3Q26 Results: Telefônica Brasil S.A.

R$1,000.0 million remains available under the buyback plan, while payment dates for R$3,195.0 million of declared interest on capital remain unset.

Rhea-AI Summary

Telefônica Brasil (NYSE: VIV) reported third-quarter 2026 net income of R$2,456 million, up 30.1% from a year earlier. Revenue rose 7.2% to R$16,023 million. EBITDA, earnings before interest, taxes, depreciation and amortization, increased 10.0% to R$7,136 million, with its margin reaching 44.5%. Free cash flow rose 37.7% to R$2,426 million.

Mobile services revenue increased 7.4%, fiber-to-the-home revenue grew 5.7%, and corporate data, ICT and digital services revenue rose 4.9%. Fiber average revenue per user declined following Vivo Total's rebalancing. Nine-month net income increased 23.3% to R$5,290 million. Shareholder remuneration paid in the first nine months reached R$6,990.0 million. A further R$325.0 million interest-on-capital payment is scheduled for December 15, 2026. The company remains committed to distributing at least 100% of FY26 net income.

26 points · 0 major

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0 major · 4 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointRevenue rose 7.2% year over year to R$16,023 million in 3Q26; nine-month revenue increased 7.4% to R$47,237 million.
• Moderate pointNet income increased 30.1% to R$2,456 million in 3Q26; nine-month income rose 23.3% to R$5,290 million.
• Moderate pointEBITDA increased 10.0% to R$7,136 million in 3Q26; nine-month EBITDA rose 9.9% to R$19,926 million.
• Moderate pointFree cash flow increased 37.7% to R$2,426 million in 3Q26; nine-month growth reached 6.1% to R$7,287 million.
• Moderate pointOperating cash flow rose 17.8% to R$4,575 million in 3Q26; nine-month growth reached 13.5% to R$12,729 million.
• Moderate pointHuman Postpaid net additions reached 3.5 million over the last twelve months; accesses rose 7.0% to 53.4 million.
• Moderate pointTotal subscribers increased 3.0% year over year to 120,154 thousand.
• Moderate pointShareholder remuneration paid reached R$6,990.0 million in 9M26, exceeding full-year 2025 distributions by 9.6%.
• Moderate point. Forward-looking: it has not happened yet and may not happen.FY26 distribution commitment remains at least 100% of net income.

17 minor points

• Minor pointEPS rose 31.0% to R$0.77 in 3Q26; nine-month EPS increased 24.7% to R$1.66.
• Minor pointEBITDA margin expanded 1.1 percentage points to 44.5% in 3Q26; nine-month margin increased 1.0 point to 42.2%.
• Minor pointEBITDA after leases grew 10.8% to R$5,689 million in 3Q26; nine-month growth reached 10.7% to R$15,628 million.
• Minor pointEBITDA after-leases margin rose 1.2 percentage points to 35.5%; nine-month margin increased 1.0 point to 33.1%.
• Minor pointOperating cash flow margin reached 28.6%, up 2.6 percentage points; nine-month margin reached 26.9%, up 1.5 points.
• Minor pointOperating cash flow after leases increased 23.6% to R$3,128 million; nine-month growth reached 17.0% to R$8,431 million.
• Minor pointOperating cash flow after-leases margin reached 19.5%, up 2.6 percentage points; nine-month margin reached 17.8%, up 1.5 points.
• Minor pointMobile services revenue increased 7.4% to R$10,437 million in 3Q26; nine-month growth reached 6.9% to R$30,500 million.
• Minor pointFiber-to-the-home revenue rose 5.7% to R$2,092 million in 3Q26; nine-month growth reached 8.5% to R$6,315 million.
• Minor pointCorporate data, ICT and digital services revenue grew 4.9% to R$1,453 million; nine-month growth reached 7.0% to R$4,343 million.
• Minor pointHandsets and electronics revenue increased 26.6% to R$1,113 million; nine-month growth reached 27.0% to R$3,312 million.
• Minor pointPostpaid revenue increased 9.1% year over year in 3Q26.
• Minor pointHuman Postpaid average revenue per user increased 0.6% year over year to R$53.8.
• Minor pointFiber take-up increased 1.0 percentage point year over year to 26.0%.
• Minor pointCapital expenditure excluding IFRS 16 and licenses fell 1.6% to R$2,561 million; nine-month spending rose 4.1% to R$7,197 million.
• Minor pointCapital expenditure/revenue fell 1.4 percentage points to 16.0% in 3Q26; nine-month ratio fell 0.5 point to 15.2%.
• Minor pointBuyback capacity of R$1,000.0 million remains available under the existing plan.

Negative

• Moderate pointTotal costs rose 5.0% to R$8,887 million in 3Q26; nine-month costs increased 5.6% to R$27,311 million.
• Moderate pointR$3,195.0 million in interest on capital declared in 2026 awaits payment dates, subject to April 30, 2027.
• Minor pointOther revenues declined 6.2% to R$928 million in 3Q26; nine-month revenue fell 6.4% to R$2,766 million.
• Minor pointFiber average revenue per user decreased following Vivo Total's rebalancing.

