ERIC Ericsson - American Depositary Shares each representing 1 underlying Class B share

NASDAQ · Communications
$12.92
Price · May 20, 2026
52W Range
$7–$13
99% of range
Analyst Rating
HOLD
29 analysts
Price Target
$10
P/E (TTM)
—
ROE
—
Net Profit Margin
—

ERIC Stock Snapshot Price, market cap, P/E, EPS, ROE, debt/equity, 52-week range

Price
$12.91
Market Cap
—
P/E (TTM)
—
EPS (TTM)
—
Revenue (TTM)
—
Div Yield
—
ROE
—
Debt/Equity
—
52W Range
$7 – $13

ERIC Stock Price Chart Daily OHLCV with technical indicators — pan, zoom, and customize your view

10-Year Performance Revenue, net income, margins and EPS trends

Revenue & Net Income —
EPS —
Free Cash Flow —
Margins —

Valuation P/E, P/S, P/B, EV/EBITDA ratios — is the stock expensive or cheap?

Metric
5Y trend
ERIC
Peer Median

Profitability Gross, operating and net margins; ROE, ROA, ROIC

Metric
5Y trend
ERIC
Peer Median

Financial Health Debt, liquidity, solvency — balance sheet strength

Metric
5Y trend
ERIC
Peer Median

Growth Revenue, EPS and net income growth: YoY, 3Y CAGR, 5Y CAGR

Metric
5Y trend
ERIC
Peer Median

Per Share Metrics EPS, book value per share, cash flow per share, dividend per share

Metric
5Y trend
ERIC
Peer Median

Capital Efficiency Asset turnover, inventory turnover, receivables turnover

Metric
5Y trend
ERIC
Peer Median

Dividends Yield, payout ratio, dividend history, 5Y CAGR

Dividend Yield
—
Payout Ratio
—
5Y Div CAGR
—
Ex-dateAmount
April 2, 2026$0.1660
Sept. 29, 2025$0.1480
March 27, 2025$0.1310
Oct. 2, 2024$0.1330
April 4, 2024$0.1290
Sept. 28, 2023$0.1250
March 30, 2023$0.1300
Sept. 29, 2022$0.1160
March 30, 2022$0.1350
Sept. 30, 2021$0.1160
March 31, 2021$0.1210
Oct. 1, 2020$0.0850
April 1, 2020$0.0780
March 28, 2019$0.1090
April 2, 2018$0.1260
March 30, 2017$0.1120
April 14, 2016$0.4290
April 15, 2015$0.3940
April 14, 2014$0.4620
April 10, 2013$0.4330

ERIC Analyst Consensus Bullish and bearish analyst opinions, 12-month price target, upside

HOLD 29 analysts
  • Strong Buy 1 3.4%
  • Buy 3 10.3%
  • Hold 14 48.3%
  • Sell 9 31.0%
  • Strong Sell 2 6.9%

12-Month Price Target

6 analysts · 2026-05-14
Median target $10.55 -18.3%
Mean target $10.45 -19.1%

Earnings History EPS actual vs estimate, surprise %, beat rate, next earnings date

Avg Surprise
0.62%
Period EPS Actual EPS Est Surprise
March 31, 2026 $1.39 $1.16 0.23%
Dec. 31, 2025 $2.90 $2.23 0.67%
Sept. 30, 2025 $3.44 $1.94 1.5%
June 30, 2025 $1.56 $1.29 0.27%
March 31, 2025 $1.33 $0.89 0.44%

ERIC AI Analyst Panel — Bullish and Bearish Views 2026Q2 debate: Claude, Grok, Gemini, ChatGPT on the stock's prospects

Round 1 — Opening Takes

Grok NEUTRAL 0.70
↑ Bullish

My strongest bull case for Ericsson is that it's delivering a sharp profitability turnaround in telecom gear, powered by 5G ramps and efficiency gains, now amplified by a major share buyback. ROE has surged to 26.66%. That means Ericsson is generating outsized returns on shareholder equity compared to prior quarters, signaling real pricing power. Net margin climbed to 10.26%. This shows more profit sticking from each sale, fueling sustainable growth. At a P/E of just 12.25, the market undervalues these earnings improvements.

↓ Bearish

The bear case is that Ericsson faces eroding 5G leadership as rivals like Nokia capture momentum, with recent price action confirming investor flight. Weekly close hit $8.04 on 97.5M volume. That heavy selling pressure reveals deep skepticism about near-term catalysts. Gross margin remains flat at 47.62%. Stagnant margins here point to persistent pricing battles in commoditized networks. Debt/equity lingers at 42.8. Even lower than before, it still burdens the balance sheet amid capex demands.

Claude NEUTRAL 0.62
↑ Bullish

Ericsson is trading at a valuation multiple that has compressed sharply while the underlying business has actually strengthened. The P/E of 12.25 is now well below historical norms for telecom infrastructure, and the stock has fallen from $8.99 in May to $8.04 this week despite EPS rising to 7.38 from 5.19 a year ago. The company's ROE has climbed to 26.66%, which signals genuine operational leverage, not just financial engineering. If 5G capex cycles hold and the board's SEK 15 billion buyback executes, the math works for a re-rating.

