Telefonica Brasil (VIV)
NYSE:VIV
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Telefonica Brasil
(NYSE:VIV)
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Rating:70Outperform
Price Target:
$18.00
▲(5.02% Upside)
Action:ReiteratedDate:02/25/26
The score is driven primarily by solid financial fundamentals (notably strong cash generation) and a constructive earnings-call outlook focused on cash conversion and shareholder returns. Technicals are supportive but overbought, and valuation is the main drag due to a relatively high P/E versus a moderate dividend yield.
Positive Factors
Consistent cash generation and positive free cash flow
Sustained operating cash flow and repeatedly positive free cash flow provide durable funding for network investment, dividends and buybacks. This cash profile supports reinvestment in 5G/fiber without eroding liquidity, giving the company flexibility across economic cycles and underpinning long-term capital allocation.
Negative Factors
Meaningful 2025 revenue decline
A large reported revenue drop in 2025 undermines growth momentum and raises questions about recurring demand or accounting/reporting impacts. Lower top-line scale can pressure operating leverage, long-term margin sustainability and the ability to fund both growth CapEx and generous shareholder returns simultaneously.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation and positive free cash flow
Sustained operating cash flow and repeatedly positive free cash flow provide durable funding for network investment, dividends and buybacks. This cash profile supports reinvestment in 5G/fiber without eroding liquidity, giving the company flexibility across economic cycles and underpinning long-term capital allocation.
Read all positive factors
Telefonica Brasil (VIV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.56B
Dividend Yield5.03%
Average Volume (3M)956.22K
Price to Earnings (P/E)17.3
Beta (1Y)0.30
Revenue Growth-3.16%
EPS Growth4.70%
CountryUS
Employees32,759
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.23
Shares Outstanding1,613,273,300
10 Day Avg. Volume676,729
30 Day Avg. Volume956,221
Financial Highlights & Ratios
PEG Ratio1.46
Price to Book (P/B)1.52
Price to Sales (P/S)1.79
P/FCF Ratio9.48
Enterprise Value/Market Cap5.84
Enterprise Value/Revenue2.69
Enterprise Value/Gross Profit6.16
Enterprise Value/Ebitda6.68
Forecast
1Y Price Target
$15.10Price Target Upside-11.90% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)1.07
Revenue Forecast (FY)$12.05B
Telefonica Brasil Business Overview & Revenue Model
Company Description
Telefônica Brasil S.A., together with its subsidiaries, provides mobile and fixed telecommunications services to residential and corporate customers in Brazil. Its fixed line services portfolio includes local, domestic long-distance, and internati...
How the Company Makes Money
Telefonica Brasil generates revenue primarily through its mobile and fixed-line services. Key revenue streams include subscription fees from mobile voice and data plans, as well as charges for fixed broadband and telephony services. The company al...
Telefonica Brasil Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call presented a broad set of operational and financial positives: mid-to-high single-digit revenue growth, strong EBITDA and margin expansion (especially ex‑one-offs), accelerating fiber and mobile (5G) adoption, rapid growth in new businesses and digital B2B, improved cash generation and a solid balance sheet enabling generous shareholder distributions. Key challenges include rising COGS and personnel costs, one-off items that complicate comparability, a fragmented and competitive fiber market, some variability in tower/lease costs, and a noted inconsistency in reported net income figures in the transcript. On balance, the positive indicators (sustained revenue and cash flow growth, margin expansion, strong digital/B2B momentum, and shareholder returns) outweigh the lowlights.Positive Updates
Top-line Growth and Balanced Revenue Mix
Total revenues in Q4 rose 7.1% YoY, driven by balanced growth in mobile and fixed services. Mobile service revenue grew 7% YoY and fixed services improved 5.4% YoY. Q4 total revenues reached BRL 15.6 billion.
Negative Updates
Rising Cost of Goods Sold and Personnel Expenses
Cost of services and goods sold increased 9.7% YoY, driven by higher contribution from B2B digital solutions, OTT consumption, and handsets/electronics. Operating costs rose 4.4% YoY, with personnel expenses up 6.4% (annual salary increases and higher headcount in strategic digital/tech areas).
Read all updates
Q4-2025 Updates
Positive
Negative
Top-line Growth and Balanced Revenue Mix
Total revenues in Q4 rose 7.1% YoY, driven by balanced growth in mobile and fixed services. Mobile service revenue grew 7% YoY and fixed services improved 5.4% YoY. Q4 total revenues reached BRL 15.6 billion.
