On Monday, July 27, 2026, Telefônica Brasil (VIVT3) reported net income of R$ 1,572.5 mn in the second quarter of 2026 (2Q26), an increase of 17.0% compared to 2Q25. Net operating revenue totaled R$ 15,757.4 mn in the period, up 7.6% year over year, driven by postpaid, fiber (FTTH) and corporate data.
EBITDA (earnings before interest, taxes, depreciation and amortization) came to R$ 6,580.8 mn in 2Q26, an increase of 10.9% versus the same quarter of 2025, with a margin of 41.8%, 1.3 percentage points higher than the previous year. EBITDA AL (earnings before interest, taxes, depreciation and amortization after leases) was R$ 5,139.4 mn, up 11.6% y/y, with a margin of 32.6%.
In mobile, service revenue reached R$ 10,183.0 mn, up 6.6% y/y, with a postpaid base of 73.2 mn accesses, an increase of 6.9% y/y. Postpaid ARPU (average monthly revenue per user), excluding M2M and dongles, was R$ 53.9, 0.8% above 2Q25, with churn of 1.0%. In fixed, net revenue was R$ 4,526.7 mn, up 6.0% y/y, with FTTH reaching 8.2 mn connected homes, an increase of 11.3% y/y.
Investments (Capex) totaled R$ 2,588.5 mn in the quarter, an increase of 6.1% y/y, equivalent to 16.4% of net revenue. Operating cash flow, defined as EBITDA minus investments ex-IFRS 16 and licenses, reached R$ 3,992.3 mn, growth of 14.3% y/y, while free cash flow was R$ 2,661.0 mn, down 10.7% versus 2Q25, impacted by higher tax payments and a lower contribution from working capital.
In terms of indebtedness, gross debt ex-IFRS 16 was R$ 4,931.8 mn on June 30, 2026, a decrease of 14.4% y/y. Considering cash, financial investments and derivatives, the company had net cash of R$ 3,786.9 mn; including leases, net debt totaled R$ 10,997.8 mn. Regarding shareholder returns, the company reported that it distributed R$ 6,990.0 mn to shareholders between January and July 2026 and has already approved R$ 2,220.0 mn in IOC (Interest on Equity) for the year, reiterating its commitment to distribute at least 100% of 2026 net income.
