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13.43 USD
P/E
15.64
EPS
0.81
Yield
2.37%
Safety Score
97
P/B
0.41
ROE
27.01
Beta
0.49
Target Price
10.45 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 dateJuly 14, 2026
P/E15.64
EPS0.81
Book Value30.79
Price to Book0.41
Debt/Equity38.10
% Insiders0.003%
Growth
Revenue Growth-0.10%
Earnings Growth-0.79%
Estimates
Forward P/E17.76
Forward EPS0.71
Target Mean Price10.45
Dividend
Dividend Yield2.37%
Annual dividends2.92 USD
Ex-Div. DateApril 2, 2026
Payout38.42%
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 13.43 USD. Market analysts have a consensus price target of 10.45 USD. This suggests the asset is currently trading above analyst expectations.

In terms of valuation, the stock trades at a P/E ratio of 15.64. This valuation is generally in line with the broader market.

Earnings Schedule: Telefonaktiebolaget LM Ericsson (publ) is expected to release its next earnings report on July 14, 2026. The market consensus estimate for Forward EPS is 0.71.

For income investors, Telefonaktiebolaget LM Ericsson (publ) pays a dividend yield of 2.37%. With a payout ratio of 38%, the dividend appears sustainable.

Investor FAQ

Does Telefonaktiebolaget LM Ericsson (publ) pay a dividend?

Yes, it pays an annual dividend of 2.92 USD (2.37% 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 July 14, 2026. The company currently has a trailing EPS of 0.81.

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

2.37% (5y avg: 3.11%)

Annual Dividends

2.92 USD

Next ex. div date

April 2, 2026

Payout Ratio

38.42%

Historical Dividends
Year Total Dividends
2027 0.19 USD
2026 0.34 USD
2025 0.29 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 17, 2026 Paid
Dividend
0.166 USD
Telefonaktiebolaget LM Ericsson (publ)
Oct 10, 2025 Paid
Dividend
0.15149 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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