ERIC

Ericsson
D

ERIC

Arincen68/100B

If you had invested in Ericsson ago, it would be worth $2,770 today, against $4,096 in SPY and $6,368 in QQQ.

ArincenArincen ScoreBeta

68/100

Six parts of the company, five checks each, from its own reported figures. A part scores the checks it passes out of 10; the score is their average out of 100.

Profitability8

Plus shows the checks behind each part of the score, what passed, what failed and the figure it read, for every stock.

Cash10

Plus shows the checks behind each part of the score, what passed, what failed and the figure it read, for every stock.

Valuation6.7

Plus shows the checks behind each part of the score, what passed, what failed and the figure it read, for every stock.

Growth2

Plus shows the checks behind each part of the score, what passed, what failed and the figure it read, for every stock.

Financial strength6

Plus shows the checks behind each part of the score, what passed, what failed and the figure it read, for every stock.

Shareholders8

Plus shows the checks behind each part of the score, what passed, what failed and the figure it read, for every stock.

Figures to FY2025; the price as of today.

Ericsson key facts

Style
Value stock · 8.9/10Growth 1.0 · Value 8.9 · Dividend 6.2
Day range
10.545 – 10.640
52-week range
9.040 – 13.770
Market capitalization
34.55B USD
P/E
18.31
EPS
0.58
Div Yield
2.83%
EPS growth forecast (FY2026)
-30.5%
Volume
93,349
Beta
0.51
ESG score
66.3/100Environment 80 · Social 61 · Governance 58
Sector
Technology
Industry
Communication Equipment
CEO
Per Narvinger
Employees
89K
IPO date
24 Aug 1981

Ericsson earnings

Next earnings · Q4 FY2026
EPS estimate
0.23 USD
Revenue estimate
7.07B USD
Last quarter · Q3 FY2026
EPS0.18Beat +28.6%Revenue5.97BBeat +6.8%

Revenue

ReportedEstimate

EPS

ReportedEstimate
PeriodReport dateEPS estimateReported EPSSurpriseEPS growthRevenue estimateReported revenueSurpriseRevenue growth
Q4 FY20260.23——-14.81%7.07B——-8.12%
Q3 FY20260.140.18+28.57%-48.38%5.59B5.97B+6.80%+1.40%
Q2 FY20260.130.130.00%-7.14%5.66B5.47B-3.24%-5.44%
Q1 FY20260.110.03-73.07%-75.32%5.48B5.41B-1.30%-3.49%
Q4 FY20250.230.27+17.39%+58.82%7.19B7.69B+7.07%+15.07%
Q3 FY20250.130.35+168.23%+217.00%5.93B5.89B-0.78%-1.17%
Q2 FY20250.120.14+16.67%—6.15B5.79B-5.90%+1.74%

Analysts' estimates for FY2026 over the last 7 days:EPS Revenue How the estimates moved

Ericsson analyst forecast

12-month price target
9.00 USD
-14.97%

Analysts' 1-year price targets range from 9.00 to 9.00, with an average of 9.00.

Past year
1-year forecast
Strong sellStrong buy
Hold
2 ratings
Buy
0
Hold
1
Sell
1

12-month price target

Highest target9.00
Average target9.00
Lowest target9.00
Current price10.59

Ericsson valuation

Price to earnings ratio (TTM)
18.31
Forward P/E (FY2026)
17.34
Price to sales (TTM)
1.50
Price to book
3.14
EV / EBITDA (TTM)
9.06

Capital structure

Market capitalization
34.55B USD
+
Total debt
4.52B USD
−
Cash and short-term investments
5.86B USD
=
Enterprise value
33.21B USD

Valuation over time

P/EForward P/EForward P/E · EstimateEstimate
Fiscal yearP/EForward P/EP/SP/BEV/EBITDA
FY2028 (est.)14.50————
FY2027 (est.)15.8314.50———
FY2026 (est.)17.3415.83———
Now (TTM)18.3116.021.503.149.06
FY202511.1111.301.332.716.52
FY202414,860.7611.301.153.1517.42
FY2023-8.438.110.852.14-24.40
FY202210.707,553.860.741.535.82
FY202113.687,553.861.343.017.78

Ericsson against its own history

Each figure in the latest fiscal year against the same figure from FY2021 to FY2025: the range, its median (the line) and the latest (the dot, green on the good side of the median). The P/E is today's against its daily readings of five years.

Its peers: Ciena, Ubiquiti, Lumentum Holdings, Zebra Technologies, Motorola Solutions, and Viasat, the US Communication Equipment companies closest to it in size, each in its own latest fiscal year: their median (the line) and its rank among them, first being the best.

  • Gross marginHighest in 5 years48.1%
    39.6%48.1%
    Against its peers: 2 of 7Peers' median 44.0%
  • Operating marginAbove its median13.8%
    3.6%14.0%
    Against its peers: 5 of 7Peers' median 16.1%
  • Net marginHighest in 5 years12.0%
    -10.0%12.0%
    Against its peers: 3 of 7Peers' median 5.2%
  • Return on equityHighest in 5 years24.4%
    -25.4%24.4%
    Against its peers: 3 of 7Peers' median 8.1%
  • Free cash flow marginAt its median12.8%
    1.5%17.7%
    Against its peers: 6 of 7Peers' median 14.7%
  • Revenue growthLowest in 5 years-14.2%
    -14.2%18.1%
    Against its peers: 7 of 7Peers' median 13.6%
  • EPS growthHighest in 5 years133,233.3%
    -232.8%133,233.3%
    Against its peers: 1 of 6Peers' median 34.8%
  • Debt to EBITDALowest in 5 years0.88×
    0.88×2.66×
    Against its peers: 2 of 6Peers' median 3.30×
  • Current ratioAbove its median1.29
    1.171.38
    Against its peers: 5 of 7Peers' median 2.04

Peers: US companies of the same industry (of its sector when the industry has too few) from a tenth to ten times its market value, the six closest in size. Updated weekly.

