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olivLaw · US equity research

Telefonaktiebolaget LM Ericsson (publ) ERIC

Radio & Tv Broadcasting & Communications Equipment · SIC 3663 · Vertical: Radio & Tv Broadcasting & Communications Equipment (SIC 3663)

11.06USD+1.56% · 1 dayClose 04 Nov 2026

Ericsson is a leading provider of mobile connectivity solutions to communications service providers, enterprises and the public sector, with segments covering networks, cloud software and services, and enterprise solutions including private 5G networks. The company remains relevant as networks become programmable and integrate artificial intelligence, with research and development expenses of 48.9 bn SEK in 2025.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, Telefonaktiebolaget LM Ericsson (publ) (ERIC) stock was 11.06 USD (+1.56% on the day), with beta 0.79, 52-week range 9.15–13.74 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
unavailable
P/E (TTM)
unavailable
Diluted EPS TTM 8.51 · TTM to 31 Dec 2025
E/P (TTM)
unavailable
TTM to 31 Dec 2025
Dividend yield
unavailable
Beta (2y)
0.79
Volatility (1y) 36%
52-week range
9.1513.74

Price history

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Technical reading

RSI (14)
63.3
strong (55–70)
Bollinger (20, 2)
9.29 – 11.70
in the upper half of the band · %B 0.74 · band width 23.0%
SMA 50 / 200
10.10 / 10.97
mixed trend
MACD (12, 26, 9)
0.34 / 0.29
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+20.0%−1.1%+21.1 pp—
3 months+9.9%−0.5%+10.4 pp—
6 months−8.0%+4.4%−12.4 pp—
Year to date+14.6%+12.3%+2.3 pp—
1 year+12.7%+13.5%−0.8 pp+0.5%
3 years+136.8%+76.4%+60.4 pp+53.9%
5 years+1.0%+63.7%−62.7 pp—
Max drawdown (1y)
−33.4%
02 Jun 2026 → 30 Sept 2026
Max drawdown (5y)
−65.8%
09 Feb 2022 → 27 Oct 2023
Compound annual growth (5y)
+0.2%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

ESEF annual reports carry no quarters: the results are annual (below).

E/P over time

the price (USD) and the reports are in different currencies

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue210.8 bn227.2 bn232.4 bn232.3 bn271.5 bn263.4 bn247.9 bn236.7 bn
Revenue YoY+2.7%+7.8%+2.3%−0.0%+16.9%−3.0%−5.9%−4.5%
Net income-6.5 bn2.2 bn17.5 bn22.7 bn18.7 bn-26.4 bn20.0 m28.4 bn
Net income YoYunavailableunavailable+686.5%+29.8%−17.5%−241.2%unavailable+142,040.0%
Diluted EPS-1.980.675.266.815.62-7.940.018.51
Diluted EPS YoYunavailableunavailable+685.1%+29.5%−17.5%−241.3%unavailable+85,000.0%
net %-3.1%1.0%7.5%9.8%6.9%-10.0%0.0%12.0%
Free cash flow5.4 bn11.8 bn24.4 bn35.4 bn26.4 bn3.9 bn43.9 bn30.3 bn

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
43.9 bn SEK
Financial debt
32.7 bn SEK
Net debt
-11.2 bn SEK
Equity
110.3 bn SEK
Total assets
279.2 bn SEK
Debt / equity
0.30x
Current ratio
1.29x
ROE
28.0%
ROA
9.9%
FCF margin
12.8%

Financial statements (source on every figure)

Revenue and net income (SEK)

