Telia Company (OM:TELIA) EPS Growth And Higher Margins Test Rich P/E Heading Into Q1 2026

Telia Company (OM:TELIA) opened its Q1 2026 earnings season on the back of trailing 12 month revenue of about SEK80.0b and basic EPS of SEK1.29, with that earnings profile supported by net income from continuing operations of SEK5.1b. Over recent quarters the business has seen quarterly revenue move from SEK21.4b in Q4 2024 to SEK20.0b in Q1 2025 and SEK21.3b in Q4 2025. Basic EPS has ranged from a loss of SEK0.33 per share in Q4 2025 to positive readings such as SEK0.59 in Q3 2025, setting up the latest results against a backdrop of growing full year earnings and firmer margins.

See our full analysis for Telia Company.

With the headline numbers on the table, the next step is to see how this earnings profile lines up with the main Telia Company narratives that investors have been following and where those stories start to get tested by the data.

See what the community is saying about Telia Company

Margins and EPS steady over the past year

• Over the trailing 12 months, Telia generated SEK80.0b of revenue and SEK5.1b of net income from continuing operations, equating to basic EPS of SEK1.29 and a net margin of 6.3% compared with 5.2% a year earlier.
• Supporters of the bullish view point to higher margins and earnings quality, and the recent data offers some backing but also some friction with that story.
  • On the supportive side, trailing EPS growth of 20.1% and the move in net margin from 5.2% to 6.3% line up with the bullish claim that cost programs and a simpler group structure are lifting profitability.
  • At the same time, quarterly earnings have been choppy, with Q4 2025 showing a loss of SEK1,308m and a basic EPS loss of SEK0.33, which contrasts with the idea of a smooth, steadily improving earnings profile.

Bulls argue that the combination of margin progress and simplified operations could support stronger long term earnings than many expect, and this is exactly what is unpacked in the 🐂 Telia Company Bull Case

Premium P/E multiple versus peers

• Telia is trading on a P/E of 37.3x compared with a peer average of 22.7x and an industry level of 20.4x, while a DCF fair value of SEK97.42 sits well above the current share price of SEK48.08.
• Critics who lean toward the bearish narrative focus on this valuation gap and the fundamentals that might not fully justify it.
  • They highlight that even with reported trailing earnings of SEK5.1b and margin at 6.3%, the premium P/E multiple leaves less room for disappointment compared with companies on lower earnings multiples.
  • They also point to the risk section where a high level of debt is flagged and the dividend, at a 4.26% yield, is described as weakly covered by earnings, which is less aligned with a high valuation than the DCF fair value might suggest.

Skeptical investors often start with the rich P/E and stretched dividend cover, and that cautious angle is unpacked in more detail in the 🐻 Telia Company Bear Case

Dividend yield 4.26% but coverage is thin

• The stock currently offers a 4.26% dividend yield, yet the analysis notes that this payout is not well covered by earnings and that Telia carries a high level of debt, even as earnings grew 20.1% over the past year and are forecast to grow about 8.5% per year with revenue growth of 1.8% per year.
• Analysts' consensus view ties this mix of income and growth to Telia's push into broadband, bundled services, and cost reduction, but the reported numbers give a more mixed picture.
  • On one hand, trailing net income of SEK5.1b and margin improvement to 6.3% support the idea that broadband and convergence are helping cash generation, which is important for any regular dividend stream.
  • On the other, the weak dividend coverage and leverage flagged as a risk suggest that, even with forecast earnings growth of about 8.5% per year and modest 1.8% revenue growth, income investors may need to pay close attention to how much of those earnings actually stay in the business.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Telia Company on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With mixed signals on earnings, valuation and dividend cover, this is a moment to look closely at the numbers yourself and decide how comfortable you are with both the risks and the potential rewards. To weigh those trade offs side by side, start by reviewing the 3 key rewards and 2 important warning signs

See What Else Is Out There

Telia’s rich 37.3x P/E, thin dividend cover, high debt and uneven quarterly earnings leave little margin for error if conditions become less supportive.

If those risks make you uneasy, it is worth comparing Telia with companies screened for stronger financial resilience and lower balance sheet pressure using the solid balance sheet and fundamentals stocks screener (391 results).

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.

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