Revenue growth of 7.6% year-over-year in 2026Q2 is supported by mobile and fiber monetization, but operating margin volatility, ranging from 13.8% to 18.5% over ten quarters, indicates profitability is vulnerable to cost dynamics and competitive investments.
Telefônica Brasil S.A. (VIV) annual income statement — 28-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Revenue | 61.72B | 58.42B | 55.85B | 52.1B | 48.04B | 44.03B | 43.13B | 44.27B | 43.46B | 43.21B | 42.51B | 40.29B | 35B | 34.72B | 33.92B | 29.12B | 15.8B | 15.81B | 15.98B | 14.73B | 14.61B | 14.39B | 13.31B | 11.8B | 10.09B | 9.05B | 7.51B | 5.59B | 4.52B |
| Revenue Growth % | 7.05% | 4.62% | 7.19% | 8.45% | 9.1% | 2.1% | -2.58% | 1.85% | 0.59% | 1.64% | 5.51% | 15.11% | 0.8% | 2.37% | 16.5% | 84.3% | -0.05% | -1.08% | 8.51% | 0.81% | 1.54% | 8.1% | 12.74% | 17.02% | 11.49% | 20.41% | 34.55% | 23.56% | - |
| Cost of Revenue | 29.6B | 34.8B | 31.35B | 29.42B | 27.43B | 24.78B | 22.69B | 22.16B | 21.03B | 20.27B | 20.82B | 20.35B | 17.22B | 17.54B | 16.56B | 15.04B | 8.84B | 9.09B | 8.73B | 8.02B | 7.76B | 5.32B | 7.5B | 6.71B | 5.77B | 5.76B | 2.15B | 1.6B | 1.25B |
| Gross Profit | 32.12B | 23.62B | 24.49B | 22.68B | 20.61B | 19.25B | 20.43B | 22.11B | 22.44B | 22.93B | 21.69B | 19.94B | 17.78B | 17.18B | 17.36B | 14.08B | 6.95B | 6.71B | 7.25B | 6.7B | 6.85B | 9.07B | 5.81B | 5.09B | 4.32B | 3.29B | 5.37B | 3.99B | 3.27B |
| Gross Margin % | 52.04% | 40.43% | 43.86% | 43.54% | 42.9% | 43.72% | 47.38% | 49.94% | 51.62% | 53.08% | 51.01% | 49.5% | 50.79% | 49.48% | 51.19% | 48.36% | 44.01% | 42.48% | 45.39% | 45.53% | 46.87% | 63.04% | 43.68% | 43.12% | 42.81% | 36.38% | 71.41% | 71.36% | 72.42% |
| Gross Profit Growth % | - | -3.57% | 7.97% | 10.07% | 7.06% | -5.79% | -7.58% | -1.46% | -2.17% | 5.76% | 8.74% | 12.18% | 3.48% | -1.05% | 23.3% | 102.51% | 3.56% | -7.42% | 8.18% | -2.07% | -24.51% | 56.02% | 14.19% | 17.88% | 31.19% | -38.65% | 34.64% | 21.76% | - |
| Operating Expenses | 22.04B | 14.72B | 15.82B | 14.77B | 14.01B | 12.17B | 13.85B | 14.89B | 12.98B | 16.3B | 15.32B | 14.7B | 12.67B | 12.25B | 10.15B | 8.29B | 6.95B | 6.71B | 7.25B | 6.7B | 6.85B | 9.07B | 5.81B | 5.09B | 4.32B | 3.29B | 5.37B | 3.99B | 3.27B |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| EBITDA | 25.47B | 23.55B | 22.88B | 21.31B | 19.26B | 19.12B | 17.81B | 18.13B | 17.82B | 14.49B | 14.02B | 12.05B | 10.4B | 10.58B | 12.7B | 10.38B | 5.18B | 5.93B | 6.21B | 5.91B | 6.56B | 8.48B | 5.95B | 5.21B | 5.14B | 4.66B | 4.02B | 2.9B | 2.35B |
| EBITDA Margin % | 41.27% | 40.3% | 40.96% | 40.9% | 40.09% | 43.43% | 41.3% | 40.97% | 41.01% | 33.53% | 32.99% | 29.92% | 29.73% | 30.46% | 37.45% | 35.65% | 32.77% | 37.5% | 38.89% | 40.12% | 44.91% | 58.97% | 44.71% | 44.13% | 50.99% | 51.49% | 53.49% | 51.98% | 52.08% |
