Telefonaktiebolaget LM Ericsson
Telefonaktiebolaget LM Ericsson (ERIC) is a global supplier of network infrastructure, software and services for telecom operators, with a market cap of about $32.42B. The company is a major vendor for 4G and 5G radio access networks, core network software, managed services and licensing. Investors should note Ericsson’s mix of equipment sales and growing higher-margin software and services revenue, its broad geographic exposure to Europe, Asia and the Americas, and its reliance on operator capital expenditure cycles. Key opportunities include continued 5G rollouts, cloud-native network transformations and software monetisation; key risks include intense competition (notably from Nokia and regional suppliers), cyclical demand, regulatory and geopolitical pressures, and execution on margin improvement. Financial health, cash flow generation and order backlog are useful evaluation points. This is general educational information, not personal investment advice — suitability depends on individual circumstances and returns are not guaranteed.
Why It's Moving
ERIC Stock Warning: Why Analysts See -22% Downside Risk
- Recent January 23 earnings beat expectations with EPS of $0.27 versus $0.23 estimated, fueling a 7.8% monthly surge and 52-week high at $10.53, yet fiscal year EPS forecasts signal a 7.35% decline.
- Valuation metrics show ERIC trading at 16.6X forward EPS below peer averages, but analysts anticipate downside as revenue growth slows to 1.84% this year despite 5G and cost-efficiency pushes.
- Broader wireless equipment sector outperformance masks risks from restructuring costs and enterprise segment challenges, prompting warnings of potential pullback despite YTD 8.1% gains.
ERIC Stock Warning: Why Analysts See -22% Downside Risk
- Recent January 23 earnings beat expectations with EPS of $0.27 versus $0.23 estimated, fueling a 7.8% monthly surge and 52-week high at $10.53, yet fiscal year EPS forecasts signal a 7.35% decline.
- Valuation metrics show ERIC trading at 16.6X forward EPS below peer averages, but analysts anticipate downside as revenue growth slows to 1.84% this year despite 5G and cost-efficiency pushes.
- Broader wireless equipment sector outperformance masks risks from restructuring costs and enterprise segment challenges, prompting warnings of potential pullback despite YTD 8.1% gains.
When is the next earnings date for Telefonaktiebolaget LM Ericsson (ERIC)?
Ericsson (ERIC) is scheduled to report its next earnings on January 23, 2026, covering the quarter ending December 2025. This date aligns with the company's pattern of mid-to-late January releases for Q4 results, preceding markets or post-market as typical. Investors should monitor official announcements for any adjustments.
Stock Performance Snapshot
Analyst Rating
Analysts suggest holding Ericsson's stock as its target price indicates limited growth potential.
Financial Health
Ericsson is showing solid profits and cash flow, with a strong revenue performance overall.
Dividend
Ericsson's dividend yield of 1.5% is average, indicating moderate returns for income-focused investors. If you invested $1000 you would be paid $15 a year in dividends (based on the last 12 months).
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Explore BasketWhy You’ll Want to Watch This Stock
5G Growth Potential
Ericsson supplies 5G infrastructure to operators worldwide, offering exposure to network upgrades; though demand is cyclical and tied to operator capex.
Global Customer Base
Diverse operator customers across Europe, Asia and the Americas can support revenue resilience, but geopolitical and regulatory shifts may affect contracts.
Software & Services Shift
A strategic move into software, managed services and licensing aims to lift margins, though execution and strong competition remain risks.
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