Ericsson (NASDAQ:ERIC) Releases Quarterly Earnings Results

Ericsson (NASDAQ:ERIC) posted its quarterly earnings results on Tuesday. The communications equipment provider reported $0.13 EPS for the quarter, hitting the consensus estimate of $0.13, Zacks reports. Ericsson had a net margin of 10.80% and a return on equity of 22.17%.

Here are the key takeaways from Ericsson’s conference call:

• Ericsson said Q2 execution was solid, with gross margin of 48% and EBITDA margin of 13.1%, highlighting continued disciplined cost control and operational resilience.
• Organic sales declined 1% year over year, but management said underlying growth was roughly flat excluding last year’s one-off IPR settlement. Reported sales were also pressured by currency headwinds.
• The company’s IPR revenue run rate is about SEK 13.5 billion, including new agreements signed in July 2026. Ericsson said these deals strengthen the value of its patent portfolio going forward.
• Ericsson warned that component cost inflation tied to the AI boom is rising and will gradually weigh on results in coming quarters. The company is responding with pricing actions, product redesigns, substitutions, and supply-chain measures.
• Management said the company is positioned to benefit from AI-driven growth in mobile connectivity, especially uplink-intensive and low-latency applications. It also sees opportunity in enterprise connectivity, APIs, mission-critical networks, and defense-related use cases.

Ericsson Stock Performance

NASDAQ ERIC traded down $1.40 during trading hours on Tuesday, hitting $10.32. The company had a trading volume of 7,201,071 shares, compared to its average volume of 10,309,468. The business has a 50 day moving average of $12.09 and a 200-day moving average of $11.33. The company has a market cap of $34.79 billion, a PE ratio of 13.15, a price-to-earnings-growth ratio of 1.99 and a beta of 0.93. Ericsson has a 1-year low of $7.16 and a 1-year high of $13.77. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.93 and a current ratio of 1.12.

Ericsson News Roundup

Here are the key news stories impacting Ericsson this week:

• Negative Sentiment: Ericsson reported mixed second-quarter results, with lower sales and profit tied to weak Networks and Enterprise performance, and the company guided for softer Networks margins in the third quarter. Article Title
• Negative Sentiment: The company cautioned that rising component costs are pressuring profitability, with North America sales also declining and Networks margins expected to slip next quarter. Article Title
• Negative Sentiment: Market commentary said Ericsson saw one of its worst post-earnings reactions in nearly three years as investors reacted to margin pressure from higher memory-chip and other input costs. Article Title
• Negative Sentiment: Analysts published a bearish take on the quarter, arguing that the dip may not be a buying opportunity after the earnings release. Article Title
• Neutral Sentiment: Ericsson and AT&T showcased 5G network-sensing technology, and the company also announced a new legal hire at Ericsson Federal, but these developments are unlikely to move the stock on their own. Article Title Article Title
• Neutral Sentiment: The company continued buying back shares in July, which supports capital returns but is being overshadowed by the weaker earnings and outlook. Article Title

Institutional Trading of Ericsson

Large investors have recently made changes to their positions in the company. AQR Capital Management LLC increased its position in Ericsson by 7.5% during the first quarter. AQR Capital Management LLC now owns 134,891 shares of the communications equipment provider’s stock worth $1,049,000 after buying an additional 9,362 shares during the period. Dynamic Technology Lab Private Ltd acquired a new stake in shares of Ericsson in the first quarter valued at approximately $126,000. Geode Capital Management LLC boosted its holdings in shares of Ericsson by 0.7% in the second quarter. Geode Capital Management LLC now owns 250,389 shares of the communications equipment provider’s stock valued at $2,123,000 after acquiring an additional 1,658 shares during the period. Marshall Wace LLP purchased a new position in shares of Ericsson during the second quarter worth approximately $2,735,000. Finally, BNP Paribas Financial Markets grew its position in shares of Ericsson by 42.9% during the second quarter. BNP Paribas Financial Markets now owns 3,350,029 shares of the communications equipment provider’s stock worth $28,408,000 after acquiring an additional 1,005,398 shares during the last quarter. 7.99% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

ERIC has been the subject of a number of recent analyst reports. Citigroup reaffirmed a “neutral” rating on shares of Ericsson in a report on Tuesday, April 28th. Wall Street Zen lowered Ericsson from a “buy” rating to a “hold” rating in a research report on Saturday, April 25th. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of Ericsson in a report on Tuesday, June 2nd. One investment analyst has rated the stock with a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, Ericsson presently has an average rating of “Reduce” and an average price target of $11.00.

About Ericsson

Ericsson AB is a Swedish multinational telecommunications equipment and services company headquartered in Stockholm. Founded in 1876 by Lars Magnus Ericsson, the company designs, develops and sells infrastructure, software and services that enable mobile and fixed-line networks worldwide. Ericsson serves a global customer base that includes mobile network operators, enterprise customers and public-sector organizations across Europe, the Americas, Asia-Pacific, the Middle East and Africa.

The company’s core activities center on building and modernizing network infrastructure, with a particular focus on radio access networks (RAN), core network software, cloud-native solutions and network management systems.