Telefonica posts higher 9-mth revenue; cuts FY revenue forecast

Telefonica SA

Yesterday 06:40

Overview
Spain telecom operator's nine-month 2026 revenue rose 2.8% to EUR 24.8 bln
Adjusted EBITDA for nine months rose 4.6% to EUR 8.8 bln
Capex/revenue ratio remained broadly stable at 12%

Outlook
Telefonica sees 2026 revenue growth of 1%-1.5% vs  prior forecast of 1.5%-2.5%
Company expects 2026 adjusted EBITDA growth slightly above 2.5% y-o-y (before 1.5%-2.5%) 
Telefonica targets 2026 FCF of ~€3.1 bln, up from ~€3.0 bln

Result Drivers
B2B AND DIGITAL SERVICES - Co said growth in B2B and digital services contributed to revenue and margin gains
COMMERCIAL MOMENTUM - Co cited strong commercial momentum and high single-digit B2B revenue growth in Spain and Brazil
EFFICIENCY GAINS - Co attributed margin improvement to restructuring, automation and digitalisation

Company press release: Full Story

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
9M Revenue
 
EUR 24.83 bln
 
9M Adjusted EBITDA
 
EUR 8.85 bln
 
9M Capex
 
EUR 3.005 bln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 13 "hold" and 7 "sell" or "strong sell"
The average consensus recommendation for the integrated telecommunications services peer group is "buy."
Wall Street's median 12-month price target for Telefonica SA is €3.80, about 8.4% above its November 11 closing price of €3.51
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

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Nov 10 - Telecom Italia third-quarter core profit comes in line with expectations

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)