Swisscom AG Q2 2026 Earnings Recap

Swisscom's shares rose 4.4% post-Q2 results, reflecting investor approval of faster-than-expected synergy realization in Italy and stronger cost savings in Switzerland, which drove margin expansion and operating free cash flow growth despite ongoing revenue declines.

Key Takeaways

• Revenue declined 2% year-over-year to CHF 3.6 billion, pressured by lower service revenue in both Switzerland and Italy as well as weaker hardware sales in Italy.
• Adjusted EBITDA (EBITDAaL) grew 6.1% to CHF 1.269 billion, supported by synergy gains from the Vodafone Italia integration and effective cost management in Switzerland.
• Operating free cash flow surged 23.9% to CHF 608 million, benefiting from 6.3% lower CapEx and improved operational efficiencies.
• Swiss B2C mobile net adds were solid (+10,000 RGUs), though broadband RGUs remained negative (-8,000) with efforts underway to stabilize this trend via brand repositioning and selective price increases.
• Confirmed full-year guidance signals confidence in execution despite revenue headwinds and continues focus on AI, security, and energy segments for long-term value creation.