Read all positive updates
Company Guidance
Guidance focused on shareholder returns and disciplined cash allocation: Vivo reaffirmed its commitment to distribute at least 100% of 2026 net income and has already announced BRL 7.0 billion of distributions for 2026 (BRL 4.0 billion capital reduction to be paid in July and BRL 3.0 billion interest on capital to be paid in April), plus an additional interest on capital declared in February to be paid before April 2027, and a new share buyback program of up to BRL 1.0 billion to be executed until February 2027; this follows 2025 cash returns of BRL 6.4 billion (a 9.1% increase) and a 103.4% payout ratio. Financial/operational priorities include continued 5G and fiber deployment, further CapEx optimization after 2025’s BRL 9.3 billion (CapEx/revenues 15.6%, +1.1% YoY), and converting EBITDA into cash (operating cash flow before leases BRL 15.6 billion, +13.4%; after leases BRL 10.1 billion, +17.3%, 17% margin), with free cash flow BRL 9.2 billion (+11.4%, 8.6% FCF yield, 15.4% FCF/revenues) and a net cash position of BRL 2.3 billion (IFRS16 net debt BRL 13.1 billion, ~0.5x EBITDA); management also expects a ~BRL 300 million pre‑tax benefit from legacy asset full depreciation after July 2026 and potential upside from lower interest rates and ongoing tower renegotiations.Telefonica Brasil Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
62
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 58.42B | 55.85B | 52.10B | 48.04B | 44.03B |
| Gross Profit | 23.62B | 24.49B | 22.68B | 20.61B | 19.25B |
| EBITDA | 24.24B | 21.54B | 19.52B | 17.84B | 18.19B |
| Net Income | 6.05B | 5.55B | 5.03B | 4.09B | 6.24B |
Balance Sheet | |||||
| Total Assets | 128.01B | 124.94B | 120.74B | 119.12B | 115.74B |
| Cash, Cash Equivalents and Short-Term Investments | 7.24B | 6.69B | 4.36B | 2.27B | 6.45B |
| Total Debt | 30.88B | 20.75B | 18.74B | 19.30B | 16.93B |
| Total Liabilities | 59.04B | 55.14B | 51.11B | 50.67B | 45.66B |
| Stockholders Equity | 68.69B | 69.73B | 69.57B | 68.40B | 70.01B |
Cash Flow | |||||
| Free Cash Flow | 11.04B | 10.55B | 9.97B | 9.05B | 8.78B |
| Operating Cash Flow | 20.31B | 19.88B | 18.79B | 18.94B | 18.07B |
| Investing Cash Flow | -9.82B | -8.91B | -7.85B | -14.20B | -8.13B |
| Financing Cash Flow | -10.16B | -8.63B | -8.85B | -8.91B | -9.26B |
Telefonica Brasil Technical Analysis
Positive
17.14
Price Trends
15.68
Positive
14.09
Positive
13.00
Positive
Market Momentum
0.31
Negative
67.45
Neutral
92.92
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIV, the sentiment is Positive. The current price of 17.14 is above the 20-day moving average (MA) of 15.81, above the 50-day MA of 15.68, and above the 200-day MA of 13.00, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 67.45 is Neutral, neither overbought nor oversold. The STOCH value of 92.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VIV.
Telefonica Brasil Risk Analysis
Telefonica Brasil disclosed 39 risk factors in its most recent earnings report. Telefonica Brasil reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Failure to comply with the conditions set forth in our Self-Composition Agreement may materially and adversely affect our results of operations Q4, 2025
Telefonica Brasil Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $18.61B | 16.17 | 15.56% | 6.14% | -5.21% | -7.45% | |
73 Outperform | $13.35B | 11.93 | 17.46% | 7.82% | -4.90% | 14.83% | |
70 Outperform | $27.56B | 17.32 | 9.03% | 5.03% | -3.16% | 4.70% | |
62 Neutral | $83.43B | 14.48 | 17.05% | 2.69% | 1.14% | 83.48% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $36.61B | 7.35 | -8.37% | 3.77% | 19.67% | -278.51% |
* Communication Services Sector Average
VIV
Telefonica Brasil
17.14
8.71
103.39%
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Telefonica Brasil Corporate Events
Telefônica Brasil Files 2025 Form 20-F With U.S. SEC
Feb 24, 2026
On February 23, 2026, Telefônica Brasil S.A. announced it had filed its annual report on Form 20-F for the fiscal year ended December 31, 2025 with the U.S. Securities and Exchange Commission. The filing, which includes the company’s co...
