Telecom Italia SpA (MIL:TIT) Operating Income: €674 Mil (TTM As of Mar. 2026)

What is Telecom Italia SpA Operating Income?

Telecom Italia SpA MIL:TIT +0.83% 45 Operating Income is €674 Mil as of Mar. 2026. GuruFocus rates MIL:TIT with a GF Score™ of 45/100 and a GF Value™ of €2.36 (Significantly Overvalued). The stock has 9 warning signs investors should review.

Telecom Italia SpA's Operating Income for the three months ended in Mar. 2026 was €-52 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €674 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Telecom Italia SpA's Operating Income for the three months ended in Mar. 2026 was €-52 Mil. Telecom Italia SpA's Revenue for the three months ended in Mar. 2026 was €3,321 Mil. Therefore, Telecom Italia SpA's Operating Margin % for the quarter that ended in Mar. 2026 was -1.57%.

Warning Sign:

Telecom Italia SpA operating margin has been in a 5-year decline. The average rate of decline per year is -5.9%.

Telecom Italia SpA's 5-Year average Growth Rate for Operating Margin % was -5.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Telecom Italia SpA's annualized ROC % for the quarter that ended in Mar. 2026 was -0.67%. Telecom Italia SpA's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 13.08%.

Telecom Italia SpA (MIL:TIT) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Telecom Italia SpA's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

	ROC % (Q: Mar. 2026 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2025 )	+	Invested Capital (Q: Mar. 2026 ))	/ count )
=	-208 * ( 1 - 0% )	/	( (31686	+	30368)	/ 2 )
=	-208	/	31027
=	-0.67 %

where

	Invested Capital		(Q: Dec. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	36734	-	6068	-	( 3418	-	max(0, 11518	-	10498	+	3418	))
=	31686

	Invested Capital		(Q: Mar. 2026 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	37468	-	7338	-	( 3598	-	max(0, 11059	-	10821	+	3598	))
=	30368

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Telecom Italia SpA's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2026 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2025		Q: Mar. 2026
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	976	/	( ( (7348 + max(-1753, 0))	+	(7571 + max(-658, 0)) )	/	2 )
=	976	/	( ( 7348	+	7571 )	/	2 )
=	976	/	7459.5
=	13.08 %

where Working Capital is:

	Working Capital		(Q: Dec. 2025 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2345	+	235	+	3985)	-	(6068	+	0	+	2250)
=	-1753

	Working Capital		(Q: Mar. 2026 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(5645	+	273	+	1305)	-	(7338	+	0	+	543)
=	-658

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Telecom Italia SpA's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2026 )	/	Revenue (Q: Mar. 2026 )
	=	-52	/	3321
	=	-1.57 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Telecom Italia SpA Operating Income Related Terms

Telecom Italia SpA Operating Income Historical Data

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The historical data trend for Telecom Italia SpA's Operating Income can be seen below:

Telecom Italia SpA Operating Income Chart

Telecom Italia SpA Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

Operating Income

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1,216.00

1,111.00

2,026.00

1,965.00

890.00

Telecom Italia SpA Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
Operating Income	Get a 7-Day Free Trial															164.00	441.00	102.00	183.00	-52.00

45GF Score

Telecom Italia SpA MIL:TIT

Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.

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Telecom Italia SpA Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €674 Mil.

Frequently Asked Questions Learn more about Operating Income →

What does a Operating Income of €674 Mil mean?

Telecom Italia SpA (MIL:TIT) has a Operating Income of €674 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Telecom Italia SpA and its competitors.

Is Telecom Italia SpA's Operating Income too high?

Telecom Italia SpA's current Operating Income is €674 Mil. Overall, Telecom Italia SpA has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does Telecom Italia SpA's Operating Income compare to TMUS and VZ?

Telecom Italia SpA's Operating Income of €674 Mil can be compared against companies in the Telecommunication Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Operating Income for a Telecommunication Services company?

A good Operating Income depends on the Telecommunication Services industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Operating Income mean?

A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Telecom Italia SpA and its competitors. Telecom Italia SpA's current Operating Income is €674 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Telecom Italia SpA stock overvalued right now?

Based on GuruFocus' analysis, Telecom Italia SpA (MIL:TIT) is currently considered Significantly Overvalued. The stock's GF Value™ is €2.36, compared to a current price of €8.07 — trading 241.8% above its estimated fair value. The current Operating Income is €674 Mil. Telecom Italia SpA's overall GF Score™ is 45/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Operating Income calculated?

Operating Income is calculated from a company's financial statements. For Telecom Italia SpA (MIL:TIT), the current Operating Income is €674 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Telecom Italia SpA (MIL:TIT) Overvalued in 2026?

Based on GuruFocus' analysis, Telecom Italia SpA stock appears to be overvalued. The current stock price of €8.07 is trading 241.8% above its estimated GF Value™ of €2.36. GuruFocus considers Telecom Italia SpA to be Significantly Overvalued.

Key valuation signals for MIL:TIT:

Operating Income: €674 Mil
GF Value™: €2.36 vs. price of €8.07 (241.8% above fair value)
GF Score™: 45/100 with 9 warning signs

No single metric tells the full story. See the MIL:TIT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Telecom Italia SpA Business Description

Industry Communication Services Telecommunication Services

Comparable Companies MIL:ITD MIL:UD MIL:TSL MIL:PLN MIL:SFT MIL:CVG TSE:9984 SHSE:600941 TMUS VZ T XTER:DTE NSE:BHARTIARTL CMCSA MEX:AMXB TSE:9432 HKSE:00728 TSE:9433 TSE:9434 SAU:7010

Other Exchanges TIAOD:USA TIAJF:USA TIIAY:USA TITm:UK 0H6I:UK TIT:Austria

Address Via di Val Cannuta, No. 182, Roma, ITA, 00166

Website https://www.gruppotim.it

Telecom Italia is the incumbent telecommunications operator in Italy, with 23% share in the Italian mobile market and 35% share in broadband. In the mobile market, it competes with Vodafone, WindTre, and Iliad. After the sale of its fixed network to KKR for EUR 18.8 billion in 2024, TIM has become a pure service provider with no network ownership. TIM Brazil is significantly smaller than its peers, Telefonica and America Movil, with 25% wireless market share.

45GF Score

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€8.07

Price

€2.36

GF Value

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