VIVT3 after 2Q26: FTTH scale lifts EBITDA 10.9%, while payout pace runs ahead of the quarter
How to read Telefônica Brasil's second-quarter package — R$15.8bn revenue (+7.6%), R$6.58bn EBITDA (41.8% margin), R$1.57bn net income (+17%), 8.2m FTTH homes connected, OpCF at R$3.99bn, and R$6.99bn already returned to shareholders in 7M26.
VIVT3 after 2Q26: FTTH scale lifts EBITDA 10.9%, while payout pace runs ahead of the quarter
On 28 July 2026, Telefônica Brasil S.A. (B3: VIVT3; NYSE: VIV) published 2Q26 results (reference 30 June 2026). Net operating revenue reached R$ 15.76 billion, up 7.6% year on year, and EBITDA rose 10.9% to R$ 6.58 billion, with a 41.8% margin (+1.3 percentage points versus 2Q25) — the strongest EBITDA growth since 3Q23, according to the company.
Net income attributable to Telefônica Brasil totaled R$ 1.57 billion (+17.0%), while operating cash flow (EBITDA less capex, as defined in the release) reached R$ 3.99 billion (+14.3%). The quarter is a compact lesson in Brazilian telecom economics: fiber and postpaid scale can expand margins even as handset sales swing revenue mix, and shareholder cash returns can move on a calendar that does not line up one-for-one with a single quarter's profit.
What the earnings release shows
Figures below follow Telefônica Brasil's 2Q26 earnings release unless noted:
| Metric (2Q26) | Result | vs 2Q25 / note |
|---|---|---|
| Net operating revenue | R$ 15,757 m | +7.6% (vs R$ 14,645 m) |
| Mobile services revenue | R$ 10,183 m | +6.6% |
| FTTH revenue | R$ 2,147 m | +10.7% |
| Corporate data, ICT & digital | R$ 1,467 m | +7.8% |
| Handsets & electronics | R$ 1,048 m | +27.8% |
| EBITDA | R$ 6,581 m | +10.9% |
| EBITDA margin | 41.8% | +1.3 pp |
| EBITDA after leases (AL) | R$ 5,139 m | +11.6% |
| EBITDA AL margin | 32.6% | +1.2 pp |
| Net income | R$ 1,573 m | +17.0% |
| EPS | R$ 0.49 | +18.5% (split-adjusted base) |
| Capex ex-IFRS 16 | R$ 2,589 m | +6.1% |
| Capex / revenue | 16.4% | −0.2 pp |
| Operating cash flow | R$ 3,992 m | +14.3% |
| OpCF margin | 25.3% | +1.5 pp |
| Free cash flow | R$ 2,661 m | −10.7% |
In 1H26, net income was R$ 2.83 billion (+17.9% year on year), which management described as the strongest first-half profit growth in three years. Total accesses ended 2Q26 at 118.8 million (+2.3% year on year), with mobile at 105.1 million and growth accelerating versus 1Q26.
Revenue — postpaid, fiber, and the handset line
Net revenue growth was broad-based:
| Line | 2Q26 revenue | YoY in release |
|---|---|---|
| Mobile services | R$ 10.18 bn | +6.6% |
| FTTH | R$ 2.15 bn | +10.7% |
| Corporate data, ICT & digital | R$ 1.47 bn | +7.8% |
| Handsets & electronics | R$ 1.05 bn | +27.8% |
Human postpaid remained the core mobile engine: 52.4 million accesses (+7.3% year on year) after 3.6 million net additions over the last twelve months. ARPU on human postpaid reached R$ 53.9 (+0.8%), with churn at 1.0% — a level the company framed as historically low.
Fiber execution showed up in both subscribers and revenue. Homes passed reached 32.0 million (+6.4%), homes connected 8.2 million (+11.3%), and take-up 25.6% (+1.1 pp). FTTH ARPU rose 0.7% quarter on quarter; FTTH churn was 1.4% in the quarter. 5G coverage expanded to 978 municipalities; the FTTH footprint reached 453 cities.
