Is Cellcom Israel profitable in 2026?

Cellcom Israel reported FY2025 net income of roughly ILS 564 million, up sharply from the prior year, but Q1 2026 revenue fell 8.9% YoY to ILS 1.01 billion, showing profit gains coexist with a shrinking top line as of Q1 2026.

Who owns Cellcom Israel now?

Since May 2024, Fortissimo Capital controls Cellcom Israel through the FF6-Cell partnership, holding 33.15% of capital and voting rights as of April 2026, after buying out Discount Investment Corporation's stake for roughly NIS 925 million in 2024.

Is Cellcom Israel's revenue declining?

Yes. FY2025 revenue fell 4.5% YoY to ILS 4.24 billion, and Q1 2026 revenue dropped 8.9% YoY to ILS 1.01 billion, pushing trailing-twelve-month revenue down 6.29% YoY to ILS 4.15 billion as of Q1 2026.

Who is Cellcom Israel's biggest competitor threat?

Bezeq, via its Pelephone subsidiary, is consolidating rivals: it signed a non-binding MOU in July 2026 to acquire Wecom Mobile for about NIS 265 million and raised its bid for Hot Mobile to $727 million in January 2026, threatening Cellcom's market share.

Could AI replace Cellcom Israel's workforce?

AI is automating Cellcom's call-center layer, not its core business. Cellcom ran about 60 generative-AI pilots and deployed a K2view GenAI rep-assistant by December 2025, while its national spectrum license and 3.5 million subscriber base remain unreplicable by AI.

Is Cellcom Israel's electricity business making money?

No. As of September 2025, Cellcom Energy, its 50/50 joint venture with Meshek Energy launched in 2021, operates in an industry segment reported as loss-making, even as it signed a roughly NIS 1.1 billion electricity-purchase commitment that month.

Telecom infrastructure · Israel

Cellcom Israel

cellcom.co.il ↗

Israel's largest mobile carrier, also runs fixed broadband and a new electricity supply arm.

Defensible for now

Assessed 25 July 2026 · Evidence as of 25 July 2026

Real protection, with named pressure against it.

On the recordSince 25 July 2026 · Checkable from early-to-mid August 2026 · Every call on the record Checkpoint: Q2 2026 earnings release, the next read on whether revenue decline is steepening

The call

Cellcom keeps the license, network, and subscriber base that make it hard to dislodge, while revenue keeps shrinking and Bezeq's rivals get bigger around it.

Cellcom is one of Israel's three main cell phone companies. It is very hard to replace because the government only gives out a few phone licenses, and Cellcom owns the infrastructure (towers, cables, 5G networks) that took decades and billions to build. However, the company's sales are dropping 6 to 9 percent every three months, and its main rival Bezeq is buying up smaller phone companies to get bigger and stronger. If Bezeq finishes these purchases and Cellcom keeps losing customers at the same rate, the company could go from safe to risky, even though no one can legally kick it out of the phone business.

Why

AI pressure: None apparent. AI chatbots and eSIM tools might trim support costs, but they cannot bypass spectrum licenses or physical towers. Could AI do the core job? Unlikely.

Bigger players: Bezeq's Pelephone, via Wecom Mobile absorption and a $727M bid for Hot Mobile. Bezeq is stitching Pelephone, Wecom, and Hot Mobile into one bigger rival that could out-price Cellcom on mobile plans. Could a giant copy it? No, they are blocked.

What protects it. A national spectrum license, owned LTE/5G/fiber network, and 3.5 million subscribers including cleared government and defense accounts.

What would change this call

Bezeq's Hot Mobile acquisition ($727M bid) closes or is blocked by antitrust regulators. A closed deal creates a larger combined rival able to pressure Cellcom's pricing and share.
Cellcom reports Q2 2026 revenue (expected August 2026) versus the prior -8.9% YoY trend. Continued double-digit decline would confirm accelerating customer or pricing erosion.
Bezeq/Pelephone's Wecom Mobile MOU (signed July 2026) converts into a completed acquisition. Completion would consolidate a rival mobile base, increasing competitive pressure on Cellcom.

