Sunrise Communications reported weaker revenue in the second quarter of 2026 as pressure from fixed broadband subscriber trends and the expiry of earlier price increases offset improving momentum in mobile postpaid and internet additions.
At the same time, the Swiss telecom operator is sharpening its focus on fiber, digital platforms and sovereign AI services while reducing capital expenditure.
Sunrise generated CHF 712.9 million in Q2 2026 revenue, down 2.6 percent from CHF 731.6 million a year earlier. Revenue for the first half of 2026 reached CHF 1.436 billion, down 1.2 percent from CHF 1.454 billion in H1 2025.
The revenue decline was primarily driven by lower residential fixed and mobile subscription revenue. Sunrise said the 2025 price increases had fully lapsed, while weaker fixed subscriber growth in previous quarters continued to affect the revenue base. Growth in fees and stable hardware sales provided a partial offset.
Sunrise Residential Revenue Drops to CHF 499.5 Million
Residential customer revenue fell from CHF 521.3 million in Q2 2025 to CHF 499.5 million in Q2 2026, a decline of about CHF 21.8 million. Business Customers & Wholesale revenue remained comparatively resilient at CHF 209.0 million, versus CHF 208.0 million a year earlier. Infrastructure & Support Functions generated CHF 4.4 million, compared with CHF 2.3 million.
Sunrise attributed residential pressure to the expiry of previous pricing benefits, existing fixed ARPU trends and softer net additions following completion of the UPC migrations. B2B and wholesale subscription revenue remained stable despite comparison with prior-year pricing actions and elevated large-enterprise onboarding revenue.
Mobile Postpaid Adds Accelerate to 21,000
Subscriber momentum improved significantly during Q2. Sunrise recorded 21,000 mobile postpaid net additions, more than double the 10,000 additions in Q1 2026 and above 18,000 in Q2 2025. The improvement was supported by multibrand execution, flanker-brand performance and continued B2B growth.
Internet performance also returned to positive territory. Sunrise generated 3,000 organic internet net additions in Q2 2026, compared with a loss of 1,000 in Q1 2026, a loss of 2,000 in Q4 2025 and a loss of 7,000 in Q3 2025. The operator said stronger offerings, execution in FTTH rollout areas and lower churn supported the improvement.
At the end of Q2, Sunrise had 1.137 million residential broadband internet subscribers, up from 1.135 million at the end of Q1 2026, although slightly below 1.152 million in Q2 2025. Business broadband subscribers increased to 149,967, from 146,795 in Q1 and 143,389 a year earlier.
Sunrise Mobile Subscriber Base Reaches 3.18 Million
Sunrise ended Q2 2026 with 2.340 million residential mobile RGUs and 837,079 business mobile RGUs, taking the combined mobile base to approximately 3.177 million active SIMs.
Residential mobile postpaid RGUs increased to 2.118 million, from 2.110 million in Q1 2026 and 2.081 million in Q2 2025. Business postpaid RGUs climbed to 801,344, compared with 788,497 in Q1 and 754,703 a year earlier.
Sunrise had 1.324 million residential fixed customer relationships at the end of Q2, compared with 1.330 million in Q1 and 1.361 million a year earlier. Business fixed relationships increased to 136,481, from 134,273 in Q1 and 130,321 in Q2 2025.
Fixed ARPU Falls to CHF 54.5, Mobile ARPU at CHF 28.9
ARPU remained under pressure. Residential fixed ARPU decreased to CHF 54.5 in Q2 2026, compared with CHF 55.1 in Q1 and CHF 57.9 in Q2 2025, representing a 5.9 percent year-on-year decline.
Residential mobile ARPU was CHF 28.9, unchanged sequentially from Q1 2026 but below CHF 29.3 in Q2 2025, representing a 1.4 percent year-on-year decline.
Sunrise expects fixed ARPU pressure to gradually moderate following price increases introduced on August 1, 2026, while the drag from variable mobile usage is expected to ease toward Q4.
Fixed-mobile convergence continued to strengthen. Residential FMC penetration increased to 61.1 percent, compared with 60.5 percent in Q1 2026 and 58.5 percent in Q2 2025. Business FMC penetration reached 77.5 percent.
Lower Churn Becomes Key Growth Driver
Improving churn was one of the major commercial developments during the quarter. Sunrise said lower churn combined with stronger sales contributed to the acceleration in postpaid and internet net additions.
The Sunrise Rewards loyalty platform is emerging as part of the company’s retention strategy. Customer awareness has reached approximately 60 percent, while customers have completed more than 60,000 redemptions. Sunrise reported lower churn, incremental sales and an improvement in Net Promoter Score following the rollout.
The company is positioning Rewards as a longer-term mechanism for increasing customer loyalty, cross-selling and upselling.
Sunrise Expands Digital and AI Strategy
Digital transformation is also becoming more prominent in Sunrise’s B2B strategy. The operator has onboarded approximately 100 partners during the past 12 months as it scales its partner ecosystem.
Sunrise is developing a new digital Partner Portal designed to provide an end-to-end digital experience for business partners.
AI represents another expansion opportunity. Through its exclusive partnership with PHOENIQS, Sunrise plans to introduce sovereign AI solutions during H2 2026. Planned offerings include AI Chat, Large Language Model as a Service and GPU as a Service.
The initiative expands Sunrise beyond traditional telecom connectivity into enterprise AI infrastructure and ICT services.
Fiber Strategy Supports Broadband Recovery
Sunrise is concentrating broadband sales activity in FTTH rollout areas as it attempts to restore sustained internet subscriber growth. The company said strengthened broadband offerings, fiber-area execution and improving churn contributed to the return to positive internet additions during Q2.
The strategy is increasingly important because residential broadband subscribers remain below year-earlier levels despite the sequential recovery. Business broadband, however, continues to expand, reaching almost 150,000 subscribers.
Sunrise is also increasing the cross-selling of fixed broadband and mobile services, with FMC penetration now exceeding 61 percent of the residential fixed base.
Capex Drops 12.7% to CHF 102 Million
Sunrise reduced Q2 capital expenditure to CHF 102 million, down 12.7 percent from CHF 116 million in Q2 2025. Capex represented 14.3 percent of revenue, compared with 15.9 percent a year earlier. H1 2026 Capex declined 9.4 percent to CHF 235 million, from CHF 260 million.
The company attributed lower spending to reduced mobile capacity investment requirements and the absence of elevated B2B coverage investments recorded in the prior year. Total Q2 Capex declined by approximately CHF 15 million year on year.
Sunrise said major fixed and mobile network investment programs are substantially completed alongside key IT transformation initiatives, allowing capital allocation to shift toward more targeted innovation investment.
Sunrise Maintains 2026 Revenue and Capex Guidance
Despite Q2 revenue pressure, Sunrise reconfirmed its 2026 outlook. The company expects broadly stable full-year revenue and approximately CHF 1 billion of Adjusted EBITDAaL.
Capex is expected to remain below 15 percent of revenue, while Adjusted Free Cash Flow is forecast at CHF 380 million to CHF 400 million.
The outlook depends partly on the August price increases, improving subscriber trends and continued churn reduction.
The Q2 numbers show a telecom operator still facing pressure from fixed ARPU and the legacy impact of weaker broadband additions, but commercial indicators are beginning to improve. The combination of 21,000 postpaid net additions, a return to positive internet growth, 61.1 percent residential FMC penetration, lower churn, fiber-focused broadband execution, reduced Capex and expansion into sovereign AI services gives Sunrise several levers to improve revenue momentum during the second half of 2026.
BABURAJAN KIZHAKEDATH