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Telefonica Brasil
(NYSE:VIV)
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Rating:72Outperform
Price Target:
$14.50
▲(3.20% Upside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by solid financial fundamentals (strong revenue growth, healthy profitability, and conservative leverage) and a supportive earnings-call backdrop emphasizing cash generation and shareholder returns. These positives are partially offset by weak technicals (price below major moving averages) and some fundamental watch-items around gross-margin compression and cash conversion, while valuation is helped by the high dividend yield.
Positive Factors
Top-line growth & recurring revenue
Sustained revenue expansion across mobile and fixed services indicates durable demand for core connectivity. High recurring service revenue and diversified growth drivers (postpaid, FTTH, B2B digital) support predictable cash flows and reduce dependence on one-off sales, underpinning multi-quarter operational stability.
Negative Factors
Gross‑margin pressure from device sales
A material decline in gross margin driven by rising COGS and heavier device sales mix can erode incremental profitability if sustained. Device-led promotions and higher hardware penetration risk compressing margins and limit the company's ability to convert revenue growth into proportional EBITDA and free cash flow expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Top-line growth & recurring revenue
Sustained revenue expansion across mobile and fixed services indicates durable demand for core connectivity. High recurring service revenue and diversified growth drivers (postpaid, FTTH, B2B digital) support predictable cash flows and reduce dependence on one-off sales, underpinning multi-quarter operational stability.
Read all positive factors
Telefonica Brasil (VIV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.67B
Dividend Yield6.37%
Average Volume (3M)1.05M
Price to Earnings (P/E)15.8
Beta (1Y)0.14
Revenue Growth16.10%
EPS Growth24.13%
CountryUS
Employees32,759
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)4.13
Shares Outstanding1,613,273,300
10 Day Avg. Volume1,119,963
30 Day Avg. Volume1,051,743
Financial Highlights & Ratios
PEG Ratio1.45
Price to Book (P/B)1.52
Price to Sales (P/S)1.79
P/FCF Ratio9.30
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$15.10Price Target Upside7.47% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering4
EPS Forecast (FY)0.96
Revenue Forecast (FY)$12.39B
Telefonica Brasil Business Overview & Revenue Model
Company Description
Telefônica Brasil S.A. operates as a prominent telecommunications provider in Brazil, offering an extensive range of mobile and fixed-line services to both individual consumers and business clients. Its landline telephony services include local, d...
How the Company Makes Money
Telefônica Brasil makes money mainly by charging recurring fees for telecommunications connectivity and related services, complemented by equipment sales and enterprise solutions. The largest revenue driver is typically service revenue from mobile...
Telefonica Brasil Earnings Call Summary
Earnings Call Date:Jul 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The earnings call presented a strongly positive operational and financial picture: revenue growth above inflation, double-digit EBITDA expansion, robust cash generation, meaningful fiber and mobile subscriber growth, accelerating digital/B2B revenues, and continued shareholder returns and ESG progress. Challenges were acknowledged but primarily tactical or timing-related: higher COGS tied to device sales, asset‑sale execution lagging targets, competitive pressures in prepaid/entry segments, and quarter-to-quarter CapEx/lease phasing. On balance the positives (broad-based revenue growth, margin expansion, cash flow strength, and strategic momentum across fiber, 5G and digital services) outweigh the noted lowlights.Positive Updates
Revenue Growth Above Inflation
Total revenue increased 7.6% year-over-year in the quarter, with mobile service revenues up 6.6% and fixed revenues up 6.0%, demonstrating top-line growth above inflation.
Negative Updates
Higher Cost of Goods Sold Driven by Device Sales
Total costs rose 5.3% YoY with cost of services and goods sold up 10.2% YoY, largely driven by increased handset and electronics sales—a mix effect that raises COGS even as it supports customer acquisition.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth Above Inflation
Total revenue increased 7.6% year-over-year in the quarter, with mobile service revenues up 6.6% and fixed revenues up 6.0%, demonstrating top-line growth above inflation.
