Swisscom’s cash generation accelerated during the first half of 2026 as operating free cash flow increased 21.6% to CHF 1.202 billion and free cash flow surged 44.6% to CHF 717 million.
Operating free cash flow increased by CHF 214 million from CHF 989 million a year earlier, while free cash flow increased by CHF 221 million from CHF 496 million. Switzerland contributed CHF 938 million of operating free cash flow, while Italy contributed CHF 240 million.
Italy was the strongest contributor to the year-over-year improvement. Operating free cash flow from the Italian business increased 142.3% to CHF 240 million from CHF 99 million, compared with a 9.7% increase in Switzerland to CHF 938 million.
The increase follows Swisscom’s acquisition and integration of Vodafone Italia. Adjusted EBITDA after lease expense in Italy increased 11.8% at constant exchange rates, while Swisscom said roughly two-thirds of the group-level operating free cash flow improvement came from Italy.
Group revenue declined 3% to CHF 7.221 billion, or 2% at constant exchange rates, but EBITDAaL increased 3.3% to CHF 2.557 billion. Net income increased 6.9% to CHF 668 million.
Capital expenditures declined 8.8% to CHF 1.355 billion. Swisscom spent €47 million on Vodafone Italia integration capital expenditures during the first half, compared with €20 million a year earlier, while overall adjusted capital expenditures declined 9.2% at constant exchange rates.
Swisscom maintained its full-year outlook, calling for revenue of CHF 14.7 billion to CHF 14.9 billion, EBITDAaL of CHF 5 billion to CHF 5.1 billion, capital expenditures of CHF 3 billion to CHF 3.1 billion and operating free cash flow of approximately CHF 2 billion. If those targets are achieved, Swisscom plans to propose increasing its dividend to CHF 27 per share from CHF 26.
