Telefonaktiebolaget LM Ericsson (publ) (ERIC) Income Statement

30Y historyFree accessUpdated daily

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.

Annual statement

ERIC Income Statement

Telefonaktiebolaget LM Ericsson (publ) (ERIC) annual income statement — 30-year revenue, gross profit & net income history

Annual Quarterly

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	232.83B	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 %	-1.71%	-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	121.39B	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	111.44B	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 %	47.86%	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	78.84B	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	31.52B	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	47.39B	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	-1000K	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	32.6B	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 %	14%	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	39.68B	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 %	17.04%	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 %	3.33%	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)	7.08B	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	29.22B	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	-579.55M	-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	2.52B	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	3.1B	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	-6.57B	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	26.03B	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 %	11.18%	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	6.71B	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 %	25.77%	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	19.29B	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 %	8.29%	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 %	-20.48%	-	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)	19.32B	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	773M	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)	5.88	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 %	-20.41%	-	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	3.28B	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	3.27B	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%

Key Metrics

Growth RegimeDecelerating

ProfitabilityModerate

Balance SheetAdequate

Cash FlowStable

Top Statement Risk

Revenue decline and margin volatility

Revenue Slide Persists Across Quarters

ERIC's revenue has contracted year-over-year for six consecutive quarters, with the latest quarter showing a 1.3% decline to $54.3B, according to the company's income statement data.

The revenue trajectory remains negative, though the pace of decline has moderated from double-digit drops in early 2024 to low-single-digit contractions in 2026. This suggests a stabilizing but not yet recovering demand environment. The sequential uptick from Q1 to Q2 2026 is typical seasonality, but the year-over-year trend still points to structural headwinds in the telecom equipment market.

Gross Margin Expansion Masks Underlying Pressure

Gross margin improved from 42.7% in 2024Q1 to 48.4% in 2026Q2, as reported in the financial statements, indicating successful cost actions and product mix shifts.

The 570 basis point gross margin expansion over the period is notable, but it may reflect one-time benefits or a shift toward software and services. However, the sustainability of this margin level is questionable given the competitive landscape and the need for continued R&D investment. Investors should monitor whether this margin can hold as revenue growth remains elusive.

Operating Leverage Shows Mixed Signals

Operating margin swung from 4.4% in 2024Q1 to 12.3% in 2026Q2, per the income statement, but the path has been volatile, with a peak of 17.1% in 2025Q4.

The improvement in operating margin is driven by gross margin gains and disciplined cost control, as SG&A and R&D expenses have not grown proportionally with revenue. However, the volatility in operating income, including a sharp drop in 2024Q2, suggests that operating leverage is not yet stable. The company appears to be in a cost optimization phase, but the lack of revenue growth limits the scalability of these gains.

Earnings Quality Clouded by One-Time Items

Net income swung from a loss of $11.0B in 2024Q2 to a profit of $4.2B in 2026Q2, but the 2025Q3 net margin of 19.8% appears inflated by non-operating gains.

The reported net income figures exhibit significant volatility, with a massive loss in 2024Q2 likely due to impairment charges, and an unusually high net margin in 2025Q3 that may include one-time tax benefits or other non-recurring items. Excluding these anomalies, the underlying earnings power appears more moderate. The absence of stock-based compensation in the data suggests that reported EPS may be understated, but the quality of earnings warrants scrutiny.

Cost Discipline Drives Margin Recovery

COGS as a percentage of revenue fell from 57.3% in 2024Q1 to 51.6% in 2026Q2, while R&D and SG&A expenses have been kept in check, as per the income statement data.

The reduction in COGS is the primary driver of gross margin expansion, likely reflecting supply chain efficiencies and product mix improvements. R&D spending has remained relatively flat in absolute terms, indicating a focus on efficiency rather than aggressive investment. SG&A has also been controlled, but the company may need to increase investment in future growth areas, which could pressure margins if revenue does not recover.

2024Q2 Marks a Turning Point

The $11.0B net loss in 2024Q2, as reported in the income statement, represents a clear inflection point, after which margins and profitability improved dramatically.

The 2024Q2 loss appears to have been a catalyst for strategic restructuring and cost-cutting measures, leading to a sustained improvement in gross and operating margins from 2024Q3 onward. This inflection suggests that management took decisive actions to reset the cost base, but the long-term impact on growth remains uncertain. The company has not returned to revenue growth, indicating that the turnaround is cost-led rather than demand-led.

What Could Invalidate the Base Case

Despite margin improvements, the persistent revenue decline and reliance on cost cuts may leave ERIC vulnerable to competitive pressures and demand weakness, as evidenced by the data.

The margin expansion is largely cost-driven, not revenue-driven, and the lack of top-line growth could signal market share losses or secular decline. The volatile net income, including a massive loss in 2024Q2, raises questions about earnings quality and the sustainability of profitability. If revenue continues to fall, the operating leverage could reverse, and the company may struggle to maintain its current margin levels without further restructuring.

ERIC — Frequently Asked Questions

Quick answers to the most common questions about buying ERIC stock.

What was Telefonaktiebolaget LM Ericsson (publ)'s (ERIC) revenue in 2025?

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.

Is Telefonaktiebolaget LM Ericsson (publ) (ERIC) profitable?

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%.

What is Telefonaktiebolaget LM Ericsson (publ)'s operating profit margin?

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.

What is Telefonaktiebolaget LM Ericsson (publ)'s gross profit and gross margin?

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.