Margins

Income statement · SEK

Revenue
2023
263.4 bn
2024
247.9 bn
2025
236.7 bn

SEC (XBRL)· 12 Mar 2026verified

Cost of revenue
2023
161.7 bn
2024
138.5 bn
2025
124.0 bn

SEC (XBRL)· 12 Mar 2026verified

Gross profit
2023
101.6 bn
2024
109.4 bn
2025
112.7 bn

SEC (XBRL)· 12 Mar 2026verified

Research & development
2023
50.7 bn
2024
53.5 bn
2025
48.9 bn

SEC (XBRL)· 12 Mar 2026verified

Operating income
2023
-20.3 bn
2024
4.3 bn
2025
38.6 bn

SEC (XBRL)· 12 Mar 2026verified

Depreciation & amortisation
2023
11.2 bn
2024
10.0 bn
2025
8.9 bn

SEC (XBRL)· 12 Mar 2026verified

EBITDA
2023
-9.2 bn ≈
2024
14.3 bn ≈
2025
47.5 bn ≈

SEC (XBRL)· 12 Mar 2026derived

Interest expense
2023
4.1 bn
2024
4.1 bn
2025
3.0 bn

SEC (XBRL)· 12 Mar 2026verified

Pre-tax income
2023
-23.3 bn
2024
2.6 bn
2025
38.3 bn

SEC (XBRL)· 12 Mar 2026verified

Income tax
2023
2.8 bn
2024
2.2 bn
2025
9.6 bn

SEC (XBRL)· 12 Mar 2026verified

Net income
2023
-26.4 bn
2024
20.0 m
2025
28.4 bn

SEC (XBRL)· 12 Mar 2026verified

Diluted EPS
2023
-7.94
2024
0.01
2025
8.51

SEC (XBRL)· 12 Mar 2026verified

Weighted average diluted shares
2023
3.3 bn
2024
3.3 bn
2025
3.3 bn

SEC (XBRL)· 12 Mar 2026verified

Dividend per share
2023
2.70
2024
2.70
2025
2.85

SEC (XBRL)· 12 Mar 2026verified

Balance sheet · SEK

Cash
2023
35.2 bn
2024
43.9 bn
2025
43.9 bn

SEC (XBRL)· 12 Mar 2026verified

Inventories
2023
36.1 bn
2024
27.1 bn
2025
23.5 bn

SEC (XBRL)· 12 Mar 2026verified

Current assets
2023
155.0 bn
2024
154.3 bn
2025
143.6 bn

SEC (XBRL)· 12 Mar 2026verified

Property, plant & equipment, net
2023
12.2 bn
2024
10.5 bn
2025
8.8 bn

SEC (XBRL)· 12 Mar 2026verified

Goodwill
2023
52.9 bn
2024
56.1 bn
2025
46.9 bn

SEC (XBRL)· 12 Mar 2026verified

Intangibles (excl. goodwill)
2023
22.7 bn
2024
8.0 bn
2025
5.6 bn

SEC (XBRL)· 12 Mar 2026verified

Total assets
2023
297.0 bn
2024
292.4 bn
2025
279.2 bn

SEC (XBRL)· 12 Mar 2026verified

Accounts payable
2023
27.8 bn
2024
30.2 bn
2025
26.3 bn

SEC (XBRL)· 12 Mar 2026verified

Short-term debt
2023
17.7 bn
2024
6.1 bn
2025
3.5 bn

SEC (XBRL)· 12 Mar 2026verified

Long-term debt
2023
29.2 bn
2024
31.9 bn
2025
29.2 bn

SEC (XBRL)· 12 Mar 2026verified

Current liabilities
2023
129.4 bn
2024
131.9 bn
2025
110.9 bn

SEC (XBRL)· 12 Mar 2026verified

Equity
2023
97.4 bn
2024
93.0 bn
2025
110.3 bn

SEC (XBRL)· 12 Mar 2026verified

Cash flow · SEK

Operating cash flow
2023
7.2 bn
2024
46.3 bn
2025
33.0 bn

SEC (XBRL)· 12 Mar 2026verified

Capex
2023
3.3 bn
2024
2.3 bn
2025
2.6 bn

SEC (XBRL)· 12 Mar 2026verified

Free cash flow
2023
3.9 bn ≈
2024
43.9 bn ≈
2025
30.3 bn ≈

SEC (XBRL)· 12 Mar 2026derived

Investing cash flow
2023
-8.7 bn
2024
-16.0 bn
2025
-11.4 bn

SEC (XBRL)· 12 Mar 2026verified

Financing cash flow
2023
1.0 bn
2024
-23.9 bn
2025
-14.2 bn

SEC (XBRL)· 12 Mar 2026verified

Dividends paid
2023
9.1 bn
2024
9.2 bn
2025
9.5 bn

SEC (XBRL)· 12 Mar 2026verified

Computed indicators

Growth

Revenue growth (YoY)
-4.5%
computed by olivLawFY 2025
Revenue CAGR 3Y
-4.5%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
0.4%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
795.8%
computed by olivLawFY 2025
Net income growth (YoY)
142,040.0%
computed by olivLawFY 2025
Net income CAGR 3Y
14.9%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
10.2%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
85,000.0%
computed by olivLawFY 2025
EPS CAGR 3Y
14.8%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
10.1%
computed by olivLawFY 2020 → FY 2025
FCF growth (YoY)
-31.0%
computed by olivLawFY 2025