| EBITDA Growth % | 7.12% | 2.93% | 7.36% | 10.64% | 0.7% | 7.39% | -1.79% | 1.74% | 23.05% | 3.31% | 16.32% | 15.86% | -1.62% | -16.75% | 22.37% | 100.49% | -12.66% | -4.62% | 5.2% | -9.96% | -22.66% | 42.56% | 14.23% | 1.27% | 10.4% | 15.91% | 38.45% | 23.34% | - |
| Depreciation & Amortization | 15.39B | 14.65B | 14.2B | 13.39B | 12.66B | 12.04B | 11.23B | 10.92B | 8.37B | 7.85B | 7.65B | 6.81B | 5.3B | 5.64B | 5.49B | 4.58B | 1.91B | 2.51B | 2.78B | 2.7B | 2.67B | 2.71B | 2.77B | 2.85B | 2.84B | 3.32B | 2.95B | 2.38B | 1.52B |
| D&A / Revenue % | 24.94% | 25.08% | 25.43% | 25.7% | 26.35% | 27.34% | 26.03% | 24.67% | 19.25% | 18.18% | 18.01% | 16.92% | 15.13% | 16.25% | 16.19% | 15.75% | 12.11% | 15.85% | 17.37% | 18.33% | 18.28% | 18.87% | 20.8% | 24.17% | 28.17% | 36.74% | 39.24% | 42.61% | 33.57% |
| Operating Income (EBIT) | 10.08B | 8.9B | 8.67B | 7.92B | 6.6B | 7.09B | 6.58B | 7.21B | 9.46B | 6.63B | 6.37B | 5.24B | 5.11B | 4.93B | 7.21B | 5.8B | 3.26B | 3.42B | 3.44B | 3.21B | 3.89B | 5.77B | 3.18B | 2.36B | 2.3B | 1.33B | 1.07B | 523.55M | 836.56M |
| Operating Margin % | 16.33% | 15.23% | 15.53% | 15.2% | 13.73% | 16.09% | 15.26% | 16.3% | 21.76% | 15.35% | 14.98% | 13.01% | 14.6% | 14.21% | 21.26% | 19.91% | 20.66% | 21.65% | 21.52% | 21.79% | 26.64% | 40.09% | 23.9% | 19.96% | 22.82% | 14.75% | 14.25% | 9.37% | 18.51% |
| Operating Income Growth % | - | 2.56% | 9.54% | 20% | -6.89% | 7.66% | -8.77% | -23.7% | 42.58% | 4.15% | 21.54% | 2.56% | 3.58% | -31.6% | 24.41% | 77.57% | -4.62% | -0.48% | 7.18% | -17.54% | -32.54% | 81.31% | 35.04% | 2.35% | 72.45% | 24.66% | 104.51% | -37.42% | - |
| Interest Expense | 4M | 2.46B | 577.23M | 451.69M | 2.2B | 924M | 777.85M | 247.28M | 510.4M | 1.07B | 361.4M | 380.3M | 1.08B | 1.01B | 889.8M | 484.66M | 120.7M | 442.87M | 290.82M | 0 | 0 | 512.91M | 387.3M | 500.26M | 475.09M | 0 | 0 | 0 | 0 |
| Interest Coverage | - | 3.90x | 12.72x | 13.58x | 2.36x | 6.66x | 7.89x | 26.44x | 22.46x | 5.49x | 14.98x | 12.12x | 4.59x | 4.84x | 8.55x | 12.67x | 31.49x | 8.20x | 13.48x | - | - | 11.25x | 8.50x | 4.73x | 3.79x | - | - | - | - |
| Interest / Revenue % | 0.01% | 4.21% | 1.03% | 0.87% | 4.57% | 2.1% | 1.8% | 0.56% | 1.17% | 2.47% | 0.85% | 0.94% | 3.07% | 2.91% | 2.62% | 1.66% | 0.76% | 2.8% | 1.82% | 0% | 0% | 3.57% | 2.91% | 4.24% | 4.71% | 0% | 0% | 0% | 0% |
| Non-Operating Income | -4M | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K |
| Pretax Income | 7.79B | 7.13B | 6.76B | 5.57B | 4.83B | 5.96B | 6.01B | 6.39B | 11.28B | 5.73B | 5.13B | 4.39B | 4.75B | 4.66B | 6.92B | 5.66B | 3.44B | 3.21B | 3.5B | 3.34B | 3.91B | 3.41B | 2.91B | 1.87B | 1.32B | 867.77M | 979.95M | 160.79M | 743.04M |
