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10.71 USD
P/E
12.09
EPS
0.79
Yield
3.07%
Safety Score
97
P/B
0.31
ROE
26.08
Beta
0.51
Target Price
9.13 USD
Telefonaktiebolaget LM Ericsson (publ) logo

Telefonaktiebolaget LM Ericsson (publ)

🧾 Earnings Recap – Q1 2026

Ericsson delivered a solid Q1 2026 with 6% organic growth across segments, despite a significant currency headwind that reduced reported sales by 10%. The company remains focused on strategic expansion into enterprise and mission-critical networks, demonstrating resilient profitability and strong cash generation.

  • Organic growth of 6% driven by broad-based gains in 5G rollouts and mobile core uptake, with all segments contributing positively.
  • Reported net sales declined 10% due to SEK 7.8 billion currency effects; adjusted gross margin held steady at 48.1%.
  • EBITA reached SEK 5.6 billion with an 11.3% margin, impacted by currency and share-based compensation; cash flow remained robust at SEK 5.9 billion.
  • Strategic investments in enterprise, mission-critical applications, and 5G-based sensing position Ericsson for diversified growth outside traditional CSP markets.
  • Sequential share buyback program of SEK 15 billion commenced, reinforcing shareholder value.
📅
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Key Metrics
Earnings dateJan. 22, 2027
P/E12.09
EPS0.79
Book Value30.79
Price to Book0.31
Debt/Equity37.68
% Insiders0.003%
Growth
Revenue Growth-0.06%
Earnings Growth-0.11%
Estimates
Forward P/E15.61
Forward EPS0.61
Target Mean Price9.13
Dividend
Dividend Yield3.07%
Annual dividends2.92 USD
Ex-Div. DateSept. 29, 2026
Payout40.16%
5y avg Yield3.11%

DCF valuation

Model fair value for Telefonaktiebolaget LM Ericsson (publ) (ERIC)
Result
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Assumptions
Growth– Capex– Tax– Terminal g– Cost of equity– Cost of debt–
Analyst price targets
6 analysts · consensus Underperform · mean target 9.13 USD (low 8.00, high 10.40) · as of 10 Oct 2026
Low 8.00
Mean 9.13
High 10.40
Price 10.71
Published broker research as supplied by our market data feed, named by firm and dated; it does not identify individual analysts. Targets carry their last refresh date; rating changes can be a few days behind.

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 10.71 USD. Market analysts have a consensus price target of 9.13 USD. This suggests the asset is currently trading above analyst expectations.

In terms of valuation, the stock trades at a P/E ratio of 12.09. 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 Jan. 22, 2027. The market consensus estimate for Forward EPS is 0.61.

For income investors, Telefonaktiebolaget LM Ericsson (publ) pays a dividend yield of 3.07%. With a payout ratio of 40%, the dividend appears sustainable.

Investor FAQ

Does Telefonaktiebolaget LM Ericsson (publ) pay a dividend?

Yes, it pays an annual dividend of 2.92 USD (3.07% 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 Jan. 22, 2027. The company currently has a trailing EPS of 0.79.

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 has a strategic collaboration with T-Mobile US, Inc for the development of AI-native Scheduler with Link Adaptation software. 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
Trades
Dividend Yield
3.07%
5y avg 3.11%
Annual Dividends
2.92USD
Next Ex. Div Date
Sept. 29, 2026
Payout Ratio
40.16%
Dividend History paid per year (USD)
Historical Dividends
Year Total Dividends
▸2027
0.19 USD
April 16, 2027 (estimated) 0.1881
▸2026
0.32 USD
Oct. 13, 2026 0.1580
April 17, 2026 0.1615
▸2025
0.29 USD
Oct. 10, 2025 0.1515
April 9, 2025 0.1423
▸2024
0.26 USD
Oct. 16, 2024 0.1302
April 17, 2024 0.1275
▸2023
0.25 USD
Oct. 12, 2023 0.1222
April 14, 2023 0.1300
▸2022
0.25 USD
Oct. 14, 2022 0.1133
April 13, 2022 0.1332
▸2021
0.23 USD
Oct. 19, 2021 0.1139
April 16, 2021 0.1170
▸2020
0.16 USD
Oct. 15, 2020 0.0844
April 22, 2020 0.0747
▸2019
0.11 USD
April 12, 2019 0.1079
▸2018
0.12 USD
April 16, 2018 0.1193
▸2017
0.11 USD
April 17, 2017 0.1112
▸2016
0.46 USD
April 27, 2016 0.4569
▸2015
0.39 USD
April 28, 2015 0.3912
▸2014
0.46 USD
April 30, 2014 0.4590
▸2013
0.42 USD
April 25, 2013 0.4202
▸2012
0.35 USD
May 24, 2012 0.3471
▸2011
0.37 USD
May 3, 2011 0.3687
▸2010
0.28 USD
April 30, 2010 0.2776
▸2009
0.23 USD
May 14, 2009 0.2292
▸2008
1.25 USD
April 30, 2008 0.8433
April 30, 2008 0.4085
▸2007
1.09 USD
May 1, 2007 0.7358
May 1, 2007 0.3575
▸2006
0.89 USD
May 5, 2006 0.5951
May 5, 2006 0.2900
▸2005
0.35 USD
April 28, 2005 0.3534
▸2002
0.05 USD
Aug. 9, 2002 0.0500
▸2001
0.30 USD
April 16, 2001 0.0490
April 16, 2001 0.2500
▸2000
0.29 USD
April 17, 2000 0.2309
March 24, 2000 0.0625
▸1999
0.31 USD
April 13, 1999 0.2405
April 13, 1999 0.0650
▸1998
0.44 USD
April 16, 1998 0.3760
April 16, 1998 0.0594
▸1997
0.32 USD
May 16, 1997 0.2754
May 16, 1997 0.0438
▸1996
0.25 USD
May 30, 1996 0.2171
May 30, 1996 0.0344
▸1995
0.65 USD
June 5, 1995 0.6290
June 5, 1995 0.0250
▸1994
0.50 USD
June 7, 1994 0.4849
June 7, 1994 0.0188
▸1993
0.43 USD
June 15, 1993 0.4063
June 15, 1993 0.0198
▸1992
0.53 USD
June 12, 1992 0.5122
June 12, 1992 0.0195
▸1991
0.58 USD
June 14, 1991 0.5751
▸1990
1.97 USD
June 11, 1990 1.9735
▸1989
1.33 USD
June 20, 1989 1.3258
▸1988
1.27 USD
June 22, 1988 1.2676
▸1987
1.20 USD
July 1, 1987 1.1982
▸1986
1.25 USD
June 18, 1986 1.2494
▸1985
0.85 USD
May 21, 1985 0.8477
Upcoming Dividends
Name Payment Date Status Amount
Telefonaktiebolaget LM Ericsson (publ) Oct 13, 2026 0.158 USD
Telefonaktiebolaget LM Ericsson (publ) Apr 17, 2026 0.16147 USD
Stock Splits
Split Date Split Ratio to 1
Oct. 7, 1982 1.5
Sept. 20, 1990 5:1
June 16, 1995 4:1
May 22, 1998 2:1
May 8, 2000 4:1
Oct. 23, 2002 1:10
June 10, 2008 2:1
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