Swisscom AG (CH:SCMN)
:SCMN
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Swisscom AG
(SCMN)
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Rating:67Neutral
Price Target:
CHF762.00
▲(15.63% Upside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by solid, cash-generative financials (strong margins and improving free cash flow), but it is held back by weakening profitability trends and higher leverage. Technicals are bullish but appear overextended, and valuation looks rich (P/E ~29) despite a moderate dividend yield. Earnings guidance supports stability and cash flow improvement, though continued service-revenue declines and acquisition-related cost headwinds limit upside.
Positive Factors
Improving cash generation
Swisscom's materially improved operating cash flow (CHF 6.01bn) and FCF growth (+13.7% to CHF 3.00bn) create durable financial flexibility. Strong cash generation supports dividends, fiber and 5G capex, deleveraging and integration costs, insulating fundamentals despite service revenue pressure.
Negative Factors
Telco service revenue erosion (CH)
Ongoing service‑revenue decline in Switzerland (B2C and B2B) reflects structural ARPU pressure and substitution. Persistent top‑line erosion constrains organic EBITDA growth, forcing reliance on cost cuts, wholesale monetization or M&A to sustain margins over the medium term.
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Positive Factors
Negative Factors
Improving cash generation
Swisscom's materially improved operating cash flow (CHF 6.01bn) and FCF growth (+13.7% to CHF 3.00bn) create durable financial flexibility. Strong cash generation supports dividends, fiber and 5G capex, deleveraging and integration costs, insulating fundamentals despite service revenue pressure.
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Swisscom AG (SCMN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF34.14B
Dividend Yield3.87%
Average Volume (3M)52.40K
Price to Earnings (P/E)23.5
Beta (1Y)0.24
Revenue Growth27.12%
EPS Growth-25.85%
CountryCH
Employees23,717
SectorGeneral
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)5.44
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
CHF606.43Price Target Upside-7.98% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering7
EPS Forecast (FY)26.44
Revenue Forecast (FY)CHF14.77B
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 generates revenue primarily through its telecommunications services, which include mobile subscriptions, fixed-line voice and broadband services, and digital television offerings. The company earns significant income from mobile service c...
Swisscom AG Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
The call balanced meaningful operational and strategic progress—particularly integration and synergy delivery in Italy, wholesale monetization, network coverage parity, early traction in AI/energy/security products, preservation of credit ratings and stable operating free cash flows—with notable financial headwinds from telco service revenue erosion, acquisition-related non-cash charges (PPA) and higher financing costs. Management presented credible actions (cost savings, SD-WAN migration, product-led growth, and synergy ramp) and a plan to grow group free cash flow in 2026, but near-term top-line pressure and acquisition accounting impacts materially temper the outlook.Positive Updates
Dividend Increase and Capital Discipline
Board recommended an 18% dividend increase to CHF 26 per share for 2025 and guidance to CHF 27 per share for 2026, supported by stable operating free cash flow and a continued focus on a strong balance sheet and rating (Moody's A2 / S&P A-).
Negative Updates
Group Revenue and EBITDA Pressures
Group revenue declined to CHF 15.048 billion in 2025 (down CHF 310m YoY; ~CHF 205m net of currency effects). Reported EBITDAaL was CHF 4.984 billion (down CHF 60m YoY; adjusted down CHF 100m).
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Q4-2025 Updates
Positive
Negative
Dividend Increase and Capital Discipline
Board recommended an 18% dividend increase to CHF 26 per share for 2025 and guidance to CHF 27 per share for 2026, supported by stable operating free cash flow and a continued focus on a strong balance sheet and rating (Moody's A2 / S&P A-).
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Company Guidance
Swisscom's 2026 guidance called for group revenue CHF 14.7–14.9bn, EBITDAaL CHF 5.0–5.1bn, CapEx CHF 3.0–3.1bn and operating free cash flow CHF 2.0bn (≈+CHF100m YoY), with leverage guidance ~2.3x and a proposed dividend of CHF 27/share (vs CHF 26 for 2025); Switzerland: revenue CHF 7.7–7.8bn, EBITDAaL ≈CHF 3.3bn, CapEx CHF 1.6–1.7bn, operating free cash flow CHF 1.6–1.7bn and CHF 50m of telco cost savings targeted in 2026; Italy: revenue ~EUR 7.2bn, EBITDAaL EUR 1.8–1.9bn (EUR 0.1–0.2bn higher YoY), CapEx ~EUR 1.5bn and operating free cash flow +EUR 0.1–0.2bn, with synergies accelerating (EUR 95m run‑rate in 2025, ~+EUR 200m incremental in 2026, EUR 600m target run‑rate by 2029) and total integration costs of EUR 700m over three years (EUR 217m booked in 2025; ~EUR 250m expected in 2026, ~EUR 200m CapEx / ~EUR 50m OpEx); key network targets include FTTH coverage at 56% in 2025 with aims of ~60% (CH) and ~65% (IT) by year‑end 2026 and ~90% by 2030, 5G+ coverage ~89% in 2025 rising to ~91% (CH)/~92% (IT) in 2026 (target ~95% by 2030); 2025 also saw net debt reduced ~CHF 600m, leverage ~2.4x and an average interest cost ~1.86% (ratings A‑ / A2).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
659.00
Price Trends
672.68
Negative
617.02
Positive
587.42
Positive
Market Momentum
-1.45
Positive
42.34
Neutral
14.53
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 659 is below the 20-day moving average (MA) of 672.09, below the 50-day MA of 672.68, and above the 200-day MA of 587.42, indicating a neutral trend. The MACD of -1.45 indicates Positive momentum. The RSI at 42.34 is Neutral, neither overbought nor oversold. The STOCH value of 14.53 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
658.50
142.55
27.63%
CH:SUNN
Sunrise Communications AG Class A
46.12
5.68
14.05%
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.