Have Ericsson’s 6G and AI milestones just changed the investment story for Telefonaktiebolaget LM Ericsson (OM:ERIC B)?

• In late February 2026, Ericsson and its partners announced a flurry of 6G, AI and 5G Advanced milestones, including the world’s first pre-standard 6G radio session in the US, a live ISAC drone detection test in Texas, and new collaborations across private 5G, fintech and AI-driven network testing.
• These developments highlight how Ericsson is expanding its role beyond traditional networking equipment into AI-native infrastructure, enterprise connectivity and financial platforms, potentially expanding where and how Ericsson participates in future communications and digital services spending.
• Here we consider how Ericsson’s advances in AI-native 6G test and sensing networks could impact the company’s existing investment story.

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Telefonaktiebolaget LM Ericsson investment story summary

To own Ericsson, you need to believe in the company’s 5G and early 6G positioning, as well as its improving margins, which can offset weak carrier capital spending and intense competition. The latest AI-native 6G and ISAC milestones support the long-term technology story, but do not significantly change the near-term catalysts for how quickly carriers deploy 5G standalone and slicing, or the current biggest risks around pricing pressure and softening demand in key markets.

Of particular relevance among recent announcements is our partnership with NTT Data. Connect Ericsson’s private 5G and edge platforms directly to outcome-driven enterprise use cases, from factories to smart cities. This ties the company’s 6G and AI efforts to tangible growth levers in managed services and enterprise connectivity, aligning closely with its core catalyst of turning advanced network capabilities into recurring, high-margin revenue streams.

However, despite advances in technology, investors should recognize that Ericsson still faces significant pressures from pricing and slowing carrier spending, among other factors.

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Telefonaktiebolaget LM Ericsson’s story predicts sales of SEK 242.3 billion and profits of SEK 18.2 billion by 2028. This assumes a 0.5% annual decline in sales and would imply an increase in profits of approximately SEK 0.9 billion from the current SEK 17.3 billion.

We reveal how Telefonaktiebolaget LM Ericsson’s forecast generates a fair value of SEK 91.89, 12% lower than the current price.

explore other perspectives

Some of the lowest-ranked analysts have a much more pessimistic view than the consensus, assuming sales of around SEK 227.7 billion and profits of around SEK 14.1 billion by 2028, so it’s worth comparing the more pessimistic outlook with recent 6G and AI milestones and asking in which direction the gap between these forecasts will start to narrow.

Check out 3 other fair value estimates for Telefonaktiebolaget LM Ericsson – Why the stock is worth 31% less than its current price!

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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.

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