Swisscom AG (ADR) (SCMWY)
OTHER OTC:SCMWY
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Swisscom AG
(OTC:SCMWY)
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Rating:66Neutral
Price Target:
$99.00
▲(39.48% Upside)
Action:DowngradedDate:02/18/26
The score is driven primarily by above-average financial quality (strong cash flow and controlled leverage), supported by constructive 2026 free-cash-flow guidance and synergy progress. Offsetting this, technicals look overextended and valuation is demanding (high P/E), while ongoing revenue/ARPU pressure and integration costs add execution risk.
Swisscom AG (SCMWY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$43.55B
Dividend Yield3.48%
Average Volume (3M)173.00
Price to Earnings (P/E)23.5
Beta (1Y)<0.01
Revenue Growth32.48%
EPS Growth-22.94%
CountryUS
Employees23,717
SectorN/A
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.71
Shares Outstanding518,020,000
10 Day Avg. Volume0
30 Day Avg. Volume173
Financial Highlights & Ratios
PEG Ratio-1.32
Price to Book (P/B)2.44
Price to Sales (P/S)1.99
P/FCF Ratio9.96
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue2.55
Enterprise Value/Gross Profit3.18
Enterprise Value/Ebitda5.72
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Swisscom AG Business Overview & Revenue Model
Company Description
Swisscom AG is a leading telecommunications provider in Switzerland, offering a wide range of services including fixed-line and mobile telecommunications, broadband internet, and digital television. The company operates in several sectors, includi...
How the Company Makes Money
Swisscom generates revenue primarily through its telecommunications services, which include mobile and fixed-line voice and data services. The company offers various subscription plans for individual consumers and businesses, which contribute sign...
Swisscom AG Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveyed achievement of key strategic milestones (dividend increase, maintained credit rating), tangible operational progress (Italy synergies ahead of plan, wholesale and fiber monetization, FTTH/5G coverage, beem and AI adoption), and financial stability (stable group free cash flow, net debt reduction). However, the company continues to face notable headwinds: ongoing telco service revenue declines in both Switzerland and Italy, material integration and financing costs (PPA depreciation and added interest), contract uncertainties (Poste MVNO, tower strategy) and promotional/ARPU pressure. Management presented credible plans and guided to growing group free cash flow in 2026 driven largely by Italian synergies, but execution risk remains in stabilizing core telco revenues and realizing long‑term IT/adjacency growth.Positive Updates
Dividend Increase and Strong Credit Rating
Board proposed an 18% dividend increase to CHF 26 for 2025 and guidance to raise to CHF 27 for 2026; maintained sector-leading credit rating (Moody's A2 / S&P A-).
Negative Updates
Telco Service Revenue Declines
Group revenue declined to CHF 15.048bn (down CHF 310m YoY; currency-adjusted down CHF 205m). Switzerland telco service revenue down (Swiss segment revenue guidance implies ~CHF -100m y/y); Italy telco service revenue declined EUR 226m in 2025 (B2C -EUR 160m, B2B -EUR 66m). 2026 Italy telco service revenue still expected to decline ~EUR 150m.
Read all updates
Q4-2025 Updates
Positive
Negative
Dividend Increase and Strong Credit Rating
Board proposed an 18% dividend increase to CHF 26 for 2025 and guidance to raise to CHF 27 for 2026; maintained sector-leading credit rating (Moody's A2 / S&P A-).
Read all positive updates
Company Guidance
The company guided to growing group free cash flow in 2026 with concrete targets: 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 (up ~CHF100m y/y); dividend guidance CHF 27/share and leverage guidance ~2.3x (excludes any impact from potential changed tower/tower-lease arrangements). Switzerland guidance: revenue CHF 7.7–7.8bn, EBITDAaL ~CHF 3.3bn, CapEx CHF 1.6–1.7bn and operating free cash flow CHF 1.6–1.7bn (stable), with ~CHF50m of telco cost savings targeted in 2026. Italy guidance (EUR): revenue ~EUR 7.2bn (down ~EUR100m), EBITDAaL EUR 1.8–1.9bn (EUR100–200m improvement y/y driven by synergies), CapEx ~EUR1.5bn and operating free cash flow up EUR100–200m (improvement back‑loaded to H2); telco service revenue decline expected to narrow to ~‑EUR150m (c.2/3 B2C, 1/3 B2B) and the Poste MVNO loss is neutralised in 2026 by SPA indemnity. Synergies are ramping (EUR95m run‑rate end‑2025), management targets ~EUR300m in 2026 (CFO expects ~+EUR200m y/y) on the path to a EUR600m run‑rate by 2029, with total integration costs ~EUR700m over the first three years (2026 integration accruals ~EUR250m: ~EUR200m CapEx, ~EUR50m OpEx).Swisscom AG Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
78
Positive
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Swisscom AG Technical Analysis
Neutral
70.98
Price Trends
85.63
Negative
78.05
Positive
74.17
Positive
Market Momentum
-0.77
Positive
43.92
Neutral
12.69
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCMWY, the sentiment is Neutral. The current price of 70.98 is below the 20-day moving average (MA) of 86.77, below the 50-day MA of 85.63, and below the 200-day MA of 74.17, indicating a neutral trend. The MACD of -0.77 indicates Positive momentum. The RSI at 43.92 is Neutral, neither overbought nor oversold. The STOCH value of 12.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SCMWY.
Swisscom AG Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
77 Outperform | $32.49B | 26.19 | 10.15% | 3.15% | 5.74% | 7.12% | |
77 Outperform | $18.24B | 16.17 | 15.56% | 6.14% | -5.21% | -7.45% | |
70 Outperform | $25.73B | 17.32 | 9.03% | 5.03% | -3.16% | 4.70% | |
66 Neutral | $43.55B | 23.53 | 10.50% | 3.48% | 32.48% | -22.94% | |
60 Neutral | $35.11B | 7.35 | -8.37% | 3.77% | 19.67% | -278.51% |
* Sector Average
SCMWY
Swisscom AG
84.05
27.24
47.94%
CHT
Chunghwa Telecom Co
42.41
5.73
15.62%
TLK
PT Telekomunikasi Indonesia Tbk
18.77
5.82
44.90%
VIV
Telefonica Brasil
16.03
7.92
97.56%
VOD
Vodafone
15.21
7.22
90.43%
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.