ERIC
Telefonaktiebolaget LM Ericsson (publ)
ERIC's outlook is improving, though it still trails on the overall score.
MSFT
Microsoft Corporation
MSFT has the edge over ERIC overall, supported by stronger fundamentals and stronger valuation.
ERIC Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Healthy | |
| Healthy | |
| Strong |
ERIC's profitability, cash flow and balance sheet are currently healthy, and its revenue is stable.
MSFT Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Strong | |
| Healthy | |
| Strong |
MSFT's revenue, profitability, cash flow and balance sheet are all currently healthy.
ERIC PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 11x | $6.18 | -42% |
| Fair | 15x | $8.58 | -19% |
| Current | 18x | $10.61 | — |
| Expensive | 132x | $76.83 | +624% |
Historical ranges are pointers, not guarantees.
ERIC's PE is 18x, but its earnings don't support one, so it isn't a reliable read right now.
MSFT PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Forward | 25x | $523 | — |
| Cheap | 27x | $525 | +0.4% |
| Current | 27x | $523 | — |
| Fair | 34x | $652 | +25% |
| Expensive | 37x | $711 | +36% |
Historical ranges are pointers, not guarantees.
MSFT has the edge over ERIC in the historical PE scenario, which offers more potential upside but is not a forecast.
ERIC Forward outlook
| Metric | Outlook |
|---|---|
| -- | |
| Strong growth | |
| Stable | |
| Strongly improving | |
| Limited | |
| Low |
Analysts expect ERIC's earnings to grow and its profitability to improve, with its revenue holding steady. However, they disagree widely on these estimates.
MSFT Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Strong growth | |
| Strong growth | |
| Stable | |
| Moderate | |
| High |
Analysts expect strong earnings and revenue growth for MSFT, with profitability holding steady.
ERIC Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Q3 2026 | $0.58 | -21% |
| Q2 2026 | $0.74 | +45% |
| Q1 2026 | $0.75 | +1775% |
| Q4 2025 | $0.84 | +8300% |
| Q3 2025 | $0.73 | +$0.77 |
| Q2 2025 | $0.51 | +$1.60 |
| Q1 2025 | $0.04 | +$0.82 |
| Q4 2024 | $0.01 | +$0.83 |
ERIC earned $0.58 per share over the past year, down 21% from the year before.
MSFT Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $20.79 | +8.6% |
| Q3 2026 | $19.15 | +36% |
| Q2 2026 | $17.95 | +32% |
| Q1 2026 | $16.80 | +30% |
| Q4 2025 | $15.99 | +29% |
| Q3 2025 | $14.06 | +16% |
| Q2 2025 | $13.64 | +16% |
| Q1 2025 | $12.93 | +12% |
| Q4 2024 | $12.41 | +12% |
MSFT has the edge over ERIC on earnings, with more consistent year-over-year improvement.
ERIC Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $6B | +5.8% |
| Q2 2026 | $5.3B | -4.3% |
| Q1 2026 | $5.1B | -0.9% |
| Q4 2025 | $6.8B | -9.2% |
| Q3 2025 | $5.7B | -5.9% |
| Q2 2025 | $5.5B | -7% |
| Q1 2025 | $5.2B | -6.7% |
| Q4 2024 | $7.5B | +10% |
ERIC's revenue is recovering but still below its 2022 peak: $6B last quarter, up 5.8% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 15% | +1.7 points |
| Q2 2026 | 11% | -1.2 points |
| Q1 2026 | 11% | -0.5 points |
| Q4 2025 | 17% | +3.5 points |
| Q3 2025 | 13% | +1.3 points |
| Q2 2025 | 12% | +7 points |
| Q1 2025 | 11% | +6.9 points |
| Q4 2024 | 14% | +3.3 points |
ERIC's operating margin was 15% last quarter, up 1.7 points from the same quarter a year ago.
MSFT Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $92.3B | +19% |
| Q2 2026 | $90B | +18% |
| Q1 2026 | $82.9B | +18% |
| Q4 2025 | $81.3B | +17% |
| Q3 2025 | $77.7B | +18% |
| Q2 2025 | $76.4B | +18% |
| Q1 2025 | $70.1B | +13% |
| Q4 2024 | $69.6B | +12% |
MSFT has the edge over ERIC on sales, with more consistent year-over-year improvement.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 50% | +0.9 points |
| Q2 2026 | 45% | +0.2 points |
| Q1 2026 | 46% | +0.7 points |
| Q4 2025 | 47% | +1.6 points |
| Q3 2025 | 49% | +2.3 points |
| Q2 2025 | 45% | +1.8 points |
| Q1 2025 | 46% | +1.1 points |
| Q4 2024 | 45% | +1.9 points |
MSFT has the edge over ERIC on profitability, with a higher operating margin.
ERIC Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $535.9M | -27% |
| Q2 2026 | $128.9M | -64% |
| Q1 2026 | $706.5M | +107% |
| Q4 2025 | $1.5B | -17% |
| Q3 2025 | $729.6M | -45% |
| Q2 2025 | $354.2M | -59% |
| Q1 2025 | $342M | -29% |
| Q4 2024 | $1.8B | +38% |
ERIC still generates free cash flow, though less than at its 2022 peak: $2.9B over the past year.
