Swisscom nine-month revenue falls, raises 2026 operating free cash flow outlook 

Overview

• Switzerland telecom group's nine-month revenue fell 2.1% yr/yr to CHF 10.94 bln

• Net income for the period rose 2.4% to CHF 1.01 bln

• Operating free cash flow climbed 14.5% on an adjusted basis

Outlook

• Swisscom confirms 2026 revenue guidance at CHF 14.7-14.9 bln

• Company expects 2026 EBITDAaL of CHF 5.0-5.1 bln

• Swisscom raises 2026 operating free cash flow outlook to above CHF 2.0 bln

Result Drivers

• COST EFFICIENCY - Co said higher profitability in Switzerland was driven by cost-efficiency measures and increased IT business contribution

• SYNERGIES IN ITALY - Italian segment's profitability improved mainly due to cost synergies

• VALUE STRATEGY ITALY - Co said its value strategy in Italy helped stabilise key indicators, including moderating revenue decline and stable mobile ARPU

Company press release: Full Story

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "sell" and the breakdown of recommendations is no "strong buy" or "buy", 8 "hold" and 10 "sell" or "strong sell"

• The average consensus recommendation for the integrated telecommunications services peer group is "buy."

• Wall Street's median 12-month price target for Swisscom AG is CHF605.00, about 14.9% below its November 4 closing price of CHF711.00

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 22 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)