Key numbers

About 3.5 to 3.65 million mobile subscribers, 25 to 31 percent share (2025-Q3)
Q1 2026 revenue down 8.9 percent YoY to ILS 1.01 billion (2026-Q1)
FY2025 revenue ILS 4.24 billion, down 4.5 percent YoY (2025-12-31)

Named risks

Revenue decline accelerating, down 8.9% YoY in Q1 2026 versus 4.5% for FY2025. Severity: high
Rival consolidation via Bezeq/Pelephone-Wecom MOU and $727M Hot Mobile bid could erode Cellcom's share. Severity: high
Cellcom Energy electricity segment is industry-wide loss-making as of September 2025. Severity: medium
Ongoing IBC fiber litigation over infrastructure payment rates could pressure broadband margins. Severity: medium
Insider security breach risk shown by 2026 Hamas-linked sabotage plot involving former Cellcom-linked individuals. Severity: medium

Rivals, as read in July 2026

Rival	Direction	Evidence
Bezeq (Pelephone)	gaining on	MOU to acquire Wecom Mobile signed July 2026, plus $727M Hot Mobile bid raised January 2026
Hot Mobile	contesting	Target of Bezeq's raised $727 million acquisition bid as of January 2026
Partner Communications	contesting	Network-sharing rival competing for share of Israel's 25-31% mobile market as of Q3 2025
Wecom Mobile	gaining on	Being absorbed into Bezeq's Pelephone via July 2026 MOU, consolidating against Cellcom

Questions people ask

Is Cellcom Israel profitable in 2026?: Cellcom Israel reported FY2025 net income of roughly ILS 564 million, up sharply from the prior year, but Q1 2026 revenue fell 8.9% YoY to ILS 1.01 billion, showing profit gains coexist with a shrinking top line as of Q1 2026.
Who owns Cellcom Israel now?: Since May 2024, Fortissimo Capital controls Cellcom Israel through the FF6-Cell partnership, holding 33.15% of capital and voting rights as of April 2026, after buying out Discount Investment Corporation's stake for roughly NIS 925 million in 2024.
Is Cellcom Israel's revenue declining?: Yes. FY2025 revenue fell 4.5% YoY to ILS 4.24 billion, and Q1 2026 revenue dropped 8.9% YoY to ILS 1.01 billion, pushing trailing-twelve-month revenue down 6.29% YoY to ILS 4.15 billion as of Q1 2026.
Who is Cellcom Israel's biggest competitor threat?: Bezeq, via its Pelephone subsidiary, is consolidating rivals: it signed a non-binding MOU in July 2026 to acquire Wecom Mobile for about NIS 265 million and raised its bid for Hot Mobile to $727 million in January 2026, threatening Cellcom's market share.
Could AI replace Cellcom Israel's workforce?: AI is automating Cellcom's call-center layer, not its core business. Cellcom ran about 60 generative-AI pilots and deployed a K2view GenAI rep-assistant by December 2025, while its national spectrum license and 3.5 million subscriber base remain unreplicable by AI.
Is Cellcom Israel's electricity business making money?: No. As of September 2025, Cellcom Energy, its 50/50 joint venture with Meshek Energy launched in 2021, operates in an industry segment reported as loss-making, even as it signed a roughly NIS 1.1 billion electricity-purchase commitment that month.

Timeline

2026-07-22Israel seeks to revoke citizenship of two ex-Cellcom-linked men convicted of aiding Hamas sabotage plot
2026-07-15Bezeq's Pelephone signs MOU to acquire Wecom Mobile for about NIS 265 million
2026-04-19TASE filing shows FF6-Cell (Fortissimo) holding 33.15% of Cellcom capital and voting rights
2026-03-23Court endorses procedural arrangement in Cellcom's litigation with fiber wholesaler IBC
2026-01-01Bezeq raises bid for Hot Mobile to $727 million
2025-12-31Cellcom Energy signs 50MW, 10-year availability-certificate electricity supply deal
2025-10-20Cellcom market value reported at roughly NIS 5.5 billion, more than doubled since 2024 deal
2025-09-09Cellcom Energy signs roughly NIS 1.1 billion electricity-purchase commitment
2025-07-01Fortissimo Capital discloses disposal of 3,000,000 Cellcom shares at $29.16 each
2024-08-01Eli Adadi becomes Cellcom CEO, succeeding Daniel Sapir

Revision history

25 July 2026

First assessed. Defensible for now. The text above is fixed as of this date and is not edited afterwards.

In the same band

Digi Communications Telus Corporation Indosat Ooredoo Hutchison