Telefonaktiebolaget LM Ericsson (publ) · ERIC · FY2025 Q1 · Calendar Q2 2025

Ericsson: Americas Strength, Better Margins, Tariff Risk

The supplied analysis supports a cautiously constructive view of Ericsson's operating trajectory: Americas momentum, margin expansion and progress in programmable networks provide evidence of improving execution, but tariff exposure and the durability of demand remain unresolved.

Reported Before market openNASDAQTechnology $35.21B market cap
80quality score

Earnings scorecard

Reported versus consensus
Reported EPS — Consensus $0.09
EPS surprise — Reported versus consensus
Reported revenue — Consensus $55.65B
Revenue surprise — Reported versus consensus

Market reaction

prior-close to event-session close
Stock move +8.3% Event window
SPY move -0.3% Same window
Abnormal move +8.6% Stock minus SPY
Volume 1.7× Versus trailing sessions
Subsequent drift +3.0% Up to 20 sessions
ERICSPY benchmark

Ask FN2 about ERIC FY2025 Q1

Transcript, numbers and history already loaded

Free account. Your question opens in FN2 with this report's transcript and numbers attached.

Transcript intelligence

What changed

Compared with the prior quarter, the analysis shifted from a return to company-wide sales growth toward stable organic sales in Q1, with continued margin improvement. The company added evidence of traction in programmable networks, network APIs and Cloud Software & Services, while tariff exposure became a more explicit near-term concern.

Guidance delta

Management maintained guidance; Q2 was described as seasonally normal for sales, with network margins expected at 48%-50%.

Key takeaways

  • Organic sales were stable, with a 20% year-over-year increase in the Americas.
  • Management highlighted margin expansion and continued progress in programmable networks and APIs.
  • Cloud Software & Services recorded its first positive quarter, according to the supplied analysis.
  • Tariffs, macro volatility, Chinese competition and regional weakness remain key watchpoints.

Management priorities

  • Expand programmable networks and the radio portfolio
  • Scale network APIs through the Aduna joint venture
  • Pursue private 5G and 5G Stand-Alone enterprise deployments
  • Continue cost-control and operational-efficiency initiatives

Follow ERIC with an agent that reads every filing, transcript, and price print. Free to start.

Try FN2 free

Earnings History

Estimate Beat Miss Match
ERIC EPS earnings history estimate and actual scatter chart 10 reported fiscal quarters and 4 future estimate-only quarters. Q2 '24 estimate $0.05 Q2 '24 actual $0.01, miss Q3 '24 estimate $0.09 Q3 '24 actual $0.11, beat Q2 '25 estimate $0.12 Q2 '25 actual $0.14, beat Q3 '25 estimate $0.13 Q3 '25 actual $0.16, beat Q4 '25 estimate $0.23 Q4 '25 actual $0.27, beat Q1 '26 estimate $0.11 Q1 '26 actual $0.03, miss Q2 '26 estimate $0.13 Q2 '26 actual $0.13, match Q3 '26 estimate $0.14 Q3 '26 actual $0.18, beat Q4 '26 estimate $2.66 Q1 '27 estimate $1.10 Q2 '27 estimate $1.23 Q3 '27 estimate $1.70
Show 2 more >

Analyst Consensus ?

ConsensusHold40 ratings
Bullish1537.5%
Neutral2255.0%
Bearish37.5%

Analyst 52W Price Targets

$10.66Previous close
$6.1Low
$7.63Average
$9High

Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Oct 26, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
JP Morgan Neutral NeutralMaintainOct 8, 2026
Morgan Stanley Underweight Equal WeightDowngradeSep 22, 2026
TD Cowen Outperform OutperformMaintainApr 19, 2023
Raymond James Market Perform OutperformDowngradeFeb 7, 2023
Cowen & Co. Outperform OutperformMaintainJan 23, 2023
Exane BNP Paribas Neutral OutperformDowngradeJan 10, 2023
Barclays Overweight OverweightMaintainOct 13, 2022
Redburn Partners Neutral NeutralMaintainSep 26, 2022
Jefferies Hold HoldMaintainMar 17, 2022
Citigroup Neutral BuyDowngradeFeb 28, 2022
Arete Research Neutral SellUpgradeJul 21, 2021
Argus Research Hold BuyDowngradeJul 19, 2021
B of A Securities Buy BuyMaintainJul 20, 2020
DZ Bank Buy HoldUpgradeSep 20, 2019
Goldman Sachs Buy BuyMaintainJul 29, 2019
Credit Suisse Outperform NeutralUpgradeMay 24, 2019
Bank of America Buy NeutralUpgradeMay 22, 2019
Canaccord Genuity Hold HoldMaintainSep 28, 2018
Berenberg Hold HoldMaintainApr 11, 2018
Danske Bank Buy BuyMaintainDec 15, 2016
UBS Neutral BuyDowngradeJul 21, 2016
Charter Equity Underperform Market PerformDowngradeJul 20, 2016
Swedbank Neutral BuyDowngradeMay 3, 2016
Bernstein Market Perform OutperformDowngradeApr 22, 2016
CLSA Sell SellMaintainApr 12, 2016
Wells Fargo Perform Market PerformMaintainMar 11, 2016
Deutsche Bank Hold BuyDowngradeJan 15, 2016
RBC Capital Sector Perform OutperformDowngradeDec 21, 2015
SEB Enskilda Buy BuyMaintainJul 21, 2014
Nomura Neutral BuyDowngradeApr 24, 2014
Societe Generale Buy SellUpgradeDec 11, 2013
Mizuho Buy BuyMaintainDec 10, 2013
Santander Buy HoldUpgradeNov 15, 2013
ABG Sundal Collier Hold BuyDowngradeOct 15, 2013
Evercore Partners Overweight OverweightMaintainSep 26, 2013
Evercore ISI Group Overweight OverweightMaintainSep 26, 2013
DNB Markets Hold BuyDowngradeSep 20, 2013
Nordea Equity Hold BuyDowngradeMar 19, 2013
Nordea Hold BuyDowngradeMar 19, 2013
BMO Capital Market Perform Market PerformMaintainFeb 1, 2013
Show less

Named analyst price targets

Upside is calculated against the persisted previous close $10.66. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Morgan StanleyTerrance Tsul$9$10.25 -15.6%Sep 22, 2026
J.P. MorganSandeep Deshpande$7.78$4.58 -27.0%Nov 13, 2023
Goldman SachsAlexander Duval$6.1$5.54 -42.8%Oct 24, 2022

Track every rating change on ERIC the moment it posts. Free to start.

Start free

Company context

Snapshot as of publication

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.…

Historical context

All ERIC earnings

Technology peers this season

Latest reports in the same sector

Latest beats and misses

Who reports next

Get the ERIC recap when the next report posts

One email per quarter with the scorecard, the market reaction and what changed on the call. No account needed.

Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2025-04-01T00:02:13.289232+00:00
  3. Polygon adjusted daily market bars · 2026-10-26T08:40:42.984204+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-26T08:40:42.981375+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-10-26. For educational purposes only; not investment advice.