Swisscom reported first-quarter 2026 revenue of CHF 3.61 billion, down 4.1 percent, while EBITDA after lease expense (EBITDAaL) increased 0.8 percent to CHF 1.29 billion, supported by cost efficiencies and synergies from the Vodafone Italia integration.
Operating free cash flow of Swisscom rose 22.6 percent on an adjusted basis to CHF 594 million, highlighting stronger operational efficiency despite lower telecom service revenue.
In Switzerland, Swisscom generated CHF 1.94 billion in revenue, down 1.3 percent, as telecom service revenue declined 2.6 percent to CHF 1.26 billion. Revenue from IT services for enterprise customers decreased 1.5 percent to CHF 300 million. EBITDAaL remained resilient at CHF 861 million, down only 0.6 percent, while operating free cash flow increased 7.7 percent to CHF 478 million due to cost-saving measures.
Swisscom continued strengthening its broadband and 5G leadership in Switzerland. Optical fibre coverage reached 56 percent of households and businesses, while 5G+ coverage expanded to 89 percent of the population by the end of March 2026. The company retained the title of Switzerland’s best mobile network for the eleventh consecutive year, according to technology magazine CHIP.
The operator is expanding AI and cybersecurity services as part of its digital transformation strategy. Swisscom launched the “Swiss AI Assistant,” a generative AI chatbot hosted entirely in Switzerland for secure enterprise knowledge management. Its “My Security” router-based cybersecurity solution now protects connected home devices against cyber threats, while the “beem” cybersecurity platform serves 57,000 users across 1,150 business locations.
In Italy, the integration of Vodafone Italia with Fastweb continued to progress following the legal merger completed on January 1, 2026. The Italy business reported revenue of EUR 1.74 billion, down 4.5 percent. Telecommunications service revenue fell 4.4 percent to EUR 1.20 billion, while enterprise IT services revenue declined 3.4 percent to EUR 196 million.
Despite revenue pressure, adjusted EBITDAaL in Italy increased 7.4 percent to EUR 460 million, driven by lower operating costs and integration synergies. Operating free cash flow improved by EUR 98 million to EUR 155 million. Fastweb + Vodafone generated EUR 77 million in synergies during Q1 and remains on track to achieve its EUR 300 million synergy target for 2026.
Fastweb + Vodafone is also accelerating AI adoption and broadband expansion in Italy. The “Fastweb AI Work” platform, combining generative AI and agentic AI capabilities, surpassed 35,000 subscribed licenses and delivered more than 50 AI projects for enterprises, SMEs and public sector customers. Fastweb Energia expanded its customer base to 140,000 residential and business users.
The company is strengthening mobile infrastructure through a RAN-sharing partnership with TIM aimed at accelerating 5G deployment in less densely populated areas. Both companies also plan to develop up to 6,000 new mobile tower sites in Italy. Fastweb + Vodafone ended its Master Service Agreement with INWIT to redirect investments toward network expansion, improve coverage quality and accelerate 5G roll-out.
As of March 2026, Fastweb + Vodafone’s fibre network covered 58 percent of households and businesses in Italy, while 5G coverage reached 89 percent of the population.
Swisscom reaffirmed its 2026 guidance, expecting annual revenue between CHF 14.7 billion and CHF 14.9 billion, EBITDAaL of CHF 5.0-5.1 billion, capital expenditure of CHF 3.0-3.1 billion, operating free cash flow of around CHF 2.0 billion, and leverage of approximately 2.3x EBITDA by year-end 2026.
BABURAJAN KIZHAKEDATH
