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Swisscom AG (SCMWY) AI Stock Analysis
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Swisscom AG
(Other OTC:SCMWY)
The score is driven primarily by stable profitability and strong cash generation, supported by reaffirmed guidance and synergy progress in Italy. The key risks holding the score down are the sharp increase in leverage, ongoing top-line/service-revenue pressure, and a neutral-to-soft technical trend.
Swisscom AG (SCMWY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $44.08B
- Dividend Yield
- 3.85%
- Average Volume (3M)
- 10.43K
- Price to Earnings (P/E)
- 27.6
- Beta (1Y)
- -0.03
- Revenue Growth
- 24.20%
- EPS Growth
- 8.09%
- Country
- US
- Employees
- 23,266
- Sector
- Communication Services
- Sector Strength
- 60
- Industry
- Telecommunications Services
Swisscom AG Business Overview & Revenue Model
Company Description
Swisscom AG is a prominent telecommunications provider, primarily delivering services in Switzerland and Italy, with a broader international presence. Its operations are structured into three distinct segments: Swisscom Switzerland, Fastweb, and Othe...
How the Company Makes Money
Swisscom makes money primarily by selling telecommunications and ICT services on a recurring, subscription-style basis, supplemented by usage-based and project-based fees. 1) Consumer telecom revenue (recurring subscriptions + usage): - Mobile servic...
Swisscom AG Earnings Call Summary
The call presented a balanced picture: strong operational execution and financial discipline delivered meaningful EBITDA and operating free cash flow growth, Italy integration synergies are ahead of plan, and network rollouts and AI initiatives show promising momentum. However, persistent top-line pressure from declining service revenue in both Switzerland and Italy, MVNO-driven wholesale RGU losses, upcoming integration CapEx and regulatory uncertainties temper the outlook. Management confirmed full-year guidance, signaling confidence in meeting targets despite the headwinds.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Swisscom confirmed its full‑year guidance, saying group EBITDAaL is on track and operating free cash flow guidance is reaffirmed after a strong H1 (group revenue down CHF225m year‑over‑year / CHF147m net of FX, EBITDAaL up CHF83m — adj. CHF92m — and operating free cash flow up ~CHF214m with Q2 operating free cash flow CHF608m, +23.9% YoY). Management reiterated Switzerland targets of stable free cash flows, CapEx slightly down for the year, a 60% FTTH coverage target by year‑end (FTTH now ~58%), at least CHF50m of cost savings for 2026 (CHF42m delivered in H1) and a Swiss Telco service‑revenue decline guidance roughly in the CHF120m full‑year range. For Italy they remain on track to deliver EUR300m of synergies in 2026 (EUR166m realized H1; EUR89m in Q2; ~EUR80m quarterly run‑rate), see integration costs to date EUR51m with total integration costs up to EUR250m (integration CapEx up to EUR200m), reported CapEx roughly stable for the year, and an expected Italy service‑revenue decline of roughly CHF150m for 2026, while aiming for growing free cash flow from Italy.
Swisscom AG Financial Statement Overview
Summary
Profitability remains solid (TTM operating margin ~14.5%, net margin ~8.9%, EBITDA margin ~46%) and cash generation is strong with higher TTM operating cash flow (~6.2B) and free cash flow (~3.26B). Offsetting this, TTM revenue is down ~7.1% and leverage rose sharply (debt-to-equity ~1.43 vs ~0.30 in 2024–2025), increasing balance-sheet risk and making sustained cash flow more critical.
Income Statement
66PositiveBalance Sheet
52NeutralCash Flow
63Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.91B | 15.05B | 11.04B | 11.07B | 11.11B | 11.18B |
| Gross Profit | 8.19B | 12.03B | 8.72B | 8.81B | 9.09B | 9.00B |
| EBITDA | 6.91B | 6.61B | 4.84B | 4.58B | 4.43B | 4.71B |
| Net Income | 1.33B | 1.27B | 1.54B | 1.71B | 1.60B | 1.83B |
Balance Sheet | ||||||
| Total Assets | 34.67B | 36.02B | 37.21B | 24.75B | 24.62B | 24.80B |
| Cash, Cash Equivalents and Short-Term Investments | 214.24M | 856.00M | 1.59B | 198.00M | 185.00M | 494.00M |
| Total Debt | 16.44B | 3.73B | 3.64B | 1.92B | 1.91B | 2.02B |
| Total Liabilities | 23.19B | 23.79B | 25.06B | 13.13B | 13.45B | 13.99B |
| Stockholders Equity | 11.48B | 12.24B | 12.15B | 11.62B | 11.17B | 10.81B |
Cash Flow | ||||||
| Free Cash Flow | 3.26B | 3.00B | 1.69B | 1.76B | 1.59B | 1.77B |
| Operating Cash Flow | 6.20B | 6.01B | 3.98B | 4.03B | 3.88B | 4.04B |
| Investing Cash Flow | -2.82B | -3.52B | -9.28B | -2.32B | -2.43B | -2.12B |
| Financing Cash Flow | -3.37B | -3.75B | 6.82B | -1.67B | -1.72B | -1.86B |
Swisscom AG Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCMWY, the sentiment is Positive. The current price of 84.99 is above the 20-day moving average (MA) of 79.84, above the 50-day MA of 79.24, and above the 200-day MA of 81.68, indicating a bullish trend. The MACD of 1.53 indicates Negative momentum. The RSI at 70.74 is Negative, neither overbought nor oversold. The STOCH value of 95.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SCMWY.
Swisscom AG Peers Comparison
Overall Rating
TIMB73Outperform
VZ67Neutral
KT66Neutral
CMCSA63Neutral
VOD63Neutral- SCMWY60Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TIMB | 73Outperform | $8.43B | 10.65 | 17.54% | 7.85% | 13.99% | 29.93% |
| VZ | 67Neutral | $185.39B | 11.41 | 15.73% | 6.29% | 1.38% | -16.44% |
| KT | 66Neutral | $8.37B | 8.01 | 7.21% | 4.85% | 5.40% | 39.37% |
| CMCSA | 63Neutral | $82.45B | 7.35 | 12.32% | 5.68% | -0.25% | -47.58% |
| VOD | 63Neutral | $36.97B | -72.26 | -0.79% | 3.38% | 16.69% | 87.12% |
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
| SCMWY | 60Neutral | $43.98B | 27.57 | 11.21% | 3.85% | 24.20% | 8.09% |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| SCMWY | Swisscom AG (ADR) | 84.99 | 14.31 | 20.24% | |
| CMCSA | Comcast Corp | 23.22 | -0.77 | -3.21% | |
| KT | KT Corporation | 17.28 | -1.42 | -7.59% | |
| TIMB | Tim S.A. | 17.68 | -3.64 | -17.06% | |
| VZ | Verizon Communications | 44.73 | 7.72 | 20.87% | |
| VOD | Vodafone Group Plc | 15.88 | 4.93 | 44.98% |
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.
Date of analysis: Aug 10, 2026