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Telia Company (OM:TELIA) After Strong Q2 And Steady 2026 Outlook Looks Fairly Valued

Simply Wall St · 3d ago

Why Telia Company’s Latest Earnings Matter For Shareholders

Telia Company (OM:TELIA) has given investors fresh numbers to work with after reporting second quarter 2026 results, alongside an update on performance for the first half of the year.

The company reported second quarter sales of SEK 20,705 million and net income of SEK 2,230 million, with basic earnings per share of SEK 0.57 from continuing operations. For the six month period, sales were SEK 40,674 million and net income was SEK 3,894 million, with basic earnings per share from continuing operations of SEK 0.99.

See our latest analysis for Telia Company.

Telia Company’s latest earnings update comes after a mixed stretch in the share price, with a 1-day share price return of 2.05% and a 1-month share price return that is down 4.26%. At the same time, the year-to-date share price return of 16.62% and 1-year total shareholder return of 38.40% point to momentum that has been building over a longer period.

As you weigh Telia Company’s earnings and share price moves, it can also be useful to broaden your watchlist with other opportunities in the telecom and digital infrastructure space through 33 power grid technology and infrastructure stocks

After Telia Company’s solid quarterly update and strong 1 year return, the real issue is timing: should investors buy after this move, or wait for a cheaper entry and risk missing further upside if the valuation already looks reasonable?

Most Popular Narrative: 1.1% Undervalued

Telia Company closed at SEK46.25, compared with a widely followed fair value estimate of SEK46.75. The current price sits very close to that narrative anchor while still implying a small discount.

Ongoing transformation and portfolio restructuring such as the exit from non-core markets (Latvia) and targeted acquisitions (Bredband2) enables more focused capital allocation in core Nordic/Baltic operations, improving earnings quality and enhancing ROE and long-term earnings growth.

Read the complete narrative.

Curious what underpins that fair value? The narrative leans heavily on modest revenue growth, improving margins and a future earnings multiple that needs to compress meaningfully. The full story ties those moving parts together with a single discount rate and a clear earnings trajectory that you can test against your own expectations.

Result: Fair Value of SEK46.75 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Telia Company’s story could change quickly if costly 5G and fiber investments squeeze cash generation, or if low cost rivals keep forcing down mobile and broadband prices.

Find out about the key risks to this Telia Company narrative.

Another View On Telia Company’s Valuation

The fair value narrative paints Telia Company as only around 1.1% undervalued, yet the current P/E of 37.1x sits above both the peer average of 35.8x and a fair ratio of 25.9x. That gap points to meaningful valuation risk if sentiment or earnings expectations cool.

Before you lean on a single ratio, it can be useful to see how the full valuation breakdown squares with your own expectations, including where that fair ratio comes from and how it might change over time through See what the numbers say about this price — find out in our valuation breakdown.

OM:TELIA P/E Ratio as at Jul 2026
OM:TELIA P/E Ratio as at Jul 2026

Next Steps

If Telia Company’s mixed signals have you on the fence, this is the moment to review the evidence yourself and weigh both sides of the story with 2 key rewards and 2 important warning signs

Looking For More Investment Ideas Beyond Telia Company?

If Telia Company is on your radar, do not stop there. Broaden your opportunity set and pressure test your thinking with a few targeted stock idea lists.

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.