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 provider of communications equipment and services, playing a vital role in the global telecommunications industry. As 5G technology continues to expand, Ericsson's innovations in network infrastructure and software solutions are increasingly important for connectivity and digital transformation.

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of profitability and will show how well the company is managing costs and generating income.

$0.11

Revenue

Revenue growth is crucial for assessing overall business health 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, 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, creating uncertainty about its financial performance.

Management Promises & Guidance

Expectations

Wall Street Expectations

Analysts are cautiously optimistic about Ericsson's upcoming earnings, expecting a rebound in both EPS and revenue after a disappointing last quarter. The consensus is that the company may benefit from increased demand for 5G technology.

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 may raise concerns about its competitiveness and ability to capitalize on market opportunities, leading to further stock declines.

Key Metrics to Watch

Earnings Per Share (EPS)

$0.11

EPS is a key indicator of profitability and will show how well the company is managing costs and generating income.

Revenue

$54.1B

Revenue growth is crucial for assessing overall business health 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 strong EPS performance is critical for restoring investor confidence after a significant miss last quarter.

What are the revenue figures and growth outlook for 5G services?

Revenue growth, especially in the 5G segment, will indicate how well Ericsson is positioned in the competitive telecommunications market.

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 infrastructure, which could drive better-than-expected results.

Supporting Evidence

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

The options market is pricing a larger move than the stock has historically realized, indicating potential for a surprise.

Recent trends in telecommunications suggest a rebound in capital spending on network upgrades.

Key Risk

If 5G revenue growth exceeds expectations, it could invalidate the cautious outlook currently held by analysts.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is debating whether Ericsson can recover from its recent earnings miss and capitalize on the growing demand for 5G technology.

Bull Confirmed If

Achieving an EPS of $0.12 or higher with revenue exceeding $56.5B would confirm the bull case.

Bear Confirmed If

An EPS below $0.09 and revenue under $52.5B would solidify the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±12.2%

Historical Avg

±9.7%

Pricing rich

The options market is pricing in a significant move, 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 positive outlook.

In-Line / Cautious

If results are in line with expectations, the stock may see limited movement as investors await clearer guidance.

Miss

A miss could lead to a decline of approximately 5.5%, further eroding confidence in the company's growth prospects.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on 5G service adoption rates and customer contracts.
2Management's commentary on cost management and operational efficiency.
3Insights into competitive positioning against other telecom equipment providers.
4Future guidance on revenue growth in emerging markets.
5Any strategic partnerships or acquisitions that could impact growth.

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More Earnings This Week

5 Reports

Fastenal Company

Company Snapshot

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of profitability and will show how well the company is managing costs and generating income.

$0.11

Revenue

Revenue growth is crucial for assessing overall business health 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 may raise concerns about its competitiveness and ability to capitalize on market opportunities, leading to further stock declines.

Key Metrics to Watch

Earnings Per Share (EPS)

$0.11

EPS is a key indicator of profitability and will show how well the company is managing costs and generating income.

Revenue

$54.1B

Revenue growth is crucial for assessing overall business health 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 strong EPS performance is critical for restoring investor confidence after a significant miss last quarter.

What are the revenue figures and growth outlook for 5G services?

Revenue growth, especially in the 5G segment, will indicate how well Ericsson is positioned in the competitive telecommunications market.

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 infrastructure, which could drive better-than-expected results.

Supporting Evidence

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

The options market is pricing a larger move than the stock has historically realized, indicating potential for a surprise.

Recent trends in telecommunications suggest a rebound in capital spending on network upgrades.

Key Risk

If 5G revenue growth exceeds expectations, it could invalidate the cautious outlook currently held by analysts.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is debating whether Ericsson can recover from its recent earnings miss and capitalize on the growing demand for 5G technology.

Bull Confirmed If

Achieving an EPS of $0.12 or higher with revenue exceeding $56.5B would confirm the bull case.

Bear Confirmed If

An EPS below $0.09 and revenue under $52.5B would solidify the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±12.2%

Historical Avg

±9.7%

Pricing rich

The options market is pricing in a significant move, 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 positive outlook.

In-Line / Cautious

If results are in line with expectations, the stock may see limited movement as investors await clearer guidance.

Miss

A miss could lead to a decline of approximately 5.5%, further eroding confidence in the company's growth prospects.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on 5G service adoption rates and customer contracts.
2Management's commentary on cost management and operational efficiency.
3Insights into competitive positioning against other telecom equipment providers.
4Future guidance on revenue growth in emerging markets.
5Any strategic partnerships or acquisitions that could impact growth.