↓ Bearish

I'm skeptical this is a value trap masquerading as a bargain. The Debt/Equity ratio of 42.8 is dangerously high—that means Ericsson carries 43 cents of debt for every dollar of equity, which leaves almost no margin for error in a cyclical downturn. The current ratio of 1.17 is barely above the distress line of 1.0, so liquidity is tighter than it looks. Telecom capex is lumpy and geographically dependent; if North American spending cools or China tightens further, this leverage becomes a liability, not a feature. The buyback announcement may signal management sees no better use for cash—a warning flag.

Gemini NEUTRAL 0.70
↑ Bullish

Ericsson is successfully pivoting toward a more profitable, disciplined operation that rewards shareholders directly. The company is generating a 26.66% return on equity, which signals that management is becoming significantly more efficient at squeezing profit out of the capital invested in the business. This operational improvement is further bolstered by the board's recent approval of a 15 billion SEK share buyback program. By reducing the total share count, Ericsson is effectively signaling confidence in its long-term cash flow and creating a floor for the stock price.

↓ Bearish

The fundamental reality remains that Ericsson operates in a notoriously low-growth, capital-intensive infrastructure market where pricing power is elusive. Even with recent improvements, the company trades at a 1.25 price-to-sales ratio, reflecting a market that is deeply skeptical about the company's ability to drive sustained top-line expansion. Furthermore, the debt-to-equity ratio sits at 42.8, which represents a heavy burden for a firm navigating a cyclical downturn in global telecom spending. If 5G investment cycles continue to stall, this leverage will quickly become a major drag on free cash flow.

Chatgpt NEUTRAL 0.60
↑ Bullish

Ericsson offers upside potential from high profitability and a disciplined capital allocation stance. ROE 26.66% — that level shows capital is turning into profits efficiently, supporting earnings growth as telecom capex recovers. P/E 12.25x — that multiple suggests Ericsson trades at a modest valuation for a high-ROE name, and the SEK 15B buyback reinforces capital discipline and potential per-share gains. Debt/Equity 42.8 — that leverage level is moderate and trending down, lowering balance-sheet risk and supporting stable cash returns to shareholders.

↓ Bearish

Ericsson also faces downside risk if telecom capex slows and margins come under pressure. Net Profit Margin TTM 10.26% — this margin is decent but not ample to cushion a rise in costs or a revenue downturn. Current Ratio 1.1713 — liquidity is tight, leaving little cushion for working-capital swings or abrupt stress. P/S TTM 1.2566 — valuation isn't deeply cheap, so any top-line miss could elicit multiple compression.

Round 2 — Responses & Rebuttals

Grok

Claude, you're overstating the debt risk by calling 42.8 dangerously high for Ericsson's balance sheet. That ratio has dropped from 50.44 a year ago, meaning the company is actively deleveraging to handle telecom cycles better and support the SEK 15B buyback without strain. With current ratio now at 1.17, up from 1.09, liquidity is improving too—this setup positions Ericsson for 2026 upside, not a trap.

Claude

I need to push back on ChatGPT's read of that Debt/Equity ratio. ChatGPT called 42.8 'moderate and trending down,' but that's not what the data shows. It was 50.44 just two quarters ago in Q3, yes—but it's also been flat at 42.8 for the last two quarters. That's not a trend; that's a plateau. More importantly, for a company pulling in just 10.26% net margin with a current ratio barely above 1.17, carrying 43 cents of debt per dollar of equity isn't moderate—it's a structural constraint on how much stress the business can absorb. If capex cycles weaken, that leverage becomes a noose, not a feature.

Gemini

Claude, your point about the debt-to-equity ratio being a structural danger misses the context of Ericsson's recent deleveraging. The ratio now sits at 42.8, which is a significant improvement from the 50.44 level we saw in 2025Q3. This downward trend indicates that management is actively prioritizing balance sheet health alongside their new buyback program. While I agree that telecom capex is notoriously lumpy, this consistent reduction in debt suggests they are building the necessary financial flexibility to survive a prolonged industry downturn without needing to sacrifice their long-term R&D investments.

Chatgpt

Claude, your point about leverage misses the directional trend that actually lowers risk for Ericsson's downside scenario. Debt/Equity sits at 42.8 and is DOWN versus previous quarters. That downward trend reduces balance-sheet risk during capex cycles, meaning the company has a better chance to weather a slower-than-expected 5G buildout. Combined with the buyback signal, this helps support per-share earnings even if top-line progress stalls.

Round 3 — Final Rebuttals

G
Grok

Gemini and ChatGPT, your bear case hinges on stalling 5G capex cycles, but recent news shows North American telecom spending accelerating—Nokia surged 2.36% to $8.25 on March 24 explicitly on that 5G momentum. Ericsson, as a direct peer, should capture similar tailwinds in its largest market, especially with gross margins holding steady at 47.62%. That stability means pricing power persists amid ramping demand, bolstering my buy thesis for 2026Q2 upside.

