What is Telefonaktiebolaget LM Ericsson (publ)'s Shariah compliance score?

Telefonaktiebolaget LM Ericsson (publ)'s (ERIC) compliance score is being calculated. Check HalalScreener.app for the latest AAOIFI screening results.

Does Telefonaktiebolaget LM Ericsson (publ) pass AAOIFI screening?

Telefonaktiebolaget LM Ericsson (publ) (ERIC) does not pass AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (ERIC: 142.0%), (3) interest-bearing deposits below 30% (ERIC: 174.7%), and (4) prohibited income below 5% (ERIC: 1.0%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

How much purification is needed for Telefonaktiebolaget LM Ericsson (publ) stock?

Telefonaktiebolaget LM Ericsson (publ) (ERIC) has a non-permissible income ratio of 1.05%. Muslim investors should purify this percentage of any dividends received and capital gains realized from ERIC shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation using the latest financial data.

Where can I screen Telefonaktiebolaget LM Ericsson (publ) for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Telefonaktiebolaget LM Ericsson (publ) (ERIC) and 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. HalalScreener also includes an AI Islamic Scholar for follow-up questions about ERIC's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

ERIC: Is Telefonaktiebolaget LM Ericsson (publ) Halal?

Telefonaktiebolaget LM Ericsson (publ)

NASDAQTechnologySE

$9.82

-0.71%

Market Cap: 32.4B

Compliance Status

Not Halal

Screened on Jul 19, 2026 · AAOIFI Standard 21

Non-Compliant

0Score

Is Telefonaktiebolaget LM Ericsson (publ) (ERIC) halal? Not Halal. Based on AAOIFI screening, Telefonaktiebolaget LM Ericsson (publ) passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

142.0% of 30.0% limit

What this means for you

Most scholars advise not holding ERIC

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About Telefonaktiebolaget LM Ericsson (publ)

Telefonaktiebolaget LM Ericsson (publ), along with its various subsidiaries, operates as a global supplier of communication infrastructure, software, and service solutions, primarily serving the telecommunications industry and other diverse sectors. The company's business is organized into four distinct segments: Networks, Digital Services, Managed Services, and Emerging Business and Other. The Networks division focuses on delivering cutting-edge radio access network (RAN) solutions for a wide array of network spectrums, encompassing robust integrated hardware and software, complete antenna and transport systems, and a full spectrum of services for network setup and ongoing maintenance. Digital Services provides advanced software-driven solutions for critical functions like business support systems (BSS), operational support systems (OSS), communication platforms, core network architecture, and cloud infrastructure. The Managed Services segment offers telecom operators an extensive range of provisions, including comprehensive network and IT management, network design and optimization, and application development and maintenance. Finally, the Emerging Business and Other segment encompasses innovative ventures such as Internet of Things (IoT) technologies, iconectiv, Cradlepoint (known for its wireless edge WAN 4G and 5G enterprise solutions), Red Bee Media, MediaKind, and other developing enterprises. Established in 1876 and based in Stockholm, Sweden, Ericsson maintains a substantial worldwide footprint, with operations spanning North America, Europe and Latin America, the Middle East and Africa, Southeast Asia, Oceania, India, Northeast Asia, and numerous other international markets.

Sector: Technology · Industry: Communication Equipment

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 19, 2026

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: FY 2025Data source: FMP

Halal Alternatives in Technology

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

UIA+

Ubiquiti Inc.

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UCrest Bhd

$0.07

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Willowglen MSC Bhd

$0.30

+0.02%

0010.KLA+

IRIS Corporation Bhd

$0.22

+0.02%

0023.KLA+

IFCA MSC Bhd

$0.20

-0.02%

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Apple Inc.

A+

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CRM

Salesforce, Inc.

B+

ADBE

Adobe Inc.

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Frequently Asked Questions

Is Telefonaktiebolaget LM Ericsson (publ) (ERIC) halal to invest in?

Telefonaktiebolaget LM Ericsson (publ) (ERIC) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.

Why did Telefonaktiebolaget LM Ericsson (publ) get a F compliance rating?

Telefonaktiebolaget LM Ericsson (publ) (ERIC) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 142.0% (limit 30%); interest-bearing deposits of 174.7% (limit 30%); prohibited income of 1.05% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Telefonaktiebolaget LM Ericsson (publ)'s Shariah verdict?

Telefonaktiebolaget LM Ericsson (publ)'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is Telefonaktiebolaget LM Ericsson (publ) re-screened for Shariah compliance?

Telefonaktiebolaget LM Ericsson (publ) (ERIC) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jul 19, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.