Telia Company just dropped its Q3 2026 scorecard, and the share price closed at SEK48.26 on the day, up over the past week and month. The market has been slowly warming to the stock. The fresh numbers put one issue in sharp focus. Profit quality is the emotional trigger today.
Investors are reacting to a headline that looks clean on the surface, with basic earnings per share at 0.69 SEK and net income at SEK2,704m. The catch is a telecom business that still carries high debt and a dividend that is not fully covered by earnings. That mix is what is really driving sentiment.
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Q3 2026 Earnings Summary
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Revenue (Q3 2026 vs. Q3 2025):SEK21,306m vs. SEK19,861m (up roughly 7.3%)
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Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025):SEK2,704m vs. SEK2,322m (up about 16.5%)
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Basic EPS (Q3 2026 vs. Q3 2025):SEK0.69 vs. SEK0.59 (rise of roughly 16.4%)
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Trailing 12-Month Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025):SEK5,289m vs. SEK5,808m (down around 9.0%)
Ask Charlie what Telia Company isn't saying about the job cuts .
Evaluating Telia's Margin Story Against Q3 Delivery
Supporters of Telia Company argue that the real prize is a cleaner, higher quality earnings engine fueled by simplification and cost cuts.
"Bullish analysts expect Telia Company to keep using simplification, cost reductions and portfolio pruning to support higher group EBITDA margins and growing free cash flow."
Q3 shows that blueprint starting to materialize. Service revenue growth of 3.3% alongside 2.9% EBITDA growth, an upgraded full year EBITDA outlook and free cash flow already at SEK7.8b all point in the same direction. The planned 900 role reduction and ongoing non core divestments reinforce that Telia is actively pursuing the margin and cash targets behind the bullish view.
The price and this Narrative do not agree. → Uncover what this Narrative says Telia Company is actually worth .
Bear Case Stress Test: Telia's Revenue Mix Risks
Revenue quality is the worry. Bears argue Telia Company is trading short term stability for a weaker long term mix.
"Although Telia Company is growing the base of Swedish converged households and lifting revenue per household, the sharp 9% fall in Swedish broadband ARPU in Q2 2026 tied to lower priced Bredband2 customers and a focus on volume over pricing risks embedding a structurally weaker revenue mix that limits future top line and margin progression."
Q3 Sweden shows service revenue up and household ARPU moving higher, which pushes back on the idea that lower priced broadband is reducing pricing power. The concern is not fully cleared though because broadband ARPU is still weaker than last year, so the revenue mix question remains open rather than resolved.
Hunt For Quieter Margin Stories
Telia Company just showed how a cleaner earnings story can still leave crucial questions about cash and payouts. The real opportunity is finding stocks that could be undervalued before the market corrects them.
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Company 1 - 32% below our estimate - shifts its mix toward higher margin specialty products as defense and creatine capacity ramps.
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Company 2 - 42% below our estimate - converts a long backlog in complex infrastructure and high tech projects into construction earnings and property sale cash.
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Company 3 - 17% below our estimate - expands a premium teahouse network while a fast growing membership ecosystem deepens repeat purchases and ticket size.
Three companies from the same screener. Open all 191 potentially undervalued companies →
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include TELIA.ST .
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