Ericsson posts rise in Q4 organic sales, plans stock buyback

Telefonaktiebolaget LM Ericsson

23/01/2026 06:13

Overview

Swedish telecom firm's Q4 organic sales grew 6% yr/yr

Adjusted EBITA margin improved to 18.3%, driven by Mobile Networks

Company proposes increased SEK 3.00 dividend and SEK 15 bln share buyback

Outlook

Ericsson expects the RAN market to be flat in 2026

Company plans increased investments in defense during 2026

Result Drivers

CLOUD SOFTWARE AND SERVICES - Organic sales growth of 12% in Cloud Software and Services segment drove overall performance

OPERATIONAL IMPROVEMENTS - Strong margins and free cash flow attributed to operational improvements, despite currency headwinds

MISSION CRITICAL NETWORKS - Growth in mission critical networks and 5G core helped achieve organic growth in a flat RAN market

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Net Sales
SEK 69.29 bln
Q4 EPS
SEK 2.57
Q4 Net Income
SEK 8.57 bln
Q4 Gross Margin
47.2%
Q4 Adjusted EBIT
SEK 12.26 bln
Q4 Adjusted Gross Margin
48.00%
Q4 EBIT
SEK 11.16 bln
Q4 EBITA
SEK 11.6 bln
Q4 EBITA Margin
16.7%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 13 "hold" and 7 "sell" or "strong sell"

The average consensus recommendation for the communications & networking peer group is "buy."

Wall Street's median 12-month price target for Telefonaktiebolaget LM Ericsson is SEK90.00, about 4.9% above its January 22 closing price of SEK85.78

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nWkr2wG1S8

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)