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11.62 USD
P/E
12.91
EPS
0.90
Yield
2.71%
Safety Score
92
P/B
0.38
ROE
28.25
Beta
0.50
Target Price
10.65 USD
Telefonaktiebolaget LM Ericsson (publ) logo

Telefonaktiebolaget LM Ericsson (publ)

🧾 Earnings Recap – Q3 2025

Ericsson reported a robust Q3 2025, showcasing a three-year high EBITA margin of 14.7% despite a 2% decline in organic sales influenced by foreign exchange headwinds and regional variations in demand.

  • Gross margin stood at 48.1%, reflecting operational efficiency improvements and a focus on cost management.
  • The company anticipates further shareholder returns through potential increased dividends or share buybacks, bolstered by strong cash flow and the sale of iconectiv.
  • Ericsson secured key contracts in Japan and the UK, reinforcing its strategic foothold in high-growth regions and strengthening its role in programmable networks.
  • New monetization opportunities, including fixed wireless access and network API capabilities through the Aduna joint venture, are expected to drive future revenue growth.
📅
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Key Metrics
Earnings dateApril 21, 2026
P/E12.91
EPS0.90
Book Value30.79
Price to Book0.38
Debt/Equity36.52
% Insiders0.003%
Growth
Revenue Growth-0.05%
Earnings Growth0.79%
Estimates
Forward P/E16.90
Forward EPS0.69
Target Mean Price10.65
Dividend
Dividend Yield2.71%
Annual dividends2.92 USD
Ex-Div. DateApril 2, 2026
Payout34.02%
5y avg Yield3.11%

DCF Valuation

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DCF Result

Fair Value (DCF)
Current Price
Upside
WACC
Terminal PV
Σ PV of FCFs
Note: historical bars show reported FCF (for context); forward bars show PV of projected FCF; if no per-year data, totals are shown.

Telefonaktiebolaget LM Ericsson (publ) Logo Telefonaktiebolaget LM Ericsson (publ) Analysis (ERIC)

Sweden Information Technology Official Website Stock

Is Telefonaktiebolaget LM Ericsson (publ) a good investment? Telefonaktiebolaget LM Ericsson (publ) (ERIC) is currently trading at 11.62 USD. Market analysts have a consensus price target of 10.65 USD. This suggests the asset is currently trading above analyst expectations.

In terms of valuation, the stock trades at a P/E ratio of 12.91. This relatively low multiple may signal that Telefonaktiebolaget LM Ericsson (publ) is undervalued compared to historical market norms.

Earnings Schedule: Telefonaktiebolaget LM Ericsson (publ) is expected to release its next earnings report on April 21, 2026. The market consensus estimate for Forward EPS is 0.69.

For income investors, Telefonaktiebolaget LM Ericsson (publ) pays a dividend yield of 2.71%. With a payout ratio of 34%, the dividend appears sustainable.

Investor FAQ

Does Telefonaktiebolaget LM Ericsson (publ) pay a dividend?

Yes, it pays an annual dividend of 2.92 USD (2.71% yield).

What asset class is Telefonaktiebolaget LM Ericsson (publ)?

Telefonaktiebolaget LM Ericsson (publ) is classified as a Stock. You can compare it against its peer in the "Related Symbols" list.

When is the next earnings date?

The next earnings date is projected to be April 21, 2026. The company currently has a trailing EPS of 0.90.

Company Profile

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to communications service providers, enterprises, and the public sector in the Americas, Europe, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and India. It operates through Networks; Cloud Software and Services; Enterprise; and Other segments. The Networks segment offers hardware, software, and service offerings for intelligent, reliable and flexible 5G networks. This segment also provides energy-efficient RAN with an AI-native software architecture deployable on Ericsson silicon and third-party CPUs/GPUs; transport networks; and active/ passive antennas, as well as deployment and lifecycle management services. The Cloud Software and Services segment provides core networks, network management, business and operations support systems, and network operations delivered as managed services, including secure data and voice connectivity, service monetization and orchestration tools, and network management services. The Enterprise segment offers intelligent networking and advanced communications software solutions comprising global communications platform, wireless wide area networks (WWAN), and private 5G networks. The Other segment includes RedBee Media that prepares and distributes live and on-demand video services for broadcasters, sports leagues, and communications service providers. The company was formerly known as Allmanna Telefon AB LM Ericsson and changed its name to Telefonaktiebolaget LM Ericsson (publ) in January 1926. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.

Exchange Ticker
NMS (United States) ERIC
Dividend Yield

2.71% (5y avg: 3.11%)

Annual Dividends

2.92 USD

Next ex. div date

April 2, 2026

Payout Ratio

34.02%

Historical Dividends
Year Total Dividends
2026 0.22 USD
2025 0.24 USD
2024 0.26 USD
2023 0.25 USD
2022 0.25 USD
2021 0.23 USD
2020 0.16 USD
2019 0.11 USD
2018 0.12 USD
2017 0.11 USD
2016 0.46 USD
2015 0.39 USD
2014 0.46 USD
2013 0.42 USD
2012 0.35 USD
2011 0.37 USD
2010 0.28 USD
2009 0.23 USD
2008 0.84 USD
2007 0.74 USD
2006 0.60 USD
2005 0.35 USD
2002 0.05 USD
2001 0.05 USD
2000 0.29 USD
1999 0.24 USD
1998 0.38 USD
1997 0.28 USD
1996 0.22 USD
1995 0.63 USD
1994 0.48 USD
1993 0.41 USD
1992 0.51 USD
1991 0.58 USD
1990 1.97 USD
1989 1.33 USD
1988 1.27 USD
1987 1.20 USD
1986 1.25 USD
1985 0.85 USD

Yearly aggregated dividends

Dividends

Telefonaktiebolaget LM Ericsson (publ)
Apr 03, 2026 Paid
Dividend
0.11106 USD
Telefonaktiebolaget LM Ericsson (publ)
Oct 10, 2025 Paid
Dividend
0.10074 USD

Historical Split Corporate Actions

Split Date Split Ratio to 1
May 8, 2000 4.000000
Oct. 23, 2002 0.100000
June 10, 2008 2.000000
May 22, 1998 2.000000
June 16, 1995 4.000000
Sept. 20, 1990 5.000000
Oct. 7, 1982 1.500000
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