Profitability

Gross margin
47.6%
computed by olivLawFY 2025
EBITDA margin
20.1%
computed by olivLawFY 2025
EBIT margin
16.3%
computed by olivLawFY 2025
Net margin
12.0%
computed by olivLawFY 2025
FCF margin
12.8%
computed by olivLawFY 2025

Returns

ROE
27.9%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROA
9.9%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROIC
31.1%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROCE
23.0%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Payout ratio (EPS)
33.5%
computed by olivLawFY 2025
Payout ratio (FCF)
31.5%
computed by olivLawFY 2025

Balance sheet

Net debt
-11.2 bn SEK
computed by olivLawbalance sheet at 31 Dec 2025
Net debt / EBITDA
-0.2x
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Debt / equity
0.3x
computed by olivLawbalance sheet at 31 Dec 2025
Interest coverage
12.7x
computed by olivLawFY 2025

Liquidity

Current ratio
1.3x
computed by olivLawbalance sheet at 31 Dec 2025
Cash ratio
0.4x
computed by olivLawbalance sheet at 31 Dec 2025

Cash

Operating cash flow
33.0 bn SEK
computed by olivLawFY 2025
Capital expenditure
2.6 bn SEK
computed by olivLawFY 2025
Free cash flow
30.3 bn SEK
computed by olivLawFY 2025
FCF conversion
106.7%
computed by olivLawFY 2025
Cash conversion
69.3%
computed by olivLawFY 2025

Efficiency

Days sales outstanding
unavailable
input data missing
Days payables outstanding
83 days
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025

Market and valuation

Market capitalisation
unavailable
input data missing
Enterprise value
unavailable
input data missing
Market cap / net income TTM
unavailable
input data missing
P/E (TTM)
unavailable
input data missing
Earnings yield
unavailable
input data missing
P/B
unavailable
input data missing
P/S
unavailable
input data missing
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
unavailable
input data missing
FCF yield
unavailable
input data missing
Dividend yield
unavailable
input data missing
Shareholder yield (distributions)
unavailable
input data missing

4 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • valuation methods computed: 0 of at least 1

A scoring methodology on indicators and valuation, not investment advice.

Closing price

11.06 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: unavailable

Price and reporting are in different currencies; market indicators are unavailable.

Key indicators

Market capitalisation
unavailable
input data missing
P/E (TTM)
unavailable
input data missing
P/B
unavailable
input data missing
EV/EBITDA
unavailable
input data missing
ROE
27.9%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Net margin
12.0%
computed by olivLawFY 2025
Revenue growth (YoY)
-4.5%
computed by olivLawFY 2025
Dividend yield
unavailable
input data missing

Coverage and freshness

32/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 31 Dec 2025
Latest balance sheet date: 31 Dec 2025
Source: SEC (XBRL)published 12 Mar 2026
verified 351

Score by group

66% · Insufficient data

Estimated value range

unavailable — no valuation assumptions for the reporting currency

Valuation assumptions are editorial choices, not measured; beta is not measured.

Valuation methods

    Multiple comparisons use the SIC vertical: Radio & Tv Broadcasting & Communications Equipment (SIC 3663)

    Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

    Assumptions (illustrative, editorial)

    Risk-free rate
    6.5%
    Equity risk premium
    6.0%
    Beta (default)
    1.00
    Cost of equity
    12.5%
    Terminal growth
    3.0%

    Factor scorecard

    Insufficient data

    Minimum-evidence gate: valuation methods computed: 0 of at least 1

    FactorValueScoreWeight used
    Gross margin · Quality47.6%19 (on a fixed band)16%
    EBIT margin · Quality16.3%80 (vs peers)13%
    FCF margin · Quality12.8%51 (on a fixed band)13%
    Revenue CAGR 3Y · Growth-4.5%0 (on a fixed band)26%
    Revenue growth (YoY) · Growth-4.5%20 (vs peers)13%
    Net debt / EBITDA · Balance sheet-0.2x38 (vs peers)10%
    Current ratio · Balance sheet1.3x29 (on a fixed band)10%
    EV/Sales · Valuationunavailableunavailable—
    FCF yield · Valuationunavailableunavailable—
    Shareholder yield (distributions) · Returnsunavailableunavailable—

    Factors without a value were dropped; the remaining weights were renormalised.