MSFT Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $18.6B | -27% |
| Q2 2026 | $19.6B | -23% |
| Q1 2026 | $15.8B | -22% |
| Q4 2025 | $5.9B | -9.3% |
| Q3 2025 | $25.7B | +33% |
| Q2 2025 | $25.6B | +9.6% |
| Q1 2025 | $20.3B | -3.2% |
| Q4 2024 | $6.5B | -29% |
MSFT has the edge over ERIC on cash flow, with stronger typical year-over-year growth.
ERIC Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -1.3% | -44M shares |
| 1 year | -1.9% | -64M shares |
| 3 years | -1.6% | -52M shares |
| 5 years | -1.7% | -55M shares |
| Available history | -1.4% | -48M shares |
ERIC has the edge over MSFT on shareholder dilution, with a more favorable share count trend.
| Quarter | Spent |
|---|---|
| Q3 2026 | $454.9M |
| Q2 2026 | $339.8M |
| Q1 2026 | — |
| Q4 2025 | — |
| Q3 2025 | — |
| Q2 2025 | — |
| Q1 2025 | — |
| Q4 2024 | — |
ERIC spent $795M buying back its own shares over the past year, after none the year before.
MSFT Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -0.1% | -7M shares |
| 1 year | -0.3% | -20M shares |
| 3 years | -0.2% | -16M shares |
| 5 years | -1.6% | -121M shares |
| Available history | -3.2% | -245M shares |
MSFT has 7.4B diluted shares, about the same as a year ago.
| Quarter | Spent |
|---|---|
| Q3 2026 | $4.4B |
| Q2 2026 | $4.6B |
| Q1 2026 | $4.6B |
| Q4 2025 | $7.4B |
| Q3 2025 | $5.7B |
| Q2 2025 | $4.5B |
| Q1 2025 | $4.8B |
| Q4 2024 | $5B |
MSFT spent $21B buying back its own shares over the past year, up 5.2% from the year before.
ERIC Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | -0.2x | Net Cash |
| Q2 2026 | -0.1x | Net Cash |
| Q1 2026 | -0.3x | Net Cash |
| Q4 2025 | 0.0x | Very low |
| Q3 2025 | 0.0x | Very low |
| Q2 2025 | 0.3x | Very low |
| Q1 2025 | -0.1x | Net Cash |
| Q4 2024 | 0.1x | Very low |
ERIC has the edge over MSFT on leverage, with a lower net debt burden relative to earnings.
MSFT Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 0.1x | Very low |
| Q2 2026 | 0.1x | Very low |
MSFT's net debt is less than a year of its operating earnings (EBITDA).
ERIC Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 51.2 | Neutral |
| Stochastic | 75.8 | Neutral |
ERIC's weekly RSI is 51 (neutral) and its Stochastic is 76 (neutral).
MSFT Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 62.1 | Neutral |
| Stochastic | 68.0 | Neutral |
MSFT's weekly RSI is 62 (neutral) and its Stochastic is 68 (neutral).
ERIC PE vs Technology Sector
| Metric | ERIC | Sector median | Relative |
|---|---|---|---|
| PE | 18x | 28x | 34% below |
| PE % | 64 | 35 | 29 pts above |
ERIC has the edge over MSFT on valuation relative to its sector.
MSFT PE vs Technology Sector
| Metric | MSFT | Sector median | Relative |
|---|---|---|---|
| PE | 27x | 28x | 2% below |
| PE % | 16 | 35 | 19 pts below |
MSFT is trading at 27x earnings, in line with the Technology sector's median of 28x.
ERIC Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $10.2 | 4% above |
| 20 week MA | $10.2 | 4% above |
| 50 week MA | $10.8 | 1.4% below |
| 100 week MA | $9.51 | 12% above |
| 200 week MA | $7.71 | 38% above |
ERIC's trend is mixed: it's above four of its five weekly moving averages, and 38% above its 200-week average.
MSFT Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $524.7 | 0.3% below |
| 20 week MA | $484.8 | 7.9% above |
| 50 week MA | $446.9 | 17% above |
| 100 week MA | $453.8 | 15% above |
| 200 week MA | $411.5 | 27% above |
MSFT's trend is up, with a small recent dip: it's below only its 8-week average, and 27% above its 200-week average.
ERIC Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $8.86 | $11.8 | +33% |
| 2021 | $11.8 | $10.8 | -8.4% |
| 2022 | $10.8 | $5.89 | -45% |
| 2023 | $5.89 | $6.30 | +7% |
| 2024 | $6.30 | $8.10 | +29% |
| 2025 | $8.10 | $9.68 | +20% |
| 2026 YTD | $9.68 | $10.6 | +9.6% |
ERIC has the edge over MSFT on returns for 2026, with the stronger performance.
MSFT Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $159.0 | $222.8 | +40% |
| 2021 | $222.8 | $334.7 | +50% |
| 2022 | $334.7 | $238.7 | -29% |
| 2023 | $238.7 | $376.0 | +58% |
| 2024 | $376.0 | $430.5 | +14% |
| 2025 | $430.5 | $487.7 | +13% |
| 2026 YTD | $487.7 | $523.0 | +7.2% |
MSFT has finished higher in five of the last six years, two of them by more than 50%. It's up 7.2% so far in 2026.