The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 95 | 12.9x | 20.8x | Top tier | |
Growth | 41 | -12.0% | 6.1% | Around median | |
Quality | 86 | 23.0% | 6.6% | Top tier | |
Safety | 79 | — | 0.7x | Top tier | |
Capital Return | 91 | — | 2.02% | Top tier | |
Momentum | 52 | 47.4% | 4.1% | Around median | |
Sentiment | 75 | 5 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Telefonaktiebolaget LM Ericsson (publ) is a telecommunications equipment and software company focused on mobile networks, and it generates its revenue mainly from selling Networks solutions to telecom operators, from Cloud Software and Services such as 5G core, and from Enterprise, which includes wireless WWAN, private networks, network-powered solutions, and mobile money. In the fiscal Q1 2026 call, management explained that traditional RAN remains a flat market over the longer term, so Ericsson is working to expand the mobile platform into new use cases such as mission-critical networks, Defense Solutions, and network capability interfaces for developers. The company also benefits from IPR intellectual property revenue, which reached 3.1 billion Swedish kronor in the quarter, with an exit annual run rate from the quarter of about 13 billion Swedish kronor.
The latest quarter was a strong operational start despite currency pressure: net sales in Q1 2026 were about 49.3 billion Swedish kronor, and reported sales fell 10% due to a negative currency effect of 7.8 billion Swedish kronor, while organic sales grew 6% year over year. Adjusted gross income was 23.7 billion Swedish kronor with an adjusted gross margin of 48.1%, and adjusted EBITA was 5.6 billion Swedish kronor with a margin of 11.3%, with a negative effect from the strength of the Swedish krona on EBITA of 2.2 billion Swedish kronor. By segment, Networks generated sales of 32.9 billion Swedish kronor, representing about two-thirds of group sales, and Cloud Software and Services generated sales of 11.8 billion Swedish kronor, representing about a quarter of sales, while the rest of the mix was smaller and included Enterprise, which recorded negative adjusted EBITA of 1.4 billion Swedish kronor.
On a year-over-year basis according to the provided EDGAR data, fiscal 2025 revenue declined to 236.7 billion dollars from 247.9 billion dollars in 2024 and 263.4 billion dollars in 2023, but net income improved to 28.7 billion dollars in 2025 versus 374.0 million dollars in 2024 and a loss of 26.1 billion dollars in 2023. Gross profit reached 112.7 billion dollars in 2025, equivalent to a gross margin of about 47.6% according to the provided figures, and earnings per share were 8.51 in 2025 versus 0.01 in 2024 and -7.94 in 2023. This annual improvement is consistent with management’s focus on cost control, diversifying the geographic mix, and improving the profitability of Cloud Software and Services after a period of significant pressure in prior years.
No price-to-earnings ratio is available in the provided data, making the valuation of ERIC less direct than companies that have a clear earnings multiple, although the EDGAR data indicates that annual net income turned to 28.7 billion dollars in 2025 after 374.0 million dollars in 2024 and a loss in 2023. The analyst consensus is Neutral, and the average price target is 6.94 dollars, with a high target of 7.78 dollars and a low target of 6.10 dollars. Compared with the 52-week range of 7.16 to 13.77 dollars, the average target is below the bottom of that range, so the valuation read from analysts appears cautious and does not reflect broad price optimism.
Figures in the text are as of 2026-07-07; the live price is shown at the top of the page.
Ericsson is a supplier of telecommunications networks and software, and the largest part of its sales comes from Networks, which generated 32.9 billion Swedish kronor in Q1 2026. The company also sells Cloud Software and Services, including 5G core, and this segment generated sales of 11.8 billion Swedish kronor in the same quarter. Enterprise includes wireless WWAN, private networks, network-powered solutions, and mobile money businesses, but this segment recorded negative adjusted EBITA of 1.4 billion Swedish kronor in the quarter.
In Q1 2026, net sales were 49.3 billion Swedish kronor, and reported sales declined 10% year over year. The main reason was the strength of the Swedish krona, which negatively affected sales by about 7.8 billion Swedish kronor and reduced EBITA by about 2.2 billion Swedish kronor. On an organic basis, sales grew 6% and all segments contributed to growth, so management clearly distinguished between operational performance and the currency effect.
Networks is Ericsson’s largest segment, as its sales reached 32.9 billion Swedish kronor in Q1 2026 out of total group sales of 49.3 billion Swedish kronor. The segment delivered organic growth of 7% and an adjusted gross margin of 50.4%, a level management said reflects geographic mix diversification and cost control. Even so, North America declined at a mid-single-digit rate, while India, Japan, and Latin America supported the overall picture.
Automated analysis for informational purposes only — not investment advice.
Yes, according to the Q1 2026 figures, the segment improved clearly in terms of margin and profitability. Cloud Software and Services sales were about 11.8 billion Swedish kronor, and grew organically by 4% with primary support from 5G core. The adjusted gross margin rose to 43.2% from 39.9% a year earlier, and adjusted EBITA reached 0.6 billion Swedish kronor with a margin of 5.3%.
Management pointed to continuing geopolitical and economic uncertainty, and to the fact that the global semiconductor situation remains difficult because of the artificial intelligence boom, which is raising input costs. Lars Sandstrom said memory and semiconductor cost pressure could appear more in the second half of the year, although these components represent a smaller part of the total cost base. The company also mentioned that tariffs did not change in its Q2 forecast assumptions, and that guidance for the adjusted gross margin of Networks is between 49% and 51%.
The provided analyst consensus is Neutral, not Buy, with an average price target of 6.94 dollars. The highest analyst target is 7.78 dollars and the lowest target is 6.10 dollars, while the provided 52-week range is 7.16 to 13.77 dollars. No price-to-earnings ratio is available in the data, so the valuation reading here depends on the analyst target, the direction of annual earnings, and the fact that net income in 2025 reached 28.7 billion dollars after a very weak level in 2024 and a loss in 2023.