Equity Profile

ERIC

Telefonaktiebolaget LM Ericsson (publ)

Information TechnologyCommunications Equipment$33.6B

Jul14Tue

Pre-Earnings Brief

UpcomingQ2-2026Pre-Market9:00 AM EDT

Company Snapshot

Telefonaktiebolaget LM Ericsson (publ) is a leading company in the Information Technology sector, specializing in communications equipment. As the demand for advanced telecommunications infrastructure grows, Ericsson plays a crucial role in enabling 5G networks and other communication technologies that are essential for global connectivity.

Key Metrics to Watch

EPS

Earnings per share is a key indicator of the company's profitability and will show how well Ericsson is managing costs and generating income.

$0.11

Revenue

Total revenue reflects the company's overall sales performance and demand for its products and services, particularly in a competitive market.

$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 disappointing results raised concerns about the company's ability to meet market expectations.

Management Promises & Guidance

Expectations

Wall Street Expectations

Analysts are cautiously optimistic about Ericsson's upcoming earnings, expecting a rebound in both EPS and revenue. However, the recent miss has created a more skeptical outlook among investors.

Bull Case

If Ericsson can exceed the consensus EPS and revenue estimates, it may signal a strong recovery and renewed confidence in its growth strategy, potentially leading to a positive stock reaction.

Bear Case

Conversely, if the company fails to meet expectations again, it could further erode investor confidence and lead to a significant decline in stock price.

Key Metrics to Watch

EPS

$0.11

Earnings per share is a key indicator of the company's profitability and will show how well Ericsson is managing costs and generating income.

Revenue

$54.1B

Total revenue reflects the company's overall sales performance and demand for its products and services, particularly in a competitive market.

Expectations

Two Questions That Matter

The print will turn on these two things.

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

Given the significant miss last quarter, meeting or exceeding this EPS target is crucial for restoring investor confidence.

How will revenue compare to the expected $54.1 billion?

Revenue performance is critical to understanding demand for Ericsson's products and services, especially in the competitive communications market.

Edge

What the Street Is Missing

Why consensus could be wrong

The consensus may underestimate the potential for a recovery in demand for Ericsson's products, especially with increasing global investments in 5G infrastructure.

Supporting Evidence

Historically, Ericsson has a 63% EPS beat rate, suggesting a strong potential for positive surprises.

The options market is pricing in a larger move than the historical average, indicating that traders expect significant volatility.

The recent drop in stock price may have created a buying opportunity for investors looking for a rebound.

Key Risk

If revenue comes in above $56.5 billion, it could significantly shift the market's perception of Ericsson's growth potential.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is pivotal as it follows a significant earnings miss, and investors are keen to see if the company can turn things around.

Bull Confirmed If

An EPS of $0.11 or higher, coupled with revenue exceeding $54.1 billion, would confirm a strong recovery.

Bear Confirmed If

An EPS below $0.09 or revenue under $52.5 billion would indicate ongoing challenges for the company.

Pre-Earnings Positioning

Options Market

Implied Move

±12.24%

Historical Avg

±9.7%

Pricing rich

The options market is pricing in a substantial move, indicating that traders expect significant volatility around the earnings announcement.

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)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Ericsson beats expectations, history suggests the stock could rise by about 7.2%, confirming a positive turnaround narrative.

In-Line / Cautious

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

Miss

If the company misses again, the stock could drop by around 5.45%, reflecting ongoing concerns about its performance.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on 5G deployment progress and its impact on revenue.
2Management's outlook on future demand for telecommunications equipment.
3Details on cost management strategies and their effectiveness.
4Insights into competitive pressures and market share performance.
5Any commentary on partnerships or contracts that could drive future growth.

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Company Snapshot

Key Metrics to Watch

EPS

Earnings per share is a key indicator of the company's profitability and will show how well Ericsson is managing costs and generating income.

$0.11

Revenue

Total revenue reflects the company's overall sales performance and demand for its products and services, particularly in a competitive market.

$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

Analysts are cautiously optimistic about Ericsson's upcoming earnings, expecting a rebound in both EPS and revenue. However, the recent miss has created a more skeptical outlook among investors.

Bull Case

If Ericsson can exceed the consensus EPS and revenue estimates, it may signal a strong recovery and renewed confidence in its growth strategy, potentially leading to a positive stock reaction.

Bear Case

Conversely, if the company fails to meet expectations again, it could further erode investor confidence and lead to a significant decline in stock price.

Key Metrics to Watch

EPS

$0.11

Earnings per share is a key indicator of the company's profitability and will show how well Ericsson is managing costs and generating income.

Revenue

$54.1B

Total revenue reflects the company's overall sales performance and demand for its products and services, particularly in a competitive market.

Expectations

Two Questions That Matter

The print will turn on these two things.

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

Given the significant miss last quarter, meeting or exceeding this EPS target is crucial for restoring investor confidence.

How will revenue compare to the expected $54.1 billion?

Revenue performance is critical to understanding demand for Ericsson's products and services, especially in the competitive communications market.

Edge

What the Street Is Missing

Why consensus could be wrong

The consensus may underestimate the potential for a recovery in demand for Ericsson's products, especially with increasing global investments in 5G infrastructure.

Supporting Evidence

Historically, Ericsson has a 63% EPS beat rate, suggesting a strong potential for positive surprises.

The options market is pricing in a larger move than the historical average, indicating that traders expect significant volatility.

The recent drop in stock price may have created a buying opportunity for investors looking for a rebound.

Key Risk

If revenue comes in above $56.5 billion, it could significantly shift the market's perception of Ericsson's growth potential.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is pivotal as it follows a significant earnings miss, and investors are keen to see if the company can turn things around.

Bull Confirmed If

An EPS of $0.11 or higher, coupled with revenue exceeding $54.1 billion, would confirm a strong recovery.

Bear Confirmed If

An EPS below $0.09 or revenue under $52.5 billion would indicate ongoing challenges for the company.

Pre-Earnings Positioning

Options Market

Implied Move

±12.24%

Historical Avg

±9.7%

Pricing rich

The options market is pricing in a substantial move, indicating that traders expect significant volatility around the earnings announcement.

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)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Ericsson beats expectations, history suggests the stock could rise by about 7.2%, confirming a positive turnaround narrative.

In-Line / Cautious

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

Miss

If the company misses again, the stock could drop by around 5.45%, reflecting ongoing concerns about its performance.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on 5G deployment progress and its impact on revenue.
2Management's outlook on future demand for telecommunications equipment.
3Details on cost management strategies and their effectiveness.
4Insights into competitive pressures and market share performance.
5Any commentary on partnerships or contracts that could drive future growth.