Telefônica Brasil S.A. Reports Impressive Q1 2026 Earnings Growth Across Key Metrics
Telefônica Brasil S.A. has disclosed its financial results for the first quarter of 2026, indicating remarkable growth propelled by robust revenue and EBITDA results. The company reported a year-over-year (YoY) increase in net income, marking its highest growth since the first quarter of 2024.
In terms of financial figures, the net operating revenue reached R$15,457 million, reflecting a 7.4% increase from the same period last year. The increase was primarily driven by the company's mobile services, with revenue totaling R$9,881 million, representing a 6.6% YoY growth. Another noteworthy highlight was the fiber-to-the-home (FTTH) service, which reported a 9.3% increase in revenue to R$2,076 million.
Telefônica's corporate data, ICT, and digital services segment also exhibited strong growth, achieving R$1,423 million in revenue, which corresponds to an 8.5% increase YoY. Moreover, the handset and electronics segment saw significant growth of 26.6%, reaching R$1,152 million.
Despite the impressive revenue growth, the company faced a 7.3% decline in 'other revenues,' which encompass fixed voice, xDSL, FTTC, and IPTV offerings, totaling R$926 million. The overall costs for the period amounted to R$9,248 million, a 6.5% increase compared to the previous year.
The EBITDA for the quarter rose to R$6,209 million, up by 8.9% YoY, resulting in an EBITDA margin of 40.2%. The adjusted EBITDA also experienced growth of 9.7%, reaching R$4,800 million, translating to an adjusted EBITDA margin of 31.1%.
Net income soared to R$1,261 million for the quarter, demonstrating a significant 19.2% increase from the prior year, which indicates strong operational efficiency and effective cost management strategies. Earnings per share (EPS) also reflected this favorable trend, rising to R$0.39 from R$0.33, marking a 21% increase.
The company continued to invest in its network, with capital expenditure (Capex) reported at R$2,048 million, a 9.6% increase YoY. This expenditure represents 13.2% of total revenues, demonstrating Telefônica's commitment to enhancing its infrastructure. The company expanded its 5G network in Brazil, now available in 905 municipalities, covering 71% of the population, while also growing its fiber network.
Operating cash flow saw a substantial increase to R$4,162 million, which is 8.5% higher YoY, with an operating cash flow margin of 26.9%. The overall capital allocation reflects Telefônica's focus on maximizing shareholder value, with planned distributions surpassing R$6.99 billion for the fiscal year 2026. This includes R$2.99 billion related to interest on equity and R$4 billion for capital reduction.
In light of these impressive results, Telefônica’s Board of Directors announced a new share buyback program with a budget of R$1 billion, aiming to enhance shareholder returns further. The company reaffirmed its dedication to distributing at least 100% of its net income for the fiscal year 2026, underscoring its commitment to delivering value to its shareholders.
In summary, Telefônica Brasil’s quarterly performance exemplifies a strong operational trajectory, with substantial growth across revenue, profitability, and key operational metrics, reinforcing its robust position in the telecommunications sector.
In terms of financial figures, the net operating revenue reached R$15,457 million, reflecting a 7.4% increase from the same period last year. The increase was primarily driven by the company's mobile services, with revenue totaling R$9,881 million, representing a 6.6% YoY growth. Another noteworthy highlight was the fiber-to-the-home (FTTH) service, which reported a 9.3% increase in revenue to R$2,076 million.
Telefônica's corporate data, ICT, and digital services segment also exhibited strong growth, achieving R$1,423 million in revenue, which corresponds to an 8.5% increase YoY. Moreover, the handset and electronics segment saw significant growth of 26.6%, reaching R$1,152 million.
Despite the impressive revenue growth, the company faced a 7.3% decline in 'other revenues,' which encompass fixed voice, xDSL, FTTC, and IPTV offerings, totaling R$926 million. The overall costs for the period amounted to R$9,248 million, a 6.5% increase compared to the previous year.
The EBITDA for the quarter rose to R$6,209 million, up by 8.9% YoY, resulting in an EBITDA margin of 40.2%. The adjusted EBITDA also experienced growth of 9.7%, reaching R$4,800 million, translating to an adjusted EBITDA margin of 31.1%.
Net income soared to R$1,261 million for the quarter, demonstrating a significant 19.2% increase from the prior year, which indicates strong operational efficiency and effective cost management strategies. Earnings per share (EPS) also reflected this favorable trend, rising to R$0.39 from R$0.33, marking a 21% increase.
The company continued to invest in its network, with capital expenditure (Capex) reported at R$2,048 million, a 9.6% increase YoY. This expenditure represents 13.2% of total revenues, demonstrating Telefônica's commitment to enhancing its infrastructure. The company expanded its 5G network in Brazil, now available in 905 municipalities, covering 71% of the population, while also growing its fiber network.
Operating cash flow saw a substantial increase to R$4,162 million, which is 8.5% higher YoY, with an operating cash flow margin of 26.9%. The overall capital allocation reflects Telefônica's focus on maximizing shareholder value, with planned distributions surpassing R$6.99 billion for the fiscal year 2026. This includes R$2.99 billion related to interest on equity and R$4 billion for capital reduction.
In light of these impressive results, Telefônica’s Board of Directors announced a new share buyback program with a budget of R$1 billion, aiming to enhance shareholder returns further. The company reaffirmed its dedication to distributing at least 100% of its net income for the fiscal year 2026, underscoring its commitment to delivering value to its shareholders.
In summary, Telefônica Brasil’s quarterly performance exemplifies a strong operational trajectory, with substantial growth across revenue, profitability, and key operational metrics, reinforcing its robust position in the telecommunications sector.
Topics Telecommunications）
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