TIM (TIMS3) Q2 2026 earnings summary

Executive summary

• Achieved solid revenue and profitability growth in Q2 and H1 2026, with service revenue up 6.1% year-over-year and net income reaching R$1,036 million, up 6.2% YoY, supported by strong mobile, fixed, and B2B segments.

• Mobile postpaid accounted for nearly 70% of mobile service revenues, reinforcing a resilient, higher-value customer base.

• Strategic acquisitions of I-Systems and V8.Tech strengthened fiber and B2B capabilities, with integration supporting cross-selling and digital solutions.

• Recognized for ESG achievements and as a top employer, with awards for gender/racial equality and environmental initiatives.

• AI initiatives and new convergent offers (Ultracombo, TIM Play) enhanced operational efficiency, collections, and customer engagement.

Financial highlights

• Net revenue reached R$6,965 million in 2Q26 (+5.5% YoY); service revenue grew 6.1% in H1 2026.

• Normalized EBITDA rose 7.0% YoY to R$3,586 million in 2Q26, with margin at 51.5%; EBITDA-AL margin at 40.2%.

• Net income reached R$1,036 million in 2Q26 (+6.2% YoY); EPS was R$0.43.

• Operating cash flow was R$1,868 million in 2Q26 (+8.7% YoY), margin at 26.8%; cash and marketable securities at R$4,530 million.

• Capex totaled R$935 million in 2Q26 (+6.0% YoY), mainly for IT and fiber investments.

Outlook and guidance

• Focus on expanding digital services, converged offers, and B2B growth, with continued operational transformation and efficiency programs.

• Shareholder remuneration guidance for 2026 is R$5.3–5.5 billion, aligned with cash flow growth.

• No material increase in CapEx expected from I-Systems acquisition; disciplined capital allocation and sufficient cash for dividends and investments.