News Explained

The disclosed distinction is between declared interest on capital with payment timing pending and an amount still at the company's disposal under its buyback plan.

Telefônica Brasil reports that R$1,000.0 million remains at its disposal under the share buyback plan, while R$3,195.0 million in 2026 interest on capital has been declared but has no payment dates yet.

The company says payment of the declared interest on capital is subject to the April 30, 2027 deadline.

Key Figures

Net revenue: R$16,022.7 million (+7.2% YoY) EBITDA: R$7,135.6 million (+10.0% YoY) Net income: R$2,456.4 million (+30.1% YoY) +5 more

Net revenue

R$16,022.7 million (+7.2% YoY)

3Q26

EBITDA

R$7,135.6 million (+10.0% YoY)

3Q26

Net income

R$2,456.4 million (+30.1% YoY)

3Q26, attributable to Telefônica Brasil

Earnings per share

R$0.77 (+31.0% YoY)

3Q26

Operating cash flow

R$4,574.6 million (+17.8% YoY)

3Q26

Shareholder remuneration paid

R$6,990.0 million (+9.6% vs. FY2025)

9M26

Interest on capital payment

R$325.0 million

Payment approved for December 15, 2026

FY26 distribution commitment

At least 100% of FY26 net income

Shareholder distribution commitment

Historical Context

2 past events · Latest: Jul 28

2 events

1. Jul 28

   Quarterly results

   24h Move

   -6.8%

   Revenue increased 7.6% and net income increased 17.0% year over year.

2. May 11

   Quarterly results

   24h Move

   -5.5%

   Revenue increased 7.4% and net income increased 19.2% year over year.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ebitda, ftth, arpu, churn, +1 more

5 terms

ebitda financial

"EBITDA delivered another quarter of double-digit growth"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

ftth technical

"driven by strong postpaid (+9.1% YoY), FTTH (+5.7% YoY)"

Fiber to the home (FTTH) is a broadband delivery method that runs optical fiber directly from a network to individual residences, replacing slower copper or wireless links. Like replacing a narrow water pipe with a wide one, it provides much faster, more reliable internet and supports higher data use. Investors care because FTTH requires large upfront investment but can create stable recurring revenue, long-term customer lock-in, and a competitive edge in regions with growing data demand.

arpu financial

"ARPU stood at R$53.8 (+0.6% YoY)"

ARPU, or Average Revenue Per User, measures how much money a company earns, on average, from each of its customers over a set period. It helps investors understand how effectively a business is generating income from its customer base, similar to calculating how much each customer spends at a store. Higher ARPU often indicates stronger sales per customer and better revenue performance.

churn financial

"churn also remained at a historically low level of 1.0%"

Churn is the rate at which customers or subscribers stop using a company’s product or service over a given period; it can be measured by number of customers lost or by lost revenue. Investors care because high churn is like a leaky bucket — the company must add more new customers or spend more on marketing to keep sales and profits from falling, which can slow growth and reduce long-term value.

capex financial

"Capex totaled R$2,561.0 million, down -1.6% YoY"

Capex, short for capital expenditures, refers to the money a company spends to buy, upgrade, or maintain physical assets such as buildings, equipment, or technology. It matters to investors because these investments can help a company grow and improve its long-term performance, but they also represent significant costs that can impact profitability and cash flow.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Sao Paulo, Brazil--(Newsfile Corp. - November 10, 2026) - Telefônica Brasil (B3: VIVT3) (NYSE: VIV) announces its results for 3Q26.

Consistent Revenue and EBITDA performance drives +30.1% YoY growth in Net Income.

R$ million		3Q26			3Q25			% YoY			9M26			9M25			% YoY
Net Operating Revenue		16,023			14,949			7.2			47,237			43,984			7.4
Mobile Services		10,437			9,715			7.4			30,500			28,542			6.9
FTTH		2,092			1,980			5.7			6,315			5,819			8.5
Corporate Data, ICT and Digital Services		1,453			1,386			4.9			4,343			4,059			7.0
Handsets and Electronics		1,113			879			26.6			3,312			2,608			27.0
Other Revenues¹		928			989			(6.2	)		2,766			2,957			(6.4	)
Total Costs		(8,887	)		(8,463	)		5.0			(27,311	)		(25,862	)		5.6
EBITDA		7,136			6,486			10.0			19,926			18,123			9.9
EBITDA Margin		44.5%			43.4%			1.1 p.p.			42.2%			41.2%			1.0 p.p.
EBITDA AL²		5,689			5,134			10.8			15,628			14,118			10.7
EBITDA AL² Margin		35.5%			34.3%			1.2 p.p.			33.1%			32.1%			1.0 p.p.
Net Income³		2,456			1,888			30.1			5,290			4,291			23.3
Earnings per Share (EPS)4		0.77			0.59			31.0			1.66			1.33			24.7
CAPEX ex-IFRS 165		2,561			2,603			(1.6	)		7,197			6,911			4.1
CAPEX ex-IFRS 165/Net Revenue		16.0%			17.4%			(1.4) p.p.			15.2%			15.7%			(0.5) p.p.
Operating Cash Flow (OpCF)6		4,575			3,883			17.8			12,729			11,212			13.5
OpCF6 Margin		28.6%			26.0%			2.6 p.p.			26.9%			25.5%			1.5 p.p.
Operating Cash Flow AL (OpCF AL)7		3,128			2,531			23.6			8,431			7,207			17.0
OpCF AL7 Margin		19.5%			16.9%			2.6 p.p.			17.8%			16.4%			1.5 p.p.
Free Cash Flow		2,426			1,762			37.7			7,287			6,866			6.1
Total Subscribers (Thousand)		120,154			116,643			3.0			120,154			116,643			3.0

