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

Telefonica Brasil (NYSE:VIV) issued its quarterly earnings data on Monday. The Wireless communications provider reported $0.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.17 by $0.05, Zacks reports. The company had revenue of $2.83 billion for the quarter, compared to analyst estimates of $2.88 billion. Telefonica Brasil had a net margin of 10.37% and a return on equity of 8.67%.

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 Stock Performance

Shares of VIV stock opened at $16.21 on Tuesday. The business has a fifty day moving average of $13.41 and a 200 day moving average of $12.82. Telefonica Brasil has a 1 year low of $8.09 and a 1 year high of $16.47. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.02 and a quick ratio of 0.96. The firm has a market capitalization of $26.36 billion, a price-to-earnings ratio of 24.55, a price-to-earnings-growth ratio of 0.89 and a beta of 0.71.

Wall Street Analysts Forecast Growth

VIV has been the subject of several recent research reports. Bank of America assumed coverage on Telefonica Brasil in a research report on Thursday, December 11th. They issued an “underperform” rating and a $14.00 price target for the company. Weiss Ratings lowered shares of Telefonica Brasil from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, February 9th. Barclays reaffirmed an “overweight” rating and issued a $14.50 price objective on shares of Telefonica Brasil in a research report on Monday, November 3rd. Wall Street Zen upgraded shares of Telefonica Brasil from a “buy” rating to a “strong-buy” rating in a research note on Sunday, January 11th. Finally, Zacks Research upgraded shares of Telefonica Brasil from a “hold” rating to a “strong-buy” rating in a research note on Monday, February 9th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $13.12.

Institutional Trading of Telefonica Brasil

Several large investors have recently made changes to their positions in the business. Invesco Ltd. boosted its holdings in Telefonica Brasil by 8.3% in the fourth quarter. Invesco Ltd. now owns 3,094,219 shares of the Wireless communications provider’s stock valued at $36,697,000 after purchasing an additional 237,601 shares during the last quarter. Two Sigma Investments LP lifted its holdings in shares of Telefonica Brasil by 22.5% in the 3rd quarter. Two Sigma Investments LP now owns 1,672,947 shares of the Wireless communications provider’s stock valued at $21,330,000 after buying an additional 307,501 shares during the period. Amundi boosted its stake in shares of Telefonica Brasil by 3.4% in the fourth quarter. Amundi now owns 1,261,713 shares of the Wireless communications provider’s stock worth $14,964,000 after buying an additional 40,932 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in Telefonica Brasil by 8.8% during the fourth quarter. Dimensional Fund Advisors LP now owns 561,254 shares of the Wireless communications provider’s stock worth $6,662,000 after acquiring an additional 45,562 shares during the period. Finally, Royal Bank of Canada grew its holdings in Telefonica Brasil by 30.3% during the first quarter. Royal Bank of Canada now owns 431,051 shares of the Wireless communications provider’s stock worth $3,758,000 after acquiring an additional 100,315 shares during the period. 5.16% of the stock is owned by hedge funds and other institutional investors.

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.