Swisscom AG Q1 2026 Earnings Recap

Swisscom's shares declined modestly by 0.2% following Q1 results that showed softer revenue trends in both Switzerland and Italy, with underlying service revenues continuing to decline despite margin and synergy improvements. The lack of clear acceleration in growth and ongoing topline pressure likely tempered investor enthusiasm.

Key Takeaways

• Group revenue declined slightly to CHF 3.6 billion, driven by softer mobile and broadband revenues in Switzerland and Italy, as well as currency headwinds.
• EBITDAaL remained roughly flat at CHF 1.28 billion, supported by realized synergies in Italy and improved IT profitability in Switzerland.
• Operating free cash flow increased by CHF 96 million to CHF 494 million, mainly from synergy gains and CapEx discipline, particularly in Italy.
• Telco service revenue in Switzerland is expected to decline by CHF 120 million in 2026 despite price increases, with broadband churn rising post-price adjustment.
• Integration efforts in Italy continue on track with Vodafone, emphasizing a shift from volume to value in B2C and scaling energy and IT businesses, but commercial results remain muted.