Telefonica Brasil SA (VIV)
NYSE:VIV
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Telefonica Brasil
(NYSE:VIV)
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Rating:70Outperform
Price Target:
$15.50
▼(-5.43% Downside)
Action:Reiterated
Date:05/14/26
Overall score reflects strong underlying financial performance and a positive earnings outlook focused on cash generation and shareholder returns. These are partly offset by weak technical momentum and a relatively high P/E for a telecom with only moderate dividend support.
Positive Factors
Strong cash generation and shareholder returns
Sustained free cash flow and an improved net cash position underpin durable capital allocation: management funds capex, large shareholder distributions (capital reduction, IoC, buyback) and still maintains investment in 5G/fiber. This cash conversion supports strategic flexibility and investor returns over the medium term.
Negative Factors
Rising cost of goods sold and personnel expenses
Higher COGS and wage-driven personnel costs erode gross margins and may persist as digital/B2B, OTT and device financing scale. If cost inflation continues, margin expansion could be constrained and require price recovery, efficiency gains, or slower incremental investment to preserve cash returns and profitability over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and shareholder returns
Sustained free cash flow and an improved net cash position underpin durable capital allocation: management funds capex, large shareholder distributions (capital reduction, IoC, buyback) and still maintains investment in 5G/fiber. This cash conversion supports strategic flexibility and investor returns over the medium term.
Read all positive factors
Telefonica Brasil (VIV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.28B
Dividend Yield5.03%
Average Volume (3M)1.10M
Price to Earnings (P/E)26.6
Beta (1Y)0.22
Revenue Growth10.34%
EPS Growth17.26%
CountryUS
Employees32,759
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)3.99
Shares Outstanding1,613,273,300
10 Day Avg. Volume1,049,680
30 Day Avg. Volume1,097,462
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 Cap5.47
Enterprise Value/Revenue2.01
Enterprise Value/Gross Profit4.70
Enterprise Value/Ebitda5.02
Forecast
1Y Price Target
$15.37Price Target Upside-6.24% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)1.04
Revenue Forecast (FY)$12.55B
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 primarily makes money by selling telecommunications services on recurring and usage-based plans to individuals and enterprises. Its largest revenue stream is typically mobile service revenue, generated from postpaid and prepaid p...
Telefonica Brasil Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 27, 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
78
Positive
Balance Sheet
76
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 60.61B | 58.42B | 55.85B | 52.10B | 48.04B | 44.03B |
| Gross Profit | 25.92B | 23.62B | 24.49B | 22.68B | 20.61B | 19.25B |
| EBITDA | 24.27B | 24.24B | 21.54B | 19.52B | 17.84B | 18.19B |
| Net Income | 6.38B | 6.05B | 5.55B | 5.03B | 4.09B | 6.24B |
Balance Sheet | ||||||
| Total Assets | 128.88B | 128.01B | 124.94B | 120.74B | 119.12B | 115.74B |
| Cash, Cash Equivalents and Short-Term Investments | 9.16B | 7.24B | 6.69B | 4.36B | 2.27B | 6.45B |
| Total Debt | 19.63B | 30.88B | 20.75B | 18.74B | 19.30B | 16.93B |
| Total Liabilities | 59.96B | 59.04B | 55.14B | 51.11B | 50.67B | 45.66B |
| Stockholders Equity | 68.65B | 68.69B | 69.73B | 69.57B | 68.40B | 70.01B |
Cash Flow | ||||||
| Free Cash Flow | 11.48B | 11.04B | 10.55B | 9.97B | 9.05B | 8.78B |
| Operating Cash Flow | 20.93B | 20.31B | 19.88B | 18.79B | 18.94B | 18.07B |
| Investing Cash Flow | -9.86B | -9.82B | -8.91B | -7.85B | -14.20B | -8.13B |
| Financing Cash Flow | -10.23B | -10.16B | -8.63B | -8.85B | -8.91B | -9.26B |
Telefonica Brasil Technical Analysis
Negative
16.39
Price Trends
15.05
Negative
14.49
Negative
13.18
Positive
Market Momentum
-0.52
Positive
33.69
Neutral
1.66
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 16.39 is above the 20-day moving average (MA) of 14.48, above the 50-day MA of 15.05, and above the 200-day MA of 13.18, indicating a neutral trend. The MACD of -0.52 indicates Positive momentum. The RSI at 33.69 is Neutral, neither overbought nor oversold. The STOCH value of 1.66 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $80.66B | 14.75 | 20.61% | 2.69% | 9.51% | 187.55% | |
70 Outperform | $22.28B | 26.59 | 9.28% | 5.03% | 10.34% | 17.26% | |
68 Neutral | $10.74B | 20.05 | 17.55% | 7.82% | 8.21% | 30.97% | |
64 Neutral | $16.28B | 51.19 | 12.76% | 6.14% | -6.44% | -27.87% | |
62 Neutral | $34.57B | ― | -0.79% | 3.77% | 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
13.38
4.15
45.02%
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26.14
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53.04%
TLK
PT Telekomunikasi Indonesia Tbk
16.35
0.55
3.45%
TIMB
TIM
22.37
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39.26%
VOD
Vodafone
14.94
4.92
49.18%
Telefonica Brasil Corporate Events
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...
Telefônica Brasil Appoints Independent Director to Board in April 2026
Apr 27, 2026
On April 27, 2026, Telefônica Brasil’s board of directors met remotely and unanimously approved the appointment of Spanish economist María Cristina Rotondo Urcola as a new board member, filling a seat until the next general shareho...
