Telefonica jumps 5% after 'solid' Q1 results

Telefonica SA

14/05/2026 09:10

** Shares in Telefonica jump about 5% after it reports better-than-expected first-quarter results, despite a net loss due to the impact of the sale of Latin American units

** Berenberg deems the results 'solid,' and flags that revenue of 8.13 billion euros ($9.52 billion) and 2.84 billion euros adjusted EBITDA came in 0.7% and 1.6%, respectively, ahead of consensus

** "Free cash appears to be 11% ahead for the quarter as stronger EBITDA, lower capex and lower lease payments more than offset the impact of the working capital outflow in the quarter," the brokerage says

** It adds that Germany’s overall revenue was weak, but Telefonica's contract ARPU looks to be up sequentially, based on its estimates

** Banco Sabadell broker highlights the resilience demonstrated in Brazil and Spain, which continues to show strong commercial momentum

** The Spanish telecommunications company also reiterated its guidance for the 2026 full-year results

** Shares are on track for their best day since February

($1 = 0.8538 euros)

(Reporting by Gemma Guasch)

((Gemma.guasch@thomsonreuters.com))