ERIC

Ericsson

Technology Communication Equipment NASDAQ

About the company

Ericsson has established itself as a prominent player in the telecommunications industry, offering a wide range of equipment and services that are crucial for the construction and operation of mobile networks. Traditionally, its core customer base has consisted of wireless carriers, who rely on Ericsson to provide them with state-of-the-art solutions to deliver reliable and efficient wireless communication services to end-users. However, in recent years, Ericsson has recognized the transformative power of emerging technologies, particularly the advent of 5G. With the launch of 5G networks, Ericsson saw an opportunity to expand its reach beyond traditional clients, and it began exploring new avenues to cater to diverse enterprises. By leveraging the immense potential of 5G capabilities, Ericsson aims to enable enterprises to unlock innovative solutions and drive digital transformation. One notable aspect of Ericsson's business model is its patent licensing strategy. With its extensive portfolio of patents, the company has become a key contributor to industry standards. Ericsson licenses these patents to handset manufacturers, ensuring compatibility between their devices and wireless networks. This allows users to seamlessly connect and access services without any compromises, enhancing the overall user experience. Ericsson operates through three major segments: networks, cloud and software services, and enterprise. The networks segment is at the core of the company's operations, providing a comprehensive suite of hardware and software solutions that enable the construction, expansion, and optimization of mobile networks. This includes radio access equipment, core network solutions, transport solutions, and network management systems. The cloud and software services segment focuses on delivering cloud infrastructure and software solutions to support the evolving needs of telecom operators. Ericsson offers cloud-native solutions, virtualization platforms, and orchestration tools that empower operators to efficiently manage their network resources and deploy services dynamically, leading to improved operational efficiency and cost savings. Recognizing the expanding role of telecom technologies in various industries, Ericsson has been making efforts to penetrate the enterprise segment. By providing end-to-end solutions tailored to specific enterprise needs, the company aims to assist businesses in leveraging the potential of connectivity and communication technologies to drive growth and innovation. This includes solutions for industries such as manufacturing, transportation, energy, and healthcare, among others. Additionally, Ericsson has been embracing the shift to "as-a-service" communications platforms, offering flexible and scalable solutions that can be consumed as cloud-based services. This allows businesses to access cutting-edge communication technologies without the need for substantial upfront investments, while also enabling them to respond swiftly to evolving customer demands and market dynamics. In conclusion, Ericsson's comprehensive range of telecom equipment and services has positioned the company as a leader in the industry. With its focus on 5G capabilities, patent licensing, and expansion into new market segments, Ericsson is poised to continue driving innovation and transformation in the telecommunications landscape, while empowering businesses to thrive in an increasingly connected world.

Website: https://www.ericsson.com

Data updated: June 2, 2026

Sector comparison

We compare this company with the typical (middle) company in the same industry to show how it looks against similar businesses. This is information, not a recommendation.

Technology · 874 peers in sector

Metric ERIC Sector median Vs. industry
P/E 16.44 32.63 ↓ Below average
EPS 0.81 USD -0.04 USD ↑ Above average
Dividend yield 2.35% 0.00% ↑ Above average
Profit margin 10.90% 0.00% ↑ Above average
ROE 27.01% 0.00% ↑ Above average

Higher and lower here are only a comparison with the typical company in the industry — a higher or lower value on its own does not mean better or worse.

Financial statements & historical data

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Frequently Asked Questions

What is Ericsson?
Ericsson has established itself as a prominent player in the telecommunications industry, offering a wide range of equipment and services that are crucial for the construction and operation of mobile networks. Traditionally, its core customer base has consisted of wireless carriers, who rely on Ericsson to provide them with state-of-the-art solutions to deliver reliable and efficient wireless communication services to end-users. However, in recent years, Ericsson has recognized the transformative power of emerging technologies, particularly the advent of 5G. With the launch of 5G networks, Ericsson saw an opportunity to expand its reach beyond traditional clients, and it began exploring new avenues to cater to diverse enterprises. By leveraging the immense potential of 5G capabilities, Ericsson aims to enable enterprises to unlock innovative solutions and drive digital transformation. One notable aspect of Ericsson's business model is its patent licensing strategy. With its extensive portfolio of patents, the company has become a key contributor to industry standards. Ericsson licenses these patents to handset manufacturers, ensuring compatibility between their devices and wireless networks. This allows users to seamlessly connect and access services without any compromises, enhancing the overall user experience. Ericsson operates through three major segments: networks, cloud and software services, and enterprise. The networks segment is at the core of the company's operations, providing a comprehensive suite of hardware and software solutions that enable the construction, expansion, and optimization of mobile networks. This includes radio access equipment, core network solutions, transport solutions, and network management systems. The cloud and software services segment focuses on delivering cloud infrastructure and software solutions to support the evolving needs of telecom operators. Ericsson offers cloud-native solutions, virtualization platforms, and orchestration tools that empower operators to efficiently manage their network resources and deploy services dynamically, leading to improved operational efficiency and cost savings. Recognizing the expanding role of telecom technologies in various industries, Ericsson has been making efforts to penetrate the enterprise segment. By providing end-to-end solutions tailored to specific enterprise needs, the company aims to assist businesses in leveraging the potential of connectivity and communication technologies to drive growth and innovation. This includes solutions for industries such as manufacturing, transportation, energy, and healthcare, among others. Additionally, Ericsson has been embracing the shift to "as-a-service" communications platforms, offering flexible and scalable solutions that can be consumed as cloud-based services. This allows businesses to access cutting-edge communication technologies without the need for substantial upfront investments, while also enabling them to respond swiftly to evolving customer demands and market dynamics. In conclusion, Ericsson's comprehensive range of telecom equipment and services has positioned the company as a leader in the industry. With its focus on 5G capabilities, patent licensing, and expansion into new market segments, Ericsson is poised to continue driving innovation and transformation in the telecommunications landscape, while empowering businesses to thrive in an increasingly connected world.
Are Ericsson shares expensive?
The price-to-earnings (P/E) ratio of Ericsson is 16.44 — the share price is 16.44 times the annual profit per share. That is lower than the typical company in the same industry (industry median: 32.63). This is information, not a recommendation. (as of 2026-06-02)
How big is Ericsson?
The market capitalization of Ericsson — the combined value of all its shares — is 44.26 B USD. The higher the market cap, the larger the company. (as of 2026-06-02)
Does Ericsson pay dividends?
The dividend yield of Ericsson is 2.35% — it shows the annual dividend relative to the share price. This is information, not a recommendation. (as of 2026-06-02)
What sector does Ericsson belong to?
Ericsson operates in the Technology sector, industry: Communication Equipment.

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