    Score groups

    • Balance sheet33/100 · 2/2 factors with a value
    • Growth7/100 · 2/2 factors with a value
    • Quality48/100 · 3/3 factors with a value
    • Returns· partialunavailable · 0/1 factors with a value
    • Valuation· partialunavailable · 0/2 factors with a value

    A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

    Memo

    ERICSSON LM TELEPHONE CO (ERIC). Latest full fiscal year: 2025; data up to 2025-12-31.

    Figures computed from the financial statements: revenue 236.7 bn SEK in 2025; YoY growth -4.5%; net margin 12.0%; ROE 27.9%; net debt/EBITDA -0.2x.

    Valuation cannot be computed from the available data.

    Insufficient data for a verdict (valuation methods computed: 0 of at least 1).

    Text generated deterministically from the figures shown; no language model. Not investment advice.

    What supports the thesis

    • EBIT margin: 16.3%

    What contradicts it

    • Gross margin: 47.6%
    • Revenue CAGR 3Y: -4.5%
    • Revenue growth (YoY): -4.5%
    • Current ratio: 1.3x

    Not assessed (insufficient data or a ratio without meaning): EV/Sales, FCF yield, Shareholder yield (distributions).

    Versus the vertical median

    Radio & Tv Broadcasting & Communications Equipment (SIC 3663) · same industry (4-digit SIC) · compared with 20 companies

    Multiples and returns vs the median

    P/E
    —
    vertical median 20.2x
    EV/EBITDA
    —
    vertical median 12.4x
    P/S
    —
    vertical median 3.2x
    P/B
    —
    vertical median 2.6x
    ROE
    27.9%
    vertical median -1.2%
    above median
    Net margin
    12.0%
    vertical median -7.1%
    above median
    EBIT margin
    16.3%
    vertical median -3.1%
    above median
    Revenue YoY
    -4.5%
    vertical median 8.6%
    below median (−152.7%)
    Net debt/EBITDA
    -0.2x
    vertical median -0.5x
    above median
    Dividend yield
    —
    vertical median 1.0%

    Price rebased to 100 (monthly, 5 years)

    Companies in the vertical

    Market capP/EROENet marginRevenue YoY1A / 3A
    QCOMQualcomm Inc185.3 bn13.652.8%31.6%−2.6%+3% / +34%
    MSIMotorola Solutions, Inc.82.2 bn40.077.2%16.5%+8.0%+34% / +54%
    UIUbiquiti Inc.34.0 bn35.491.1%29.3%+27.2%−4% / +400%
    PLPlanet Labs PBC3.3 bn—-72.0%-95.1%+25.9%+6% / +421%
    ONDSOndas Inc.3.0 bn18.020.1%96.0%+605.3%−33% / +381%
    VISNVistance Networks, Inc.1.5 bn0.222,304.0%247.7%+39.7%−67% / +286%
    HLITHarmonic Inc.1.1 bn—-11.7%-13.7%−26.2%+7% / −8%
    BKSYBlacksky Technology Inc686.3 m—-44.8%-61.2%+4.4%−5% / +59%
    UMACUnusual Machines, Inc.650.9 m—-2.9%-20.3%+101.2%+49% / unavailable
    GILTGilat Satellite Networks Ltd.521.2 m20.85.2%4.6%+47.9%−39% / +10%
    AVNWAviat Networks, Inc.254.8 m104.71.0%0.6%+1.2%−10% / −34%
    BKTIBK Technologies Corp252.4 m19.730.6%15.0%+12.5%+5% / +415%
    CRNTCeragon Networks Ltd176.8 m—-1.2%-0.6%−14.1%−2% / +6%
    VUZIVuzix Corp171.4 m—-122.7%-519.0%+9.1%−25% / −3%
    SATLSatellogic Inc.87.6 m——-325.6%+37.6%+95% / +140%
    AIRGAirgain, Inc.55.4 m—-23.7%-13.6%−14.6%+4% / +76%
    WATTEnergous Corporation45.0 m—-32.8%-76.4%+633.1%+30% / −87%
    CMTLComtech Telecommunications Corp37.4 m—-50.5%-14.5%−17.0%−59% / −90%
    KUSTKustom Entertainment, Inc.22.6 m—-323.8%-126.5%+1.7%−98% / −100%
    ERICEricsson Lm Telephone Co——27.9%12.0%−4.5%+13% / +137%
    NOKNokia Corporation——3.1%3.3%+3.5%+36% / +137%

