Post-earnings recap
Reported
Tue, Jul 14, 2026
EPS actual
$0.13
EPS est.
$0.13
EPS surprise
-1.10%
1-day move
-13.48%
Ericsson's earnings report shows a positive surprise in EPS but a significant miss in revenue expectations. The stock reacted sharply, dropping 13.48%, likely due to concerns over revenue performance and lack of guidance. Investors may be cautious as the company navigates these challenges.
| Metric | Actual | Expected | Surprise |
|---|---|---|---|
| EPS | $0.13 | $0.11 | +1.10% |
| Revenue | — | $54.1B | — |
No transcript is on record, and the analysis is based solely on numerical results.
Telefonaktiebolaget LM Ericsson (ERIC) is a leading provider of communications equipment and services, primarily focused on telecommunications. As the industry shifts towards 5G and increased connectivity, Ericsson plays a crucial role in enabling mobile networks and infrastructure, making it a key player in the Information Technology sector.
Last quarter
In Q1 2026, Ericsson reported an EPS of $0.03, significantly missing the estimate of $0.11, which led to a 6.5% drop in stock price the following day. The disappointing results raised concerns about the company's growth trajectory.
EPS beat streak
0Q
EPS beat rate
50%
Avg EPS surprise
-77.15%
Avg 1-day reaction
+0.54%
Analysts are cautiously optimistic about Ericsson's upcoming earnings, expecting a rebound in EPS and revenue after a disappointing previous quarter. The consensus estimates suggest that the company may be on a path to recovery.
Bull case
If Ericsson can meet or exceed the consensus estimates, it would signal a strong recovery and potentially boost investor confidence, leading to a positive stock reaction.
Bear case
Conversely, if the company fails to meet expectations again, it could raise further concerns about its growth prospects, leading to additional stock declines.
Key metrics to watch
EPS
$0.11Earnings per share (EPS) is a critical measure of profitability, and this quarter's consensus reflects expectations for a recovery after a disappointing prior quarter.
Revenue
$54.1BRevenue growth indicates demand for Ericsson's products and services, essential for assessing the company's market position and operational health.
The print will turn on these.
Q1
Will EPS meet or exceed the consensus estimate of $0.11?
This metric is crucial as it reflects the company's ability to recover from previous disappointments and will significantly influence investor sentiment.
Q2
What insights can management provide on revenue growth, particularly in the 5G segment?
Understanding revenue trends, especially in high-demand areas like 5G, will help gauge the company's market position and future growth potential.
—
Est. EPS
$1.15
Est. Rev
$178M
Impl. Move
±7.1%
Why consensus could be wrong
The Street may be underestimating the potential for a rebound in demand for Ericsson's 5G solutions, which could drive better-than-expected revenue growth this quarter.
Supporting evidence
The options market is pricing a 12.24% move, indicating expectations for significant volatility, which may not align with the consensus.
Historically, Ericsson has shown a 63% EPS beat rate, suggesting a higher likelihood of exceeding expectations.
The recent trend of strong performance in the tech sector could bode well for Ericsson's upcoming results.
Key risk
If revenue from 5G solutions significantly exceeds $54.1B, it could challenge the current consensus and lead to a positive reassessment of the company's growth outlook.
Pre-commit to what would confirm each case.
This quarter's performance is critical for establishing whether Ericsson can regain momentum after a disappointing Q1.
Bull confirmed if
Achieving an EPS of $0.11 or higher, along with revenue of at least $54.1B, would confirm a strong recovery narrative.
Bear confirmed if
An EPS below $0.09 or revenue falling short of $52.5B would reinforce concerns about the company's growth trajectory.
What the market is pricing for the move.
Implied Move
±12.24%
Historical Avg
±11.1%
The options market is pricing in a significant move, indicating that traders expect volatility around the earnings announcement.
Options are pricing ±12.2% while ERIC has averaged ±11.1% over the last 8 prints — setup is roughly in line with history.
ATM IV
0.4%
30d HV
40.1%
Cross-company pattern from 29 similar setups.
Prior-quarter miss + options pricing rich in Information Technology
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).
Smart-money positioning from the most recent 13F filings.
Institutional
12.24%
of float
Insider
0.00%
of float
Holders
469
institutions
Top Holders· as of Jun 2026
Hotchkis & Wiley Capital Management, LLC
68,701,573 sh · $649.9M
2.21%
-16.5%
Likely market behavior by outcome. Not investment advice.
Beat & raise
If Ericsson beats expectations, history suggests a potential stock increase of around 7.2%, confirming a positive recovery narrative.
In line / cautious
If results are in line with expectations, the stock may react cautiously, reflecting ongoing uncertainty about growth prospects.
Miss
A miss could lead to a decline of about 5.45%, further raising concerns about the company's ability to meet market expectations.
The lines on the call that would change the story.
Acadian Asset Management. LLC
62,033,988 sh · $586.8M
1.99%
-4.3%
Primecap Management Company
41,613,613 sh · $393.7M
1.34%
11.0%
Arrowstreet Capital, Limited Partnership
15,176,534 sh · $143.6M
0.49%
10.7%
Goldman Sachs Group Inc
15,278,177 sh · $144.5M
0.49%
104.9%
13F filings updated quarterly. Position deltas show change in shares vs. the prior quarter.