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

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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

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Earnings History

Estimate Beat Miss Match
ERIC REVENUE earnings history estimate and actual scatter chart 9 reported fiscal quarters and 4 future estimate-only quarters. Q1 '24 actual $53B, None Q2 '24 estimate $5B Q2 '24 actual $60B, beat Q2 '25 estimate $6B Q2 '25 actual $6B, miss Q3 '25 estimate $7B Q3 '25 actual $6B, miss Q4 '25 estimate $7B Q4 '25 actual $8B, beat Q1 '26 estimate $5B Q1 '26 actual $5B, miss Q2 '26 estimate $6B Q2 '26 actual $5B, miss Q3 '26 estimate $6B Q3 '26 actual $6B, beat Q4 '26 estimate $71B Q1 '27 estimate $53B Q2 '27 estimate $57B Q3 '27 estimate $60B
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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
Show 35 more rating actions

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

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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

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Latest beats and misses

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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.