TIM (TIMS3) Q1 2026 earnings summary

Executive summary

• Net revenue grew 6.5% year-over-year in 1Q26, driven by strong mobile and fixed service performance, especially postpaid and Ultrafibra segments, with consistent growth supported by network modernization and digital evolution.

• Normalized EBITDA-AL increased 7.8% year-over-year, with margin expansion to 37.1%.

• Net income reached R$ 821 million, up 1.3% year-over-year, with EPS at R$ 0.34.

• Operating cash flow rose 16.8% year-over-year, reflecting operational consistency and efficient resource allocation.

• Strategic partnerships and acquisitions, including V8.Tech and PicPay, expanded B2B and digital financial services.

Financial highlights

• Net revenue: R$ 6,806 million (+6.5% YoY); service revenue: R$ 6,644 million (+6.5% YoY).

• Normalized EBITDA: R$ 3,287 million (+6.6% YoY); EBITDA-AL: R$ 2,523 million (+7.8% YoY), margin up 0.5 p.p. to 37.1%.

• Net income: R$ 821 million (+1.3% YoY); normalized EPS: R$ 0.34.

• Capex: R$ 1,354 million (19.9% of net revenue), mainly for network expansion and 5G coverage.

• Cash and securities: R$ 5,871 million at quarter-end (+10.2% YoY).

Outlook and guidance

• Shareholder remuneration guidance for 2026 is R$ 5.3–5.5 billion, reflecting increased returns in line with cash flow growth.

• Long-term strategy focuses on digital transformation, B2B expansion, and ESG leadership.

• Continued network expansion targeting 15 state capitals and ~12 million customers by 2027.

• Sustained brand engagement through major sponsorships and digital initiatives.

• Ongoing operational recovery and disciplined execution in key markets.