Telefônica Brasil Confirms Unchanged Interest on Capital Distribution for February 2026
Feb 23, 2026
Telefônica Brasil announced to the market that its previously approved Interest on Capital (IoC) distribution, deliberated by the board on February 12, 2026, remains unchanged because no shares were acquired, divested or canceled under its sh...
Telefônica Brasil Launches R$1 Billion Share Buyback for 2026–2027
Feb 23, 2026
On February 20, 2026, Telefônica Brasil’s board met remotely in São Paulo and unanimously agreed to terminate its existing 2025–2026 share buyback program, which had been approved in February 2025. In its place, directors app...
Telefônica Brasil Launches New R$1 Billion Share Buyback for 2026–27
Feb 23, 2026
On February 20, 2026, Telefônica Brasil’s board terminated the share buyback program that had been in place since February 25, 2025, under which 49,613,856 common shares were repurchased and partly canceled in July 2025, with the remain...
Telefônica Brasil Sets 2025 Interest on Capital Payment and Proposes R$4 Billion Capital Reduction
Feb 23, 2026
Telefônica Brasil announced on February 23, 2026 that it will pay R$2.99 billion in interest on capital related to the second, third and fourth quarters of 2025 on April 14, 2026, with the net amounts to be imputed to the mandatory minimum di...
Telefônica Brasil Posts Strong 4Q25 Growth and Confirms Aggressive Payout Through 2026
Feb 23, 2026
Telefônica Brasil S.A., which trades as VIVT3 on B3 and VIV on the NYSE, is a major Brazilian telecom operator providing mobile, fixed broadband, fiber and corporate ICT services, with a strategic emphasis on 5G coverage and fiber-to-the-home...
Telefônica Brasil Board Clears 2025 Accounts and Sets April Shareholders’ Meeting
Feb 20, 2026
On February 12, 2026, Telefônica Brasil’s board met in São Paulo and unanimously approved the company’s individual and consolidated financial statements, the annual management report and the proposal for allocation of net inc...
Telefônica Brasil Audit Committee Backs 2025 Results and Profit Allocation Plan
Feb 20, 2026
On February 11, 2026, Telefônica Brasil’s Audit and Control Committee met in São Paulo to review the company’s financial reporting for the fiscal year ended December 31, 2025. The session included presentations from senior fi...
Telefônica Brasil Fiscal Council Clears 2025 Results and Allocation Plan
Feb 20, 2026
On February 11, 2026, Telefônica Brasil’s Fiscal Council met at the company’s São Paulo headquarters to review the financial statements and Annual Management Report for the fiscal year ended December 31, 2025. The council hea...
Telefônica Brasil Declares R$325 Million in Interest on Capital for Shareholders
Feb 12, 2026
On February 12, 2026, Telefônica Brasil’s board approved the declaration of R$325 million in interest on capital, based on the January 31, 2026 balance sheet, to be credited to shareholders of record as of February 23, 2026. The payment...
Telefônica Brasil Reports No Shareholder Withdrawals After Fibrasil Acquisition Approval
Feb 12, 2026
Telefônica Brasil S.A., a leading Brazilian telecommunications operator, has been broadening its corporate scope to capture new business opportunities linked to fiber infrastructure and adjacent services. The company’s strategy includes...
Telefônica Brasil Fiscal Council Backs R$325 Million Interest on Capital for 2026
Feb 12, 2026
On February 11, 2026, Telefônica Brasil’s Fiscal Council met in São Paulo and unanimously endorsed a proposal to distribute interest on capital based on the January 31, 2026 balance sheet. The proposal, to be submitted to the Board...
Telefônica Brasil Board Approves R$325 Million Interest on Capital and Confirms Director’s Resignation
Feb 12, 2026
At its 515th board meeting held on February 12, 2026, Telefônica Brasil approved the distribution of R$325 million in interest on capital based on the January 31, 2026 balance sheet, with entitlement set for shareholders on record at the clos...
Telefônica Brasil Calls March 2026 Meeting to Approve R$4 Billion Capital Reduction
Jan 26, 2026
Telefônica Brasil S.A. has called an Extraordinary Shareholders’ Meeting for March 12, 2026, at its São Paulo headquarters to vote on a proposed R$4 billion reduction in the company’s capital stock, to be carried out via a ca...
