Cellcom Reports 44% Surge in Net Profit, Highest Quarterly Result in 11 Years

Cellcom announced a 44% increase in net profit for the second quarter of 2026, reaching 92 million shekels, the highest quarterly profit since 2015. This compares to 64 million shekels in the same quarter last year. The company attributes the growth to increased revenues, improved profitability from equipment sales, reduced financing costs, and maintained operational efficiency.

CEO Eli Edri highlighted that the results stem from consistent implementation of their business strategy over the past two years, focusing on strengthening core activities and improving financial resilience. He also noted ongoing integration of AI agents and engines into service and operational processes to optimize expenses and enhance customer experience.

During the quarter, Cellcom expanded commercial partnerships with leading Israeli entities, including a deal with Nebius to supply advanced communication infrastructure for Mega DC's server farms, positioning Cellcom at the center of Israel's AI revolution. Additionally, Cellcom Energy signed an agreement to integrate storage facilities from Nofar, reinforcing its position in the electricity sector.

For the first half of 2026, net profit rose 32% to 164 million shekels from 124 million shekels the previous year. Free cash flow increased by approximately 27% to 251 million shekels, the highest in a decade. The second quarter alone saw free cash flow of 136 million shekels, up from 103 million shekels year-over-year.

Cellcom also reported customer growth, adding 70,000 cellular subscribers and 22,000 fiber subscribers compared to last year, alongside an increase in average revenue per user (ARPU) in the mobile sector to 38.6 shekels.