Swisscom faces continued pressure in its telecommunications operations ahead of its nine-month financial results announcement on Thursday, November 5, 2026. Seven analysts contributed to the AWP consensus, projecting revenue of 10.885 billion francs, down from 11.175 billion francs in the previous year. Analysts anticipate a higher EBITDAaL of 3.85 billion francs for the first nine months, compared to 3.777 billion francs in 2025. Net income is also expected to rise to 1.041 billion francs, up from 988 million francs in the same period of the previous year.
Despite broad price increases implemented across the board in April, the telecom business has seen continued contraction in revenue. However, analysts point to ongoing cost-saving measures and significant synergies extracted from combining subsidiary Fastweb with acquired Vodafone Italia as drivers for higher operating profit and net income. Momentum is expected to have slowed in the summer quarter, with analysts projecting declines in revenue, EBITDAaL, and net income during this period. Erosion among private customers continues, the roaming business may have suffered during the summer, and intense price competition from aggressive competitor offerings persists.
Italy's market also presents challenges through competitive pressure, resulting in 90 million euros of lost revenue for Swisscom in the first half of the year. Additionally, wholesale client Lyca, representing about 1 million connections, departed. The total revenue decrease for 2026 is projected at approximately 150 million euros, as Swisscom chooses not to participate in all price wars in Italy. Synergy gains reached 166 million euros in the first half, keeping Swisscom on track to meet its target of over 300 million euros in synergies for the full year 2026, representing half of the total synergies targeted through 2029. In Switzerland, Swisscom remains on course to meet its telecom cost-saving target of over 50 million francs for 2026, having achieved 42 million francs in the first semester.
Swisscom is restructuring its pressured corporate customer segment in Switzerland by placing artificial intelligence, data, software, and digital transformation consulting into a separate subsidiary effective April 1. The remaining corporate client business stays within the existing Swisscom Business Customers unit. The company has not disclosed financial impacts or job reduction figures. Furthermore, Swisscom secured a legal victory against the competition commission, Weko, as the Federal Administrative Court overturned a sanction and approved a revised fiber-optic network construction method. This allows the group to lay a single supply line from the telephone exchange to the distribution point in the street shaft rather than connecting every household directly, lowering costs and potentially returning 170,000 blocked fiber connections to operation, subject to a potential appeal before the Federal Court.
Swisscom maintains its financial targets for the 2026 financial year, aiming for revenue between 14.7 and 14.9 billion francs, an operating profit of 5.0 to 5.1 billion francs, and investments totaling 3.0 to 3.1 billion francs. In August, CEO Christoph Aeschlimann noted an anticipated revenue decline of approximately 120 million francs in Switzerland for the year despite price increases, with most of the reduction originating from business clients. Conversely, the April price hike for the main Swisscom brand generates a low double-digit million franc revenue contribution, while adjustments for secondary brands Wingo and Migros Mobile in September have a negligible effect this year. Meeting these targets supports a proposed dividend increase of 1 franc to 27 francs per share.
Swisscom shares have recovered after a significant drop following a peak on March 10 at 727 francs, which marked the highest level in decades, prior to sliding to 604 francs. Trading currently around 708 francs after surpassing the 700 franc threshold last week, the stock achieved this recovery despite being removed from the SMI benchmark index in September after more than a quarter of a century. The share price movement reflects strong demand for defensive equities amid concerns regarding high valuations in artificial intelligence stocks, a trend that also benefited other heavyweights in pharmaceuticals and healthcare.
