Telefônica Brasil S.A (VIV) AI Stock Analysis

Telefônica Brasil S.A., based in Sao Paulo, Brazil, delivers mobile and fixed-line telecommunications services to residential and corporate customers nationwide. The company provides local, domestic long-distance, and international calling, alongside mobile voice and broadband access across 3G, 4G, 4.5G, and 5G networks. Its portfolio also includes direct-to-home satellite, IPTV, and cable pay TV services, as well as broadband data connectivity. In addition, Telefônica Brasil offers network solutions, private connectivity, and digital services covering entertainment, cloud computing, security, and financial services, serving industries such as retail, manufacturing, financial institutions, and government entities through stores, dealers, retail outlets, and direct sales channels.

Telefônica Brasil expanded annual revenue from $44.03B in FY2021 to $58.42B in FY2025, recording a 5-year revenue CAGR of 6.3%. Over this period, net income moved from $6.24B in FY2021 to $6.05B in FY2025, with net margin reaching 10.3%. Gross margin stood at 40.4% in FY2025, compared to 43.7% in FY2021, while operating margin was 15.2%. For the trailing twelve months, revenue reached $61.77B with an operating margin of 17.6% and net margin of 10.7%. In the latest quarter ended June 30, 2026, quarterly revenue increased 7.6% year-over-year, while quarterly earnings grew 18.5% year-over-year.

As of June 30, 2026, Telefônica Brasil held $8.56B in cash and short-term investments against total debt of $19.72B, resulting in net debt of $11.15B. The company reported shareholders' equity of $65.43B, total assets of $128.91B, a current ratio of 0.95, and a debt-to-equity ratio of 0.30. In FY2025, operating cash flow reached $20.72B and free cash flow was $11.26B. Cash deployment in FY2025 included $9.46B in capital expenditures, $3.69B in share buybacks, and $2.19B in dividends paid.

Telefônica Brasil trades at a trailing P/E of 16.0x and a forward P/E of 9.9x, compared to 16.2x and 14.1x for the median of its US-listed Communication Services peers. Its enterprise value stands at $21.36B, reflecting an EV/EBITDA of 4.5x compared to the peer median of 10.0x. The company trades at a price-to-sales multiple of 0.3x versus the peer median of 0.8x. Over the past year, the stock gained 12.1%, trailing the S&P 500's 16.8% return. Over five years, its 101.0% return outpaced the S&P 500's 83.0% gain.

Telefônica Brasil pays a monthly dividend with an annualized forward payout of $1.00 per share, representing a dividend yield of 8.02%. The payout ratio is 7.4%, and the company has paid dividends for 28 consecutive years. Its 5-year annualized dividend growth is -11.4%, and its last ex-dividend date was September 28, 2026.

Wall Street analyst ratings consist of 1 Strong Buy, 6 Holds, and 1 Strong Sell. The mean price target is $15.21, implying a 21.5% upside from the last closing price of $12.51. For FY2026, consensus estimates project revenue of $63.72B and EPS of $4.77, representing 24.8% earnings growth. Over the last four quarters, the company exceeded EPS estimates once. The next earnings report is scheduled for October 29, 2026.

This page is an AI-written research summary of Telefônica Brasil S.A (VIV). 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.

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