 

1 - Other Revenues include Fixed Voice, xDSL, FTTC and IPTV. 2 - AL means After Leases. 3 - Net Income attributable to Telefônica Brasil. 4 - Earnings per Share (EPS) calculated based on net income attributable to Telefônica Brasil divided by the weighted average of outstanding shares in the period. EPS for 2025 was recalculated considering the effects of the Split and Reverse Stock Split effective on April 15, 2025. 5 - Does not include amounts related to IFRS 16 effects and licenses. 6 - Operating Cash Flow is equivalent to EBITDA less Capex ex-IFRS 16 and licenses. 7 -Operating Cash Flow AL is equivalent to EBITDA After Leases less Capex ex-IFRS 16 and licenses.

Net revenue reached R$16,022.7 million, increasing +7.2% YoY, driven by strong postpaid (+9.1% YoY), FTTH (+5.7% YoY) and the continued expansion of Corporate Data, ICT and Digital Services revenues (+4.9% YoY). Human Postpaid remained a key growth driver, with +3.5 million net additions LTM, bringing the base to 53.4 million accesses (+7.0% YoY). ARPU stood at R$53.8 (+0.6% YoY), and churn also remained at a historically low level of 1.0%.

Our Fiber business continued to execute consistently, with the footprint expanding to 32.4 million homes passed (+6.4% YoY) and homes connected reaching 8.4 million (+10.8% YoY) in 3Q26. This performance supported a +1.0 p.p. YoY increase in take-up (26.0% in 3Q26), while ARPU decreased following Vivo Total's rebalancing and churn was flat at 1.4% this quarter.

EBITDA delivered another quarter of double-digit growth, +10.0% YoY, summing R$7,135.6 million, reaching a strong margin of 44.5% (+1.1 p.p. YoY). EBITDA AL rose +10.8% YoY, with another margin expansion of +1.2 p.p. YoY to 35.5%.

Capex totaled R$2,561.0 million, down -1.6% YoY, lower than 1Q26 and 2Q26 growth rates (+9.6% and +6.1% YoY, respectively), representing 16.0% of revenues, a reduction of -1.4 p.p. YoY. Investments remained focused on expanding and enhancing our network infrastructure, with 5G now available in 1,012 municipalities and our FTTH network reaching 453 cities.

Operating Cash Flow reached R$4,574.6 million, increasing +17.8% YoY and leading to a margin of 28.6% (+2.6 p.p. YoY), one of the highest OpCF margins on record. Net income amounted to R$2,456.4 million, delivering a strong +30.1% YoY increase, the highest since 4Q23.

Shareholder remuneration paid out in 9M26 reached R$6,990.0 million, surpassing the amount distributed in FY2025 by +9.6%. This includes R$2,990.0 million of interest on capital declared in 2025 and R$4,000.0 million related to capital reduction. On November 10, 2026, Vivo's Executive Board approved the date of payment of the IoC declared in February 2026, in the amount of R$325.0 million, to be made on December 15, 2026, driving current 2026 shareholder remuneration to R$7,315.0 million, with R$1,000.0 million still at our disposal under the share buyback plan and R$3,195.0 million in IoC declared in 2026 for which payment dates have yet to be determined, subject to the April 30, 2027 deadline. We remain firmly committed to distributing at least 100% of FY26 net income to shareholders.

TELEFÔNICA BRASIL - Investor Relations
ir.br@telefonica.com

To download the complete version of the Company's earnings release, please visit our website: https://ri.telefonica.com.br/en

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/323457

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Telefônica Brasil's VIV third-quarter 2026 earnings results?

Telefônica Brasil reported R$2,456 million in net income, up 30.1% year over year, and EPS of R$0.77, up 31.0%. Revenue increased 7.2% to R$16,023 million, while EBITDA rose 10.0% to R$7,136 million.

When will Telefônica Brasil pay its R$325.0 million interest on capital?

The R$325.0 million interest on capital declared in February 2026 will be paid on December 15, 2026. The Executive Board approved the payment date on November 10, 2026.

What made up Telefônica Brasil's shareholder remuneration paid in 9M26?

The R$6,990.0 million paid in 9M26 comprised R$2,990.0 million of interest on capital declared in 2025 and R$4,000.0 million from a capital reduction. The amount exceeded full-year 2025 distributions by 9.6%.

How does Telefônica Brasil calculate operating cash flow in its 3Q26 results?

Operating cash flow is EBITDA less capital expenditure excluding IFRS 16 and licenses. Operating cash flow after leases uses EBITDA after leases instead, with the same capital expenditure deduction.