Ericsson Reports Strong Q4 Earnings and Announces SEK 15 Billion Buyback
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 27 Jan 26
Source: seekingalpha
Ericsson shares surged 3.93% as the company reached a 52-week high following the announcement of strong Q4 earnings and a significant buyback plan.
The company reported a Q4 EPS of $0.27, exceeding analyst expectations, and announced a SEK 15 billion share buyback program aimed at enhancing shareholder value. Despite a 5% decline in sales year-over-year, the results surpassed market expectations, indicating resilience in a competitive landscape. The adjusted gross margin improved to 48%, showcasing effective cost control and operational efficiency.
This strong performance and strategic buyback initiative are likely to boost investor confidence and support future growth, positioning Ericsson favorably in the market.
Analyst Views on ERIC
Wall Street analysts forecast ERIC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ERIC is 9.33 USD with a low forecast of 6.40 USD and a high forecast of 11.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
0 Buy
2 Hold
1 Sell
Moderate Sell
Current: 10.880
Low
6.40
Averages
9.33
High
11.00
Current: 10.880
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.
