Turkcell Iletisim Hizmetleri A.S (TKC) AI Stock Analysis
TKC AI stock analysis summary
AI ResearchTurkcell Iletisim Hizmetleri A.S (TKC) provides digital and telecommunications services across Turkey and international markets. The company generated $185.12B in trailing twelve-month revenue, but its stock declined 13.3% over the past year. Turkcell trades at a trailing price-to-earnings ratio of 9.3x and carries $96.75B in net debt.
- Market cap
- $4.29B
- Revenue (TTM)
- $185.12B
- P/E
- 9.3x fwd 31.1x
- 1Y return
- -13.3% S&P 500 16.8%
- Avg. target
- $7.41 50.3% vs last close
Bull case
- Free cash flow expanded to $73.90B in FY2025, supported by $121.62B in operating cash flow.
- The stock trades at an EV/EBITDA multiple of 2.8x, compared to the peer median of 10.0x for US-listed Communication Services.
- Analysts maintain a mean price target of $7.41, which sits 50.3% above the last closing price of $4.93.
Bear case
- Net debt totaled $96.75B as of June 30, 2026, driven by $212.76B in total debt.
- Quarterly earnings fell 5.5% year-over-year in the latest quarter ended June 30, 2026.
- The stock is down 13.3% over the past year, underperforming the S&P 500 (SPY) gain of 16.8%.
What Turkcell Iletisim Hizmetleri A.S does
Turkcell Iletisim Hizmetleri A.S., established in 1993 and based in Istanbul, Turkey, offers telecommunications and digital services in countries such as Ukraine, Belarus, Northern Cyprus, Germany, and the Netherlands. The company operates through Turkcell Turkey, Turkcell International, and Techfin segments. Its offerings include mobile communications, fixed business internet, business phone services, and customer loyalty programs. In addition, Turkcell provides digital business solutions encompassing cyber security, data centers, IoT solutions, big data analytics, managed services, and cloud solutions. It also features digital consumer platforms, including the TV+ content platform, the fizy music service, BiP, and the yaani browser.
Growth and profitability
Revenue increased from $108.60B in FY2021 to $241.47B in FY2025, reflecting a 5-year revenue CAGR of 28.3% from FY2020 to FY2025. Annual growth fluctuated, declining 20.6% in FY2023 before rebounding 55.6% in FY2024 and 44.9% in FY2025. Net income was $17.60B in FY2025, down from $23.52B in FY2024, with net margin moderating from 14.1% to 7.3%. Gross margin stood at 28.5% in FY2025, while operating margin reached 15.9%. For the trailing twelve months ended June 30, 2026, revenue totaled $185.12B with a 7.2% profit margin. In the quarter ended June 30, 2026, quarterly revenue grew 2.5% year-over-year, while quarterly earnings declined 5.5%.
Balance sheet and cash flow
As of June 30, 2026, Turkcell held $116.01B in cash and short-term investments against $212.76B in total debt, resulting in net debt of $96.75B. Total assets stood at $662.05B and shareholders' equity was $310.57B, yielding a debt-to-equity ratio of 0.69 and a current ratio of 1.49. In FY2025, operating cash flow reached $121.62B and free cash flow was $73.90B. Capital expenditures totaled $47.71B, while the company allocated $9.75B to dividends paid and $279.5M to share buybacks.
Valuation and performance
Turkcell has a market capitalization of $4.29B and an enterprise value of $6.46B. The stock trades at a trailing P/E of 9.3x, below the 16.2x median of its US-listed Communication Services peers. Its forward P/E of 31.1x stands above the peer median of 14.1x, while its EV/EBITDA of 2.8x is lower than the peer median of 10.0x. Turkcell trades at 0.9x price-to-sales and 0.7x price-to-book. Over the past year, the stock fell 13.3%, trailing the S&P 500 (SPY) return of 16.8%. Over five years, it gained 41.8% compared to 83.0% for the index.
TKC dividend
Turkcell pays an annual dividend with a forward rate of $0.11 per share, representing a 2.14% dividend yield. The payout ratio is 20.5%. The company has paid dividends for 10 consecutive years, delivering a 5-year annualized dividend growth rate of 13.4%. Its last ex-dividend date was December 10, 2026.
What analysts expect
Wall Street coverage includes 1 Strong Buy and 1 Buy rating, with no Hold, Sell, or Strong Sell recommendations. The mean price target is $7.41, representing a 50.3% premium over the last close of $4.93. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $315.90B and EPS of $27.30. Turkcell beat EPS estimates in each of the last 4 quarters, and its next earnings date is November 5, 2026.
Key risks and what to watch
- Revenue growth has shown volatility, dropping 20.6% in FY2023 before accelerating in FY2024 and FY2025.
- The trailing twelve-month operating margin was 0.0%, compared to the sector peer median of 13.3%.
- Capital expenditures of $47.71B in FY2025 represent a significant ongoing cash commitment.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this TKC AI stock analysis
This page is an AI-written research summary of Turkcell Iletisim Hizmetleri A.S (TKC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: TKC income statement, TKC balance sheet, TKC key metrics, TKC analyst forecast, TKC chart. See the TKC stock overview for the latest quote and news.
TKC AI stock analysis FAQ
What is Turkcell's dividend yield and payout schedule?
Turkcell has a forward dividend yield of 2.14% based on an annual dividend of $0.11 per share. The company pays on an annual frequency and has a payout ratio of 20.5%.
What are analysts' price targets for TKC stock?
The mean analyst price target is $7.41, which is 50.3% above the last closing price of $4.93 as of October 16, 2026. The stock has 1 Strong Buy and 1 Buy rating.
How much debt does Turkcell have?
As of June 30, 2026, Turkcell carried $212.76B in total debt and $116.01B in cash and short-term investments, resulting in net debt of $96.75B. Its debt-to-equity ratio was 0.69.
When is Turkcell's next earnings report?
Turkcell is scheduled to report its next financial results on November 5, 2026. The company beat EPS estimates in each of its last 4 quarters.