Equity Profile

ERIC

Telefonaktiebolaget LM Ericsson (publ)

Information TechnologyCommunications Equipment$41.7B

Jul14Tue

Pre-Earnings Brief

UpcomingQ2-2026Pre-Market9:00 AM EDT

Company Snapshot

Telefonaktiebolaget LM Ericsson (publ), known as Ericsson, operates in the Information Technology sector, focusing on communications equipment. The company plays a crucial role in the telecommunications industry, providing technology and services that enable mobile networks and connectivity, which are essential as demand for high-speed internet and 5G technology grows.

Key Metrics to Watch

EPS

Earnings per share will indicate the company's profitability and how well it is managing costs, especially after a significant miss last quarter.

$0.11

Revenue Growth

Revenue growth is critical to assess whether the company is gaining market share and capitalizing on the increasing demand for communication technologies.

N/A

1 more metrics, 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. This disappointing result led to a 6.5% drop in stock price the following day, raising concerns about the company's growth trajectory.

Management Promises & Guidance

Focus on improving operational efficiency.
Commitment to expanding 5G technology offerings.
Plans to enhance customer engagement and support.

Expectations

Wall Street Expectations

Overall, analysts are cautious heading into this earnings report, especially after the significant earnings miss last quarter. Investors are looking for signs of recovery and growth.

Bull Case

If Ericsson can demonstrate strong EPS growth and solid revenue from 5G deployments, it could restore investor confidence and drive the stock higher.

Bear Case

Conversely, if the company fails to meet earnings expectations again or provides weak guidance, it could lead to further declines in stock price.

Key Metrics to Watch

EPS

$0.11

Earnings per share will indicate the company's profitability and how well it is managing costs, especially after a significant miss last quarter.

Revenue Growth

N/A

Revenue growth is critical to assess whether the company is gaining market share and capitalizing on the increasing demand for communication technologies.

5G Network Deployments

N/A

Updates on 5G deployments will provide insight into Ericsson's competitive position and future revenue potential in a rapidly evolving market.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will be the EPS for Q2-2026?

This will be a key indicator of the company's financial health and ability to recover from the previous quarter's miss.

How much revenue growth is expected from 5G deployments?

Given the industry's shift towards 5G, this metric will be crucial for assessing future growth potential and market competitiveness.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for a strong recovery in EPS driven by improved 5G deployments, which could lead to better-than-expected revenue growth.

Supporting Evidence

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

The options market is pricing a larger move than the historical average, indicating potential for volatility that could favor a rebound.

Key Risk

If 5G revenue exceeds expectations significantly, it could shift the narrative around Ericsson's growth potential.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core debate this quarter revolves around whether Ericsson can rebound from its recent earnings miss and capitalize on the growing demand for 5G technology.

Bull Confirmed If

An EPS of $0.11 or better, alongside positive commentary on 5G revenue growth.

Bear Confirmed If

An EPS below $0.03, indicating ongoing struggles with profitability.

Pre-Earnings Positioning

Options Market

Implied Move

±12.24%

Historical Avg

±9.7%

Pricing rich

The options market is pricing in a significant move, suggesting that investors expect 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)

Edge

Historical Setup Match

Cross-company pattern from 29 similar setups.

Prior-quarter miss + options pricing rich setup 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 the stock could rise by around 7.2%, confirming a recovery narrative.

In-Line / Cautious

If results are in line but cautious, the stock may experience muted movement as investors await clearer guidance.

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 contracts and their expected revenue impact.
2Management's commentary on operational efficiency improvements.
3Insights into customer demand trends for communication equipment.
4Guidance on future earnings expectations and market conditions.
5Discussion of competitive positioning in the telecommunications sector.

See the full picture

AI-powered briefs, options data, and 20 quarters of history — everything you need before earnings.

No charge today · Auto-bills $8/mo after 7 days · Cancel anytime

More Earnings This Week

5 Reports

Fastenal Company

Company Snapshot

Key Metrics to Watch

EPS

Earnings per share will indicate the company's profitability and how well it is managing costs, especially after a significant miss last quarter.

$0.11

Revenue Growth

Revenue growth is critical to assess whether the company is gaining market share and capitalizing on the increasing demand for communication technologies.

N/A

1 more metrics, 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

Focus on improving operational efficiency.
Commitment to expanding 5G technology offerings.
Plans to enhance customer engagement and support.

Expectations

Wall Street Expectations

Overall, analysts are cautious heading into this earnings report, especially after the significant earnings miss last quarter. Investors are looking for signs of recovery and growth.

Bull Case

If Ericsson can demonstrate strong EPS growth and solid revenue from 5G deployments, it could restore investor confidence and drive the stock higher.

Bear Case

Conversely, if the company fails to meet earnings expectations again or provides weak guidance, it could lead to further declines in stock price.

Key Metrics to Watch

EPS

$0.11

Earnings per share will indicate the company's profitability and how well it is managing costs, especially after a significant miss last quarter.

Revenue Growth

N/A

Revenue growth is critical to assess whether the company is gaining market share and capitalizing on the increasing demand for communication technologies.

5G Network Deployments

N/A

Updates on 5G deployments will provide insight into Ericsson's competitive position and future revenue potential in a rapidly evolving market.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will be the EPS for Q2-2026?

This will be a key indicator of the company's financial health and ability to recover from the previous quarter's miss.

How much revenue growth is expected from 5G deployments?

Given the industry's shift towards 5G, this metric will be crucial for assessing future growth potential and market competitiveness.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for a strong recovery in EPS driven by improved 5G deployments, which could lead to better-than-expected revenue growth.

Supporting Evidence

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

The options market is pricing a larger move than the historical average, indicating potential for volatility that could favor a rebound.

Key Risk

If 5G revenue exceeds expectations significantly, it could shift the narrative around Ericsson's growth potential.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core debate this quarter revolves around whether Ericsson can rebound from its recent earnings miss and capitalize on the growing demand for 5G technology.

Bull Confirmed If

An EPS of $0.11 or better, alongside positive commentary on 5G revenue growth.

Bear Confirmed If

An EPS below $0.03, indicating ongoing struggles with profitability.

Pre-Earnings Positioning

Options Market

Implied Move

±12.24%

Historical Avg

±9.7%

Pricing rich

The options market is pricing in a significant move, suggesting that investors expect 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)

Edge

Historical Setup Match

Cross-company pattern from 29 similar setups.

Prior-quarter miss + options pricing rich setup 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 the stock could rise by around 7.2%, confirming a recovery narrative.

In-Line / Cautious

If results are in line but cautious, the stock may experience muted movement as investors await clearer guidance.

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 contracts and their expected revenue impact.
2Management's commentary on operational efficiency improvements.
3Insights into customer demand trends for communication equipment.
4Guidance on future earnings expectations and market conditions.
5Discussion of competitive positioning in the telecommunications sector.