Ericsson growth and profitability

Revenue (TTM)
231.20B SEK
Net income (TTM)
19.17B SEK
Gross margin
47.27%
Operating margin
13.75%
Net margin
8.29%

Revenue / Net income

Revenue Net income Net margin
PeriodRevenueGrowthNet incomeGrowthGross marginOperating marginNet marginEBITDAGrowth
FY2025222.48B-14.22%26.72B+127,591.67%48.14%13.82%12.01%45.82B+167.14%
FY2024259.37B+3.83%20.93M—44.95%3.61%0.01%17.15B—
FY2023249.80B-8.92%-25.08B-232.64%39.64%6.81%-10.04%-9.44B-126.64%
FY2022274.27B+12.16%18.91B-20.83%41.79%11.29%6.90%35.45B-12.22%
FY2021244.54B+18.15%23.89B+53.42%43.49%14.04%9.77%40.38B+23.22%

Ericsson revenue breakdown

By product

FY2025
Services: 39.3%Hardware: 37.4%Software: 23.3%39.3%Services37.4%Hardware23.3%Software
SegmentRevenueShare of revenueChange on the year
Services92.95B39.3%-4.9%
Hardware88.61B37.4%-5.2%
Software55.12B23.3%-2.7%

By region

FY2025
North America: 50.3%Other Regions: 22.7%South East Asia Oceania And India: 17.4%North East Asia: 9.6%50.3%North America22.7%Other Regions17.4%South East Asia Oceania And India9.6%North East Asia
RegionRevenueShare of revenueChange on the year
North America83.43B50.3%+14.5%
Other Regions37.68B22.7%-5.0%
South East Asia Oceania And India28.81B17.4%-11.1%
North East Asia16.01B9.6%-14.7%

How Ericsson makes its money

Revenue222.48B 100.0%
Cost of revenue115.37B 51.9%
Gross profit107.11B 48.1%
Research and development45.38B 20.4%
Selling and administration30.99B 13.9%
Operating income30.74B 13.8%
Tax9.01B 4.1%
Net income26.72B 12.0%

FY2025, in SEK. Each band is as wide as its money; the percentage is its share of revenue.

Ericsson dividends

Annual dividend
0.30 USD
Dividend yield (indicated)
2.83%
Payout ratio
53.84%
Years of dividend growth
6
Frequency
Semi-annual
Last payment
0.15 USD
Last ex-dividend date
29 Sept 2026
Last payment date
13 Oct 2026

Dividends per share

Year2025202420232022202120202019201820172016
Dividends per share0.290.260.250.250.230.160.110.120.110.46

Ericsson financial health

Cash and short-term investments
58.78B SEK
Total debt
45.33B SEK
Net cash
13.45B SEK
Free cash flow (TTM)
28.51B SEK
Current ratio
1.16
Debt to equity
0.41
Piotroski score
6 / 9
Altman Z-score
2.22

Cash, debt and free cash flow

Cash and short-term investments Total debt Free cash flow
Fiscal yearCash and short-term investmentsTotal debtFree cash flow
FY202556.64B40.26B28.50B
FY202456.50B45.59B45.96B
FY202344.74B54.28B3.68B
FY202246.92B41.43B26.65B
FY202166.85B41.05B37.26B

Ericsson ownership

Institutions
9.57%
Institutional holders
410 (+17)
Free float
86.70%

Who owns the shares

Institutions 9.6% Others 90.4%
As of 30 Jun 2026

Shares free to trade

Free float 2.83B shares ·86.7% Closely held 434.11M shares ·13.3%

Closely held shares belong to insiders, founders and owners of more than 5%, and seldom change hands. The free float is the rest: the shares anyone can buy and sell.

Shares outstanding

Basic shares Diluted shares Change in diluted shares
Fiscal yearBasic sharesDiluted sharesChange in diluted shares
FY20253.33B3.34B+0.09%
FY20243.33B3.34B+0.27%
FY20233.33B3.33B-0.12%
FY20223.33B3.33B+0.06%
FY20213.33B3.33B+0.18%

Source: Financial Modeling Prep

Related Instruments

Title: Ericsson

Sector: Technology
Industry: Communication Equipment
Ericsson is a networking equipment and software provider, primarily selling mobile networking equipment and services to wireless service providers. Ericsson operates in three segments: networks, cloud software and services, and enterprise.While large wireless carriers are its largest customers, Ericsson has expanded its offerings for large enterprises. These products and services include private 5G networking, contact centers as a service, and application performance interfaces. Ericsson aims to combine its 5G network expertise with cloud-native, as-a-service platforms offering a more comprehensive hardware and software package. Ericsson also monetizes its research and development investments by licensing patents to handset manufacturers.

Common questions about Ericsson stock