OGEN STOCK TRADING : ERIC UP TODAY 10 29 2025 WEDNESDAY

Wednesday, October 29, 2025

ERIC UP TODAY 10 29 2025 WEDNESDAY

Ericsson posted a third-quarter profit beat, with EBITA excluding restructuring coming in at SEK 15.4 billion, higher than analysts’ consensus of SEK 14.1 billion. Reuters+2Yahoo Finance+2
Despite a year-over-year revenue decline (sales dropped ~9% to SEK 56.2 billion) the company emphasised that its margins are improving and that it sees “no more impact” from tariffs in its immediate outlook. Reuters+1
Margin expansion: Ericsson reported a substantial increase in profit margin (core EBITA margin up from ~12.6% a year earlier to ~28.1%) thanks in part to divestments (including the sale of its Iconectiv business) and cost discipline. Stocktwits+1
Investor sentiment is boosted by commentary around potentially higher shareholder distributions (dividends/buybacks) and favourable contract wins (especially 5G and network infrastructure) which appear to enhance the company’s future growth profile. Yahoo Finance+1

⚠️ Considerations / risks

While profit and margins are improving, top-line growth is still under pressure (with sales declining) which suggests growth remains contingent on execution in the network infrastructure and services segments. Reuters+1
Macroeconomic and geopolitical risks remain (trade/tariff exposure, supply chain uncertainty). Even the company itself noted uncertainty remains. Stocktwits
The current rally may have a strong component of uplift from sentiment (margin improvements + positive “forward looking” commentary) so maintaining the momentum will depend on delivering on those expectations.

🧭 My take

The market is rewarding Ericsson not for revenue growth per se, but for improved profitability, stronger margins, and a narrative that the company is turning the corner in terms of operational efficiency + shareholder-friendly actions. If you’re following the stock, the key things to watch for next:

Q4 guidance and whether Ericsson can grow the top line or at least stabilize it.
Actual announcements of dividends or buybacks (investor distributions).
Progress on major contracts in 5G and network infrastructure, especially in North America and other growth markets.
Any re-emergence of tariff/trade headwinds.

If you like, I can pull up analyst ratings and price targets for ERIC to see how the market’s view has shifted after this earnings beat. Would you like that?