Telefônica Brasil (VIVT3) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 7.2% YoY to R$16,023mn; EBITDA increased 10.0% to R$7,136mn, with margin up 1.1 p.p. to 44.5%.

• Q3 net income increased 30.1% YoY to R$2,456mn; 9M net income reached R$5,290mn, up 23.3%.

• Mobile, fiber and digital-services growth supported results; customer accesses increased 3.0% to 120.2mn.

Financial highlights

• Q3 total revenue rose 7.2% YoY; mobile service revenue increased 7.4%, fixed revenue 2.7%, and handset and electronics revenue 26.6%.

• 9M net income was R$5,290mn, up 23.3%; Q3 net income was R$2,456mn, up 30.1% YoY.

• 9M free cash flow after leases reached R$7,287mn, up 6.1%; Q3 free cash flow was R$2,426mn, up 37.7%.

• Q3 costs increased 5.0% to R$8,887mn, below revenue growth; operating expenses were broadly flat as efficiencies offset higher personnel and G&A costs.

• Q3 net financial expense rose 12.4% to R$749mn, mainly due to lower interest income, higher FISTEL TFF monetary adjustments and increased lease liabilities.

Outlook and guidance

• 2026 guidance was reaffirmed; management cited operating performance, cash generation and the balance sheet as supporting confidence in delivery.

• Shareholder remuneration commitment was at least 100% of FY26 net income; planned 2026 remuneration totaled R$7,315mn, including the December payment.

• R$1.0bn remained under the buyback program through February 2027; R$3,195mn of 2026-declared interest on capital was scheduled for payment by April 30, 2027.

• Direct-to-Device plans include future B2B and B2C commercial models; satellite service monetization is planned after introductory periods of three months for B2B and 12 months for B2C.

• Scope 1 and 2 emissions reduction target rose to 90%-95% by 2035; net-zero commitment remains 2035.