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Telefonica Brasil (VIV1N) Q3 2026 Earnings Report

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MX:VIV1N Q3 2026 EPS Results

Actual EPS
MXN 5.13
Consensus EPS
MXN 4.76
Beat/Miss
Beat by +MXN 0.37
One Year Ago EPS
MXN 4.06

MX:VIV1N Q3 2026 Revenue Results

Actual Revenue
MXN 57.81B
Expected Revenue
MXN 57.39B
Beat/Miss
Beat by +MXN 428.41M
YoY Revenue Growth
+13.68%

Earnings Announcement Details

Quarter
Q3 2026
Date
11/10/2026
Time
After Close
Conference Call
Tuesday, November 10, 2026
MX:VIV1N Upcoming Earnings

Telefonica Brasil's next earnings date is estimated for February 23, 2027, based on past reporting schedules.

Q3 2026 Earnings Call Audio

MX:VIV1N Q3 2026 Earnings Call
0:00 / 0:00

Q3 2026 Earnings Slide Deck

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Nov 10, 2026|% Change Since:0.00%|
Earnings Call Sentiment|Positive

The call was strongly positive, supported by broad-based revenue growth, double-digit EBITDA and net income expansion, rising cash generation, customer growth, improving margins, network leadership, and significant shareholder remuneration. The company also confirmed its guidance and described continued investment in 5G, fiber, digital services, AI, and satellite connectivity. The main challenges were the decline in prepaid accesses, higher cost of services and goods sold, increased accounts receivable, macroeconomic pressure on B2B customer affordability, and uncertainty around tax reform implementation.

Company Guidance

Management confirmed its guidance for the year and said it was confident in meeting its guidance for '26, expecting the trends of 7.2% revenue growth, 10% EBITDA growth, a 1.1 percentage point margin increase, 13.5% operating cash flow growth, 37.7% free cash flow growth and 23.3% net income growth to continue in the next quarter; it said that, if there is inflation, it will keep the strategy of moving prices up, normally twice a year, expects last 12 months lease growth to remain below mobile service revenue growth, with leases currently up 3.6%, expects the bottom line impact of tax reform for Vivo to be neutral, and will be able to monetize Vivo Satélite in B2B after 3 months and in B2C after 12 months.

