TIM (TIMS3) Q1 2026 earnings summary

Executive summary

• Net revenues reached R$6,806 million in 1Q26, up 6.5% year-over-year, driven by growth in mobile, broadband, and B2B, with disciplined execution amid external volatility.

• Strategic partnerships and acquisitions, including V8.Tech and PicPay, expanded digital, fintech, and B2B capabilities, supporting ecosystem and cross-selling opportunities.

• Focused on network modernization, digital transformation, and operational efficiency, including AI adoption and productivity gains above 20% in IT.

• Strengthened long-term foundations through consistent financial performance, ESG leadership, and new digital initiatives.

• Net income (normalized) increased 1.3% YoY to R$821 million, with EPS at R$0.34.

Financial highlights

• Service revenues rose 6.5% YoY, with mobile service up 5.6% and fixed broadband up 11.4%, supported by ARPU growth and positive net additions.

• EBITDA after lease (EBITDA-AL) grew 7.8% YoY, margin up 0.5 p.p. to 37.1%, reflecting efficiency initiatives and disciplined cost management.

• Operating cash flow increased 16.8% YoY to R$1,169 million, with margin rising to 17.2%.

• Capex totaled R$1,354 million (19.9% of net revenue), mainly for network expansion.

• Cash and securities reached R$5,871 million, up 10.2% YoY.

Outlook and guidance

• B2B vertical expected to continue double-digit growth, with V8 contribution included in annual guidance.

• Continued network expansion targeting 15 state capitals and ~12 million customers by 2027.

• Shareholder remuneration guidance for 2026 is R$5.3–5.5 billion, reflecting increased returns in line with cash flow growth.

• Margin expansion anticipated in coming quarters, despite seasonal and macroeconomic pressures on OpEx and bad debt.

• Long-term strategy focuses on digital transformation, B2B expansion, and ESG leadership.