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Swedish maker of telecom network equipment (5G radio, core networks) sold to mobile carriers worldwide.
Swedish maker of telecom network equipment (5G radio, core networks) sold to mobile carriers worldwide.
Sells radio equipment and software to mobile operators in large rollouts, so sales swing with carrier budgets, while patent licence fees from phone makers arrive steadily under long agreements. North America is its largest region. The 2022 purchase of Vonage, a cloud-communications firm, moved it into software sold to companies, though it later wrote down much of that value.
In one line: A Swedish Cisco/Nokia peer for mobile networks.
Moat: narrow (IP / patents, switching costs, installed base). Deep 5G patent portfolio and carrier network lock-in, though Nokia/Huawei/Samsung compete closely.
Headquarters: Stockholm, Sweden · Founded: 1876 · Employees: 88,826
Size Telefonaktiebolaget LM Ericsson (ERIC-A.ST) is a Sweden Information Technology company (Telecommunications Equipment) with a market value of $34.9B, the 9th largest of 221 Sweden companies the cockpit tracks. Shares closed at SEK 104.20 on 6 Nov 2026.
Performance Over six months the shares fell 9.1%, against -23.2% for the median peer and +8.2% for the Sweden market (cap-weighted) — 7th highest of 16 in its peer set.
Growth Revenue fell 4.0% over the last twelve months (peer median +10.3%); the operating margin is 14.4% (peer median 4.8%).
Valuation It trades at 17.3× forward earnings against a peer median of 20.5× (6th cheapest of 15).
Price implies For today's price to make sense, revenue must grow about -9% a year for seven years (Req g). Recent delivered growth is 0%, so the hurdle is -9 pp: the price already allows for a slowdown.
Capital Return on invested capital runs 20.9 points above its cost of capital (6.0% WACC).
Backlog Backlog (remaining performance obligations) was SEK 123B at 31 Dec 2025, down 9% on a year earlier — 0.5 years of trailing revenue. Backlog detail →
Credit Telefonaktiebolaget LM Ericsson has 4 bonds outstanding ($2.51B), rated BBB- by the agencies and trading like BBB- at a weighted spread of 111 bp.
Next results Next results expected around 22 Jan 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | SEK 231B | SEK 237B | SEK 248B | SEK 263B | SEK 272B |
| Revenue growth | — | -5% | -6% | -3% | — |
| Gross profit | SEK 111B | SEK 114B | SEK 111B | SEK 104B | SEK 113B |
| EBITDA | SEK 39.9B | SEK 41.7B | SEK 19.0B | SEK 28.0B | SEK 39.2B |
| Net income | SEK 19.3B | SEK 28.4B | SEK 20.0M | -SEK 26.4B | SEK 18.7B |
| Free cash flow | SEK 29.4B | SEK 30.3B | SEK 43.9B | SEK 3.88B | SEK 26.4B |
| Capital expenditure | SEK 4.36B | SEK 3.77B | SEK 3.64B | SEK 5.47B | SEK 6.20B |
| Total debt | SEK 45.3B | SEK 40.3B | SEK 45.5B | SEK 54.3B | SEK 42.2B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Telefonaktiebolaget LM Ericsson ERIC-A.ST | $34.9B | -9% | -4% | 14% | 17.3× | -8.7% |
| Nokia NOKIA.HE | $44.3B | -37% | +4% | 14% | 19.2× | 17.4% |
| SamsungElec 005930.KS | $886B | -14% | +88% | 46% | 4.0× | -7.2% |
| Cisco CSCO | $369B | -3% | +12% | 25% | 18.4× | 15.0% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | ERIC-A.ST | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | +8.9% | -5.1% | 4th highest of 16 |
| 6-month return | -9.1% | -23.2% | 7th highest of 16 |
| Distance from 52-week high | -19.0% | -46.1% | 4th highest of 16 |
| Revenue growth (TTM) | -4.0% | +10.3% | lowest of 16 |
| Operating margin | 14.4% | 4.8% | 4th highest of 16 |
| Forward P/E | 17.3× | 20.5× | 6th cheapest of 15 |
| Growth the price implies (Req g, 7 yrs) | -8.7% | 17.5% | least demanding of 12 |
| Growth delivered (Del g) | +0.4% | +9.5% | 2nd lowest of 12 |
| Hurdle (Req g minus delivered) | -9.0 pp | +11.8 pp | 3rd least demanding of 12 |
| ROIC minus cost of capital | +20.9 pp | +1.5 pp | 3rd highest of 16 |
| EV / EBITDA | 8.3× | 24.5× | cheapest of 8 |
| Net debt / EBITDA | -0.3× | -0.3× | 4th most indebted of 8 |
| Bond spread | 111 bp | 109 bp | 3rd tightest of 5 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Telefonaktiebolaget LM Ericsson ERIC-A.ST | Sweden | $34.9B | -9% | -4% | 14% | 17.3× | -8.7% | +0.4% |
| Ciena CIEN | United States | $34.5B | -56% | +33% | 14% | 23.4× | 29.0% | +6.2% |
| Ubiquiti UI | United States | $35.9B | -30% | +27% | 36% | 33.5× | 22.2% | +11.5% |
| Nokia NOKIA.HE | Finland | $44.3B | -37% | +4% | 14% | 19.2× | 17.4% | -1.9% |
| Hangzhou Hikvision Digital Technology 002415.SZ | China | $49.1B | -3% | +8% | 19% | 17.5× | 2.6% | +7.8% |
| Accton Technology 2345.TW | Taiwan | $21.6B | -49% | +82% | 14% | 12.5× | 4.5% | +35.4% |
| ZTE 0763.HK | Hong Kong | $19.0B | -27% | +20% | 1% | 14.6× | 17.5% | +4.9% |
| ZTE 000063.SZ | China | $19.0B | -23% | +14% | 1% | 24.2× | 19.0% | +5.6% |
| TCL Technology 000100.SZ | China | $15.0B | +7% | +5% | 0% | 13.1× | -4.7% | +19.1% |
| Motorola Solutions MSI | United States | $85.1B | +34% | +10% | 25% | 27.0× | 16.4% | +9.5% |
| Huaqin 603296.SS | China | $12.7B | -13% | +28% | 2% | 17.1× | n/a | n/a |
| Xiaomi-w 1810.HK | Hong Kong | $99.0B | -2% | +6% | 3% | 27.8× | 24.3% | +12.4% |
| Shenzhen Transsion 688036.SS | China | $11.6B | +13% | -1% | 5% | 21.8× | n/a | n/a |
| Foxconn Industrial Internet 601138.SS | China | $120B | -35% | +60% | 5% | 13.1× | n/a | n/a |
| China Spacesat 600118.SS | China | $9.75B | -46% | +6% | 1% | 531.4× | n/a | n/a |
| ViaSat VSAT | United States | $8.81B | -9% | +1% | 2% | n/a | 42.8% | +15.5% |
Telefonaktiebolaget LM Ericsson has 4 bonds outstanding with $2.51B face value. The agencies rate it BBB-; its bonds trade like BBB-. Weighted yield 4.10%, a spread of 111 bp over government bonds.
Telefonaktiebolaget LM Ericsson reported SEK 123B of remaining performance obligations at 31 Dec 2025, down 9% from a year earlier. That is 0.5 years of trailing revenue already under contract.