YouTube · Q3 FY2026 · 2026-05-11
ERIC · NasdaqGS
Telefonaktiebolaget LM Ericsson (publ)
Communication Equipment · Sweden
USD 11.08-0.9% daily changeQuote 2026-11-02 · USD
- Market cap (USD)
- US$35.91B
- Trailing P/E
- 18.16x
- Forward P/E
- 17.57x
- Quarterly revenue growth
- 5.8%
- Trailing net margin
- 8.4%
- Indicated dividend yield
- 2.9%
Snapshot 2026-11-03 · Latest financial period 2026-09-30 · Yahoo Finance. Quotes may be delayed; reporting periods can differ.
Next earnings: 2027-01-22 (provider estimate; issuer confirmation unavailable here).
Company background
Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to communications service providers, enterprises, and the public sector in the Americas, Europe, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and India. It operates through Networks; Cloud Software and Services; Enterprise; and Other segments. The Networks segment offers hardware, software, and service offerings for intelligent, reliable and flexible 5G networks. This segment also provides energy-efficient RAN with an AI-native software architecture deployable on Ericsson silicon and third-party CPUs/GPUs; transport networks; and active/ passive antennas, as well as deployment and lifecycle management services. The Cloud Software and Services segment provides core networks, network management, business and operations support systems, and network operations delivered as managed services, including secure data and voice connectivity, service monetization and orchestration tools, and network management services. The Enterprise segment offers intelligent networking and advanced communications software solutions comprising global communications platform, wireless wide area networks (WWAN), and private 5G networks. The Other segment includes RedBee Media that prepares and distributes live and on-demand video services for broadcasters, sports leagues, and communications service providers. The company has a strategic collaboration with T-Mobile US, Inc for the development of AI-native Scheduler with Link Adaptation software. The company was formerly known as Allmanna Telefon AB LM Ericsson and changed its name to Telefonaktiebolaget LM Ericsson (publ) in January 1926. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.
Company websiteQ3 2026
Go beyond the headline.
ERIC Stock: Profit Fell, But the Comparison Is the Trap — Q3 2026
Published 2026-10-15
Q3 2026 REPORT HIGHLIGHTS
What’s changed for ERIC
Ericsson’s underlying operating improvement, cash conversion and dated per-ADS valuation after the Q3 earnings release.
Normalize the comparison, not every cost.
Prior adjusted EBITA still included the SEK 7.6bn iconectiv gain. Removing that disclosed gain gives a different operating story.
Licensing helped the margin.
IPR revenue rose to SEK 3.9bn, partly from previously unlicensed periods. Annualized recurring IPR was approximately SEK 13.5bn.
Cash is less flattering than earnings.
Inventory consumed SEK 4.086bn this quarter and SEK 10.438bn year to date. FCF before M&A was SEK 4.902bn.
Keep the share and currency units straight.
One US ADS represents one B share. Accounts are in SEK; valuations are USD per ADS at the dated 9.9473 SEK/USD reference.
The market already rewarded the improvement.
The ADS rose 11.8% from the prior close. Our base cash assumptions support a value below the resulting $10.71 price.
Comparable businesses
ERIC peer comparison
Same business group first, then company size. Preferred market cap: 0.5–2x; extended range: one-third–3x. Outside that range, industry benchmarks are labeled separately and excluded from peer medians.
