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Swisscom AG
(SCMN)
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Rating:64Neutral
Price Target:
CHF673.00
▲(4.99% Upside)
Action:Reiterated
Date:08/10/26
The score is driven primarily by strong cash generation and a constructive earnings call (reaffirmed guidance, higher EBITDAaL and operating free cash flow, and synergies ahead of plan). These positives are moderated by the materially weaker balance sheet from higher leverage and continued top-line/service-revenue declines, while technical signals are broadly neutral and valuation is mixed (good yield but a relatively high P/E).
Positive Factors
Strong Cash Generation
Improving operating and free cash flow strengthens Swisscom’s ability to fund network investment, reduce financial pressure and support recurring shareholder returns, while providing resilience against moderate revenue declines.
Negative Factors
Higher Leverage
The sharper increase in debt raises refinancing and interest-rate sensitivity and leaves less balance-sheet capacity for network investment, acquisitions or unexpected operating pressures than under Swisscom’s former capital structure.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Improving operating and free cash flow strengthens Swisscom’s ability to fund network investment, reduce financial pressure and support recurring shareholder returns, while providing resilience against moderate revenue declines.
Read all positive factors
Swisscom AG (SCMN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF32.58B
Dividend Yield4.15%
Average Volume (3M)52.40K
Price to Earnings (P/E)24.7
Beta (1Y)0.16
Revenue Growth13.78%
EPS Growth-1.35%
CountryCH
Employees22,761
SectorGeneral
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)25.37
Shares Outstanding51,801,945
10 Day Avg. Volume55,748
30 Day Avg. Volume52,402
Financial Highlights & Ratios
PEG Ratio-1.33
Price to Book (P/B)2.44
Price to Sales (P/S)1.98
P/FCF Ratio9.92
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF578.88Price Target Upside-9.69% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering5
EPS Forecast (FY)27.65
Revenue Forecast (FY)CHF14.72B
Swisscom AG Business Overview & Revenue Model
Company Description
Swisscom AG, established in 1852 and headquartered in Bern, Switzerland, stands as a prominent provider of telecommunications and information technology services. Its primary operational footprint covers Switzerland and Italy, complemented by an i...
How the Company Makes Money
Swisscom makes money mainly by selling subscription-based telecommunications services and enterprise IT/digital services. In Switzerland, a large share of revenue comes from recurring customer fees for mobile plans, fixed broadband access, fixed-l...
Swisscom AG Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call shows a predominantly positive operational and financial performance: profitability (EBITDAaL) and operating free cash flow improved materially, Italian integration synergies are ahead of plan and network/coverage KPIs progressed strongly. However, top-line challenges persist with service revenue declines in both Switzerland and Italy, ongoing RGU losses in some segments, and meaningful integration and MVNO migration headwinds in Italy. Management reaffirmed full-year guidance and emphasized cost discipline and cash-flow priorities, balancing solid cash/profit improvements against revenue and market-structure pressures.Positive Updates
EBITDAaL Growth
Group EBITDAaL increased 6.1% to CHF 1.269 billion year-over-year, with adjusted group EBITDAaL up CHF 92 million, reflecting strong cost control and synergy contribution (Italy and Switzerland).
Negative Updates
Revenue Decline
Group revenue declined ~2% to CHF 3.6 billion (down CHF 225 million YoY; net of currency down CHF 147 million). Both Swiss and Italian service revenues contributed to the decline.
Read all updates
Q2-2026 Updates
Positive
Negative
EBITDAaL Growth
Group EBITDAaL increased 6.1% to CHF 1.269 billion year-over-year, with adjusted group EBITDAaL up CHF 92 million, reflecting strong cost control and synergy contribution (Italy and Switzerland).
