Turkcell Iletisim Hizmetleri As (TKC)
NYSE:TKC
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Turkcell Iletisim
(NYSE:TKC)
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Rating:72Outperform
Price Target:
$6.50
â–˛(14.04% Upside)
Action:ReiteratedDate:03/08/26
The score is driven primarily by strong underlying financial performance (notably cash flow) and a constructive earnings outlook with clear growth initiatives, partially offset by weaker technical momentum and risks around margin pressure and FX exposure. Valuation (low P/E and solid yield) provides additional support.
Positive Factors
Sustained revenue and EBITDA growth
Consistent double-digit revenue growth and a near-44% EBITDA margin reflect durable demand for core telecom services and improving monetization. Strong net income growth and subscriber adds indicate scalable operations and recurring cash flows that support long-term reinvestment into networks and digital services.
Negative Factors
Compression in net profit margin
A noticeable decline in net margin signals rising operating or non-operating costs that could persist amid inflation and restructuring. If sustained, margin compression erodes return on capital, constrains free cash available for reinvestment or distributions, and limits the payoff from revenue growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue and EBITDA growth
Consistent double-digit revenue growth and a near-44% EBITDA margin reflect durable demand for core telecom services and improving monetization. Strong net income growth and subscriber adds indicate scalable operations and recurring cash flows that support long-term reinvestment into networks and digital services.
Read all positive factors
Turkcell Iletisim (TKC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.14B
Dividend Yield5.57%
Average Volume (3M)3.56M
Price to Earnings (P/E)10.6
Beta (1Y)0.36
Revenue Growth19.02%
EPS Growth9.26%
CountryUS
Employees23,795
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.13
Shares Outstanding871,641,900
10 Day Avg. Volume3,361,252
30 Day Avg. Volume3,563,585
Financial Highlights & Ratios
PEG Ratio-0.61
Price to Book (P/B)0.78
Price to Sales (P/S)0.77
P/FCF Ratio2.74
Enterprise Value/Market Cap60.11
Enterprise Value/Revenue1.33
Enterprise Value/Gross Profit4.71
Enterprise Value/Ebitda2.97
Forecast
1Y Price Target
$7.45Price Target Upside30.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.7
Revenue Forecast (FY)$7.21B
Turkcell Iletisim Business Overview & Revenue Model
Company Description
Turkcell Iletisim Hizmetleri A.S. provides digital services in Turkey, Ukraine, Belarus, Northern Cyprus, Germany, and the Netherlands. It operates through Turkcell Turkey, Turkcell International, and Techfin segments. It offers work contact servi...
How the Company Makes Money
Turkcell generates revenue through multiple streams, with the primary source being mobile telecommunications services, which includes voice, SMS, and mobile data plans offered to individual and corporate customers. Additional revenue comes from fi...
Turkcell Iletisim Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 24, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial picture: clear top-line and EBITDA growth, strong subscriber momentum (record postpaid additions and ARPU expansion), fast scaling in digital, techfin and data center businesses, solid cash and leverage metrics, and strategic wins (5G spectrum and Google Cloud partnership). Key risks flagged include elevated competition and mobile portability, FX exposure from a reduced hedging posture, potential margin pressure in 2026 due to salary and 5G ramp costs, and an expected normalization of very high data center growth rates as the base expands. On balance, the positive results, strategic progress and strong balance sheet materially outweigh the near-term risks.Positive Updates
Strong Revenue and Profit Growth
Full-year revenues +11% year-on-year, surpassing TRY 241 billion; Q4 revenues +7% to TRY 63 billion. Full-year EBITDA +14% to TRY 104 billion with EBITDA margin ~43% (CEO cited 43.1%); Q4 EBITDA +12% to TRY 26 billion (41.2% margin). Net income from continuing operations +23% to TRY 17.8 billion (Q4 net income +11% to TRY 3.6 billion).
Negative Updates
Elevated Competition and High Mobile Number Portability
Management noted elevated competition through much of 2025 and record-high mobile number portability, creating market pressure that required active pricing and customer-centric measures to defend share.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue and Profit Growth
Full-year revenues +11% year-on-year, surpassing TRY 241 billion; Q4 revenues +7% to TRY 63 billion. Full-year EBITDA +14% to TRY 104 billion with EBITDA margin ~43% (CEO cited 43.1%); Q4 EBITDA +12% to TRY 26 billion (41.2% margin). Net income from continuing operations +23% to TRY 17.8 billion (Q4 net income +11% to TRY 3.6 billion).