| Metric | ERICTelefonaktiebolaget LM Ericsson (publ)Snapshot 2026-11-03Financial period: 2026-09-30 | UIUbiquiti Inc.Snapshot 2026-11-03Financial period: 2026-06-30 | CIENCiena CorporationSnapshot 2026-11-03Financial period: 2026-08-01 | Peer medianSimilar-size peers only |
|---|---|---|---|---|
| Market capMarket value, converted to USD | US$35.91B | US$32.68B | US$40.32B | US$36.50Bn=2 |
| Forward P/EProvider forward earnings estimate | 17.57x | 27.58x | 23.97x | 25.78xn=2 |
| EV / EBITDAEnterprise value / trailing EBITDA | — | 26.70x | 39.96x | 33.33xn=2 |
| Revenue growthLatest quarter vs prior-year quarter | 5.8% | 23.5% | 37.0% | 30.2%n=2 |
| Operating marginLatest reported quarter | 0.0% | 36.3% | 18.1% | 27.2%n=2 |
| Free cash flow yieldTrailing cash flow / market cap | — | 2.2% | 1.6% | 1.9%n=2 |
| Net debt / EBITDANet debt / trailing EBITDA | — | -0.44x | 0.64x | 0.10xn=2 |
| Debt / equityTotal debt / positive book equity | 0.41x | 0.06x | 1.07x | 0.57xn=2 |
| Trailing P/ETrailing twelve-month earnings | 18.16x | 34.07x | 63.61x | 48.84xn=2 |
| Price / bookPrice / positive book equity per share | 0.36x | 22.70x | 13.20x | 17.95xn=2 |
| EV / salesEnterprise value / trailing revenue | — | 9.82x | 6.81x | 8.31xn=2 |
| Earnings growthLatest quarter vs prior-year quarter | -46.8% | 6.8% | 422.9% | 214.9%n=2 |
| Gross marginTrailing twelve months | 48.0% | 46.2% | 44.1% | 45.1%n=2 |
| Net marginTrailing twelve months | 8.4% | 29.3% | 10.9% | 20.1%n=2 |
| Return on equityProvider trailing return; positive equity only | 18.1% | 91.1% | 22.4% | 56.7%n=2 |
| Free cash flow marginTrailing free cash flow / revenue | — | 21.7% | 10.5% | 16.1%n=2 |
| Dividend yieldIndicated annual dividend / price | 2.9% | 0.7% | — | — |
| Earnings payoutProvider trailing dividend payout | 51.7% | 20.2% | 0.0% | 10.1%n=2 |
| Current ratioCurrent assets / current liabilities | 1.16x | 2.93x | 3.80x | 3.36xn=2 |
| BetaProvider historical market sensitivity | 0.50 | 1.34 | 1.35 | 1.35n=2 |
YouTube · Q3 FY2026 · 2026-05-11
YouTube · Q3 FY2026 · 2026-09-08
Comparison methodology & limitations
Reviewed operating groups override broad sector classifications. Other companies are matched only within a sufficiently specific provider industry. Business mix, geography and accounting standards can still differ. Market caps are converted to USD using exchange rates captured during the snapshot refresh. Financial ratios that would mix currencies are omitted. Snapshots must be at most 14 days old and no more than seven days apart for automatic selection.
Peer medians require at least two valid similar-size peers for each metric. Negative earnings, nonpositive equity, missing data and irrelevant bank ratios are not presented as attractive valuations. A higher or lower number is not automatically a better investment. Financial statement periods are not calendar-aligned across companies.
Reported performance
Financial trends
Periods are grouped by their ending calendar year or quarter, not identical fiscal calendars. Exact period-end dates appear in tooltips and reported figures. When reporting currencies differ and a recent captured FX rate is available, money and EPS are normalized to USD for comparison. This is not a historical FX restatement. Gaps are not estimated.
Financial statements load separately from the research page.
Source: . Window ends at the latest available reporting period.
Revenue
Reported figures
Financial data & calculation notes
Standalone charts use the stated reporting currency. When a chart comparison spans currencies, money and EPS can be normalized to USD using a recent captured FX snapshot; this is for comparison only, not a historical FX restatement. Stock-based compensation is noncash. Free cash flow is operating cash flow less capital spending, which may include capitalized software. Missing metrics are not estimated or assumed to be zero. Banking and insurance ratios require industry-specific interpretation. Latest restatements may differ from figures in older episodes.
Market context
Valuation & price history
Adjusted closing price
Price history loads separately.
Price figures
Earnings-multiple scenario
Illustrative price = your earnings-per-share assumption × your P/E assumption. This is not a price target or a complete valuation model.
Starting assumptions, when available, use provider forward estimates as of 2026-11-03. Negative earnings require a different valuation method. This calculation omits balance-sheet, dilution and execution risks.
THE RESEARCH RECORD
Research history for ERIC
Q3 20262026-10-15
FREE RESEARCH PACKET · Q3 2026
ERIC: Profit Fell, But the Comparison Is the Trap
Ericsson’s underlying operating improvement, cash conversion and dated per-ADS valuation after the Q3 earnings release.
Research published October 15, 2026 · Download original report
Read Research PacketERIC Stock: Profit Fell, But the Comparison Is the Trap — Q3 2026
Presentation · 2026-10-15 · YouTube
Q2 20262026-07-15
ERIC Stock: Ericsson Beat on Profit and Fell 13% — Blame AI
Presentation · 2026-07-15 · YouTube
