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 for telecommunications companies. As the demand for 5G and advanced network solutions grows, Ericsson plays a crucial role in shaping the future of connectivity in the Information Technology sector.

Key Metrics to Watch

EPS

Earnings per share (EPS) is a key indicator of profitability and will show how well the company is managing costs and generating income.

$0.11

Revenue

Revenue figures will provide insight into overall sales performance and market demand for Ericsson's products and services.

$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, which was significantly below the expected $0.11, resulting in a 6.5% drop in stock price the following day. The company did not provide revenue figures for the quarter.

Management Promises & Guidance

Expectations

Wall Street Expectations

Analysts are cautiously optimistic about Ericsson's upcoming earnings, expecting a rebound in EPS and revenue after a disappointing last quarter. The consensus estimates suggest a modest recovery in performance.

Bull Case

If Ericsson meets or exceeds the EPS and revenue estimates, it could signal a strong recovery and renewed investor confidence, potentially driving the stock higher.

Bear Case

Conversely, if the company fails to meet expectations again, it could raise concerns about its operational efficiency and future growth prospects, leading to further declines in stock price.

Key Metrics to Watch

EPS

$0.11

Earnings per share (EPS) is a key indicator of profitability and will show how well the company is managing costs and generating income.

Revenue

$54.1B

Revenue figures will provide insight into overall sales performance and market demand for Ericsson's products and services.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will EPS exceed the consensus estimate of $0.11?

A beat on EPS would signal improved profitability and could boost investor confidence after the last quarter's disappointment.

What revenue figure will Ericsson report, and how does it compare to the $54.1B consensus?

Revenue performance is critical to understanding market demand and the company's growth trajectory, especially after not reporting revenue last quarter.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for a strong rebound in demand for Ericsson's products, especially in the 5G space, which could lead to better-than-expected revenue.

Supporting Evidence

The options market is pricing a larger move than the historical average, indicating heightened expectations.

Ericsson's previous performance shows a tendency to rebound after disappointing quarters, suggesting a potential for recovery.

The company has a strong pipeline of 5G projects that may not be fully reflected in current estimates.

Key Risk

If revenue exceeds $56.5B, it could challenge the current bearish sentiment and shift market expectations.

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 looking for signs of recovery.

Bull Confirmed If

An EPS of $0.12 or higher, along with revenue exceeding $56.5B, would confirm the bullish outlook.

Bear Confirmed If

An EPS below $0.09 and revenue under $52.5B would validate the bearish concerns.

Pre-Earnings Positioning

Options Market

Implied Move

±12.24%

Historical Avg

±9.7%

Pricing rich

The options market is pricing in a significant potential movement in the stock, indicating 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)

Preparation

Post-Print Playbook

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 recovery narrative.

In-Line / Cautious

If results are in line with estimates, the stock may react cautiously, reflecting uncertainty in management's outlook.

Miss

A miss could lead to a decline of about 5.5%, reinforcing concerns about the company's operational challenges.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on 5G project rollouts and their impact on revenue.
2Management's commentary on cost management and operational efficiency.
3Insights into customer demand trends and order backlog.
4Details on competitive positioning in the communications equipment market.
5Any forward-looking statements regarding guidance for the next quarter.

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Company Snapshot

Key Metrics to Watch

EPS

Earnings per share (EPS) is a key indicator of profitability and will show how well the company is managing costs and generating income.

$0.11

Revenue

Revenue figures will provide insight into overall sales performance and market demand for Ericsson's products and services.

$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

If Ericsson meets or exceeds the EPS and revenue estimates, it could signal a strong recovery and renewed investor confidence, potentially driving the stock higher.

Bear Case

Conversely, if the company fails to meet expectations again, it could raise concerns about its operational efficiency and future growth prospects, leading to further declines in stock price.

Key Metrics to Watch

EPS

$0.11

Earnings per share (EPS) is a key indicator of profitability and will show how well the company is managing costs and generating income.

Revenue

$54.1B

Revenue figures will provide insight into overall sales performance and market demand for Ericsson's products and services.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will EPS exceed the consensus estimate of $0.11?

A beat on EPS would signal improved profitability and could boost investor confidence after the last quarter's disappointment.

What revenue figure will Ericsson report, and how does it compare to the $54.1B consensus?

Revenue performance is critical to understanding market demand and the company's growth trajectory, especially after not reporting revenue last quarter.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for a strong rebound in demand for Ericsson's products, especially in the 5G space, which could lead to better-than-expected revenue.

Supporting Evidence

The options market is pricing a larger move than the historical average, indicating heightened expectations.

Ericsson's previous performance shows a tendency to rebound after disappointing quarters, suggesting a potential for recovery.

The company has a strong pipeline of 5G projects that may not be fully reflected in current estimates.

Key Risk

If revenue exceeds $56.5B, it could challenge the current bearish sentiment and shift market expectations.

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 looking for signs of recovery.

Bull Confirmed If

An EPS of $0.12 or higher, along with revenue exceeding $56.5B, would confirm the bullish outlook.

Bear Confirmed If

An EPS below $0.09 and revenue under $52.5B would validate the bearish concerns.

Pre-Earnings Positioning

Options Market

Implied Move

±12.24%

Historical Avg

±9.7%

Pricing rich

The options market is pricing in a significant potential movement in the stock, indicating 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)

Preparation

Post-Print Playbook

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 recovery narrative.

In-Line / Cautious

If results are in line with estimates, the stock may react cautiously, reflecting uncertainty in management's outlook.

Miss

A miss could lead to a decline of about 5.5%, reinforcing concerns about the company's operational challenges.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on 5G project rollouts and their impact on revenue.
2Management's commentary on cost management and operational efficiency.
3Insights into customer demand trends and order backlog.
4Details on competitive positioning in the communications equipment market.
5Any forward-looking statements regarding guidance for the next quarter.