SSE$ERIC
Telefonaktiebolaget LM Ericsson · Q4 2025 earnings
Q4 2025 earnings · · Before market open · Investor relations
Briefing
Ericsson reported solid execution with positive net income and organic growth across all segments.
Ericsson delivered strong Q4 results with organic sales growth, particularly in Cloud Software and Services. Net income rose significantly year-over-year, supported by improved margins and lower operating expenses.
- Net income reached SEK 8.6 billion, up from SEK 4.9 billion the previous year.
- Cloud Software and Services segment achieved 12% organic sales growth.
- Adjusted EBITA margin improved to 18.3%.
- Free cash flow before M&A was SEK 14.9 billion.
Headline financials
Revenue & EPS history
Ericsson · Revenue · Quarterly
$7.52B
Forward guidance
Ericsson expects the RAN market to remain flat in 2026, while targeting growth in mission critical and enterprise markets. The company plans to increase investments in defense and optimize costs to sustain margins and cash flow.
Tailwinds
- RAN market expected to remain stable in 2026.
- Enterprise and mission critical markets forecasted to grow.
- Company to maintain strong R&D investments in AI-native networks.
- Operational cost optimization will continue.
- Board proposed dividend increase and SEK 15B share buyback.
Headwinds
- Reduced network investments in key markets like India and Latin America.
- IPR licensing revenue slightly declined YoY.
- Enterprise segment continues to face profitability challenges.
- Currency headwinds impacted gross income and margins.
- Ongoing legal uncertainties and investigations remain unresolved.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 3 quarterly earnings reports · overlaid with Q4 2025
-3.3%
Avg return
Earnings day
-0.4%
Avg return
5 days after
+0.2%
Avg return
30 days after
0%
0 / 3 earnings
Positive
-0.3%
Q4 2025
Best reaction
-7.9%
Q2 2025
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q4 2025 | -0.3% | +3.9% | +3.7% | |
| Q2 2025 | -7.9% | -4.8% | -2.9% | |
| Q4 2024 | -1.6% | -0.2% | +0.0% |
Discussion
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