Results are mixed: strong headline growth from Africa/Türkiye and UK merger synergies offset by continued weakness in Germany (organic service revenue -0.2%, EBITDA -3.3%) and rising net debt. The VodafoneThree full ownership deal adds strategic value but increases near-term leverage. FY27 guidance implies modest growth. Monitor Germany turnaround progress and Safaricom acquisition court ruling on May 18.
Price Chart
Executive Summary
Vodafone reported FY26 preliminary results with revenue up 8.0% to €40.5 billion and organic service revenue growth of 5.4%, driven by Africa (+12.9%) and Türkiye (+45.2%). Adjusted EBITDAaL grew 4.5% organically to €11.4 billion, at the top end of guidance. The company also announced the buyout of CK Hutchison's 49% stake in VodafoneThree for £4.3 billion (€4.9 billion), taking full ownership. However, Germany, the largest segment, saw organic service revenue decline 0.2% and Adjusted EBITDAaL fall 3.3%, while net debt increased 13.5% to €25.4 billion.
Key Facts
- Total revenue increased 8.0% to €40.5 billion (FY25: €37.4 billion).
- Organic service revenue grew 5.4%, with Africa +12.9% and Türkiye +45.2%.
- Germany organic service revenue declined 0.2% and Adjusted EBITDAaL fell 3.3%.
- Adjusted EBITDAaL grew 4.5% organically to €11.4 billion, at the top end of FY26 guidance.
- Adjusted basic EPS rose to 10.72 eurocents from 7.87 eurocents.
- Net debt increased 13.5% to €25.4 billion, driven by VodafoneThree consolidation and €2 billion buyback.
- FY27 guidance: Adjusted EBITDAaL €11.9-€12.2 billion, Adjusted FCF €2.6-€2.9 billion.
- Agreed to buy out CK Hutchison's 49% stake in VodafoneThree for £4.3 billion (€4.9 billion).
- Total dividends per share increased 2.5% to 4.6125 eurocents.
- Second €2 billion buyback programme completed on 11 May 2026.
Financial Impact
Revenue +8.0% to €40.5B; Adj. EBITDAaL +3.8% to €11.4B; Adj. EPS +36% to 10.72c; Net debt +13.5% to €25.4B
Risk Factors
- Germany turnaround may take longer than expected, with competitive pressure and TV decline persisting.
- Net debt at €25.4B (13.5% increase) could constrain capital returns and increase refinancing risk.
- Safaricom acquisition subject to Kenyan High Court ruling on May 18; delay or denial would impact Africa strategy.
- FY27 guidance assumes stable FX and macro; trade/energy cost uncertainties could pressure results.
- Restructuring costs peaking at ~€0.7B in FY27 will weigh on reported earnings.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001654954-26-004689 |
| Document: 0001654954-26-004689-index-headers.html | 0001654954-26-004689 |
| Document: 0001654954-26-004689-index.html | 0001654954-26-004689 |
| Document: 0001654954-26-004689.txt | 0001654954-26-004689 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 10, 2026 19w ago | 6-K | $1.57 $1.35 | ▼ −14.01% | ▼ −17.90% | $1.64 (+4.46%) |
Jun 5, 2026 20w ago | 6-K | $1.39 $1.37 | ▼ −1.44% | ▼ −3.56% | $1.64 (+17.99%) |
Jun 1, 2026 21w ago | 6-K | $1.62 $1.39 | ▼ −14.20% | ▼ −12.90% | $1.64 (+1.23%) |
May 15, 2026 23w ago | 6-K | $1.65 $1.57 | ▼ −4.85% | ▼ −6.97% | $1.64 (−0.61%) |
May 12, 2026 24w ago | 6-K | $1.66 $1.57 | ▼ −5.42% | ▼ −3.69% | $1.64 (−1.20%) |
May 12, 2026 24w ago | 6-K | $1.66 $1.57 | ▼ −5.42% | ▼ −3.69% | $1.64 (−1.20%) |
May 5, 2026 25w ago | 6-K | $1.68 $1.56 | ▼ −7.14% | ▼ −12.10% | $1.64 (−2.38%) |
Apr 1, 2026 29w ago | 6-K | $1.48 $1.60 | ▲ +8.11% | ▼ −1.61% | $1.64 (+10.81%) |
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