UK's Vodafone FY26 sales meet expectations on service revenue growth

Vodafone

12/05/2026 07:10

Overview

UK telecom operator's preliminary FY26 revenue met analyst expectations, service revenue grew 8.8% yr/yr

Preliminary adjusted EBITDAaL for FY26 slightly missed analyst expectations

Company completed €2 bln share buyback and raised dividend by 2.5% yr/yr

Outlook

Vodafone expects FY27 Adjusted EBITDAaL of €11.9-€12.2 bln

Company sees FY27 Adjusted free cash flow at €2.6-€2.9 bln

Vodafone says macroeconomic uncertainties, including trade and FX, may impact FY27 results

Result Drivers

SERVICE REVENUE GROWTH - Group revenue rose 8.0% to €40.5 bln, driven by strong service revenue growth and the consolidation of Three UK

AFRICA AND TÜRKIYE PERFORMANCE - Double-digit organic service revenue growth in Africa (12.9%) and strong growth in Türkiye (10.8% in euro terms) supported overall results

GERMANY TURNAROUND - Germany returned to top-line growth in Q4, with improved broadband ARPU and higher wholesale revenue offsetting competitive pressure and TV law impact

Company press release: ID:nRSL9488Da

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Meet
EUR 40.50 bln
EUR 40.50 bln (16 Analysts)
FY Adjusted EBITDAaL
Slight Miss*
EUR 11.40 bln
EUR 11.44 bln (12 Analysts)
FY Operating Profit
EUR 2.80 bln
FY Service Revenue
EUR 33.50 bln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 6 "hold" and 6 "sell" or "strong sell"

The average consensus recommendation for the wireless telecommunications services peer group is "hold"

Wall Street's median 12-month price target for Vodafone Group PLC is GBp110.00, about 8.6% below its May 11 closing price of GBp120.40

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

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.)