Analyst Consensus ?
ConsensusHold40 ratings
Bullish1537.5%
Neutral2255.0%
Bearish37.5%
Telefonaktiebolaget LM Ericsson (publ) · ERIC · FY2025 Q2 · Calendar Q3 2025
Ericsson: Margin progress offsets regional and tariff risks
The supplied analysis supports a constructive but qualified view: Ericsson's margin improvement, North American strength and investments in AI, 5G standalone and network APIs provide potential support, but regional weakness, tariff and FX exposure, and execution on cost and growth initiatives leave the outlook dependent on sustained demand and profitability.
Reported Before market openNASDAQTechnology
$35.30B market cap
100quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$0.14
Consensus $0.12
EPS surprise
+16.7%
Reported versus consensus
Reported revenue
$5.87B
Consensus $6.18B
Revenue surprise
-5.2%
Reported versus consensus
Market reaction
prior-close to event-session close
Stock move
-7.9%
Event window
SPY move
-0.4%
Same window
Abnormal move
-7.5%
Stock minus SPY
Volume
3.9×
Versus trailing sessions
Subsequent drift
+5.4%
Up to 20 sessions
ERICSPY benchmark
Ask FN2 about ERIC FY2025 Q2
Transcript, numbers and history already loaded
Why did ERIC fall 7.9% after beating EPS estimates in FY2025 Q2?What changed in ERIC's guidance and outlook in FY2025 Q2?Give me the bull and bear case for ERIC after FY2025 Q2 earnings.
Free account. Your question opens in FN2 with this report's transcript and numbers attached.
Transcript intelligence
What changed
The current analysis describes improving organic sales and broad-based margin expansion, with IPR licensing and cost actions contributing to profitability. It also places greater emphasis on AI-enabled networks, 5G standalone, network APIs, Japan expansion and defense opportunities, while retaining concerns about regional weakness, tariffs, FX and operating costs.
Guidance delta
Management maintained guidance, according to the supplied transcript analysis.
Key takeaways
- Organic sales growth and broad-based margin improvement were the central positives.
- Management identified AI, 5G standalone, fixed wireless access and network APIs as longer-term growth drivers.
- North America remained a strength, while India and Southeast Asia were weaker areas.
- IPR licensing and cost actions supported profitability in the quarter.
- Tariffs, foreign exchange and geopolitical uncertainty remain important watchpoints.
Management priorities
- Increase AI investment and develop autonomous intent-based networks.
- Open a Japan R&D center and strengthen local innovation.
- Expand Aduna joint-venture services globally.
- Pursue defense and mission-critical contracts.
- Continue cost discipline and restructuring actions.
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Try FN2 freeEarnings History
Estimate
Beat
Miss
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Analyst 52W Price Targets
$10.55Current
$6.1Low
$7.63Average
$9High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 18, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| JP Morgan | Neutral | Neutral | Maintain | Oct 8, 2026 |
| Morgan Stanley | Underweight | Equal Weight | Downgrade | Sep 22, 2026 |
| TD Cowen | Outperform | Outperform | Maintain | Apr 19, 2023 |
| Raymond James | Market Perform | Outperform | Downgrade | Feb 7, 2023 |
| Cowen & Co. | Outperform | Outperform | Maintain | Jan 23, 2023 |
| Exane BNP Paribas | Neutral | Outperform | Downgrade | Jan 10, 2023 |
| Barclays | Overweight | Overweight | Maintain | Oct 13, 2022 |
