Swisscom (SCMN) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered solid operational and financial results, with group performance in line with expectations and guidance, reinforcing the group's position in Switzerland and Italy.

• Integration of Vodafone Italia is progressing as planned, with synergy realization ramping up and contributing to growth.

• Price increases in Switzerland were executed as planned, with churn and customer migration in line with expectations.

• Energy business and strategic infrastructure initiatives contributed to significant growth, expected to continue throughout 2026.

• Workforce reduced by 2.7% year-over-year, with the largest decrease in Switzerland.

Financial highlights

• Group revenue for Q1 2026 was CHF 3,606 million, down 4.1% year-over-year, mainly due to declines in Switzerland and Italy and currency effects, but in line with guidance.

• EBITDA/EBITDAAL was roughly flat at CHF 1,288 million, up 0.8% year-over-year.

• Operating free cash flow increased 19.3% to CHF 594 million, ahead of consensus.

• CapEx decreased 11.0% to CHF 693 million, driving higher free cash flow.

• Net income declined by 9.6% to CHF 332 million, primarily due to non-cash financial result effects.

Outlook and guidance

• Full-year 2026 guidance confirmed: revenue CHF 14.7–14.9 billion, EBITDAAL CHF 5.0–5.15 billion, CapEx CHF 3.0–3.1 billion, OpFCF ~CHF 2.0 billion.

• Dividend proposal for 2026 increased to CHF 27 per share, subject to target achievement and shareholder approval.

• Net debt/EBITDA ratio expected at ~2.3x by year-end 2026.

• Service revenue in Switzerland expected to decline by CHF 120 million for the year, with CHF 50 million in cost savings targeted.

• Italy's telco service revenue decline guided at CHF 150 million for 2026, CHF 100 million from B2C.