Telefonica stock: Vivo reports 30.1% third-quarter profit gain

Telefónica Brasil, Telefónica's Brazilian subsidiary operating under the Vivo brand, reported a stronger third quarter on November 10, 2026. Net income rose 30.1% year over year, while revenue, EBITDA and operating cash flow also advanced, according to the earnings release carried by MarketScreener.

Revenue reached 16.023 billion Brazilian reais, up 7.2% from the year-earlier quarter. EBITDA increased 10.0% to 7.136 billion reais, lifting the margin to 44.5% from 43.4%. Net income attributable to Telefónica Brasil rose to 2.456 billion reais from 1.888 billion reais.

Growth came from core services

Mobile services revenue advanced 7.4%, helped by postpaid growth of 9.1%. The postpaid customer base reached 53.4 million accesses, a 7.0% increase over the prior year, while average revenue per user rose 0.6% to 53.8 Brazilian reais.

Fiber also contributed to the expansion. FTTH revenue increased 5.7% to 2.092 billion reais, and connected homes reached 8.4 million, up 10.8%. Corporate data, information technology and digital services revenue rose 4.9%, while handset and electronics revenue grew 26.6%.

Telefónica Brasil's total subscriber base stood at 120.154 million, 3.0% above the year-earlier level. The company said its fiber footprint reached 32.4 million homes passed, and its 5G network was available in 1,012 municipalities.

Cash generation supports shareholder returns

Operating cash flow increased 17.8% to 4.575 billion reais, with the margin widening to 28.6%. Free cash flow rose 37.7% to 2.426 billion reais. Capital expenditure excluding IFRS 16 fell 1.6% to 2.561 billion reais, reducing investment intensity to 16.0% of revenue.

The subsidiary said shareholder remuneration paid during the first nine months reached 6.990 billion reais, 9.6% above the amount distributed in all of 2025. Its board also approved a December 15 payment of 325 million reais related to interest on capital declared in February. Telefónica Brasil said it remained committed to distributing at least 100% of fiscal 2026 net income to shareholders, subject to the applicable conditions.

Implications for Telefonica stock

The Brazilian results give Telefónica investors a constructive operating signal from one of the group's key markets. Revenue growth exceeded cost growth in the quarter, while the EBITDA margin and cash conversion improved. The figures also show that postpaid mobile services and fiber remain the main commercial engines, rather than one-off items alone.

Telefonica stock traded at 3.48 euros on Lang & Schwarz at 11:38 CET on Wednesday, November 11, 2026.

The IBEX 35 provides the wider Spanish equity backdrop for Telefónica's trading environment.

More news and analyses on Telefonica stock.