    1- and 3-year price returns: for ERIC from daily closes (the same as the performance table), for the other companies from month-end closes.

    olivLaw engine forecast

    The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

    The engine has no published run for this company yet.

    Valuation scenarios (editable assumptions)

    Illustrative scenarios

    Scenarios are not available. input data missing

    AI analysis

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    Possibly outdated: the newest document it read is from 12 Mar 2026; since then the company filed 6-K (02 Nov 2026), 6-K (26 Oct 2026), 6-K (19 Oct 2026), 6-K (15 Oct 2026), 6-K (13 Oct 2026).

    In brief

    Ericsson is a leading provider of mobile connectivity solutions to communications service providers, enterprises and the public sector, with segments covering networks, cloud software and services, and enterprise solutions including private 5G networks. The company remains relevant as networks become programmable and integrate artificial intelligence, with research and development expenses of 48.9 bn SEK in 2025 1.

    SWOT

    Strengths

    • An extensive portfolio of granted patents licensed globally on fair terms supports the company's technology position 1.
    • A significant role in 5G, with a large share of mobile traffic carried over the company's radio networks 1.
    • A global supply chain with regional hubs in several countries and a broad base of direct suppliers 1.

    Weaknesses

    • High research and development spending could weigh on margins in the short term 1.
    • Dependence on operators' investment budgets makes revenues sensitive to customer spending decisions 1.
    • Activities in certain markets such as Iran are being wound down, which limits exposure to those regions 1.

    Opportunities

    • Programmable networks and artificial intelligence integration could open new software and cloud services 1.
    • Enterprise adoption of private 5G networks could expand the Enterprise segment 1.
    • Network programming interfaces for developers could create an application ecosystem around the company's infrastructure 1.

    Threats

    • Intense competition from global equipment providers could pressure prices and market share 1.
    • Sanctions and trade restrictions could limit access to certain markets and components 1.
    • Cybersecurity and compliance risks could affect customer trust if incidents occur 1.

    Risks

    • Dependence on operator investmenthigh

      If operators reduce capital spending, network revenues could decline and the company's outlook could be affected 1.

    • Complex supply chainmedium

      Visibility beyond the first tier of suppliers is limited, and disruptions at component suppliers could affect production 1.

    • Sanctions and regulationmedium

      Changes to sanctions regimes or trade regulation could limit operations in certain regions 1.

    • Cybersecuritymedium

      A security incident in the company's networks or products could generate financial and reputational losses 1.

    • Margin pressurelow

      High research spending and competition could reduce margins if revenues do not grow in parallel 1.

    Investment thesis

    What would need to be true (bull case)

    • The technology position in 5G, with a very large patent portfolio and a significant share of global traffic, could support long-term revenues 1.
    • The shift toward programmable networks and artificial intelligence could open new revenue sources from software and services 1.
    • The Enterprise segment, through private 5G networks, could diversify the customer base beyond operators 1.

    What would break the thesis

    • Dependence on operators' investment budgets makes revenues sensitive to economic cycles and customer decisions 1.
    • Intense global competition could pressure prices and margins, particularly in cost-sensitive markets 1.
    • High research spending could remain a pressure on profitability if revenues do not grow enough 1.