Read all positive updates
Company Guidance
Management reaffirmed its shareholder‑return and capital‑allocation guidance: Vivo has disbursed BRL 7.0 billion YTD (up 32% YoY), declared BRL 2.2 billion in interest on capital to be paid by early‑2027 (up 34.5% YoY), maintains a share‑buyback program of up to BRL 1.0 billion through Feb‑2027, and is committed to distributing at least 100% of 2026 net income. They expect continued acceleration of asset‑sale monetization to support earnings (targeting BRL 4.5 billion total—BRL 3.0 billion copper and BRL 1.5 billion real‑estate), with roughly BRL 443 million of copper proceeds YTD (BRL 86m in Q1 → BRL 201.5m in Q2; Q2 copper proceeds ~BRL 202m) and BRL 206 million of real‑estate sales so far and further activity expected in H2. Financially they highlighted H1 operating cash flow before leases of BRL 8.2 billion (+11.3% YoY), free cash flow of BRL 4.9 billion, H1 net income BRL 2.8 billion (+17.9%), EBITDA up 10.9% YoY with a 41.8% margin, Q2 CapEx of BRL 2.6 billion (16.4% of revenues), net‑debt/EBITDA ~0.4x and lease costs growing only 1.8% YoY—underscoring the company’s commitment to disciplined investment in fiber and 5G while sustaining strong cash returns to shareholders.Telefonica Brasil Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
80
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 61.72B | 58.42B | 55.85B | 52.10B | 48.04B | 44.03B |
| Gross Profit | 32.12B | 23.62B | 24.49B | 22.68B | 20.61B | 19.25B |
| EBITDA | 25.34B | 24.24B | 21.54B | 19.52B | 17.84B | 18.19B |
| Net Income | 6.60B | 6.05B | 5.55B | 5.03B | 4.09B | 6.24B |
Balance Sheet | ||||||
| Total Assets | 128.91B | 128.01B | 124.94B | 120.74B | 119.12B | 115.74B |
| Cash, Cash Equivalents and Short-Term Investments | 8.48B | 7.24B | 6.69B | 4.36B | 2.27B | 6.45B |
| Total Debt | 19.72B | 20.35B | 20.75B | 18.74B | 19.30B | 16.93B |
| Total Liabilities | 63.21B | 59.04B | 55.36B | 51.11B | 50.67B | 45.66B |
| Stockholders Equity | 65.43B | 68.69B | 69.73B | 69.57B | 68.40B | 70.01B |
Cash Flow | ||||||
| Free Cash Flow | 10.85B | 11.26B | 10.55B | 9.97B | 9.05B | 8.79B |
| Operating Cash Flow | 20.41B | 20.72B | 19.88B | 18.79B | 18.94B | 18.09B |
| Investing Cash Flow | -10.05B | -10.02B | -8.91B | -7.85B | -14.20B | -8.13B |
| Financing Cash Flow | -11.28B | -10.36B | -8.63B | -8.85B | -8.91B | -9.26B |
Telefonica Brasil Technical Analysis
Negative
14.05
Price Trends
13.22
Negative
14.09
Negative
13.51
Negative
Market Momentum
-0.31
Positive
31.07
Neutral
1.55
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIV, the sentiment is Negative. The current price of 14.05 is above the 20-day moving average (MA) of 13.39, above the 50-day MA of 13.22, and above the 200-day MA of 13.51, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 31.07 is Neutral, neither overbought nor oversold. The STOCH value of 1.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $20.67B | 15.84 | 9.70% | 5.69% | 16.10% | 24.13% | |
71 Outperform | $14.49B | 15.18 | 11.99% | 8.52% | -3.37% | -27.49% | |
70 Outperform | $9.16B | 10.79 | 17.54% | 6.52% | 13.99% | 29.93% | |
67 Neutral | $78.00B | 14.71 | 21.99% | 2.28% | 13.40% | 75.68% | |
62 Neutral | $36.57B | -69.93 | -0.79% | 3.59% | 16.69% | 87.12% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
VIV
Telefonica Brasil
12.08
0.61
5.29%
AMX
America Movil
23.92
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29.21%
TLK
PT Telekomunikasi Indonesia Tbk
14.98
-2.06
-12.08%
TIMB
TIM
18.52
-0.69
-3.59%
VOD
Vodafone
16.00
5.16
47.63%
Telefonica Brasil Corporate Events
Telefônica Brasil Updates Board Governance Rules in July 2026 SEC Filing
Jul 27, 2026
In July 2026, Telefônica Brasil filed a Form 6-K in the United States to disclose updated internal regulations for its board of directors and technical and consulting committees. The document formalizes how the board conducts the company̵...
Telefônica Brasil Board Backs Climate, Human Rights and AI Governance Overhaul
Jul 27, 2026
On July 23, 2026, Telefônica Brasil’s board of directors met in Madrid and approved the company’s 2026 Climate Action Plan, reinforcing its environmental strategy and formalizing governance over climate-related initiatives. This d...