| Redburn Partners | Neutral | Neutral | Maintain | Sep 26, 2022 |
| Jefferies | Hold | Hold | Maintain | Mar 17, 2022 |
| Citigroup | Neutral | Buy | Downgrade | Feb 28, 2022 |
| Arete Research | Neutral | Sell | Upgrade | Jul 21, 2021 |
| Argus Research | Hold | Buy | Downgrade | Jul 19, 2021 |
| B of A Securities | Buy | Buy | Maintain | Jul 20, 2020 |
| DZ Bank | Buy | Hold | Upgrade | Sep 20, 2019 |
| Goldman Sachs | Buy | Buy | Maintain | Jul 29, 2019 |
| Credit Suisse | Outperform | Neutral | Upgrade | May 24, 2019 |
| Bank of America | Buy | Neutral | Upgrade | May 22, 2019 |
| Canaccord Genuity | Hold | Hold | Maintain | Sep 28, 2018 |
| Berenberg | Hold | Hold | Maintain | Apr 11, 2018 |
| Danske Bank | Buy | Buy | Maintain | Dec 15, 2016 |
| UBS | Neutral | Buy | Downgrade | Jul 21, 2016 |
| Charter Equity | Underperform | Market Perform | Downgrade | Jul 20, 2016 |
| Swedbank | Neutral | Buy | Downgrade | May 3, 2016 |
| Bernstein | Market Perform | Outperform | Downgrade | Apr 22, 2016 |
| CLSA | Sell | Sell | Maintain | Apr 12, 2016 |
| Wells Fargo | Perform | Market Perform | Maintain | Mar 11, 2016 |
| Deutsche Bank | Hold | Buy | Downgrade | Jan 15, 2016 |
| RBC Capital | Sector Perform | Outperform | Downgrade | Dec 21, 2015 |
| SEB Enskilda | Buy | Buy | Maintain | Jul 21, 2014 |
| Nomura | Neutral | Buy | Downgrade | Apr 24, 2014 |
| Societe Generale | Buy | Sell | Upgrade | Dec 11, 2013 |
| Mizuho | Buy | Buy | Maintain | Dec 10, 2013 |
| Santander | Buy | Hold | Upgrade | Nov 15, 2013 |
| ABG Sundal Collier | Hold | Buy | Downgrade | Oct 15, 2013 |
| Evercore Partners | Overweight | Overweight | Maintain | Sep 26, 2013 |
| Evercore ISI Group | Overweight | Overweight | Maintain | Sep 26, 2013 |
| DNB Markets | Hold | Buy | Downgrade | Sep 20, 2013 |
| Nordea Equity | Hold | Buy | Downgrade | Mar 19, 2013 |
| Nordea | Hold | Buy | Downgrade | Mar 19, 2013 |
| BMO Capital | Market Perform | Market Perform | Maintain | Feb 1, 2013 |
Named analyst price targets
Upside is calculated against the persisted current price $10.55. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Morgan Stanley | Terrance Tsul | $9 | $10.25 | -14.7% | Sep 22, 2026 |
| J.P. Morgan | Sandeep Deshpande | $7.78 | $4.58 | -26.3% | Nov 13, 2023 |
| Goldman Sachs | Alexander Duval | $6.1 | $5.54 | -42.2% | Oct 24, 2022 |
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Start freeCompany context
Snapshot as of publicationTelefonaktiebolaget 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 earningsTechnology peers this season
Latest reports in the same sector| Company | Quarter | EPS surprise | Market move | Headline |
|---|---|---|---|---|
| WIT Wipro Limited | FY2027 Q2 · Calendar Q4 2026 | -25.0% | +3.9% | Wipro: AI pipeline expands as Q3 guidance stays narrow |
| TSM Taiwan Semiconductor Manufacturing Company Limited | FY2026 Q3 · Calendar Q4 2026 | +3.4% | -1.8% | TSMC beats Q3 guidance as AI demand drives fab expansion |
| ASML ASML Holding N.V. | FY2026 Q3 · Calendar Q4 2026 | +20.4% | -3.9% | ASML: Record Q3, strong AI demand and broader capacity plans |
Latest beats and misses
Who reports nextBeat on EPS
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
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:55.686058+00:00
- Polygon adjusted daily market bars · 2026-10-18T08:00:42.565198+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-18T08:00:42.562313+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 2026-10-18. For educational purposes only; not investment advice.