Telefonica Brasil (NYSE:VIV) Announces Earnings Results, Beats Estimates By $0.05 EPS

Telefonica Brasil (NYSE:VIV) posted its earnings results on Monday. The Wireless communications provider reported $0.22 earnings per share for the quarter, topping analysts’ consensus estimates of $0.17 by $0.05, Zacks reports. Telefonica Brasil had a return on equity of 9.20% and a net margin of 10.42%.The company had revenue of $2.83 billion during the quarter, compared to analyst estimates of $2.88 billion.

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

• Strong financial and cash generation: Q4 revenues grew 7.1% and full‑year free cash flow rose 11.4% to BRL 9.2 billion, enabling a 103.4% payout of net income (BRL 6.4 billion) and a committed distribution of BRL 7.0 billion for 2026.
• Mobile and fiber momentum: Postpaid accesses expanded 6.5% (now 70.8M) with ARPU up 5.8%, FTTH reached 7.8M homes (31M passings) and 5G customers rose to 23.1M, driving lower churn and stronger monetization through the Vivo Total convergent offer.
• Diversification via new businesses and B2B digital: New businesses grew ~27% (now 12.1% of revenues) and digital B2B jumped 29.5%, while Vivo Ventures increased its investment capacity to BRL 470 million to back AI and other initiatives.
• Disciplined cost and investment management improved margins and cash conversion — EBITDA (ex‑concession effects) rose 17.7%, CapEx was essentially flat (+1.1%) with CapEx/Revenues down to 15.6%, and operating cash flow margins expanded to 17% after leases.
• Market structure and M&A outlook remain uncertain: management sees Brazilian fiber market as fragmented with potential for consolidation but says targets must meet quality/price criteria, so any material M&A impact is not assured.

Telefonica Brasil Trading Up 2.0%

NYSE VIV opened at $16.56 on Wednesday. Telefonica Brasil has a 12-month low of $8.09 and a 12-month high of $16.59. The company has a fifty day simple moving average of $13.51 and a two-hundred day simple moving average of $12.86. The company has a current ratio of 1.02, a quick ratio of 0.96 and a debt-to-equity ratio of 0.19. The stock has a market cap of $26.94 billion, a P/E ratio of 23.66, a P/E/G ratio of 0.88 and a beta of 0.71.

Analyst Ratings Changes

A number of brokerages recently weighed in on VIV. Zacks Research raised Telefonica Brasil from a “hold” rating to a “strong-buy” rating in a research report on Monday, February 9th. Weiss Ratings cut shares of Telefonica Brasil from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, February 9th. Bank of America began coverage on shares of Telefonica Brasil in a research report on Thursday, December 11th. They issued an “underperform” rating and a $14.00 price objective on the stock. Wall Street Zen raised shares of Telefonica Brasil from a “buy” rating to a “strong-buy” rating in a report on Sunday, January 11th. Finally, Barclays reiterated an “overweight” rating and set a $14.50 price objective on shares of Telefonica Brasil in a report on Monday, November 3rd. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $13.12.

Institutional Trading of Telefonica Brasil

Several institutional investors and hedge funds have recently bought and sold shares of the business. Arax Advisory Partners boosted its holdings in shares of Telefonica Brasil by 54.4% in the 4th quarter. Arax Advisory Partners now owns 3,773 shares of the Wireless communications provider’s stock valued at $45,000 after acquiring an additional 1,330 shares during the last quarter. Rhumbline Advisers boosted its holdings in Telefonica Brasil by 337.7% in the first quarter. Rhumbline Advisers now owns 4,233 shares of the Wireless communications provider’s stock valued at $37,000 after purchasing an additional 3,266 shares during the last quarter. EverSource Wealth Advisors LLC grew its position in Telefonica Brasil by 214.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,766 shares of the Wireless communications provider’s stock worth $54,000 after purchasing an additional 3,248 shares during the period. Advisors Asset Management Inc. acquired a new stake in Telefonica Brasil during the 1st quarter worth about $52,000. Finally, AlTi Global Inc. purchased a new position in shares of Telefonica Brasil during the 4th quarter valued at about $130,000. 5.16% of the stock is currently owned by institutional investors and hedge funds.

About Telefonica Brasil

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.