| Pretax Margin % | 12.62% | 12.2% | 12.11% | 10.7% | 10.06% | 13.53% | 13.93% | 14.44% | 25.95% | 13.26% | 12.08% | 10.91% | 13.58% | 13.43% | 20.4% | 19.42% | 21.8% | 20.3% | 21.91% | 22.68% | 26.8% | 23.71% | 21.83% | 15.82% | 13.12% | 9.59% | 13.04% | 2.88% | 16.44% |
| Income Tax | 1.18B | 1.07B | 1.21B | 533.94M | 773.69M | -269.83M | 1.24B | 1.39B | 2.35B | 1.12B | 1.05B | 973.21M | -182.69M | 946.42M | 2.47B | 1.29B | 1.05B | 1.01B | 1.08B | 977.4M | 1.11B | 870.8M | 724.07M | 279.46M | 247.66M | -63.06M | 51.49M | -327.67M | 192.83M |
| Effective Tax Rate % | 15.12% | 15.04% | 17.84% | 9.58% | 16.01% | -4.53% | 20.6% | 21.79% | 20.83% | 19.58% | 20.44% | 22.15% | -3.84% | 20.3% | 35.66% | 22.86% | 30.36% | 31.32% | 30.89% | 29.26% | 28.24% | 25.53% | 24.92% | 14.96% | 18.71% | -7.27% | 5.25% | -203.79% | 25.95% |
| Net Income | 6.6B | 6.05B | 5.55B | 5.03B | 4.09B | 6.24B | 4.77B | 5B | 8.93B | 4.61B | 4.09B | 3.33B | 4.94B | 3.72B | 4.45B | 4.36B | 2.4B | 2.17B | 2.42B | 2.36B | 2.81B | 2.54B | 2.18B | 1.58B | 456.52M | 930.83M | 928.46M | 488.46M | 550.21M |
| Net Margin % | 10.7% | 10.35% | 9.93% | 9.65% | 8.5% | 14.17% | 11.06% | 11.3% | 20.54% | 10.67% | 9.61% | 8.27% | 14.1% | 10.7% | 13.13% | 14.96% | 15.18% | 13.75% | 15.15% | 16.04% | 19.23% | 17.67% | 16.39% | 13.4% | 4.53% | 10.29% | 12.36% | 8.75% | 12.17% |
| Net Income Growth % | 13.23% | 8.99% | 10.31% | 23.12% | -34.53% | 30.79% | -4.61% | -43.99% | 93.72% | 12.82% | 22.63% | -32.52% | 32.85% | -16.54% | 2.22% | 81.56% | 10.39% | -10.21% | 2.43% | -15.9% | 10.52% | 16.51% | 37.95% | 246.45% | -50.96% | 0.26% | 90.08% | -11.22% | - |
| EPS (Diluted) | 4.11 | 3.78 | 3.38 | 3.03 | 2.44 | 3.71 | 2.83 | 2.96 | 5.29 | 2.56 | 2.27 | 2.15 | 4.12 | 3.10 | 3.72 | 4.40 | 4.45 | 4.08 | 4.78 | 4.67 | 5.56 | 5.17 | 4.42 | 3.22 | 2.18 | 1.89 | 2.12 | 1.01 | 1.64 |
| EPS Growth % | 15.04% | 11.83% | 11.55% | 24.18% | -34.23% | 31.1% | -4.39% | -44.05% | 106.64% | 12.78% | 5.58% | -47.82% | 32.9% | -16.67% | -15.45% | -1.12% | 9.07% | -14.64% | 2.36% | -16.01% | 7.54% | 16.97% | 37.27% | 47.71% | 15.34% | -10.85% | 109.9% | -38.41% | - |
| EPS (Basic) | - | 3.78 | 3.38 | 3.03 | 2.44 | 3.71 | 2.83 | 2.96 | 5.29 | 2.56 | 2.27 | 2.15 | 4.12 | 3.10 | 3.72 | 4.40 | 4.45 | 4.08 | 4.78 | 4.67 | 5.56 | 5.17 | 4.42 | 3.22 | 2.18 | 1.89 | 2.12 | 1.01 | 1.64 |
| Diluted Shares Outstanding | 1.61B | 1.61B | 1.64B | 1.66B | 1.67B | 1.68B | 1.69B | 1.69B | 1.69B | 1.69B | 1.69B | 1.49B | 1.12B | 1.12B | 1.12B | 928M | 505.84M | 505.84M | 505.84M | 505.84M | 506.2M | 493.59M | 493.59M | 493.59M | 493.65M | 493.67M | 490.41M | 489.49M | 334.85M |
Quick answers to the most common questions about buying VIV stock.
For fiscal year 2025, Telefônica Brasil S.A. (VIV) reported total revenue of $58.42B. This represents a 1192.5% increase compared to $4.52B in 1998.