Read all positive updates
Company Guidance
Turkcell guided to real revenue growth of 5–7% for 2026, an EBITDA margin of 40–42% and operational CapEx intensity of about 25% to support 5G, data center and renewables investment (FY25 CapEx intensity was 22.6%). For data center & cloud, management expects 18–20% revenue growth in 2026, about $100m of EBITDA beginning in 2026 and at least a sixfold increase in USD revenues by 2032 as active capacity (50 MW today) is doubled by 2032. They reiterated a net leverage target below 1x (FY25 net debt TRY15bn, net leverage 0.1x; cash TRY92bn), a target FX position around $1.5bn (FY25 FX debt USD3.4bn) and ongoing shareholder returns (72% of 2025 net income distributed; $58m repurchased to date).Turkcell Iletisim Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
64
Positive
Cash Flow
83
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 262.04B | 166.67B | 107.12B | 134.98B | 108.60B |
| Gross Profit | 74.17B | 41.16B | 22.70B | 17.05B | 22.46B |
| EBITDA | 111.06B | 60.83B | 45.19B | 61.67B | 44.00B |
| Net Income | 19.10B | 23.52B | 12.55B | 9.93B | 7.14B |
Balance Sheet | |||||
| Total Assets | 518.33B | 344.28B | 356.74B | 234.99B | 151.30B |
| Cash, Cash Equivalents and Short-Term Investments | 106.82B | 75.82B | 84.96B | 50.66B | 30.69B |
| Total Debt | 158.57B | 104.34B | 121.40B | 88.74B | 60.42B |
| Total Liabilities | 259.13B | 157.31B | 180.25B | 125.61B | 85.93B |
| Stockholders Equity | 259.20B | 186.97B | 176.50B | 109.37B | 65.37B |
Cash Flow | |||||
| Free Cash Flow | 73.90B | 44.31B | 17.64B | 20.22B | 1.75B |
| Operating Cash Flow | 121.62B | 75.01B | 60.24B | 61.04B | 2.37B |
| Investing Cash Flow | -98.17B | -48.86B | -30.18B | -45.79B | -1.16B |
| Financing Cash Flow | -1.66B | -9.78B | 9.77B | 4.89B | -441.64M |
Turkcell Iletisim Technical Analysis
Negative
5.70
Price Trends
6.46
Negative
6.10
Negative
5.94
Positive
Market Momentum
-0.12
Negative
39.02
Neutral
41.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TKC, the sentiment is Negative. The current price of 5.7 is below the 20-day moving average (MA) of 6.09, below the 50-day MA of 6.46, and below the 200-day MA of 5.94, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 39.02 is Neutral, neither overbought nor oversold. The STOCH value of 41.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TKC.
Turkcell Iletisim Risk Analysis
Turkcell Iletisim disclosed 28 risk factors in its most recent earnings report. Turkcell Iletisim reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Summary of Risk Relating to our American Depositary Shares Q4, 2023
2.
We have two major shareholders whose interests may not be aligned with those of other shareholders. Q4, 2023
3.
Risk Factors Summary Summary of Risks relating to Turkiye Q4, 2023
Turkcell Iletisim Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $18.05B | 16.17 | 15.56% | 6.14% | -5.21% | -7.45% | |
72 Outperform | $5.14B | 10.60 | 7.24% | 5.57% | 19.02% | 9.26% | |
70 Outperform | $25.56B | 17.32 | 9.03% | 5.03% | -3.16% | 4.70% | |
63 Neutral | $9.63B | 12.98 | 10.06% | 4.13% | 0.63% | -21.51% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $11.64B | 27.39 | 3.37% | 5.02% | -8.16% | -52.52% |
* Communication Services Sector Average
TKC
Turkcell Iletisim
5.96
<0.01
0.15%
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Turkcell Iletisim Corporate Events
Turkcell Posts 10.7% Revenue Growth in Hyperinflation-Adjusted 2025 Results
Mar 6, 2026
On March 5, 2026, Turkcell released its full-year 2025 financial results, reporting consolidated revenue of TRY 241.5 billion, up 10.7% year on year from TRY 218.2 billion in 2024, with figures prepared under IFRS and adjusted for hyperinflation a...
Turkcell Unit Turkcell Finansman Cleared to Issue Up to TRY 3 Billion in Sukuk
Mar 5, 2026
On March 5, 2026, Turkcell announced that its board has authorized its wholly owned subsidiary Turkcell Finansman A.Ş. to issue commodity trading-based lease certificates, or sukuk, in the Turkish domestic market with maturities of up to 12 m...
Turkcell Completes Redemption of TRY 750 Million Short-Term Bond
Feb 24, 2026
Turkcell Iletisim Hizmetleri A.S. has redeemed in full a TRY 750 million domestic financing bond with ISIN TRFTCEL22617, originally issued via private placement to qualified investors and carrying a 96-day maturity and 39.25% annual simple interes...
Turkcell Secures CMB Approval to Expand Articles for IMT-2020 Services
Feb 17, 2026
On February 17, 2026, Turkcell announced that the Turkish Capital Markets Board approved an amendment to its Articles of Association, following an application submitted on February 11, 2026. The key change formally adds authorization for “IM...
Turkcell Sets March 5 Date for FY2025 Results
Feb 4, 2026
Turkcell announced in Istanbul on February 4, 2026, that it will publish its audited financial results for the fiscal year ended December 31, 2025, after Borsa Istanbul trading hours on March 5, 2026, signaling the timetable investors should watch...
Turkcell Unit Cleared to Issue Up to TRY 3 Billion in Sukuk
Jan 27, 2026
On January 27, 2026, Turkcell’s board authorized its wholly owned subsidiary Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş. to issue management agreement-based lease certificates (sukuk) of up to TRY 3 billion, with maturities o...
Turkcell Finalizes Merger by Acquisition of Wholly Owned Subsidiary Artel
Dec 31, 2025
On December 31, 2025, Turkcell İletişim Hizmetleri A.Ş. announced that it has completed and registered a merger via facilitated procedure with its wholly owned, non-listed subsidiary Artel Bilişim Servisleri A.Ş., formaliz...
Turkcell Seeks Approvals to Amend Articles for IMT-2020 Mobile Services
Dec 30, 2025
On December 30, 2025, Turkcell’s board of directors announced that it has resolved to pursue regulatory approvals from the Capital Markets Board and the Ministry of Trade to amend the company’s Articles of Association. The proposed cha...
Turkcell Boosts Turktell’s Capital by TRY 15 Billion
Dec 8, 2025
On December 8, 2025, Turkcell announced a significant capital increase for its wholly-owned subsidiary, Turktell Bilisim Servisleri A.S. The capital was raised by TRY 15 billion, bringing the total to TRY 37.22 billion, with Turkcell fully exercis...
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.