    What to watch

    • Development of research and development spending and its effect on marginsnext 10-K
    • Trends in operator investment in 5G and programmable networks2027
    • Development of the Enterprise segment and private 5G networks2027
    • Changes to sanctions and trade regulations affecting operationsnext 10-K

    Products, market & competition

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    Possibly outdated: the newest document it read is from 12 Mar 2026; since then the company filed 6-K (02 Nov 2026), 6-K (26 Oct 2026), 6-K (19 Oct 2026), 6-K (15 Oct 2026), 6-K (13 Oct 2026).

    The business

    Telefonaktiebolaget LM Ericsson (publ) is a Swedish limited liability company incorporated in 1918, with headquarters in Kista near Stockholm 1. The company provides mobile connectivity solutions to communications service providers, enterprises and the public sector, built on programmable and energy-efficient networks 1. Class A and B shares trade on Nasdaq Stockholm, and American Depository Shares, each representing one Class B share, trade on NASDAQ New York 1.

    The company's value chain spans the extraction and processing of raw materials used in electronic components through to communication services for end users 1. In 2025 the company had approximately 15,000 active direct suppliers, of which approximately 200 provided materials and components for Ericsson's hardware 1. Regional supply hubs are located in Sweden, Belgium, Germany, The Netherlands, the United States, Mexico, the United Arab Emirates, India, Malaysia, Singapore and China 1.

    The company's origins date to 1876, when it began repairing telegraph instruments before manufacturing its first telephones 1. A patent portfolio of more than 60,000 granted patents is licensed globally on fair, reasonable and nondiscriminatory terms 1. The company focuses on programmable networks, open ecosystems and artificial intelligence to improve network performance and reduce energy consumption 1.

    Segments

    Networks

    The Networks segment supplies mobile network infrastructure to communications service providers and is the company's core technology business 1.

    Cloud Software and Services

    The Cloud Software and Services segment provides cloud software and services for programmable networks, including platforms that support application development on the network 1.

    Enterprise

    The Enterprise segment includes the Global Communications Platform, Wireless Wide Area Networks and private 5G networks, along with investment in network APIs for developers 1.

    Market context

    Ericsson operates mainly in the market for mobile network equipment and software, where customers are telecom operators, businesses and public institutions 1. 5G and future technologies are central to the strategy, and around 50% of the world's mobile 5G traffic excluding China is carried over Ericsson radio networks 1.

    Demand depends on operators' investment cycles and on enterprise adoption of private networks, and seasonality affects quarterly results 1. Research and development expenses of 48.9 bn SEK in 2025, compared with 53.5 bn SEK in 2024, show that the market requires continuous investment 1.

    Trends

    • Programmable networks and artificial intelligencetailwind

      Operators are moving their networks toward programmability and automation, which could increase demand for Ericsson software and services if adoption continues 1.

    • Research and development investmentmixed

      The high level of research spending could pressure margins in the short term, while supporting the company's technology position 1.

    • Private 5G networks for enterprisestailwind

      Growing enterprise interest in private 5G networks could open new revenue sources in the Enterprise segment 1.

    • Regulation and trade sanctionsheadwind

      Trade restrictions and sanctions, including the wind-down of activities in Iran, could limit certain markets and supply chains 1.

    Competitive position

    The mobile network equipment market is competitive, and the company faces global rivals offering similar solutions to operators and enterprises 1. Its advantage lies in its patent portfolio and 5G position, but competitive pressure can affect pricing 1.

    Competition takes place across network hardware as well as software and cloud services, where technology providers may compete directly with the company 1. Supply chain consolidation and diversified production hubs are means by which the company can protect its position 1.

    • Nokia

      A European mobile network equipment provider competing directly in 5G infrastructure, programmable networks and private networks. It has no US-listed ordinary shares, so the symbol is null 1.

    • Huawei

      A major global competitor in mobile network infrastructure with a strong presence in Asia and other regions. It has no US-listed shares, so the symbol is null 1.

    • ZTE

      A Chinese telecommunications equipment provider present in markets where operators seek network and 5G solutions. It is not US-listed, so the symbol is null 1.

    • Cisco SystemsCSCO

      A network infrastructure and software provider that can compete in enterprise solutions and private network offerings 1.

    News & filings

    In the press

    Sources

    1. [1] Form 20-F, fiscal year ended 2025-12-31 · SEC / Telefonaktiebolaget LM Ericsson (publ) · 12 Mar 2026

    Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.