ERIXFNasdaqRadio & Tv Broadcasting & Communications EquipmentUS GAAP · USD

Ericsson

LM Ericsson Telephone Company is a Sweden-based communications technology company that develops mobile network equipment, software, and services for telecom operators and enterprise customers. Its business centers on radio access networks, core network software, and related connectivity solutions used to build and operate public and private communication networks.

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Revenue236.7bn USD
−4.5 %y/y
Operating profit (EBIT)38.6bn USD
+795.8 %y/y
EBIT margin16.3%
+14.6 ppy/y
Net income28.7bn USD
+7,577.5 %y/y

Fiscal year 2025 · change from previous year

Development 2021–2025

-1000100200300bn USD2021: 232.3 bn USD2021: EBIT 31.8 bn USD20212022: 271.5 bn USD2022: EBIT 27.0 bn USD20222023: 263.4 bn USD2023: EBIT -20.3 bn USD20232024: 247.9 bn USD2024: EBIT 4.3 bn USD20242025: 236.7 bn USD2025: EBIT 38.6 bn USD2025TTM 2026: 230.8 bn USDTTM230.8
RevenueOperating profit (EBIT)TTM = last 12 months, not a full fiscal year
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Business

Share of revenue
Network Infrastructure50 %

Radio access, core, and transport equipment used to build operator networks.

Software and Cloud Systems20 %

Network software and cloud-native functions that control and optimize networks.

Services20 %

Network rollout, integration, maintenance, and optimization services.

Enterprise Connectivity10 %

Private networks and connectivity solutions for enterprise customers.

Customers

Ericsson sells primarily to mobile network operators that need equipment and software to deploy, modernize, and manage public wireless networks. It also serves enterprises and other organizations that require private networks, managed connectivity, and network-related services. Customer relationships are typically large-scale, technically complex, and tied to long investment cycles.

Mobile network operators

Buy radio access, core network, and transport systems to build and run public networks.

Telecom service providers

Purchase software, services, and network upgrades for capacity and coverage expansion.

Enterprise customers

Buy private networks and connectivity solutions for factories, campuses, and critical sites.

Public sector and institutions

Use network and communications solutions for mission-critical connectivity needs.

Strategy

Ericsson’s strategy centers on programmable networks, 5G-capable radio systems, and software that helps operators automate and monetize network capacity. It also emphasizes enterprise connectivity and private networks, which extend the company beyond traditional operator infrastructure and broaden the addressable market.

Advance programmable network solutionsMedium term

Software-defined networks improve differentiation and create recurring customer value.

Win 5G and network modernization programsShort term

Operators need equipment and software to upgrade coverage, capacity, and performance.

Expand enterprise connectivityMedium term

Private networks diversify revenue beyond traditional carrier spending cycles.

Geography

Ericsson operates globally, with headquarters functions in Sweden and a broad sales and service footprint across Europe, the Americas, Asia-Pacific, and other international markets. Because telecom network spending is tied to operator investment cycles and spectrum/technology transitions, geographic mix affects demand timing, competitive intensity, and regulatory exposure.

Risks

Ericsson’s results depend on telecom operator capital spending, which can shift with carrier budgets, technology transitions, and macro conditions. The business also faces execution risk in large network programs, intense competition, and technical complexity in software and hardware integration. Global operations expose the company to supply chain, geopolitical, regulatory, and foreign exchange risks.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Telecom operator spending cycles1Competitive pressure in network equipment2Geopolitical and regulatory exposure3Execution on large deployment projects4
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Telecom operator spending cyclesImpact: HighLikelihood: High

    Revenue depends on carrier investment in network upgrades and expansions.

    Exposure: Public network equipment sales

  2. Competitive pressure in network equipmentImpact: HighLikelihood: High

    The company competes against global vendors in a concentrated market.

    Exposure: Radio access and core networks

  3. Geopolitical and regulatory exposureImpact: HighLikelihood: Medium

    Telecom infrastructure is sensitive to national security, trade, and licensing rules.

    Exposure: Global sales and supply chain

  4. Execution on large deployment projectsImpact: MediumLikelihood: Medium

    Delays, technical issues, or acceptance problems can affect contract outcomes.

    Exposure: Network rollouts and integration projects

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Accounting

Judgemental items
Revenue recognition

Large telecom contracts may include hardware, software, and services with different timing.

Impact: Affects revenue timing and margin mix

Capitalized development expenses

Network software and product development can be capitalized and amortized.

Impact: Influences operating expense and asset balances

Goodwill and intangible impairment

Acquired technology and brand values must be tested for recoverability.

Impact: Can create non-cash charges

Provisions and contingencies

Warranty, legal, and contract-related exposures require estimates.

Impact: Can change earnings and liability levels

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Last updated: 28/09/2026