Telefônica Brasil (VIVT3) Q1 2026 earnings summary

Executive summary

• Achieved strong growth above inflation in core metrics, driven by customer base expansion, resilient revenue, and margin improvement year-over-year.

• Mobile postpaid accesses grew 6.9% YoY to 72.1 million, with total mobile accesses at 103.7 million; fiber connections reached 8.0 million, up 11.5% YoY, and 905 municipalities now covered by 5G.

• New business and digital services now represent 12.1% of total revenues, up 1.8 p.p. from Q1 2025.

• ESG achievements include leadership in sustainability indices, increased board diversity, and recognition for climate engagement.

• Continued transformation of revenue mix, with robust growth in both mobile and fixed segments.

Financial highlights

• Total revenue grew 7.4% YoY to R$15,457 million; mobile service revenue up 6.6%, fixed revenue up 5.1%.

• EBITDA rose 8.9% YoY to R$6,209.3 million, with margin reaching 40.2%.

• Net income increased 19.2% YoY to R$1.3 billion; free cash flow at R$2.2 billion for the quarter.

• Operating cash flow after leases up 10% YoY to BRL 3 billion; margin at 17.8%.

• Net cash position up 65% YoY; net debt/EBITDA at 0.4x.

Outlook and guidance

• Reaffirmed commitment to distribute at least 100% of FY2026 net income to shareholders.

• CapEx intensity expected to improve in 2026, with disciplined resource allocation and over 75% dedicated to 5G and fiber.

• Continued focus on expanding network, convergent offers, and digital services for sustainable growth.