | -7.53 | 5.67 | 7.17 | 4.68 | 0.64 | -2.05 | -9.74 | 0.55 | 4.12 | 3.63 | 3.68 | 1.73 | 3.98 | 3.26 | 1.07 | 3.69 | 6.56 | 7.86 | 8.13 | 5.00 | -3.42 | -7.51 | -13.43 | 13.33 | 7.68 | 8.17 | 7.60 | 4.51 |
| EPS Growth % | 1595.45% | - | 100.08% | -232.8% | -20.92% | 53.21% | 631.25% | 131.22% | 78.95% | -1870.91% | -86.65% | 13.5% | -1.36% | 112.72% | -56.53% | 22.09% | 204.67% | -71% | -43.75% | -16.54% | -3.32% | 62.6% | 246.2% | 54.46% | 44.08% | -200.75% | 73.57% | -6% | 7.5% | 68.51% | 23.56% |
| EPS (Basic) | - | 8.01 | 0.01 | -7.53 | 5.68 | 7.18 | 4.69 | 0.65 | -2.05 | -9.74 | 0.57 | 4.16 | 3.66 | 3.71 | 1.74 | 4.01 | 3.28 | 1.07 | 3.71 | 6.56 | 7.86 | 8.13 | 5.00 | -3.42 | -7.58 | -13.43 | 13.43 | 7.73 | 8.17 | 7.60 | 4.51 |
| Diluted Shares Outstanding | 3.34B | 3.34B | 3.34B | 3.33B | 3.33B | 3.33B | 3.33B | 3.32B | 3.32B | 3.32B | 3.3B | 3.38B | 3.27B | 3.26B | 3.25B | 3.23B | 3.23B | 3.19B | 3.2B | 3.19B | 3.17B | 3.17B | 3.17B | 3.17B | 2.54B | 1.58B | 1.59B | 1.58B | 1.6B | 1.58B | 1.58B |
| Basic Shares Outstanding | 3.33B | 3.33B | 3.33B | 3.33B | 3.33B | 3.33B | 3.32B | 3.31B | 3.29B | 3.28B | 3.26B | 3.25B | 3.24B | 3.23B | 3.22B | 3.21B | 3.2B | 3.19B | 3.18B | 3.18B | 3.17B | 3.17B | 3.17B | 3.16B | 2.51B | 1.58B | 1.58B | 1.57B | 1.6B | 1.58B | 1.58B |
| Dividend Payout Ratio | - | 33.58% | 44984.28% | - | 44.46% | 30.36% | 34.3% | 200.18% | - | - | 702.68% | 81.43% | 83.87% | 76.24% | 149.47% | 61.14% | 59.9% | 172.06% | 73.09% | 37.24% | 27.97% | 17% | 1.66% | - | - | - | 19.87% | 33.03% | 29.15% | 23.49% | 27.01% |
Cyclical Carrier CAPEX Exposure
As evidenced by the most recent quarterly data, Ericsson's revenue growth has remained in negative territory, with the company reporting a -0.9% year-over-year decline in 2026Q1, reflecting the ongoing challenges of navigating a post-5G peak environment across its primary global telecommunications markets.
The consistent revenue contraction suggests that the company is struggling to offset the natural maturation of 5G infrastructure build-outs with its newer Enterprise and API-based initiatives. Investors should monitor whether the current trajectory represents a structural floor or if further declines are likely as carrier spending remains constrained.
According to historical income statements, Ericsson has successfully defended its gross margin profile, maintaining a level of 48.1% in 2026Q1, which appears to be supported by a strategic shift toward higher-margin software components and essential intellectual property licensing revenue streams.
This margin stability is notable given the competitive pressures in the hardware-heavy RAN segment. It suggests that the company's proprietary silicon and patent portfolio provide a meaningful buffer against the commoditization risks that often plague infrastructure providers.
Based on reported financial figures, operating income has exhibited significant fluctuations, scaling from a low of 4.4% in 2024Q1 to 17.1% in 2025Q4, indicating that the company's cost structure remains highly sensitive to the timing of large-scale project deployments and lumpy licensing settlements.
The lack of consistent operating leverage suggests that management has yet to fully decouple profitability from the cyclical nature of carrier CAPEX. This volatility warrants further investigation into the sustainability of recent margin improvements and the effectiveness of ongoing cost-discipline measures.
As reported in recent filings, net income has experienced extreme variance, including a significant loss in 2024Q2 followed by a sharp recovery, which suggests that headline EPS figures may be heavily influenced by non-operating items and periodic adjustments rather than core operational performance.
The wide swings in net income, particularly the -18.6% net margin observed in 2024Q2, imply that investors should focus on normalized earnings metrics to gauge true underlying profitability. The absence of stock-based compensation in the provided data also makes it difficult to assess the true alignment of management incentives.
Based on the provided income statement data, the company's aggressive pivot toward the Enterprise segment appears to be yielding inconsistent results, as evidenced by the continued need for asset impairments that have historically weighed on the bottom line and clouded the long-term growth narrative.
Short-sellers may focus on the potential for further write-downs related to the Vonage acquisition, which suggests that the synergies originally promised by management may be harder to realize than anticipated. The market's skepticism regarding this transition appears grounded in the difficulty of successfully integrating high-growth software assets into a legacy hardware-centric business model.
Quick answers to the most common questions about buying ERIC stock.
For fiscal year 2025, Telefonaktiebolaget LM Ericsson (publ) (ERIC) reported total revenue of $222.48B. This represents a 76.8% increase compared to $125.81B in 1996.
Telefonaktiebolaget LM Ericsson (publ) (ERIC) is profitable, generating $26.72B in net income for the fiscal year ending 2025 with a net profit margin of 12.0%.
Telefonaktiebolaget LM Ericsson (publ) (ERIC) reported an operating income of $30.74B, resulting in an operating profit margin of 13.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Telefonaktiebolaget LM Ericsson (publ) (ERIC) generated $107.11B in gross profit for the year, representing a gross profit margin of 48.1%. This demonstrates the company's core pricing power and production efficiency.