Analyst Consensus ?
ConsensusHold40 ratings
Bullish1537.5%
Neutral2255.0%
Bearish37.5%
Telefonaktiebolaget LM Ericsson (publ) · ERIC · FY2025 Q3 · Calendar Q4 2025
Ericsson: Margin Expansion Offsets Softer Organic Sales
Ericsson's quarter supports a margin-led investment thesis: cost discipline and cash generation improved despite softer organic sales. Longer-term growth depends on converting AI-edge, 5G standalone, network-slicing and API opportunities into customer investment.
Reported Before market openNASDAQTechnology
$34.76B market cap
100quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$0.16
Consensus $0.13
EPS surprise
+23.1%
Reported versus consensus
Reported revenue
$5.90B
Consensus $7.15B
Revenue surprise
-17.4%
Reported versus consensus
Market reaction
prior-close to event-session close
Stock move
+20.6%
Event window
SPY move
-0.1%
Same window
Abnormal move
+20.7%
Stock minus SPY
Volume
4.7×
Versus trailing sessions
Subsequent drift
+0.2%
Up to 20 sessions
ERICSPY benchmark
Ask FN2 about ERIC FY2025 Q3
Transcript, numbers and history already loaded
Why did ERIC rise 20.6% after beating EPS estimates in FY2025 Q3?What changed in ERIC's guidance and outlook in FY2025 Q3?Give me the bull and bear case for ERIC after FY2025 Q3 earnings.
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Transcript intelligence
What changed
Compared with the prior analysis, margin performance strengthened to a three-year high and net cash increased, while organic sales declined 2%. The company added emphasis on AI-edge demand, a Vodafone Europe agreement and the divestiture of Iconectiv.
Guidance delta
Maintained; management indicated Q4 seasonal growth.
Key takeaways
- EBITA margin reached a three-year high while organic sales declined 2% year over year.
- Cost reductions, including roughly 6,000 fewer employees, improved operating leverage.
- Net cash of SEK 51.9 billion supports potential shareholder returns.
- Management highlighted AI-edge demand, 5G standalone migration, network slicing and network APIs as future drivers.
Management priorities
- Invest in AI-native network software and hardware for 5G standalone and future 6G.
- Scale network APIs through Aduna and partnerships with AWS and Vodafone.
- Continue cost-efficiency programs and headcount optimisation.
- Maintain cash discipline while pursuing selective bolt-on acquisitions.
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Beat
Miss
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Analyst 52W Price Targets
$10.71Current
$6.1Low
$7.63Average
$9High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 16, 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 $10.71. 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 | -16.0% | Sep 22, 2026 |
| J.P. Morgan | Sandeep Deshpande | $7.78 | $4.58 | -27.4% | Nov 13, 2023 |
| Goldman Sachs | Alexander Duval | $6.1 | $5.54 | -43.0% | Oct 24, 2022 |
Track every rating change on ERIC the moment it posts. Free to start.
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 |
|---|---|---|---|---|
| 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 |
| WIT Wipro Limited | FY2027 Q2 · Calendar Q4 2026 | — | +2.8% | Wipro keeps AI strategy central as margins improve |
| 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
- SCHW-PJFY2026 Q3 · October 15, 2026+2.4% EPS— move
- SCHW-PDFY2026 Q3 · October 15, 2026+2.4% EPS— move
- SCHWFY2026 Q3 · October 15, 2026+2.4% EPS-2.7% move
- TSMFY2026 Q3 · October 15, 2026+3.4% EPS-1.8% move
- MRSHFY2026 Q3 · October 15, 2026+3.0% EPS+4.6% move
- ERICFY2026 Q3 · October 15, 2026+28.6% EPS+11.8% move
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 · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars · 2026-10-16T01:50:43.592635+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-16T01:50:43.589928+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 2026-10-16. For educational purposes only; not investment advice.