Equity Profile

ERIC

Telefonaktiebolaget LM Ericsson (publ)

Information TechnologyCommunications Equipment$38.7B

Jul14Tue

Pre-Earnings Brief

UpcomingQ2-2026Pre-Market9:00 AM EDT

Company Snapshot

Telefonaktiebolaget LM Ericsson (ERIC) is a leading provider of communications equipment and services, primarily focused on mobile and broadband networks. As a key player in the Information Technology sector, Ericsson is crucial for enabling connectivity and supporting the growth of 5G technology, which is transforming various industries.

Key Metrics to Watch

EPS

Earnings per share is a critical measure of profitability and will indicate how well the company is managing costs and generating income.

$0.11

Revenue

Revenue growth reflects the company's ability to capture market demand, especially in the competitive communications equipment sector.

$54.1B

Wall Street expectations, options signals, track record, and call prep available with Pro.

ERIC Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

63%

Avg EPS Surprise

-70.69%

Avg Stock Reaction

+2.46%

Last Quarter Recap

In Q1 2026, Ericsson reported an EPS of $0.03, significantly missing the expected $0.11, which led to a 6.5% drop in stock price the following day. The company did not provide revenue figures or guidance, leaving investors uncertain about future performance.

Management Promises & Guidance

Expectations

Wall Street Expectations

Analysts expect a recovery in Q2 2026, with a consensus EPS of $0.11 and revenue of $54.1B, indicating optimism about improved operational performance. However, the recent earnings miss raises concerns about whether the company can meet these expectations.

Bull Case

If Ericsson can leverage its position in the 5G market and demonstrate strong revenue growth, it could exceed expectations and restore investor confidence. A solid performance could lead to a positive stock reaction.

Bear Case

Conversely, if the company fails to deliver on earnings or revenue targets again, it may face further declines in stock price and investor sentiment, particularly given the recent disappointing results.

Key Metrics to Watch

EPS

$0.11

Earnings per share is a critical measure of profitability and will indicate how well the company is managing costs and generating income.

Revenue

$54.1B

Revenue growth reflects the company's ability to capture market demand, especially in the competitive communications equipment sector.

Expectations

Two Questions That Matter

The print will turn on these two things.

Can Ericsson achieve an EPS of at least $0.11 this quarter?

This figure is crucial for restoring investor confidence after the significant miss last quarter.

What specific revenue growth can Ericsson report in the Q2 2026 earnings?

Revenue performance will indicate the company's ability to capitalize on the growing demand for 5G technology.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for a strong recovery in demand for 5G technology, which could drive better-than-expected results this quarter.

Supporting Evidence

The options market is pricing a 12.24% move, indicating expectations for volatility that may not align with the consensus.

Historically, Ericsson has a 63% beat rate, suggesting a higher likelihood of exceeding expectations.

Key Risk

If revenue growth exceeds $54.1B, it could significantly shift market sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is focused on whether Ericsson can recover from its recent earnings miss and show strong growth in a competitive environment.

Bull Confirmed If

Achieving an EPS of $0.11 or better with revenue exceeding $54.1B would confirm the bull case.

Bear Confirmed If

An EPS below $0.09 or revenue below $52.5B would support the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±12.24%

Historical Avg

±9.7%

Pricing rich

The options market is pricing in a significant move of over 12%, suggesting that traders expect volatility around the earnings report.

Options are pricing ±12.2% while ERIC has averaged ±9.7% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.4%

30d HV

40.1%

Calls (290K)P/C Ratio: 0.01Puts (3K)

Edge

Historical Setup Match

Cross-company pattern from 29 similar setups.

Prior-quarter miss + options pricing rich in Information Technology

n=29

Fade rate: 9 of 29 (31%)

This setup has occurred 29 times across Information Technology in the last 2 years. 20 of 29 (69%) held or extended their move within 5 days — this setup typically holds direction. The average absolute 1-day move is 8.2%, with a raw directional average of +3.5% (modestly positive historical bias).

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Ericsson beats expectations, history suggests a positive stock reaction of around 7.2%, confirming a recovery narrative.

In-Line / Cautious

If results are in line with expectations, the stock may experience muted movement as investors await further clarity from management.

Miss

A miss could lead to a decline of about 5.45%, reinforcing concerns about the company's growth trajectory.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on 5G deployment and customer demand.
2Details on cost management strategies and their impact on margins.
3Insights into competitive positioning against other telecommunications equipment providers.
4Management's outlook on future revenue growth and market opportunities.
5Any commentary on new contracts or partnerships that could drive growth.

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Company Snapshot

Key Metrics to Watch

EPS

Earnings per share is a critical measure of profitability and will indicate how well the company is managing costs and generating income.

$0.11

Revenue

Revenue growth reflects the company's ability to capture market demand, especially in the competitive communications equipment sector.

$54.1B

Wall Street expectations, options signals, track record, and call prep available with Pro.

ERIC Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

63%

Avg EPS Surprise

-70.69%

Avg Stock Reaction

+2.46%

Last Quarter Recap

Management Promises & Guidance

Expectations

Wall Street Expectations

Bull Case

Bear Case

Key Metrics to Watch

EPS

$0.11

Earnings per share is a critical measure of profitability and will indicate how well the company is managing costs and generating income.

Revenue

$54.1B

Revenue growth reflects the company's ability to capture market demand, especially in the competitive communications equipment sector.

Expectations

Two Questions That Matter

The print will turn on these two things.

Can Ericsson achieve an EPS of at least $0.11 this quarter?

This figure is crucial for restoring investor confidence after the significant miss last quarter.

What specific revenue growth can Ericsson report in the Q2 2026 earnings?

Revenue performance will indicate the company's ability to capitalize on the growing demand for 5G technology.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for a strong recovery in demand for 5G technology, which could drive better-than-expected results this quarter.

Supporting Evidence

The options market is pricing a 12.24% move, indicating expectations for volatility that may not align with the consensus.

Historically, Ericsson has a 63% beat rate, suggesting a higher likelihood of exceeding expectations.

Key Risk

If revenue growth exceeds $54.1B, it could significantly shift market sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is focused on whether Ericsson can recover from its recent earnings miss and show strong growth in a competitive environment.

Bull Confirmed If

Achieving an EPS of $0.11 or better with revenue exceeding $54.1B would confirm the bull case.

Bear Confirmed If

An EPS below $0.09 or revenue below $52.5B would support the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±12.24%

Historical Avg

±9.7%

Pricing rich

The options market is pricing in a significant move of over 12%, suggesting that traders expect volatility around the earnings report.

Options are pricing ±12.2% while ERIC has averaged ±9.7% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.4%

30d HV

40.1%

Calls (290K)P/C Ratio: 0.01Puts (3K)

Edge

Historical Setup Match

Cross-company pattern from 29 similar setups.

Prior-quarter miss + options pricing rich in Information Technology

n=29

Fade rate: 9 of 29 (31%)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Ericsson beats expectations, history suggests a positive stock reaction of around 7.2%, confirming a recovery narrative.

In-Line / Cautious

If results are in line with expectations, the stock may experience muted movement as investors await further clarity from management.

Miss

A miss could lead to a decline of about 5.45%, reinforcing concerns about the company's growth trajectory.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on 5G deployment and customer demand.
2Details on cost management strategies and their impact on margins.
3Insights into competitive positioning against other telecommunications equipment providers.
4Management's outlook on future revenue growth and market opportunities.
5Any commentary on new contracts or partnerships that could drive growth.