Telefônica Brasil S.A. (VIV) is profitable, generating $6.05B in net income for the fiscal year ending 2025 with a net profit margin of 10.3%.
Telefônica Brasil S.A. (VIV) reported an operating income of $8.90B, resulting in an operating profit margin of 15.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Telefônica Brasil S.A. (VIV) generated $23.62B in gross profit for the year, representing a gross profit margin of 40.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Regulatory and FX volatility
Revenue Growth Driven by Mobile and Fiber
VIV's revenue has grown consistently, reaching $15.8B in 2026Q2, a 7.6% year-over-year increase, driven by mobile service strength and the ongoing fiber rollout, suggesting effective monetization of its network investments.
The steady revenue growth trajectory, averaging over 7% year-over-year across the last four quarters, indicates that VIV is successfully translating its network expansion and subscriber base into top-line gains. This growth appears to be driven by a combination of postpaid mobile ARPU stability and the structural shift toward higher-value fiber services, rather than volatile market pricing. The consistency of this growth suggests a durable revenue base, though it remains sensitive to the competitive dynamics of the Brazilian telecom market.
Operating Margin Volatility Amid Cost Pressures
Operating margin has fluctuated between 13.8% and 18.5% over the past ten quarters, with 2026Q2 at 16.5%, indicating that while revenue growth is solid, profitability is sensitive to operating cost dynamics and competitive investments.
The variance in operating margin, despite consistent revenue growth, suggests that VIV's profitability is not purely a function of scale but is influenced by factors like network maintenance costs, customer acquisition expenses, and the timing of capital-intensive projects. The margin expansion to 18.5% in 2025Q3, followed by a reversion, may indicate episodic cost efficiencies or non-recurring items rather than a permanent structural improvement. Investors should monitor whether the copper-to-fiber migration is beginning to deliver the anticipated permanent margin uplift through lower legacy network maintenance.
High Fixed Costs and Depreciation Burden
Depreciation and amortization consistently represents approximately 25% of revenue, highlighting the capital-intensive nature of VIV's network infrastructure and its impact on reported operating income.
The substantial and stable D&A expense, ranging from $3.4B to $4.0B quarterly, underscores the high fixed-cost structure inherent in maintaining and upgrading a nationwide telecom network. This cost is largely non-discretionary and reflects past capital allocation decisions. The relationship between this depreciation burden and operating income suggests that margin expansion will be heavily dependent on revenue growth outpacing the growth in these fixed costs, which is a key challenge in a competitive market.
EPS Growth Outpacing Revenue Growth
Diluted EPS has grown at a faster rate than revenue, reaching $0.98 in 2026Q2 with 16.7% year-over-year growth, suggesting improving earnings leverage and potentially favorable non-operational items.
The fact that EPS growth has consistently exceeded revenue growth over the past several quarters implies that VIV is generating incremental earnings from each dollar of new revenue, likely due to operating leverage on its fixed-cost base. However, this dynamic also warrants scrutiny for non-recurring items, such as tax credits or one-time gains, which can inflate EPS growth beyond the sustainable operational trend. The quality of this earnings growth appears solid but should be assessed against the backdrop of Brazil's complex tax environment.
Capital Intensity and Earnings Translation
With quarterly D&A consistently near $4B against operating income of $2-3B, VIV's earnings power is heavily influenced by its massive capital base, making the return on invested capital a critical metric for evaluating growth efficiency.
The scale of depreciation relative to operating income indicates that VIV's earnings are a direct function of the return it earns on its vast network assets. The company's ability to grow EPS faster than revenue suggests it may be achieving a reasonable return on incremental capital, particularly in higher-margin fiber and mobile data services. However, the ongoing need for significant capital expenditure to maintain and expand the network means that free cash flow generation is perpetually under pressure, a key consideration for dividend sustainability.
Margin Sustainability Under Competitive Pressure
The recent dip in operating margin to 14.8% in 2026Q1, despite 5.4% revenue growth, raises questions about the sustainability of profitability if competitive intensity or cost inflation accelerates.
While the long-term trend shows revenue and EPS growth, the quarter-to-quarter volatility in operating margin presents a challenge to the narrative of stable, regulated earnings power. The 2026Q1 margin compression, in particular, occurred during a period of solid revenue growth, suggesting that cost pressures—potentially from competitive subscriber acquisition or network investment—can quickly erode profitability. This indicates that VIV's earnings are not immune to operational and competitive risks, and the market may be underestimating the potential for margin erosion in a fiercely contested Brazilian telecom landscape.