Telefônica Brasil Posts Strong 2Q26 Growth and Boosts Shareholder Payouts
Jul 27, 2026
In the second quarter of 2026, Telefônica Brasil reported continued expansion of its customer base and networks, ending the period with 118.8 million accesses, up 2.3% year-on-year. Mobile accesses rose 2.6% to 105.1 million, supported by 73....
Telefônica Brasil Approves R$500 Million Interest on Capital Distribution
Jul 17, 2026
On July 16, 2026, Telefônica Brasil’s board approved the distribution of R$500 million in interest on capital to shareholders, based on the June 30, 2026 balance sheet and subject to a standard 17.5% withholding tax. The IoC, equivalent...
Telefônica Brasil Board Approves R$500 Million Interest on Capital Distribution
Jul 17, 2026
On July 16, 2026, Telefônica Brasil’s board of directors met remotely in São Paulo and unanimously approved a substantial interest on capital (IoC) distribution based on its June 30, 2026 balance sheet. The decision underscores the...
Telefônica Brasil Fiscal Council Backs R$500 Million Interest on Capital Distribution
Jul 17, 2026
On July 14, 2026, Telefônica Brasil’s Fiscal Council met remotely in São Paulo and unanimously endorsed a proposal to distribute R$500 million in interest on capital to shareholders, based on the company’s June 30, 2026 balan...
Telefônica Brasil Streamlines Cybersecurity Operations with July 1 Merger
Jul 1, 2026
On July 1, 2026, Telefônica Brasil announced that its indirectly controlled subsidiary Telefônica Infraestrutura e Segurança (TIS) merged its wholly owned unit Telefônica Cibersegurança e Tecnologia do Brasil (Cyberco Bras...
Telefônica Brasil Board Backs Merger of Fiber Subsidiary Fibrasil to Streamline Structure
Jun 17, 2026
On June 16, 2026, Telefônica Brasil’s board met remotely and approved the merger of its wholly owned subsidiary Fibrasil Infraestrutura e Fibra Ótica S.A. into the parent company, aiming to streamline its telecommunications infrast...
Telefônica Brasil Fiscal Council Backs Merger of Fiber Unit Fibrasil Into Parent
Jun 17, 2026
On June 15, 2026, Telefônica Brasil’s Fiscal Council met remotely and reviewed management’s proposal to merge Fibrasil Infraestrutura e Fibra Ótica S.A., a wholly owned fiber subsidiary, into the parent company as part of a s...
Telefônica Brasil Committee Backs Merger of Fiber Subsidiary Fibrasil
Jun 17, 2026
On June 16, 2026, Telefônica Brasil’s Audit and Control Committee met remotely in São Paulo and reviewed a proposal to merge Fibrasil Infraestrutura e Fibra Ótica, a wholly owned subsidiary, into the parent company as part of ...
Telefônica Brasil Moves to Merge Fiber Subsidiary Fibrasil to Streamline Infrastructure Operations
Jun 17, 2026
On June 2026, Telefônica Brasil announced that its board had approved the merger of its wholly owned subsidiary Fibrasil Infraestrutura e Fibra Ótica S.A., a provider of wholesale neutral fiber‑optic infrastructure, into the parent...
Telefônica Brasil Calls July 31 EGM to Approve Fibrasil Fiber Merger
Jun 17, 2026
Telefônica Brasil S.A. has called an Extraordinary Shareholders’ Meeting for July 31, 2026, at its São Paulo headquarters to vote on the merger of Fibrasil Infraestrutura e Fibra Ótica S.A. into the company, a move that consol...
Telefônica Brasil Fiscal Council Backs R$230 Million Interest-on-Capital Distribution
Jun 16, 2026
At a remote meeting held on June 12, 2026, Telefônica Brasil’s Fiscal Council reviewed and unanimously endorsed a proposal to declare R$230 million in interest on capital, based on the balance sheet of May 31, 2026. The proposed distrib...
Telefônica Brasil Board Approves R$230 Million Interest on Capital Distribution
Jun 16, 2026
At its 527th board meeting held remotely on June 15, 2026, Telefônica Brasil’s board approved the declaration of R$230 million in interest on capital, based on the balance sheet dated May 31, 2026. The approved distribution corresponds ...
