Ericsson (ERIC) Shares Surge 7% After Q4 Beat and SEK 15 Billion Buyback Announcement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 23 2026
0mins
Should l Buy ERIC?
Source: seekingalpha
- Strong Earnings Performance: Ericsson reported a 6% year-on-year sales increase in Q4, with a notable 12% growth in the Cloud Software and Services segment, indicating robust performance across multiple markets and likely boosting investor confidence.
- Shareholder Return Initiatives: The company announced a SEK 3.00 per share dividend for 2025 and a SEK 15 billion share buyback program, aimed at enhancing shareholder value and optimizing its capital structure.
- Ongoing Job Cuts: CEO Börje Ekholm stated that the company has reduced its workforce by 5,000 over the past year and plans to continue job cuts to optimize cost structures, which may negatively impact employee morale but is expected to enhance long-term profitability.
- Market Outlook: Ericsson anticipates a flat RAN market in 2026, while critical mission and enterprise markets are expected to grow, with plans to increase defense investments to support future growth while optimizing costs to maintain margins and cash flow.
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Analyst Views on ERIC
Wall Street analysts forecast ERIC stock price to fall
3 Analyst Rating
0 Buy
2 Hold
1 Sell
Moderate Sell
Current: 10.970
Low
6.40
Averages
9.33
High
11.00
Current: 10.970
Low
6.40
Averages
9.33
High
11.00
About ERIC
Telefonaktiebolaget LM Ericsson (Ericsson) provides infrastructure, services and software to the telecommunication industry and other sectors. The Company's segments include Networks, IT & Cloud and Media. The Networks segment consists of two business units: Network Products and Network Services. The overall focus is on evolving and managing access networks, including the development of hardware and software for radio access and transport networks. The IT & Cloud business includes two business units: IT & Cloud Products and IT & Cloud Services. The focus in IT & Cloud is to help telecom operators and selected enterprises through the digital transformations ahead. It develops and delivers software-based solutions for television and media and combines a product portfolio that spans the television value chain, with systems integration and managed services. The portfolio includes compression, content publishing through set-top box or pure over-the-top, content delivery and analytics.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

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