Sunrise Communications stock came into today looking bruised, with the share price drifting down roughly 3% over the past month and about 3% over the last quarter. The long term pitch around a cheap telecom with a turnaround story met some hard numbers in the latest release. Revenue for the last twelve months sat at CHF 2.98b while the company still reported a loss from continuing operations and negative earnings per share. The real headline is not growth but pressure. Profitability remains the core question for anyone holding the stock.

Is Sunrise Communications a rare bargain at this price, or just a stock with deepening losses and an uncovered 8.26% dividend yield? See how the current P/S and DCF gap line up in our valuation analysis for Sunrise Communications

Q2 2026 Earnings Summary

• Total Revenue (TTM to Q1 2026): CHF 2,984.1m vs. CHF 3,018.0m (TTM to Q4 2024) (revenue declined slightly year on year)
• Net Loss Excluding Extra Items (TTM to Q1 2026): CHF 150.9m loss vs. CHF 365.8m loss (TTM to Q4 2024) (loss narrowed over the period)
• Basic EPS (TTM to Q1 2026): CHF 2.08 loss per share vs. CHF 5.07 loss per share (TTM to Q4 2024) (per share loss reduced)
• Earnings From Continuing Operations (TTM to Q1 2026): CHF 146.6m loss vs. CHF 361.9m loss (TTM to Q4 2024) (operating loss reduced)

Prefer clean, visual charts over another dense wall of earnings figures and dividend percentages? You can see Sunrise Communications' full financial picture, including a clear view of its balance sheet strength and debt profile, in our company report for Sunrise Communications.

Sunrise bullish story hinges on cash and customer gains

Bulls argue Sunrise Communications is a defensive telecom with improving cash generation and rising customer engagement that can support its 8.26% dividend yield. Q2 gives some support to that view. Adjusted free cash flow of CHF 204m in the quarter already covers more than half of the CHF 380 to 400m full year target, while CapEx was held at CHF 102m or 14.3% of revenue. That aligns with the guidance for CapEx below 15% of revenue. On the commercial side, 21,000 postpaid net adds, 3,000 internet net adds and FMC penetration at 61.1% show the base is still expanding. Sunrise Rewards is gaining traction with 60% awareness, 60,000 redemptions and lower churn, although management is clear that financial impact is limited so far.

Bear case focuses on soft revenue and fixed line drag

The bear view is that Sunrise Communications faces structural revenue pressure, especially in fixed line, and that cost cuts alone cannot offset it. Q2 revenue fell 2.6% and EBITDAaL declined about 3.8%. Management again pointed to residential fixed as the main drag and also flagged pressure on mobile and fixed ARPU from lower priced brands, secondary SIMs and front book or back book convergence. That lines up with concerns about ongoing promotional intensity. Guidance still points to broadly stable revenue and around CHF 1b of EBITDAaL for 2026, so the company is not signalling a collapse. However, the message that most improvement is back end loaded into Q4 and that the August price increase carries churn risk means the structural worries around growth are not resolved.

After Q2 revenue softness, EBITDAaL pressure and an uncovered 8.26% dividend, review our independent risk analysis for Sunrise Communications which shows 1 important warning sign to expose any overlooked structural vulnerabilities.

Stay Ahead With Sunrise Communications

If the mix of revenue pressure, losses and an uncovered 8.26% dividend on Sunrise Communications has your attention, register for free with Simply Wall St and add it to a Watchlist to track price against fair value and watch for a better entry point. After you decide to buy or sell, use the Portfolio Command Center to cut through noise and focus on the updates that matter for your holdings. For a longer term view, tap into the Community to see what other investors are watching and how they are interpreting new developments. This way you can spot hidden catalysts or risks early and stay a step ahead of the market.

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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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Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.