Telefônica Brasil Approves R$230 Million Interest on Capital Distribution
Jun 16, 2026
Telefônica Brasil’s board of directors on June 15, 2026, approved the distribution of R$230 million in interest on capital, based on the May 31, 2026 balance sheet, equivalent to a gross R$0.07197382114 per share and a net R$0.059378402...
Telefônica Brasil Confirms Unchanged Interest on Capital Per Share and Record Date
May 27, 2026
On May 27, 2026, Telefônica Brasil confirmed to the market that the amount of interest on capital approved by its board on May 15, 2026 remains unchanged, as the company carried out no share acquisitions, divestitures or cancellations under i...
Telefônica Brasil Confirms Per-Share Payout for R$4 Billion Capital Reduction
May 22, 2026
On May 22, 2026, Telefônica Brasil confirmed to investors that the per-share amount to be paid in its previously approved capital reduction remains unchanged, as no shares were acquired, divested or cancelled under its buyback program. The R$...
Telefônica Brasil Receives Clean Review on Q1 2026 Interim Financial Statements
May 22, 2026
Telefônica Brasil has published its parent company and consolidated interim financial statements for the quarter ended March 31, 2026, along with an independent review report. The review, conducted by PricewaterhouseCoopers and dated May 8, 2...
Telefônica Brasil Takes Full Control of Fiber Unit Fibrasil in R$458.7 Million Deal
May 19, 2026
On May 18, 2026, Telefônica Brasil announced it had acquired the remaining 24.99% stake in Fibrasil Infraestrutura e Fibra Óptica S.A. from Telefónica Infra for R$458.7 million, paid in a single installment at signing. The deal foll...
Telefônica Brasil to Gain Full Control of Fibrasil with R$458.7 Million Stake Purchase
May 19, 2026
At a board meeting held remotely on May 18, 2026, Telefônica Brasil’s directors approved a share purchase agreement with Telefónica Infra for the acquisition of the remaining 24.99% stake in Fibrasil Infraestrutura e Fibra Óti...
Telefônica Brasil Updates Bylaws, Broadens Corporate Scope and Capital Structure
May 19, 2026
Telefônica Brasil has updated and restated its corporate bylaws, detailing a broad and diversified corporate purpose that extends well beyond core telecommunications into digital services, IT infrastructure, artificial intelligence, blockchai...
Telefônica Brasil Board Approves R$600 Million Interest-on-Capital Distribution
May 15, 2026
On May 15, 2026, Telefônica Brasil’s board of directors met remotely in São Paulo and unanimously approved the declaration of R$600 million in interest on capital, based on the April 30, 2026 balance sheet. The distribution corresp...
Telefônica Brasil Fiscal Council Backs R$600 Million Interest on Capital Distribution
May 15, 2026
On May 14, 2026, Telefônica Brasil’s Fiscal Council met remotely and unanimously endorsed a proposal to declare R$600 million in interest on capital based on the April 30, 2026 balance sheet. The proposed distribution, equivalent to R$0...
Telefônica Brasil Announces R$600 Million Interest on Capital Distribution
May 15, 2026
On May 15, 2026, Telefônica Brasil’s board approved a gross R$600 million interest on capital distribution, based on the April 30, 2026 balance sheet, equivalent to R$0.18775779427 per share before a 17.5% withholding tax. The interest ...
Telefônica Brasil Confirms Effectiveness of Capital Reduction and Sets July 14 Payout
May 15, 2026
Telefônica Brasil announced that, following the expiry on 14 May 2026 of the legal opposition period to its previously approved capital reduction, the transaction has become fully effective. The reduction was approved at an extraordinary shar...
Telefônica Brasil Posts Record Customer Base and Strong Profit Growth in 1Q26
May 11, 2026
Telefônica Brasil reported its first-quarter 2026 results on May 11, 2026, highlighting record customer numbers of 117.4 million accesses, including 103.7 million mobile accesses and 31.5 million homes passed with fiber. The company expanded ...
Telefônica Brasil Refines Incentive Plan and Reshapes Governance Committee
May 11, 2026
At its 524th board meeting held on May 7, 2026, Telefônica Brasil’s directors unanimously approved amendments to the company’s second Performance Unit Incentive Plan with cash settlement, refining the document and annexes that gov...
Telefônica Brasil Updates Second Cash-Settled Performance Unit Incentive Plan
May 11, 2026
Telefônica Brasil has implemented a second long-term incentive plan based on performance units with cash settlement, approved by its board on June 12, 2024 and amended on February 20, 2025 and May 7, 2026. The plan complements the broader Tel...
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.