Read all positive updates
Company Guidance
Swisscom reaffirmed its full‑year guidance and said it is on track to meet its EBITDAaL and operating free‑cash‑flow targets: Q2 EBITDAaL rose 6.1% to CHF1.269bn and Q2 operating free cash flow was CHF608m (+23.9% YoY), with OCF up CHF214m and free cash flow up CHF221m in H1. Management expects stable Swiss free cash flows (Swiss Telco service‑revenue decline for 2026 guided around CHF120m, FTTH coverage target 60% by year‑end, 5G+ coverage 90%, Swiss CapEx slightly down for the year and at least CHF50m of Swiss cost savings—CHF42m delivered in H1). For Italy they expect growing free cash flows (Italy service‑revenue decline for 2026 ~CHF150m), reported H1 synergies of EUR166m (EUR89m in Q2) with a quarterly run‑rate ~EUR80m and on track for EUR300m for the full year, integration costs YTD EUR51m and total integration costs expected up to EUR250m including up to EUR200m of integration CapEx, while reported Italy CapEx for the year is roughly stable.Swisscom AG Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
48
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.82B | 15.05B | 11.04B | 11.07B | 11.05B | 11.18B |
| Gross Profit | 8.15B | 12.03B | 8.72B | 8.81B | 8.96B | 9.00B |
| EBITDA | 6.86B | 6.62B | 4.46B | 4.55B | 4.46B | 4.71B |
| Net Income | 1.31B | 1.27B | 1.54B | 1.71B | 1.60B | 1.83B |
Balance Sheet | ||||||
| Total Assets | 34.79B | 36.02B | 37.21B | 24.75B | 24.62B | 24.80B |
| Cash, Cash Equivalents and Short-Term Investments | 215.00M | 856.00M | 1.59B | 198.00M | 185.00M | 494.00M |
| Total Debt | 16.50B | 3.73B | 3.64B | 1.92B | 1.91B | 2.02B |
| Total Liabilities | 23.27B | 23.79B | 25.06B | 13.13B | 13.45B | 13.99B |
| Stockholders Equity | 11.52B | 12.24B | 12.15B | 11.62B | 11.17B | 10.81B |
Cash Flow | ||||||
| Free Cash Flow | 3.22B | 3.00B | 1.69B | 1.76B | 1.59B | 1.77B |
| Operating Cash Flow | 6.11B | 6.01B | 3.98B | 4.03B | 3.88B | 4.04B |
| Investing Cash Flow | -2.78B | -3.52B | -9.28B | -2.32B | -2.43B | -2.12B |
| Financing Cash Flow | -3.27B | -3.75B | 6.82B | -1.67B | -1.72B | -1.86B |
Swisscom AG Technical Analysis
Negative
641.00
Price Trends
628.01
Negative
644.64
Negative
628.39
Negative
Market Momentum
0.13
Positive
46.32
Neutral
17.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SCMN, the sentiment is Negative. The current price of 641 is above the 20-day moving average (MA) of 631.80, above the 50-day MA of 628.01, and above the 200-day MA of 628.39, indicating a bearish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 46.32 is Neutral, neither overbought nor oversold. The STOCH value of 17.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:SCMN.
Swisscom AG Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | CHF7.04B | 27.91 | 21.15% | 1.84% | 9.08% | 12.49% | |
71 Outperform | CHF6.48B | 17.30 | ― | 1.82% | 3.78% | 17.30% | |
64 Neutral | CHF32.58B | 24.69 | ― | 4.18% | 13.78% | -1.35% | |
64 Neutral | CHF2.09B | 49.76 | ― | 1.78% | 61.73% | ― | |
63 Neutral | CHF26.12B | 29.56 | ― | 2.93% | -5.87% | -25.05% | |
60 Neutral | CHF3.09B | -26.07 | -3.72% | 8.24% | ― | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
CH:SCMN
Swisscom AG
626.50
67.24
12.02%
CH:KNIN
Kuehne + Nagel International AG
215.80
56.20
35.21%
CH:VZN
VZ Holding AG
179.20
1.17
0.66%
CH:SUNN
Sunrise Communications AG Class A
42.62
-2.86
-6.30%
CH:SWON
SoftwareOne Holding Ltd.
9.51
2.01
26.85%
CH:SQN
Swissquote Group Holding Ltd.
41.86
-9.23
-18.07%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.