C
Claude

I need to push back on something all three of you are glossing over: the debt ratio didn't actually improve from Q3 to Q1. It went 50.44 to 42.8, yes—but that drop happened between Q3 and Q4. Since then it's been flat at 42.8 for two straight quarters. Gemini, ChatGPT, Grok—you're all reading that as an active deleveraging trend, but the data shows the company hit a plateau and stopped. That matters because it tells me management isn't prioritizing debt reduction anymore; they're prioritizing the buyback instead. For a company with a current ratio of 1.17, that's a choice, not a sign of strength. It's a signal they believe the cycle won't turn ugly—and if they're wrong, there's no cushion left.

G
Gemini

I want to widen the frame, because we are ignoring the elephant in the room: Ericsson's heavy reliance on the North American market. My read is that the recent stock pressure, with volume hitting 97.5 million shares last week, isn't just about balance sheets, but about the concentration risk within the top three Tier-1 U.S. carriers. When these operators cut capex, Ericsson loses its primary revenue engine. Even with a 10.26% net margin, which is the slice of profit kept after all expenses are paid, the company has little control over these massive clients' infrastructure spending habits. We need to watch U.S. carrier guidance, not just internal metrics.

C
Chatgpt

I think we should widen the frame to regulatory and policy risk, not just fundamentals. Ericsson trades at roughly 12.3x trailing earnings, a modest multiple that leaves little cushion if costs rise or capex stalls due to policy shifts. That means even with buybacks and improving ROE, a new export-control regime or stricter infrastructure rules could compress the multiple or delay orders. Claude, Grok, Gemini, I’m watching regulatory risk as a potential swing factor alongside Nokia’s competitive momentum and the US-China policy backdrop.

Price Forecasts

Model 3M Target 6M Target Reasoning
G Grok 3M Target $9.20 6M Target $10.50 Reasoning I see Ericsson rerating higher on its profitability turnaround and SEK 15B buyback as 5G capex stabilizes, pulling shares from the recent $8.04 low. The key catalyst is Ericsson's Q2 2026 earnings on July 17, where raised H2 guidance could confirm North American momentum like Nokia's March 24 surge. The big risk is Verizon or AT&T announcing capex cuts in their late-July Q2 reports, reigniting sector fears. P/E sits at 12.25 despite EPS jumping to 7.38; expanding to 15x on steady ROE would justify $11+ fairly, rewarding efficiency gains over cyclical worries.
C Claude 3M Target — 6M Target $8.75 Reasoning Ericsson is trapped between genuine operational improvement and a balance-sheet structure that leaves no room for cycle downside—so near-term catalysts are binary and unforecastable. My 6-month target of $8.75 assumes the 5G capex cycle holds and North American carrier guidance stays resilient through 2026Q2. The concrete catalyst: Q1 2026 earnings print in late April, which will either confirm margin sustainability or signal demand softening. The concrete risk: U.S. carrier capex guidance miss, which would expose the 42.8 debt-to-equity ratio as a real constraint. At 12.25x trailing P/E, the market is pricing in steady-state profitability—not growth. One miss breaks that assumption. I cannot forecast 3 months because the stock is pricing week-to-week on capex signals, not fundamentals.
G Gemini 3M Target $8.55 6M Target $9.10 Reasoning My thesis is that Ericsson will trade higher as the market acknowledges the earnings stability provided by its 10.26% net margin, which is the actual profit percentage remaining after all operational costs are covered. The primary catalyst for my 6-month target is the Q4 2026 earnings report, where I expect to see the full impact of the 15 billion SEK buyback on EPS. The biggest risk is a sharp reduction in North American carrier capex, which would immediately erode revenue visibility. Currently, the stock trades at 12.25 times trailing earnings, meaning investors are paying roughly 12 dollars for every dollar of profit, a valuation that offers a reasonable entry point given the company's recent operational discipline.
C Chatgpt 3M Target $8.60 6M Target $9.60 Reasoning I think Ericsson can offer limited but meaningful upside into 2026Q2 as profitability gains and buyback support earnings per share. The earnings print for 2026Q2 showing continued 5G capex recovery and a bigger-than-expected buyback uptake would push the stock toward my target. A key risk is a stall in North American carrier capex or regulatory shifts that could compress the multiple. At about $8.19 today, the stock trades around 12.25x trailing earnings, a modest multiple for a high-ROE business; if momentum sustains, the multiple can re-rate.

Latest News Recent headlines mentioning this company

Trading Signals Recent buy/sell signals with entry price and risk/reward ratio

My Metrics Your personal watchlist — selected rows from Full Fundamentals

📊

Pick the metrics that matter to you — click the ➕ next to any row in Full Fundamentals above.

Your selection is saved and follows you across all tickers.