Telefonaktiebolaget LM Ericsson Class B (CH:ERCA)
NASDAQ:ERCA
ERCA Stock Chart & Stats
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Bulls Say, Bears Say
Bulls Say
Cash Generation QualityFree cash flow tracking ~92–93% of net income implies high earnings quality and strong cash conversion. Durable FCF supports sustained capital returns, buybacks and reinvestment, and provides buffer versus cyclical revenue swings over the next several quarters.
Balance-sheet Strength / Net CashA substantial net cash position (~SEK 68.1bn) and manageable leverage give Ericsson financial flexibility to fund R&D, absorb cyclical downturns, pursue strategic initiatives or return capital. This reduces refinancing risk and supports multi‑quarter execution of margin programs.
Software & Services Margin ExpansionImproving cloud software margins reflect a shift toward higher‑margin, recurring revenue. Sustainable software margin expansion boosts overall profitability resilience, reduces dependence on low‑margin hardware cycles, and supports multi‑period margin targets and cash generation.
Bears Say
Top-line DeclineNegative revenue growth in 2025 and TTM signals weakening demand or pricing pressure that can limit operating‑leverage gains. Persistent top‑line contraction undermines margin sustainability and complicates meeting mid‑term revenue and EBITA targets without structural market share gains.
Input Cost Inflation RiskAnticipated semiconductor and memory cost inflation poses a durable margin risk: these components are critical to RAN products and are hard to immediately pass through in a competitive operator market. Sustained cost pressure could erode improved gross margins over multiple quarters.
Enterprise Segment LossesA sizable, recurring loss in Enterprise undermines Ericsson's diversification into enterprise networks. Turning this segment profitable requires execution and investment; continued drag could consume cash, distract management, and limit the durability of group margin improvements.
Telefonaktiebolaget LM Ericsson News
ERCA FAQ
What was Telefonaktiebolaget LM Ericsson Class B’s price range in the past 12 months?
Currently, no data Available
What is Telefonaktiebolaget LM Ericsson Class B’s market cap?
Currently, no data Available
When is Telefonaktiebolaget LM Ericsson Class B’s upcoming earnings report date?
Telefonaktiebolaget LM Ericsson Class B’s upcoming earnings report date is Jul 14, 2026 which is in 36 days.
How were Telefonaktiebolaget LM Ericsson Class B’s earnings last quarter?
Telefonaktiebolaget LM Ericsson Class B released its earnings results on Apr 17, 2026. The company reported $0.024 earnings per share for the quarter, missing the consensus estimate of $0.089 by -$0.065.
Is Telefonaktiebolaget LM Ericsson Class B overvalued?
According to Wall Street analysts Telefonaktiebolaget LM Ericsson Class B’s price is currently Undervalued.
Does Telefonaktiebolaget LM Ericsson Class B pay dividends?
Telefonaktiebolaget LM Ericsson Class B does not currently pay dividends.
What is Telefonaktiebolaget LM Ericsson Class B’s EPS estimate?
Telefonaktiebolaget LM Ericsson Class B’s EPS estimate is 0.11.
How many shares outstanding does Telefonaktiebolaget LM Ericsson Class B have?
Currently, no data Available
What happened to Telefonaktiebolaget LM Ericsson Class B’s price movement after its last earnings report?
Telefonaktiebolaget LM Ericsson Class B reported an EPS of $0.024 in its last earnings report, missing expectations of $0.089. Following the earnings report the stock price went same N/A.
Which hedge fund is a major shareholder of Telefonaktiebolaget LM Ericsson Class B?
Currently, no hedge funds are holding shares in CH:ERCA
What is the TipRanks Smart Score and how is it calculated?
Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology
Telefonaktiebolaget LM Ericsson Stock Smart Score
Outperform
1
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3
4
5
6
7
8
9
10
Technicals
SMA
Positive
20 days / 200 days
Momentum
50.90%
12-Months-Change
Fundamentals
Return on Equity
25.11%
Trailing 12-Months
Asset Growth
10.16%
Trailing 12-Months
Company Description
Telefonaktiebolaget LM Ericsson Class B
Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides communication infrastructure, services, and software solutions to the telecom and other sectors. It operates through four segments: Networks, Digital Services, Managed Services, and Emerging Business and Other. The Networks segment offers radio access network solutions for various network spectrum bands, including integrated high-performing hardware and software. This segment also provides integrated antenna and transport solutions; and a range of service portfolio covering network deployment and support. The Digital Services segment offers software-based solutions for business support systems, operational support systems, communication services, core networks, and cloud infrastructure. The Managed Services segment provides networks and IT managed, network design and optimization, and application development and maintenance services to telecom operators. The Emerging Business and Other segment includes emerging businesses comprising Internet of Things; iconectiv; Cradlepoint that offers wireless edge WAN 4G and 5G enterprise solutions; and Red Bee Media, MediaKind, and other new businesses. It operates in North America, Europe and Latin America, the Middle East and Africa, South East Asia, Oceania, India, North East Asia, and internationally. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.
ERCA Company Deck
ERCA Earnings Call
Q1 2026
0:00 / 0:00
Earnings Call Sentiment|Positive
The call presents a constructive operational picture: healthy organic growth (6%), robust gross margins (group 48.1%, Networks 50.4%), improving software margins, strong cash generation (net cash SEK 68.1bn) and a sizable SEK 15bn buyback. These positives are tempered by material FX headwinds (reported sales down 10% and SEK 7.8bn FX impact), an unacceptable Enterprise loss (adjusted EBITA -SEK 1.4bn) and looming input cost pressure from semiconductors/memory that may hit in H2. Management emphasized supply‑chain resilience, margin levers (pricing, product substitution, service efficiencies) and ongoing cost programs, but some cost savings will show with a delay. Overall, operational momentum and financial flexibility outweigh the near‑term headwinds, though risks remain from currency, component inflation and elevated restructuring costs.View all CH:ERCA earnings summariesERCA Stock 12 Month Forecast
Average Price Target
$8.37
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