Ericsson Reports Strong Q4 Earnings with EPS of $0.27, Beating Estimates
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 23 2026
0mins
Should l Buy ERIC?
Source: Benzinga
- Earnings Highlights: Ericsson's Q4 EPS of $0.27 exceeded analyst expectations of $0.23, reflecting strong performance in network infrastructure and software solutions.
- Sales Performance: Although sales declined 5% year-over-year to 69.3 billion Swedish Krona ($7.37 billion), it surpassed the market expectation of $7.03 billion, indicating resilience in a competitive market.
- Margin Improvement: The adjusted gross margin improved from 46.3% to 48.0%, with adjusted EBIT and EBITA margins rising to 17.7% and 18.3%, respectively, showcasing successful cost control and operational efficiency enhancements.
- Future Outlook: Ericsson anticipates a flat Radio Access Network market in 2026 while planning to increase investments in mission-critical and enterprise markets to support future growth and cash flow.
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Analyst Views on ERIC
Wall Street analysts forecast ERIC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ERIC is 9.33 USD with a low forecast of 6.40 USD and a high forecast of 11.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
0 Buy
2 Hold
1 Sell
Moderate Sell
Current: 10.940
Low
6.40
Averages
9.33
High
11.00
Current: 10.940
Low
6.40
Averages
9.33
High
11.00
About ERIC
Telefonaktiebolaget LM Ericsson (Ericsson) provides infrastructure, services and software to the telecommunication industry and other sectors. The Company's segments include Networks, IT & Cloud and Media. The Networks segment consists of two business units: Network Products and Network Services. The overall focus is on evolving and managing access networks, including the development of hardware and software for radio access and transport networks. The IT & Cloud business includes two business units: IT & Cloud Products and IT & Cloud Services. The focus in IT & Cloud is to help telecom operators and selected enterprises through the digital transformations ahead. It develops and delivers software-based solutions for television and media and combines a product portfolio that spans the television value chain, with systems integration and managed services. The portfolio includes compression, content publishing through set-top box or pure over-the-top, content delivery and analytics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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