Tele2 (OM:TEL2 B) Stock Faces One Off Driven 33.6% Net Margin Versus Bearish Outlook

Tele2 (OM:TEL2 B) has posted its Q2 2026 scorecard with revenue of SEK 7,392 million and basic EPS of SEK 1.75, supported by trailing twelve month EPS of SEK 14.57 on revenue of about SEK 30.1 billion as earnings grew 143.5% over the past year. The company has seen quarterly revenue move from SEK 7,256 million in Q2 2025 to SEK 7,392 million in Q2 2026, while quarterly EPS over the same period went from SEK 1.72 to SEK 1.75. This sets the stage for investors to focus on how much of the higher profitability is driven by a stronger underlying margin profile versus the SEK 4.7 billion one off gain.

See our full analysis for Tele2.

With the headline numbers on the table, the next step is to put Tele2’s results up against the main market and community narratives to see which views the latest margins support and which might need a rethink.

See what the community is saying about Tele2

TTM net margin at 33.6% with SEK 10.1b net income

• On a trailing twelve month basis, Tele2 booked net income of about SEK 10.1b on SEK 30.1b in revenue, which works out to a 33.6% net margin compared with 14% a year earlier.
• What stands out for the bullish narrative that focuses on cost cuts and efficiency gains is that this very high margin coincides with a SEK 4.7b one off gain, so:
  • Reported earnings grew 143.5% over the last twelve months while revenue grew only 1.9% per year versus 6.5% for the Swedish market. This heavily supports the idea that profit growth has been driven more by margin items than by top line expansion.
  • This gap between modest revenue growth and very strong reported earnings growth means part of the bullish case on sustainable margin improvement is hard to separate from the effect of that one off item.

On top of these headline figures, bulls argue Tele2's transformation could still have room to run, especially if cost savings and IoT growth keep margins healthier than analysts expect. It can therefore be useful to see how that full bullish story hangs together in one place via the 🐂 Tele2 Bull Case.

SEK 6.4b Q1 net income skews year-on-year trend

• Within the last four reported quarters, Q1 2026 stands out with net income of SEK 6,385m and basic EPS of SEK 9.20, compared with SEK 875m and EPS of SEK 1.26 in Q1 2025, which shows how much of the trailing profit picture is concentrated in a single period.
• Bears point to this concentration as a risk for Tele2, because:
  • Consensus forecasts expect earnings to decline about 17% per year over the next three years even after this very strong trailing period, which indicates analysts do not see the recent profit level as a steady base.
  • With high and ongoing capital expenditure requirements and a dividend yield of 6.51% that is not well covered by free cash flow, critics highlight that the earnings spike in early 2026 may not translate into equally strong cash generation in future periods.

Skeptical investors argue that Tele2's recent surge in profit tells only half the story, and that the bigger question is how earnings hold up once one off gains and heavy capex are accounted for. This is exactly the kind of context unpacked in the 🐻 Tele2 Bear Case.

Tele2 trades on 11.1x P/E with DCF fair value at SEK 387.69

• Tele2 shares trade at SEK 161.35, roughly 11.1x trailing earnings, compared with a peer average P/E of 30x, an industry average of 15.7x, and a stated DCF fair value of SEK 387.69.
• Analysts' consensus view has to balance this low P/E against softer growth signals, because:
  • Revenue is growing at 1.9% per year versus 6.5% for the Swedish market and analysts see earnings moving down from SEK 10.1b today to around SEK 6.2b by 2029, which is a different direction to what the discount based fair value might suggest on its own.
  • At the same time, the current share price sits below a consensus analyst price target of SEK 178.41, so the market is pricing Tele2 below what both the DCF fair value and the stated target imply, even though forecasts build in weaker future profitability than the trailing numbers show.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Tele2 on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With Tele2, do the recent results leave you confident or cautious, and how quickly do you want to test that view against the data yourself? To weigh both sides of the story in one place, take a closer look at the 3 key rewards and 5 important warning signs.

See What Else Is Out There

Tele2's recent results highlight reliance on a SEK 4.7b one off gain, relatively soft 1.9% revenue growth, and analyst expectations for lower earnings ahead.

If you want ideas where the story leans more on consistent fundamentals than one off boosts, and you would like a list of stocks screened for resilience and stability, 286 resilient stocks with low risk scores could be a useful next step.

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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