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Earnings transcript
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ERIC
Telefonaktiebolaget LM Ericsson (publ)
$11.86
-0.66
(-5.27%)
| Exchange: | NASDAQ |
| Market Cap: | 39.387B |
| Shares Outstanding: | 1.39B |
Delayed data
About The Company
| Sector: | Technology | |||||
| Industry: | Communication Equipment | |||||
| CEO: | E. Borje Ekholm | |||||
| Full Time Employees: | 92866 | |||||
| Address: |
| |||||
| Website: | https://www.ericsson.com |
Telefonaktiebolaget LM Ericsson (publ), along with its various subsidiaries, operates as a global supplier of communication infrastructure, software, and service solutions, primarily serving the telecommunications industry and other diverse sectors. The company’s business is organized into four distinct segments: Networks, Digital Services, Managed Services, and Emerging Business and Other. The Networks division focuses on delivering cutting-edge radio access network (RAN) solutions for a wide array of network spectrums, encompassing robust integrated hardware and software, complete antenna and transport systems, and a full spectrum of services for network setup and ongoing maintenance. Digital Services provides advanced software-driven solutions for critical functions like business support systems (BSS), operational support systems (OSS), communication platforms, core network architecture, and cloud infrastructure. The Managed Services segment offers telecom operators an extensive range of provisions, including comprehensive network and IT management, network design and optimization, and application development and maintenance. Finally, the Emerging Business and Other segment encompasses innovative ventures such as Internet of Things (IoT) technologies, iconectiv, Cradlepoint (known for its wireless edge WAN 4G and 5G enterprise solutions), Red Bee Media, MediaKind, and other developing enterprises. Established in 1876 and based in Stockholm, Sweden, Ericsson maintains a substantial worldwide footprint, with operations spanning North America, Europe and Latin America, the Middle East and Africa, Southeast Asia, Oceania, India, Northeast Asia, and numerous other international markets.
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Revenue Segmentation
EPS
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Earnings Call
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Key takeaways
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Login — it's freeIncome Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 249,797,283 | 259,365,089 | 222,477,766 |
| Gross Profit | 99,030,706 | 116,573,035 | 107,107,157 |
| EBITDA | -9,443,601 | 17,152,541 | 45,820,751 |
| Operating Income | 17,012,899 | 9,355,266 | 30,744,252 |
| Net Income | -25,084,921 | 20,927 | 26,722,035 |
(* All numbers are in thousands)
Balance Sheet
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Total Assets | 297,036,000 | 292,374,000 | 279,227,846 |
| Total Liabilities | 199,628,000 | 199,391,000 | 168,961,932 |
| Total Stockholders Equity | 98,673,000 | 94,284,000 | 109,536,901 |
| Total Debt | 54,328,000 | 45,536,000 | 46,036,799 |
| Cash and Cash Equivalents | 35,190,000 | 43,885,000 | 43,926,762 |
(* All numbers are in thousands)
Cash Flow Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating Cash Flow | 7,177,000 | 46,261,000 | 30,976,429 |
| Capital Expenditure | -3,297,000 | -3,640,000 | -2,472,174 |
| Free Cash Flow | 3,880,000 | 42,621,000 | 28,504,256 |
| Net Income | -26,446,000 | 374,000 | 26,722,035 |
| Net Change in Cash | -3,159,000 | 8,695,000 | 7,311,240 |
(* All numbers are in thousands)
Analyst Estimates
| Fiscal Year | 2030 | Full Access | Full Access | Full Access | Full Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 219,233,921.232 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (High) | 238,604,872.062 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (Avg) | 226,875,361.297 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Low) | 23,180,768.608 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (High) | 25,228,962.274 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Avg) | 23,988,738.711 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Low) | 16,572,944.584 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (High) | 18,496,700.045 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Avg) | 17,331,812.525 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Low) | 32,246,775.110 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (High) | 35,096,018.018 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Avg) | 33,370,742.596 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Avg) | 5.190 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (High) | 5.530 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Low) | 4.960 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated Revenue) | 5 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated EPS) | 1 | Full Access | Full Access | Full Access | Full Access |
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Current Key Metrics
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Login — it's freeForward P/E Ratios
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Login — it's freeSWOT Analysis
Strengths (preview)
- Strong Financial Performance in Q3 2025: Ericsson reported a robust EBITA margin of 14.7% in Q3 2025, as highlighted in the earnings call transcript, reflecting operational efficiency and profitability improvements compared to prior periods.
- Positive Revenue Trends: Revenue data from income statements and product segments indicate consistent growth in key areas, supported by strategic focus on high-demand technologies, aligning with industry trends in telecommunications as seen in sector performance metrics.
- Solid Cash Flow Generation: Free cash flow metrics from cash flow statements show healthy operating cash flow and free cash flow yield (TTM), providing financial flexibility for reinvestment and debt management.
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Intrinsic Value Calculator
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Common questions about ERIC valuation
Is Telefonaktiebolaget LM Ericsson (publ) (ERIC) overvalued or undervalued right now?
MARKETSnap estimates intrinsic value for Telefonaktiebolaget LM Ericsson (publ) (ERIC) using its proprietary valuation methodology, which incorporates discounted cash flow (DCF) analysis together with long-term earnings and fundamentals assumptions. By comparing intrinsic value to the current market price, long-term investors can see whether the stock screens as potentially overvalued, fairly valued, or undervalued today.
Is ERIC a buy, hold, or sell for long-term investors?
MARKETSnap does not give one-word “buy” or “sell” calls. Instead, it shows whether ERIC trades at a premium or discount to its estimated intrinsic value, how sensitive that value is to growth and margin assumptions, and how the stock fits into a diversified, long-term portfolio so investors can make their own buy, hold, or sell decision.
What is ERIC’s P/E ratio?
You can see ERIC’s trailing P/E (TTM) and forward P/E estimates in the Current Key Metrics and Forward P/E Ratios sections above. The P/E ratio compares the current share price to earnings per share and helps investors gauge valuation relative to earnings.
How is intrinsic value calculated for ERIC?
MARKETSnap uses its own valuation framework—not a generic spreadsheet DCF alone. Future cash flows and earnings are projected, discounted, and combined with MARKETSnap’s methodology so intrinsic value reflects fundamentals and long-term assumptions. You can run your own inputs and see the result using the Intrinsic Value Calculator above.
Is ERIC a good long-term investment?
Whether ERIC fits a long-term portfolio depends on your assumptions about growth, margins, and risk. MARKETSnap provides the metrics, intrinsic value calculator, and SWOT context so you can form your own view rather than rely on a single buy/sell rating.
ERIC
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Daily snapshot
-5.27
Trading Metrics:
| Open: | 12.06 | Previous Close: | 12.52 | |
| Day Low: | 11.59 | Day High: | 12.08 | |
| Year Low: | 7.16 | Year High: | 13.77 | |
| Price Avg 50: | 12.15 | Price Avg 200: | 10.32 | |
| Volume: | 17.417M | Average Volume: | 10.476M |
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Login — it's freeERIC full analysis
YouTube Video Transcript: Comprehensive Stock Analysis of Ericsson (ERIC) Hey everyone, welcome back to the channel! Today, we’re diving deep into a comprehensive stock analysis of Ericsson, ticker symbol ERIC, a global leader in telecommunications equipment and services. If you’re looking to understand whether this stock deserves a spot in your portfolio, stick around because we’re going to cover everything from financials to recent performance, valuation, and more. Don’t forget to like, subscribe, and hit that notification bell so you…