Telefônica Brasil Confirms Interest on Capital Amount and Record Date for April 2026
Apr 27, 2026
Telefônica Brasil S.A. informed the market on April 27, 2026 that it has made no share acquisitions, divestitures or cancellations under its share buyback program since its April 15, 2026 notice, leaving unchanged the gross interest on capita...
Telefônica Brasil Shareholders Approve 2025 Results and Profit Allocation at April 16 Meeting
Apr 17, 2026
On April 16, 2026, Telefônica Brasil held its 28th Ordinary Shareholders Meeting at its São Paulo headquarters, with investors representing about 91.93% of common shares in attendance or voting remotely. Shareholders reviewed management ...
Telefônica Brasil Board Approves R$365 Million Interest on Capital Distribution
Apr 16, 2026
At its 522nd board meeting held remotely on April 15, 2026, Telefônica Brasil’s directors unanimously approved the declaration of interest on capital totaling R$365 million, based on the balance sheet dated March 31, 2026. The distribut...
Telefônica Brasil Approves R$365 Million Interest on Capital Distribution
Apr 16, 2026
On April 15, 2026, Telefônica Brasil’s board approved the distribution of R$365 million in interest on capital (IoC), based on the March 31, 2026 balance sheet, with a standard 17.5% withholding tax reducing the net amount to R$301.125 ...
Telefônica Brasil Fiscal Council Backs R$365 Million Interest-on-Capital Distribution
Apr 16, 2026
On April 13, 2026, Telefônica Brasil’s Fiscal Council met remotely and unanimously endorsed a proposal to declare R$365 million in interest on capital based on the March 31, 2026 balance sheet, equivalent to a gross R$0.11421932485 per ...
Telefônica Brasil Names New Chief Financial and Investor Relations Officer
Mar 30, 2026
At a remote board meeting held on March 26, 2026, Telefônica Brasil’s directors approved a leadership change in the finance function, appointing Rodrigo Rossi Monari as Chief Financial and Investor Relations Officer, effective April 2, ...
Telefônica Brasil Names Rodrigo Rossi Monari New CFO and Investor Relations Chief
Mar 27, 2026
Telefônica Brasil announced on March 27, 2026 that its board of directors has appointed Rodrigo Rossi Monari as Chief Financial and Investor Relations Officer, with his term set to begin on April 2, 2026 and run until after the 2028 annual ge...
Telefônica Brasil Confirms Unchanged Interest on Capital After Inactive Buyback
Mar 25, 2026
Telefônica Brasil S.A. informed the market that, as of March 25, 2026, no acquisitions, divestitures or cancellations of treasury shares were carried out under its share buyback program. As a result, the previously approved interest on capita...
Telefônica Brasil Approves R$200 Million Interest on Capital Distribution
Mar 13, 2026
On March 13, 2026, Telefônica Brasil’s board approved the distribution of R$200 million in interest on capital, based on the balance sheet dated February 28, 2026, corresponding to a net R$165 million after a standard 17.5% withholding ...
Telefônica Brasil Fiscal Council Backs R$200 Million Interest on Capital Distribution
Mar 13, 2026
On March 13, 2026, Telefônica Brasil’s Fiscal Council met remotely and unanimously endorsed a proposal to declare R$200 million in interest on capital based on the company’s February 28, 2026 balance sheet. The distribution, which...
Telefônica Brasil Board Approves R$200 Million Interest on Capital Distribution
Mar 13, 2026
On March 13, 2026, Telefônica Brasil’s board of directors met remotely and approved the declaration of R$200 million in interest on capital, based on the balance sheet dated February 28, 2026. The distribution, equivalent to a gross R$0...
Telefônica Brasil Shareholders Approve R$4 Billion Capital Reduction and Cash Payout
Mar 13, 2026
On March 12, 2026, Telefônica Brasil held its 62nd Extraordinary Shareholders’ Meeting in São Paulo, with shareholders representing about 92.84% of common shares present or voting remotely. The meeting was duly called and supported...
Telefônica Brasil Approves R$4 Billion Capital Reduction and Cash Restitution to Shareholders
Mar 13, 2026
On March 12, 2026, Telefônica Brasil S.A. disclosed that shareholders at an Extraordinary Shareholders’ Meeting approved a R$4 billion reduction of the company’s capital, lowering it from R$60.07 billion to R$56.07 billion without...
Telefônica Brasil Calls April 16, 2026 Shareholders’ Meeting to Approve 2025 Accounts and 2026 Governance Terms
Mar 5, 2026
Telefônica Brasil has convened an Ordinary Shareholders’ Meeting for April 16, 2026, at its São Paulo headquarters to deliberate on key corporate matters for the 2025 fiscal year and beyond. The agenda includes reviewing management...
Telefônica Brasil CFO to Step Down in April for Virgin Media O2 Role
Mar 4, 2026
On March 3, 2026, Telefônica Brasil’s board was informed that Chief Financial and Investor Relations Officer David Melcon Sanchez-Friera will resign his position effective April 2, 2026, to become Chief Financial Officer at VMED O2 UK L...
Telefônica Brasil Sets April CFO Transition After Executive Departs for Virgin Media O2
Mar 4, 2026
Telefônica Brasil’s board of directors met remotely on March 3, 2026, and recorded that Chief Financial and Investor Relations Officer David Melcon Sanchez-Friera will leave his position effective April 2, 2026. His departure follows hi...
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...
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.