Telefonica Brasil (NYSE:VIV) Announces Earnings Results, Misses Expectations By $0.02 EPS

Posted by Francis Steltz on May 12th, 2026

Telefonica Brasil (NYSE:VIV – Get Free Report) posted its earnings results on Monday. The Wireless communications provider reported $0.15 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.17 by ($0.02), reports. The business had revenue of $2.98 billion for the quarter, compared to analyst estimates of $2.98 billion. Telefonica Brasil had a return on equity of 9.15% and a net margin of 10.42%.

Here are the key takeaways from Telefonica Brasil’s conference call:

Strong financial performance: Total revenue rose 7.4% YoY, EBITDA grew 8.9% with a 40.2% margin, net income was up 19.2% to BRL 1.3bn, operating cash flow was BRL 4.2bn and free cash flow BRL 2.2bn.
Customer and ARPU momentum: Postpaid accesses grew 6.9% to 72.1m (69.5% of mobile base), total mobile 103.7m, fiber connections reached 8.0m (homes passed 31.5m), with mobile ARPU at a record +5.7% and postpaid churn at 1.0%.
Revenue mix shifting to higher‑value services: New business now represents 12.1% of revenues, B2B revenues rose 11.8% (digital B2B +23.8%), while consumer electronics and health offerings posted double‑digit growth, supporting diversification and higher monetization per customer.
Capital allocation and balance sheet strength: Management reaffirmed at least BRL 7bn of distributions for 2026, launched a BRL 1bn buyback, and reported a stronger net cash position with net debt/EBITDA ~0.4x.
Cost and execution risks: Cost of goods and services rose 12% (handset/electronics and new businesses), bad debt was ~2% (impacted by one B2B customer), and timing of copper asset sales and ongoing tower/lease negotiations create execution and timing uncertainties.

Telefonica Brasil Stock Performance

NYSE:VIV opened at $14.83 on Tuesday. The firm has a 50-day moving average of $15.94 and a two-hundred day moving average of $14.17. The company has a debt-to-equity ratio of 0.22, a current ratio of 1.00 and a quick ratio of 0.94. The stock has a market cap of $24.12 billion, a P/E ratio of 21.18, a PEG ratio of 0.97 and a beta of 0.63. Telefonica Brasil has a 1-year low of $9.41 and a 1-year high of $17.25.

Telefonica Brasil Announces Dividend

The company also recently disclosed a dividend, which will be paid on Tuesday, July 21st. Shareholders of record on Friday, May 22nd will be issued a $0.4562 dividend. The ex-dividend date is Friday, May 22nd. Telefonica Brasil’s payout ratio is currently 65.71%.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the stock. New Street Research raised shares of Telefonica Brasil from a “neutral” rating to a “buy” rating in a research report on Tuesday, April 7th. Zacks Research raised shares of Telefonica Brasil from a “hold” rating to a “strong-buy” rating in a research report on Monday, February 9th. UBS Group downgraded Telefonica Brasil from a “buy” rating to a “sell” rating in a report on Wednesday, March 11th. Barclays set a $16.50 price objective on Telefonica Brasil and gave the company an “equal weight” rating in a research report on Friday, April 17th. Finally, Scotiabank boosted their price objective on Telefonica Brasil from $12.50 to $15.30 and gave the stock a “sector perform” rating in a research note on Monday, March 30th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, four have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $14.08.

View Our Latest Analysis on Telefonica Brasil

Institutional Investors Weigh In On Telefonica Brasil

A number of institutional investors and hedge funds have recently added to or reduced their stakes in VIV. Ieq Capital LLC boosted its holdings in Telefonica Brasil by 3.4% during the fourth quarter. Ieq Capital LLC now owns 22,285 shares of the Wireless communications provider’s stock worth $264,000 after buying an additional 727 shares during the last quarter. Vise Technologies Inc. increased its stake in shares of Telefonica Brasil by 7.8% in the 4th quarter. Vise Technologies Inc. now owns 12,819 shares of the Wireless communications provider’s stock valued at $152,000 after acquiring an additional 932 shares during the last quarter. Sei Investments Co. raised its position in shares of Telefonica Brasil by 6.2% in the 3rd quarter. Sei Investments Co. now owns 17,494 shares of the Wireless communications provider’s stock valued at $223,000 after acquiring an additional 1,019 shares during the period. Arax Advisory Partners boosted its stake in Telefonica Brasil by 54.4% during the 4th quarter. Arax Advisory Partners now owns 3,773 shares of the Wireless communications provider’s stock worth $45,000 after acquiring an additional 1,330 shares during the last quarter. Finally, Vanguard Personalized Indexing Management LLC boosted its stake in Telefonica Brasil by 2.5% during the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 59,933 shares of the Wireless communications provider’s stock worth $711,000 after acquiring an additional 1,460 shares during the last quarter. Institutional investors own 5.16% of the company’s stock.

About Telefonica Brasil

(Get Free Report)

Telefônica Brasil SA, commonly marketed under the Vivo brand, is one of Brazil’s largest telecommunications providers, offering a broad range of consumer and enterprise communications services. The company’s core activities include mobile voice and data services, fixed-line telephony, broadband internet (including fiber-to-the-home), and pay-TV solutions. It also provides ICT and managed services for business customers, such as cloud, data center, connectivity, Internet of Things (IoT) and security solutions.

Vivo operates a nationwide network across Brazil and serves both individual consumers and corporate clients.