Why Are Ericsson Shares Surging on Thursday?

Ericsson (NASDAQ:ERIC) shares are trading higher on Thursday after the company reported strong third-quarter earnings and revenue, driven by stronger mobile network demand and tighter cost controls.

Separately, the company, along with Verizon Communications Inc. (NYSE:VZ), completed the first pre-standard 6G field call in the 7 GHz band at a Verizon commercial network site in Concord, California.

• Why are ERIC shares rallying?

Accelerate 6G Development

The milestone moves Ericsson’s 6G proof-of-concept technology from laboratory testing into a live network environment.

The setup uses a pre-standard 6G system with a 400 MHz carrier to evaluate performance in real-world conditions.

The field trials will assess coverage, throughput, latency, connection stability and feature performance across outdoor and indoor environments.

Testing includes line-of-sight and obstructed signal paths, foliage, and signal penetration through different windows and building materials.

The equipment includes a base station housed separately at the site and user equipment installed in a small, mobile enclosure designed to test stationary outdoor and indoor radio configurations.

Earnings Snapshot

Today, Ericsson reported third-quarter revenue of 59.5 billion Swedish kronor ($6.17 billion), up 6% year over year and above the analyst estimate of $5.79 billion.

Organic sales grew 7%, while earnings of 18 cents per share beat the consensus estimate of 14 cents.

Analyst Consensus & Recent Actions: The stock carries a Hold rating with an average price forecast of $9.60. Recent analyst moves include:

• JP Morgan: Neutral (Lowers target to $10.20 on Oct. 8)
• Morgan Stanley: Downgraded to Underweight (Lowers target to $9 on Sept. 22)

How Ericsson Ranks On Momentum, Value, Growth and Quality

Below is the Benzinga Edge scorecard for Ericsson, highlighting its strengths and weaknesses compared to the broader market:

• Momentum: Weak (Score: 25.33) — Despite today’s pop, the broader momentum profile still lags, suggesting the longer trend hasn’t fully turned.
• Quality: Strong (Score: 80.82) — The scorecard flags a healthier fundamental/operational backdrop versus many peers.
• Value: Strong (Score: 73.62) — Valuation screens as relatively attractive, which can help on pullbacks if the chart stabilizes.
• Growth: Strong (Score: 81.98) — Growth factors are screening well, supporting the case for sustained interest if execution holds.

The Verdict: Ericsson’s signal reveals a quality-and-growth-leaning profile with supportive value characteristics, but still-soft momentum. For longer-term bulls, the setup improves most if the stock can reclaim the 100-day/200-day moving-average zone and hold above it on consolidations.

ERIC Stock Price Activity: Ericsson shares were up 10.13% at $10.55 at the time of publication on Thursday, according to Benzinga Pro data.

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