Handsets and electronics grew fastest in percentage terms. That line can lift revenue without moving EBITDA at the same pace — useful context when headline sales growth outruns 41.8% EBITDA margin expansion.
EBITDA and cash conversion
EBITDA at R$ 6.58 billion combined operating leverage on connectivity with cost discipline. EBITDA AL (after leases) rose 11.6% to R$ 5.14 billion, with margin at 32.6% (+1.2 pp).
The release defines operating cash flow as EBITDA less capex ex-IFRS 16 (excluding license effects). On that basis, OpCF was R$ 3.99 billion (+14.3%), margin 25.3% (+1.5 pp). OpCF AL reached R$ 2.55 billion (+17.7%).
Capex ex-IFRS 16 was R$ 2.59 billion (+6.1%), 16.4% of revenue — slightly below the 2Q25 ratio. Investment stayed focused on 5G and FTTH rollout.
Free cash flow nevertheless fell 10.7% year on year to R$ 2.66 billion in 2Q26 even as OpCF rose. The release does not replace a full cash-flow statement in a short press note; readers who reconcile FCF to dividends should open the ITR and 6-K cash-flow lines rather than inferring a bridge from EBITDA alone.
Shareholder remuneration — 7M26 versus 2Q26 profit
Telefônica Brasil highlighted cash already returned in 2026:
| Item | Amount / policy (release) |
|---|---|
| Shareholder remuneration paid in 7M26 | R$ 6.99 bn (+31.6% vs 7M25) |
| Of which JCP declared in 2025 | R$ 2.99 bn |
| Of which capital reduction | R$ 4.00 bn |
| JCP declared through Jul 2026 (7M26 basis) | R$ 2.22 bn (+34.5% YoY in 7M26) |
| FY26 payout commitment | At least 100% of FY26 net income |
| Buyback authorization | Up to R$ 1.0 bn until Feb 2027 |
2Q26 net income was R$ 1.57 billion; 7M26 distributions of R$ 6.99 billion include prior-year JCP and a capital reduction — not a single-quarter payout ratio. The educational point is calendar and instrument mix (JCP, dividends, buybacks, capital reduction), not a naive "yield on last quarter's earnings."
Balance sheet — leases change the headline
Telefônica Brasil reports IFRS 16 lease liabilities like most large carriers. Investor materials for 2Q26 cite gross debt excluding leases near R$ 4.93 billion (−14.4% year on year) and a net cash position excluding lease effects of about R$ 3.79 billion at 30 June 2026. Including lease liabilities, net debt was about R$ 11.0 billion on the same date.
Screen comparisons that mix "net cash" telecom peers on an enterprise-value basis without harmonizing leases will mis-rank Vivo versus operators that capitalize towers or fiber differently.
Limits of this reading
- EBITDA, EBITDA AL, OpCF, and OpCF AL use company definitions in the release footnotes; they are not interchangeable with generic "adjusted EBITDA" from third-party screens.
- EPS for 2025 was recalculated for the 15 April 2025 split and reverse split — year-on-year per-share lines inherit that restatement.
- Shareholder remuneration in 7M26 is not equal to 2Q26 profit paid out in the quarter.
- Handset revenue growth can distort revenue mix without matching EBITDA contribution.
- FCF down year on year in 2Q26 despite higher OpCF requires the full cash-flow statement for a precise bridge.
Where to view in the explorer
Sources
- Telefônica Brasil — 2Q26 Results press release (reference 30 Jun 2026), 28 Jul 2026: Newsfile
- Telefônica Brasil — Form 6-K (2Q26 results and investor materials), filed Jul 2026 (SEC)
- VIVT3 on the explorer — CVM filings and company page
Disclaimer
This article is for informational and educational purposes only. It is not investment advice. EBITDA, lease-adjusted metrics, operating cash flow definitions, and shareholder remuneration timing follow Telefônica Brasil's release and SEC filings; when in doubt, the official CVM ITR and 6-K prevail. Refer to those documents and, if needed, a licensed professional.
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