Swisscom (SCMN) Q1 2026 earnings summary

Executive summary

• Q1 2026 operational results met expectations, with stable EBITDA/EBITDAAL and strong operating free cash flow, supported by synergy realization in Italy and cost savings in Switzerland.

• Integration of Vodafone Italia is progressing as planned, with synergy realization ramping up and a focus on B2C business transformation.

• Price increases were successfully executed in Switzerland, with churn and customer migration largely in line with expectations.

• Energy business achieved significant growth and contributed to diversification, with continued expansion expected.

• Dividend of CHF 26/share paid for FY 2025; proposal to increase to CHF 27/share for 2026, subject to targets and approval.

Financial highlights

• Q1 2026 group revenue was CHF 3,606 million, down 4.1% year-over-year, mainly due to currency effects and lower performance in Italy.

• EBITDA/EBITDAAL was roughly flat at CHF 1,288 million, up 0.8% year-over-year.

• Operating free cash flow increased to CHF 594 million, up 19.3% year-over-year and ahead of consensus.

• CapEx decreased 11.0% to CHF 693 million, with reductions in both Switzerland and Italy.

• Net income dropped 9.6% to CHF 332 million, mainly due to non-cash financial result effects.

Outlook and guidance

• Full-year 2026 guidance confirmed: revenue CHF 14.7–14.9 billion, EBITDAAL CHF 5.0–5.15 billion, CapEx CHF 3.0–3.1 billion, OpFCF ~CHF 2.0 billion.

• Dividend guidance for 2026 raised to CHF 27/share, subject to meeting targets and shareholder approval.

• Net debt/EBITDA ratio expected to improve to ~2.3x by year-end 2026.