Is Ericsson (ERIC) stock halal to invest in?

According to AAOIFI Shariah screening standards, Ericsson (ERIC) is currently classified as Halal (Shariah-Compliant). This is based on both business activity and financial ratio screening.

Does Ericsson have any interest income?

Ericsson's interest income ratio is 28.2% of total revenue. AAOIFI standards require this to be below 30%.

What guidelines are used to determine if ERIC stock is Shariah-compliant?

ERIC is screened using AAOIFI Standard No. 21, which involves two checks: business activity screening (ensuring the company's core business is permissible in Islam) and financial ratio screening (checking debt, interest income, and cash ratios against defined thresholds). AAOIFI is the most widely recognized standard for Islamic finance.

How often is Ericsson stock reviewed for Shariah compliance?

Ericsson's compliance status is reviewed whenever new financial data becomes available, typically after quarterly or annual earnings reports. Market cap changes can also affect financial ratio screening results. Mizaan refreshes screening data periodically to reflect the latest filings.

How can I stay updated on Ericsson's compliance status?

You can save ERIC to your Mizaan portfolio to track its compliance status over time. Mizaan will update the screening whenever new financial data is available, so you always have the latest result.

Are dividends from Ericsson stock considered halal?

Dividends from Ericsson require purification. Approximately 0.95% of dividend income should be donated to charity to cleanse earnings from non-permissible sources such as interest income.

Do I need to pay Zakat on my Ericsson shares?

Yes, Zakat is generally due on stock holdings. The calculation depends on your school of thought (madhab) and whether you hold shares for trading or long-term investment. Use Mizaan's Zakat calculator to compute your obligation based on your specific madhab and holding intent.

Is Ericsson (ERIC) Stock Halal or Haram?

Ericsson (ERIC) - Halal (Shariah-Compliant)

Ericsson (ERIC) is classified as Halal (Shariah-Compliant) according to AAOIFI Shariah screening standards. This assessment is based on business activity screening and financial ratio analysis using the AAOIFI methodology.

Business Activity Screen

Sector: Technology
Industry: Communication Equipment
Result: Pass
Reason: The sector "Technology" and industry "Communication Equipment" are not in the excluded categories.

Financial Ratios

Debt Ratio: Value: 12.7% | Threshold: 30% | Result: Pass
Cash & Interest-bearing Securities Ratio: Value: 28.2% | Threshold: 30% | Result: Pass
Non-Permissible Income Ratio: Value: 0.9% | Threshold: 5% | Result: Pass

Dividend Purification

Purification percentage: 0.95%.Based on the company's financial statements, approximately 0.95% of dividend income should be donated to charity for purification. This is derived from identified interest income (0.95% of total income). Some scholars may differ on the exact calculation method.

About Ericsson

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to communications service providers, enterprises, and the public sector in the Americas, Europe, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and India. It operates through Networks; Cloud Software and Services; Enterprise; and Other segments. The Networks segment offers hardware, software, and service offerings for intelligent, reliable and flexible 5G networks. This segment also provides energy-efficient RAN with an AI-native software architecture deployable on Ericsson silicon and third-party CPUs/GPUs; transport networks; and active/ passive antennas, as well as deployment and lifecycle management services. The Cloud Software and Services segment provides core networks, network management, business and operations support systems, and network operations delivered as managed services, including secure data and voice connectivity, service monetization and orchestration tools, and network management services. The Enterprise segment offers intelligent networking and advanced communications software solutions comprising global communications platform, wireless wide area networks (WWAN), and private 5G networks. The Other segment includes RedBee Media that prepares and distributes live and on-demand video services for broadcasters, sports leagues, and communications service providers. The company has a strategic collaboration with T-Mobile US, Inc for the development of AI-native Scheduler with Link Adaptation software. The company was formerly known as Allmanna Telefon AB LM Ericsson and changed its name to Telefonaktiebolaget LM Ericsson (publ) in January 1926. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.

Business Activity

Pass

TechnologyCommunication Equipment

The sector "Technology" and industry "Communication Equipment" are not in the excluded categories.

Business-activity data: inferred from the company description (lower confidence). How coverage works

Financial Ratios

Pass

Debt Ratio12.7% / 30%

Cash & Interest-bearing Securities Ratio28.2% / 30%

Non-Permissible Income Ratio0.9% / 5%

Denominator: Market Capitalization

Dividend Purification

0.95%

Based on the company's financial statements, approximately 0.95% of dividend income should be donated to charity for purification. This is derived from identified interest income (0.95% of total income). Some scholars may differ on the exact calculation method.

Uses quarterly data

About Ericsson

SwedenNASDAQTechnology

Screened using AAOIFI Standard No. 21 on October 20, 2026. Financial ratios compared against market capitalization. Different methodologies may produce different results. Learn how we screen.

Screened using AAOIFI Shariah Standard No. 21 (3 ratios). Debt and interest-bearing deposits must each be under 30% of market capitalization, and non-permissible income under 5% of total income. This screening is for educational purposes only and does not constitute a fatwa or religious ruling. Results are based on publicly available financial data and automated analysis. Users should consult qualified Islamic scholars and financial advisors for personal investment decisions. Financial data may be delayed or incomplete. Past compliance does not guarantee future status.

Verdict history

Free with an account.

No verdict changes recorded since first screened on Jul 24, 2026. We started recording changes on Oct 19, 2026.

Dates are when Mizaan recorded the change. Tracked and watched stocks are re-checked weekly; other stocks are re-screened on demand.

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Ericsson

Business Activity

Financial Ratios

Dividend Purification

About Ericsson

Verdict history

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