Telefônica Brasil Sets April 16, 2026 Date for Ordinary Shareholders’ Meeting
Jan 15, 2026
On January 15, 2026, Telefônica Brasil S.A. announced that its Ordinary Shareholders’ Meeting for the 2026 fiscal year is scheduled to take place on April 16, 2026. The company said that detailed information and the formal call notice w...
Telefônica Brasil Opens Withdrawal Period After Ratifying Fibrasil Deal and Amending Bylaws
Jan 12, 2026
On January 9, 2026, Telefônica Brasil’s Extraordinary Shareholders’ Meeting ratified the company’s acquisition of the remaining stake in Fibrasil Infraestrutura e Fibra Ótica S.A. that was held by CDPQ and Fibre Brasil ...
Telefônica Brasil Slightly Raises Interest-on-Capital Per Share After Buybacks
Dec 29, 2025
On December 29, 2025, Telefônica Brasil announced a recalculation of the interest on capital per share that had been declared by its board of directors on December 16, 2025, adjusting the figures to reflect recent share repurchases under its ...
Telefônica Brasil Declares R$350 Million Interest on Capital
Dec 16, 2025
On December 16, 2025, Telefônica Brasil S.A. announced that its Board of Directors approved the declaration of Interest on Capital (IoC) amounting to R$350 million, with a net amount of R$297.5 million after tax deductions. This decision, bas...
Telefonica Brasil Approves R$350 Million Interest on Capital
Dec 16, 2025
On December 16, 2025, Telefonica Brasil’s Board of Directors approved a proposal for the declaration of Interest on Capital (IoC) amounting to R$350 million gross, based on the balance sheet as of November 30, 2025. The net amount of R$297.5...
Telefônica Brasil Approves R$350 Million Interest on Capital
Dec 16, 2025
On December 15, 2025, Telefônica Brasil S.A.’s Fiscal Council held its 255th meeting, where it unanimously approved a proposal for the declaration of Interest on Capital (IoC) amounting to R$350 million gross. This decision, based on th...
Telefônica Brasil Completes Acquisition of CyberCo Brasil to Boost Cybersecurity Offerings
Dec 10, 2025
On December 9, 2025, Telefônica Brasil announced the completion of its indirect subsidiary’s acquisition of CyberCo Brasil, a company specializing in integrated cybersecurity solutions. This strategic move, valued at up to R$232 million...
Telefonica Brasil Announces R$4 Billion Capital Reduction Plan
Dec 10, 2025
On December 9, 2025, Telefonica Brasil announced that its Board of Directors approved a proposal for a capital stock reduction of R$4.0 billion, which will be deliberated by shareholders in an upcoming extraordinary meeting. This move aims to opti...
Telefônica Brasil Approves R$4 Billion Capital Reduction
Dec 10, 2025
On December 9, 2025, Telefônica Brasil S.A.’s Board of Directors approved a proposal to reduce the company’s capital stock by R$4 billion, from R$60.07 billion to R$56.07 billion, without canceling shares. This decision aims to re...
Telefonica Brasil Proposes R$4 Billion Capital Reduction
Dec 10, 2025
On December 5, 2025, Telefonica Brasil’s Fiscal Council held a meeting to discuss a proposal to reduce the company’s capital stock by R$4 billion. This reduction, which does not involve the cancellation of shares, aims to reimburse sha...
Telefônica Brasil Proposes R$4 Billion Capital Reduction
Dec 10, 2025
On December 5, 2025, Telefônica Brasil S.A.’s Audit and Control Committee held a meeting to discuss and approve a proposal to reduce the company’s capital stock by R$4 billion. This reduction, which does not involve the cancellati...
Telefônica Brasil to Hold Shareholders’ Meeting on Fibrasil Acquisition
Nov 28, 2025
On January 9, 2026, Telefônica Brasil S.A. will hold an Extraordinary Shareholders’ Meeting to discuss several key agenda items, including the ratification of its acquisition of shares in Fibrasil Infraestrutura e Fibra Ótica S.A. ...
Telefonica Brasil to Amend Corporate Purpose and Convene Shareholders’ Meeting
Nov 28, 2025
On November 27, 2025, Telefonica Brasil’s Board of Directors held a meeting to approve a proposal to amend the company’s corporate purpose and bylaws. The amendment aims to expand and clarify the company’s activities, reflecting ...
Telefônica Brasil Announces IoC Payment for Q1 2025
Nov 25, 2025
Telefônica Brasil S.A. announced that it will pay Interest on Capital (IoC) to its shareholders on December 2, 2025, for amounts declared in the first quarter of 2025. The total gross amount of R$380 million will be distributed, with the net ...
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.