Pre-earnings brief
Reports
Thu, Oct 15, 2026
Est. EPS
$0.14
Est. revenue
$55.3B
Implied move
±9.1%
EPS beat rate
50%
Telefonaktiebolaget LM Ericsson (ERIC) is a leading provider of communications equipment and services, primarily focusing on telecommunications infrastructure. As the industry evolves with trends like 5G technology and increased digital connectivity, Ericsson plays a critical role in shaping the future of communication technology.
Last quarter
In Q2 2026, Ericsson reported an EPS of $0.13, matching analyst expectations but showing a slight decline in performance. The stock reacted negatively, dropping 13.48% the following day.
EPS beat streak
0Q
EPS beat rate
50%
Avg EPS surprise
-77.15%
Avg 1-day reaction
+0.54%
Analysts expect a modest performance this quarter, with EPS projected at $0.14 and revenue at $55.3 billion. The market is cautious given the recent earnings history.
Bull case
If Ericsson can exceed expectations and show strong demand for its 5G solutions, it could signal a recovery and growth potential, boosting investor confidence.
Bear case
Conversely, if the company fails to meet EPS and revenue estimates, it may raise concerns about its competitive position and future growth, leading to further stock declines.
Key metrics to watch
EPS
$0.14Earnings per share (EPS) is a key indicator of profitability and will show how well the company is managing costs and generating profit.
Revenue
$55.3BTotal revenue is essential for understanding the company's sales performance and growth trajectory, especially in a competitive market.
The print will turn on these.
Q1
Will EPS exceed $0.14, indicating stronger profitability than expected?
A beat on EPS could signal improved operational efficiency and market demand, which is crucial for investor confidence.
Q2
What is the revenue outlook for the upcoming quarters, particularly in 5G deployments?
Strong revenue guidance would suggest robust demand for Ericsson's products and services, which is vital for long-term growth.
—
Est. EPS
$0.33
Est. Rev
$18.9B
Impl. Move
±7.0%
Why consensus could be wrong
The consensus may underestimate the potential for revenue growth in 5G technology, which could be stronger than anticipated based on recent market trends.
Supporting evidence
Recent industry reports indicate a surge in demand for 5G infrastructure, which may not be fully reflected in current estimates.
The options market suggests a significant move is expected, indicating that investors are anticipating a more dynamic performance than consensus forecasts.
Key risk
If 5G deployment revenues exceed $30 billion, it could significantly alter the growth narrative.
Pre-commit to what would confirm each case.
This quarter's performance is pivotal as it will reflect the company's ability to navigate a challenging market and capitalize on growth opportunities.
Bull confirmed if
An EPS of $0.15 or higher, coupled with revenue exceeding $56.4 billion, would confirm the bullish outlook.
Bear confirmed if
An EPS below $0.13 or revenue falling short of $54.5 billion would reinforce bearish sentiment.
What the market is pricing for the move.
Implied Move
±9.12%
Historical Avg
±11.1%
The options market is pricing in a significant move, suggesting that investors are anticipating volatility around the earnings announcement.
Options are pricing ±9.1% while ERIC has averaged ±11.1% over the last 8 prints — setup is pricing cheap.
ATM IV
0.7%
30d HV
25.2%
Cross-company pattern from 16 similar setups.
Prior-quarter miss + options pricing cheap setup in Information Technology
Fade rate: 6 of 16 (38%)
This setup has occurred 16 times across Information Technology in the last 2 years. 10 of 16 (63%) held or extended their move within 5 days — this setup typically holds direction. The average absolute 1-day move is 5.4%, with a raw directional average of -2.0% (modestly negative 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 8.53%, confirming a positive outlook.
In line / cautious
A result in line with expectations may lead to muted reactions, as investors await further guidance on future growth.
Miss
If the company misses estimates, the stock could drop by approximately 7.46%, reflecting ongoing concerns about its market position.
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.