  • Strong Revenue and Profitability GrowthThird-quarter total revenue reached BRL 16 billion, up 7.2% year-over-year, with mobile services revenue increasing 7.4% and fixed revenue rising 2.7%. EBITDA grew 10% to BRL 7.1 billion, while the EBITDA margin expanded 1.1 percentage points to 44.5%.
  • Robust Cash Generation and Net IncomeOperating cash flow totaled BRL 12.7 billion in the first 9 months, up 13.5% year-over-year, while free cash flow reached BRL 7.3 billion, up 6.1%. Net income increased 23.3% to BRL 5.3 billion in the first 9 months; third-quarter net income rose 30.1% to BRL 2.5 billion, and third-quarter free cash flow increased 37.7% to BRL 2.4 billion.
  • Strong Balance Sheet and Shareholder RemunerationVivo ended September with BRL 2.4 billion of net cash excluding leases. Including leases, net debt was BRL 13.8 billion, equivalent to 0.5x EBITDA. The company had already disbursed BRL 7 billion to investors, with an additional BRL 325 million of interest on capital due in December, totaling over BRL 7.3 billion in 2026 remuneration. BRL 1 billion remained available under the share buyback program through February 2027.
  • Improving Revenue MixRecurring revenues represented 84.9% of service revenues, up 1.6 percentage points year-over-year. New businesses accounted for 12.5% of total revenues over the last 12 months, while service revenues grew 6% year-over-year despite the rebalancing of Vivo Total revenue allocation.
  • Mobile Customer and Monetization GrowthTotal mobile accesses reached 106.4 million, up 3.4% year-over-year. The postpaid base excluding M2M and dongles reached 53.4 million, supported by more than 900,000 net additions in the quarter. Mobile ARPU reached a new high of BRL 32.9, while postpaid churn remained at 1%.
  • 5G Leadership and Network QualityVivo's 5G customer base reached 28.1 million, representing one-third of mobile accesses excluding M2M and dongles. For the third consecutive year, Opensignal recognized Vivo as having the fastest 5G network in the world.
  • Fiber Expansion and Customer RetentionFTTH accesses increased 10.8% year-over-year to 8.4 million, including 213,000 net additions in the quarter. Vivo Total accesses rose 27.8% to 4 million. Fiber churn declined to 1.4%, the footprint expanded to 32.4 million homes passed, and the take-up rate increased 1 percentage point to 26%.
  • Convergence Supporting Lower ChurnVivo stated that Vivo Total fiber churn is 1 percentage point lower than standalone fiber churn. The company also reached a record 4 million Vivo Total accesses and said additional fiber and convergent customers remain available for migration.
  • B2C Ecosystem GrowthB2C revenue reached BRL 47.5 billion on a last-12-month basis, up 7.6% year-over-year. Connectivity revenue rose 6.4%, while new businesses increased 37.1% to BRL 2.3 billion. Monthly B2C revenue per RGU increased to BRL 69.8 from BRL 64.6 a year ago across 56.7 million RGUs.
  • Expansion Across Consumer Digital ServicesConsumer electronics grew 69.4%, health and wellness rose 46.4%, OTT services increased 30.5%, and financial services grew 13.6%. These activities accounted for 3.6% of total revenues. Vivo also reported annual video and music OTT revenue of BRL 1 billion.
  • AppleCare and Streaming Bundle LaunchesVivo became the first telecom operator in Latin America to launch AppleCare services. More than 15% of iPhone Pro devices sold in Vivo stores included AppleCare. The company also launched streaming bundles starting at BRL 49.90, allowing customers to combine up to six streaming services on one bill.
  • B2B Digital Services GrowthB2B revenue reached BRL 14.1 billion on a last-12-month basis, up 7.1% year-over-year. Connectivity grew 4.7%, digital B2B increased 10.9% and represented 8.9% of Vivo's total revenues. Cybersecurity grew 15.9%, cloud services 12.4%, digital solutions 12.1%, and IoT and messaging 6%.
  • Integrated Cybersecurity OfferingVivo partnered with Palo Alto Networks to launch an Agentic Security Operations Center incorporating AI agents, 24/7 monitoring, local specialists, and Telefónica's global cybersecurity ecosystem.
  • Vivo Satélite Coverage ExpansionThrough its partnership with Starlink, Vivo became the first mobile operator in Brazil to cover nearly 100% of the country. More than 50 million eligible customers can access messaging, GPS, and calls through selected apps via direct-to-device satellite connectivity. Ten million of the 50 million eligible customers had already used the service a few weeks after launch.
  • Satellite Monetization Road MapVivo stated that Vivo Satélite would be monetized in B2B after three months and in B2C after 12 months. The company said commercial models across B2B and B2C and further improvements in connectivity speeds are planned.
  • ESG Progress and External RecognitionVivo raised its Scope 1 and 2 operational emissions target from 90% to 95% by 2035 while maintaining its net-zero commitment for 2035. The company published its 2026 Climate Action Plan, ranked first among large corporations in the Ethos Diversity, Equity and Inclusion Assessment, entered the top 10 of the Merco Talent ranking, and received Compliance Program of the Year for the second consecutive year.
  • Cost Discipline and Operating LeverageTotal costs increased 5% year-over-year, below the 7.2% revenue increase. Commercial and infrastructure expenses declined 0.9%, while the provision for bad debt remained at 1.8% of gross revenue. Other revenues totaled BRL 365 million, including BRL 352 million from copper sales and BRL 14 million from real estate.
  • Improving Capital EfficiencyCapEx totaled BRL 7.2 billion in the first 9 months, representing 15.2% of revenues versus 15.7% in the same period last year. Investments remained focused mainly on 5G and fiber expansion while the company continued to invest in network quality and future opportunities.
  • Operating Cash Flow Margin ExpansionOperating cash flow before leases reached BRL 12.7 billion in the first 9 months, up 13.5% year-over-year, while operating cash flow after leases reached BRL 8.4 billion, up 17%. On a last-12-month basis, operating cash flow margins were 27.2% before leases and 18.1% after leases.
  • Efficiency From Technology Migration and AIVivo attributed profitability improvements to migration from concession to authorization, customer-care and back-office digitalization, and scaling AI-driven solutions across operations. Depreciation expenses declined BRL 282 million because copper-related assets became fully depreciated.
  • Lease Cost ManagementLease payments including interest increased 5.7% in the quarter and 3.6% on a last-12-month basis, below the growth in mobile service revenue. Vivo said it is negotiating prices, increasing co-location, and evaluating additional tower vendors and swaps.
  • Confirmed 2026 Guidance and M&A OptionalityVivo confirmed its 2026 guidance and said its operating performance, cash generation, and financial position support continued investment while preserving a sound capital structure. Management remains open to M&A and is evaluating targets, although it has not reached a conclusion on any near-term acquisition.
  • Prepaid Offer and Pricing InitiativesVivo launched a BRL 35 prepaid offer for 30 days that includes drugstore discounts of up to 60% through Vale Saúde Farma and Google Cloud storage. The company also raised prices across prepaid, hybrid, postpaid, Vivo Total, and annual plans, with digital services embedded in offers to support higher ARPU.

MX:VIV1N Earnings History

MX:VIV1N earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Feb 23, 20272026 (Q4)5.43-4.24――
Nov 10, 20262026 (Q3)4.765.134.0626.48% (+1.08)
Jul 27, 20262026 (Q2)3.973.542.7827.33% (+0.76)
May 11, 20262026 (Q1)3.542.952.1338.26% (+0.82)
Feb 23, 20262025 (Q4)3.784.243.4722.46% (+0.78)
Oct 30, 20252025 (Q3)3.374.063.323.03% (+0.76)
Jul 31, 20252025 (Q2)2.852.782.4314.50% (+0.35)
May 12, 20252025 (Q1)2.152.131.968.49% (+0.17)
Feb 25, 20252024 (Q4)3.193.473.65-5.08% (-0.19)
Nov 05, 20242024 (Q3)3.083.303.280.56% (+0.02)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed