Telefônica Brasil (VIVT3) Q2 2026 earnings summary

Executive summary

• Achieved strong operational and financial performance in 2Q26, with net operating revenue for H1 2026 reaching R$31.2 billion (+7.5% YoY) and net income of R$2.82 billion (+17.9% YoY), driven by mobile and fiber expansion and robust digital services.

• Mobile accesses reached 105.1 million (+2.6% YoY), postpaid accesses up 6.9% YoY, and fiber homes connected rose 11.3% to 8.2 million, with footprint expanding to 32 million homes passed.

• Diversified ecosystem supported growth in connectivity, digital services, and electronics, with recurring revenues at 84.8% of service revenues.

• Completed the acquisition and merger of FiBrasil, consolidating fiber operations and accelerating network expansion.

• ESG initiatives advanced, including increased recycling, biodiversity projects, and recognition for governance, diversity, and sector leadership.

Financial highlights

• Total revenue increased 7.6% YoY in Q2 2026 to R$15.76 billion; mobile service revenues up 6.6%, fixed revenues up 6.0%, and FTTH revenue up 10.7%.

• EBITDA grew 10.9% YoY to R$6,581 million, margin expanded to 41.8% (+1.3 p.p. YoY).

• Net income for H1 2026 rose 17.9% to R$2.82 billion; free cash flow for H1 2026 was R$4.9 billion.

• Declared R$2.2 billion in Interest on Capital, up 34.5% YoY; shareholder remuneration in 7M26 reached R$6.99 billion (+31.6% YoY).

• Handsets and electronics segment revenue soared 27.8% YoY, highest in five years.

Outlook and guidance

• Commitment to distribute at least 100% of FY2026 net income to shareholders, with ongoing focus on organic growth, digital transformation, and prudent financial management.

• Asset sales (copper and real estate) expected to accelerate in H2, potentially boosting net income.

• Tax reform impacts anticipated from 2027 onward, with no immediate financial effect in 2026.