Is Bezeq profitable in 2026?

Yes. Bezeq reported Q1 2026 comparable net profit of NIS 300M, up 4.2% YoY, on a 43% EBITDA margin (NIS 928M EBITDA) and group free cash flow up 74% YoY, per its May 13, 2026 earnings call.

Searchlight Capital and David Fuhrer sold their Bezeq-related holdings for about $650M in November 2025, and former parent B Communications is now liquidating, distributing NIS 2.8B to its own shareholders (Dec 2025). No new controlling shareholder was confirmed as of mid 2026.

Could AI replace Bezeq?

No. Bezeq's moat is physical: fiber passing about 3 million homes, submarine cables, and regulated Israeli telecom licenses, none of which AI can substitute. AI mainly pressures cost centers like call centers and back office, not the infrastructure itself, as of May 2026.

Who is Bezeq's biggest competitor?

Cellcom Israel and Partner Communications compete directly in mobile and fixed broadband. Bezeq's Pelephone unit also lost a bidding war for HOT Mobile to a Delek Israel led consortium, which closed the deal at NIS 1.2B in July 2026.

Did Bezeq succeed in buying HOT Mobile?

No. Pelephone, Bezeq's mobile unit, raised its bid to NIS 2.3B (about $727M) but the exclusive negotiation period expired January 22, 2026. HOT Mobile was instead acquired by a Delek Israel led consortium at a lower NIS 1.2B valuation, completed July 9, 2026.

What is Bezeq's dividend and buyback situation in 2026?

Bezeq paid a NIS 549M dividend, 80% of its H2 2025 net profit, and ran a NIS 150M buyback program roughly 50% complete, according to its Q1 2026 earnings report dated May 13, 2026.

Telecom infrastructure · Israel

Bezeq

bezeq.co.il ↗

Israel's largest telecom group: fixed-line, fiber, mobile, satellite TV, and business data.

Hard to displace

Assessed 25 July 2026 · Evidence as of 25 July 2026

Strong structural protection; the business model survives ai pressure.

On the recordSince 25 July 2026 · Checkable from August 2026 · Every call on the record Checkpoint: Q2 2026 earnings report and update on Ministry of Communications structural-separation ruling

The call

Bezeq's threat comes from Israeli rivals laying their own fiber and from an unresolved ownership question, not from AI.

Bezeq is an Israeli phone and internet company that owns buried fiber cables and submarine links serving 3 million homes, plus government licenses that competitors cannot easily obtain. It makes strong cash from these assets and pays dividends reliably. No rival or AI tool can copy the physical cables or licenses quickly, so the business is unlikely to collapse. The real question is who owns the company next and whether they will keep paying dividends, reinvest in upgrades, or take on debt. That choice will determine whether shareholders get steady income or something different.

Why

AI pressure: None apparent. Fiber, cable, and satellite lines sit in the ground and sky; no AI product replaces buried infrastructure. Could AI do the core job? Unlikely.

Bigger players: HOT Telecom and Partner Communications fiber rollouts. Rival fiber networks now cover parts of Israel, competing directly for the same broadband households Bezeq passes. Could a giant copy it? No, they are blocked.

What protects it. Regulated telecom licenses plus 3 million fiber-passed homes that took years and heavy capital to bury.

What would change this call

Identity of Bezeq's new controlling shareholder is confirmed after Searchlight/Fuhrer's Nov 2025 exit. Reveals whether new owner favors dividends, reinvestment, or leveraged extraction.
Ministry of Communications issues its structural-separation ruling on Bezeq's group units. Shows whether regulation will erode cross-unit synergies and margins.
Wecom Mobile MOU (NIS 265M, signed July 2026) closes or is abandoned. Indicates whether Bezeq is actively expanding via M&A or retreating from deal-making.

Key numbers

Q1 2026 EBITDA margin 43%, NIS 928M (2026-05-13)
Net debt to EBITDA 1.4x, down to NIS 4.6B (2026-05-13)
Fiber passes 3.0M homes, 35% take-up (2026-05-13)

Named risks

No confirmed controlling shareholder after Searchlight and Fuhrer exit in Nov 2025. Severity: high
Pending Ministry of Communications ruling on structural separation could hurt group synergies. Severity: medium
New Israeli broadcasting law affecting media ownership frozen by court injunction, Jul 2026. Severity: medium
Retail broadband subscriber erosion from aggressive competitor pricing. Severity: low

Rivals, as read in July 2026

Rival	Direction	Evidence
Delek Israel led consortium (HOT Mobile)	losing to	Bezeq's Pelephone lost HOT Mobile bidding war; Delek closed deal at NIS 1.2B, Jul 9 2026
Cellcom Israel	contesting	Rival mobile operator with about 3.65M subscribers as of Q3 2025, competing across fixed and mobile
Partner Communications	contesting	Launched global business division in Apr 2025 to expand fiber and international reach
Budget MVNOs and cable rivals	gaining on	Aggressive competitor pricing caused a slight decline in Bezeq's retail broadband subscribers, Q1 2026

Questions people ask

Is Bezeq profitable in 2026?: Yes. Bezeq reported Q1 2026 comparable net profit of NIS 300M, up 4.2% YoY, on a 43% EBITDA margin (NIS 928M EBITDA) and group free cash flow up 74% YoY, per its May 13, 2026 earnings call.
Who owns Bezeq now?: Searchlight Capital and David Fuhrer sold their Bezeq-related holdings for about $650M in November 2025, and former parent B Communications is now liquidating, distributing NIS 2.8B to its own shareholders (Dec 2025). No new controlling shareholder was confirmed as of mid 2026.
Could AI replace Bezeq?: No. Bezeq's moat is physical: fiber passing about 3 million homes, submarine cables, and regulated Israeli telecom licenses, none of which AI can substitute. AI mainly pressures cost centers like call centers and back office, not the infrastructure itself, as of May 2026.
Who is Bezeq's biggest competitor?: Cellcom Israel and Partner Communications compete directly in mobile and fixed broadband. Bezeq's Pelephone unit also lost a bidding war for HOT Mobile to a Delek Israel led consortium, which closed the deal at NIS 1.2B in July 2026.
Did Bezeq succeed in buying HOT Mobile?: No. Pelephone, Bezeq's mobile unit, raised its bid to NIS 2.3B (about $727M) but the exclusive negotiation period expired January 22, 2026. HOT Mobile was instead acquired by a Delek Israel led consortium at a lower NIS 1.2B valuation, completed July 9, 2026.
What is Bezeq's dividend and buyback situation in 2026?: Bezeq paid a NIS 549M dividend, 80% of its H2 2025 net profit, and ran a NIS 150M buyback program roughly 50% complete, according to its Q1 2026 earnings report dated May 13, 2026.

Timeline

2026-07-14Pelephone signs MOU to acquire Wecom Mobile for NIS 265M
2026-07-09Delek Israel led consortium completes HOT Mobile acquisition at NIS 1.2B valuation
2026-05-13Q1 2026 earnings: EBITDA NIS 928M (43% margin), FCF up 74% YoY, net debt/EBITDA 1.4x
2026-01-22Bezeq's exclusive negotiation period for HOT Mobile expires without deal
2026-01-20Pelephone raises HOT Mobile acquisition bid to NIS 2.3B (~$727M)
2026-01-12Israeli court approves class action settlement over Bezeq International billing practices
2025-12-19B Communications begins liquidation, distributing NIS 2.8B to shareholders
2025-11-18Searchlight and Fuhrer sell Bezeq related holdings for about $650M

Revision history

25 July 2026

First assessed. Hard to displace. The text above is fixed as of this date and is not edited afterwards.

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