Telefonaktiebolaget LM Ericsson (publ) (ERIC) Stock

About Telefonaktiebolaget LM Ericsson (publ)

Telefonaktiebolaget 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. Digital Services provides advanced software-driven solutions for critical functions like business support systems (BSS), operational support systems (OSS), communication platforms, core network architecture, and cloud infrastructure. The Managed Services segment offers telecom operators an extensive range of provisions, including comprehensive network and IT management, network design and optimization, and application development and maintenance. Finally, the Emerging Business and Other segment encompasses innovative ventures such as Internet of Things (IoT) technologies, iconectiv, Cradlepoint (known for its wireless edge WAN 4G and 5G enterprise solutions), Red Bee Media, MediaKind, and other developing enterprises. Established in 1876 and based in Stockholm, Sweden, Ericsson maintains a substantial worldwide footprint, with operations spanning North America, Europe and Latin America, the Middle East and Africa, Southeast Asia, Oceania, India, Northeast Asia, and numerous other international markets.

Telefonaktiebolaget LM Ericsson (publ) is headquartered in SE.

Telefonaktiebolaget LM Ericsson (publ) (ERIC) stock trades at $11.35 with a market capitalization of $37.50B. The stock is valued at a price-to-earnings (P/E) ratio of 14.58, price-to-book of 3.59, price-to-sales of 1.58. Over the past 52 weeks the stock has ranged between $7.16 and $13.77, and currently trades 17.6% below its 52-week high. It pays a dividend yielding 2.82%.

On profitability, Telefonaktiebolaget LM Ericsson (publ) generates a return on equity (ROE) of 25.11%, above the typical market range of roughly 12-15%, return on capital employed of 20.47%, an operating margin of 13.77%, a net profit margin of 10.90%.

In its most recent fiscal year, Telefonaktiebolaget LM Ericsson (publ) reported annual revenue of $222.5B, net profit of $26.7B. Over the last 5 fiscal years, revenue grew at an average annual rate of 1.5%, and net profit grew at an average annual rate of 11.4%. Over that span net profit grew faster than revenue, so net margin widened.

The balance sheet shows a debt-to-equity ratio of 0.38 (debt below half of shareholders' equity), a current ratio of 1.12, total assets of $279.2B, $43.9B in cash and equivalents.

ERIC has an average daily trading volume of 10,818,817 shares, a beta of 0.52 (historically less volatile than the overall market).

Official website: www.ericsson.com

Telefonaktiebolaget LM Ericsson (publ) by the numbers, 2016–2025

Between 2016 and 2025 Telefonaktiebolaget LM Ericsson (publ) reported revenue of $237.5B rising to $222.5B, a change of -6.3% across 10 years. Compounded, revenue has grown 1.5% a year over five years, -6.7% over three, -14.2% over the last twelve months. Net profit rose to $26.7B.

Operating margin went from 6.0% in 2016 to 13.8% in 2025, a gain of 7.8 percentage points. The most recent net margin is 10.90%. On a trailing twelve-month basis to Mar '26, revenue is $229.5B and net profit $24.8B.

Borrowings rose from $26.8B to $46.0B, cash on hand is $62.7B, cash from operations was $31.0B in the latest year, positive in 10 of the last 10.

Return on equity has averaged 7.1% over five years, and was 24.4% in the most recent year.

The share price itself has compounded at —% a year over five years, 32.2% over three, 43.4% over the last year. Past price movement is history, not a forecast.

Figures are as reported and in the company's own reporting currency. They describe what has already happened and carry no implication about what follows.

Telefonaktiebolaget LM Ericsson (publ) (ERIC) — frequently asked questions