Swisscom AG (CH:SCMN)
:SCMN
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Swisscom AG
(SCMN)
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Rating:68Neutral
Price Target:
CHF731.00
▲(12.38% Upside)
Action:ReiteratedDate:05/07/26
The score is driven mainly by stable financial performance with strong cash flow, partially offset by declining net income and rising debt. The latest earnings call supports a cautious view: solid synergy/cash progress but ongoing revenue headwinds and competitive/infrastructure uncertainties. Technical signals are mixed and valuation is balanced (good yield vs higher P/E).
Positive Factors
Improving cash generation
Swisscom's materially higher operating cash flow and FCF provide durable internal funding for network rollouts, dividends, and Italy integration. Strong cash conversion supports funding of capex and synergies without heavy external financing, improving strategic flexibility over the medium term.
Negative Factors
Persistent revenue decline
Ongoing top-line pressure in both Switzerland and Italy means Swisscom must rely on cost cuts, synergies and wholesale growth to offset service and hardware weakness. Sustained revenue decline erodes scale, constrains margin expansion and forces dependence on structural fixes over the medium term.
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Positive Factors
Negative Factors
Improving cash generation
Swisscom's materially higher operating cash flow and FCF provide durable internal funding for network rollouts, dividends, and Italy integration. Strong cash conversion supports funding of capex and synergies without heavy external financing, improving strategic flexibility over the medium term.
Read all positive factors
Swisscom AG (SCMN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF34.65B
Dividend Yield3.87%
Average Volume (3M)52.40K
Price to Earnings (P/E)26.4
Beta (1Y)0.20
Revenue Growth23.18%
EPS Growth-14.99%
CountryCH
Employees23,717
SectorGeneral
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)24.53
Shares Outstanding51,801,945
10 Day Avg. Volume55,748
30 Day Avg. Volume52,402
Financial Highlights & Ratios
PEG Ratio-1.34
Price to Book (P/B)2.44
Price to Sales (P/S)1.98
P/FCF Ratio9.92
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF604.17Price Target Upside-7.12% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering6
EPS Forecast (FY)27.25
Revenue Forecast (FY)CHF14.74B
Swisscom AG Business Overview & Revenue Model
Company Description
Swisscom AG provides telecommunication services primarily in Switzerland, Italy, and internationally. It operates through three segments: Swisscom Switzerland, Fastweb, and Other Operating. The company offers mobile and fixed-network services, suc...
How the Company Makes Money
Swisscom makes money primarily by selling subscription- and usage-based telecommunications and IT services to consumers, businesses, and public-sector organizations. Key revenue streams include: (1) Consumer telecommunications: recurring monthly f...
Swisscom AG Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: strong cash generation (operating free cash flow up CHF 96m), clear progress on Italy integration synergies (CHF 77m in Q1) and network/wholesale momentum are notable positives. However, top-line pressures persist—group revenue declined and both Swiss and Italian telco service revenues face ongoing declines, compounded by promotional competition, hardware revenue weakness in Italy, the PosteMobile wholesale loss and an unresolved INWIT tower dispute. Management confirmed full-year guidance and flagged several phasing items (CapEx, marketing) that boosted Q1 results but may not repeat, resulting in a cautiously neutral outlook.Positive Updates
Operating Free Cash Flow Growth
Group operating free cash flow of CHF 494m in Q1, up CHF 96m year-over-year, driven by Italy synergy realization and lower CapEx phasing.
Negative Updates
Group Revenue Decline
Group revenue down CHF 153m year-over-year in Q1 (including CHF 44m currency effect); net of currency revenue decline was CHF 109m, reflecting softer service and hardware revenues.
Read all updates
Q1-2026 Updates
Positive
Negative
Operating Free Cash Flow Growth
Group operating free cash flow of CHF 494m in Q1, up CHF 96m year-over-year, driven by Italy synergy realization and lower CapEx phasing.
Read all positive updates
Company Guidance
Swisscom confirmed its 2026 guidance following a solid Q1: group Q1 revenue was ~CHF3.6bn (down CHF153m YoY, CHF44m FX, net -CHF109m), EBITDAaL roughly flat at CHF1.28bn, CapEx down CHF86m and operating free cash flow up to CHF494m (+CHF96m). Management reiterated full‑year targets including Swiss telco service revenue decline of ~CHF120m, >CHF50m of Swiss cost savings (Q1 delivered ~CHF25m), and Swiss IT EBITDAaL improving to CHF32m (from CHF25m in Q1), while confirming Italy’s plan to deliver CHF300m synergies (CHF77m realized in Q1), an Italy telco service revenue decline guidance of ~CHF150m (CHF100m B2C), Italy Q1 CapEx down CHF42m (adjusted -CHF67m) and Italy operating free cash flow up CHF78m; other KPIs cited were group dividend target CHF27 for 2026, FTTH coverage Switzerland 56% (+4ppt) and Italy 58% (+6ppt), 5G coverage 89% in both markets, wholesale access revenue up 8% to CHF53m, energy customers >119k in Italy, myAI 78k registered users, and hedged energy purchases covering ~90% of 2026 needs.Swisscom AG Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
68
Positive
Cash Flow
76
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 15.05B | 11.04B | 11.07B | 11.05B | 11.18B |
| Gross Profit | 12.03B | 8.72B | 8.81B | 8.96B | 9.00B |
| EBITDA | 6.62B | 4.46B | 4.55B | 4.46B | 4.71B |
| Net Income | 1.27B | 1.54B | 1.71B | 1.60B | 1.83B |
Balance Sheet | |||||
| Total Assets | 36.02B | 37.21B | 24.75B | 24.62B | 24.80B |
| Cash, Cash Equivalents and Short-Term Investments | 856.00M | 1.59B | 198.00M | 185.00M | 494.00M |
| Total Debt | 3.73B | 3.64B | 1.92B | 1.91B | 2.02B |
| Total Liabilities | 23.79B | 25.06B | 13.13B | 13.45B | 13.99B |
| Stockholders Equity | 12.24B | 12.15B | 11.62B | 11.17B | 10.81B |
Cash Flow | |||||
| Free Cash Flow | 3.00B | 1.69B | 1.76B | 1.59B | 1.77B |
| Operating Cash Flow | 6.01B | 3.98B | 4.03B | 3.88B | 4.04B |
| Investing Cash Flow | -3.52B | -9.28B | -2.32B | -2.43B | -2.12B |
| Financing Cash Flow | -3.75B | 6.82B | -1.67B | -1.72B | -1.86B |
Swisscom AG Technical Analysis
Neutral
650.50
Price Trends
673.87
Negative
618.90
Positive
588.55
Positive
Market Momentum
-3.45
Positive
37.87
Neutral
14.73
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SCMN, the sentiment is Neutral. The current price of 650.5 is below the 20-day moving average (MA) of 668.31, below the 50-day MA of 673.87, and above the 200-day MA of 588.55, indicating a neutral trend. The MACD of -3.45 indicates Positive momentum. The RSI at 37.87 is Neutral, neither overbought nor oversold. The STOCH value of 14.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CH:SCMN.
Swisscom AG Peers Comparison
UnderperformOutperform
Sector (55)
CH:SCMN
Swisscom AG
669.00
149.20
28.70%
CH:SUNN
Sunrise Communications AG Class A
46.08
5.05
12.30%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.