Vodafone Group Plc (LON:VOD) has announced its Q3 FY26 Trading Update.
Good Group performance, with growth in Europe and Africa
“We maintained good service revenue momentum in the third quarter across both Europe and Africa, supported by top-line growth in Germany, and strong contributions from Türkiye and Africa. After a fast start, we are making very good progress with the integration of our UK business.Looking ahead, we are on track to deliver at the upper end of our guidance range for both profit and cash flow.” Margherita Della Valle, Group Chief Executive
| Expecting to deliver at the upper endof FY26 financial guidance | €3.5 billionShare buybacks to-date | 2.3%Adjusted EBITDAaL growth |
– Group total revenue: Increased by 6.5% to €10.5 billion in Q3 with strong service revenue growth, primarily supported by continued strong growth in Africa and the consolidation of Three UK and Telekom Romania assets, partially offset by foreign exchange movements.
– Group service revenue: Grew by 7.3% in Q3 to €8.5 billion as higher revenue from the consolidation of Three UK and Telekom Romania assets were partially offset by foreign exchange movements. On an organic basis, service revenue increased 5.4% (Q2: 5.8%), with strong contributions from Türkiye and Africa.
– Germany: Continued service revenue growth of 0.7% (Q2: 0.5%), supported by higher wholesale revenue.
– UK: As expected, organic service revenue declined by 0.5% (Q2: 1.2%), reflecting the previously flagged prior year one-off project revenue in Business. The integration of VodafoneThree is progressing well and firmly on track.
– Other Europe & Türkiye: Organic service revenue in Other Europe grew by 1.2% (Q2: -0.5%), as growth in most markets was offset by competitive intensity in Portugal and Romania. Service revenue in Türkiye increased by 3.7% in euro terms1.
– Africa: Continued strong organic service revenue growth of 13.5% (Q2: 13.5%), with continued growth across all markets, including an acceleration in financial services.
– Business: Organic service revenue grew by 3.0% (Q2: 2.9%), driven by continued demand for digital services and strong growth in Türkiye and Africa, partially offset by a tougher prior year comparative in the UK.
– Group Adjusted EBITDAaL: Increased by 2.3% on an organic basis to €2.8 billion, with phasing in line with our full year guidance expectations. On a year-to-date basis, Adjusted EBITDAaL increased by 5.3% on an organic basis to €8.5 billion.
– Operating profit: Decreased by 52.7% to €0.5 billion in Q3 (see basis of preparation on page 7), due to M&A including the temporary non-cash accounting impacts of our Indian simplification activities.
– Shareholder returns: €3.5 billion of share buybacks now complete (since May 2024). Our next €500 million tranche commences today.
– FY26 guidance reiterated2: We continue to expect to deliver the upper end of our FY26 guidance ranges of Adjusted EBITDAaL of €11.3-11.6 billion and Adjusted free cash flow of €2.4-2.6 billion.
– Progressive dividend policy: Reflecting our medium-term outlook for Adjusted free cash flow growth, in November 2025 we announced that we expect to grow the FY26 dividend per share by 2.5%.
Note:
1 Excluding the impact of hyperinflationary accounting adjustments
2 FY26 UK merger impact on a 10-month basis of €0.3 billion Adjusted EBITDAaL and -€0.2 billion Adjusted free cash flow
A webcast Q&A session will be held at 10:00 GMT on 5 February 2026. The webcast and supporting information can be accessed at vodafone.com
Segment performance
Geographic performance summary
| Service revenue | Other revenue | Total revenue | ||||||||||||||||||||||||||||
| Q3 FY26 | Q3 FY25 | Q3 FY26 | Q3 FY25 | Q3 FY26 | Q3 FY25 | |||||||||||||||||||||||||
| €m | €m | €m | €m | €m | €m | |||||||||||||||||||||||||
| Germany | 2,726 | 2,706 | 366 | 384 | 3,092 | 3,090 | ||||||||||||||||||||||||
| UK | 1,975 | 1,507 | 466 | 358 | 2,441 | 1,865 | ||||||||||||||||||||||||
| Other Europe1 | 1,243 | 1,201 | 266 | 235 | 1,509 | 1,436 | ||||||||||||||||||||||||
| Türkiye | 671 | 776 | 152 | 187 | 823 | 963 | ||||||||||||||||||||||||
| Africa | 1,738 | 1,607 | 470 | 465 | 2,208 | 2,072 | ||||||||||||||||||||||||
| Common Functions | 183 | 165 | 245 | 268 | 428 | 433 | ||||||||||||||||||||||||
| Eliminations | (30) | (33) | (19) | (15) | (49) | (48) | ||||||||||||||||||||||||
| Group | 8,506 | 7,929 | 1,946 | 1,882 | 10,452 | 9,811 | ||||||||||||||||||||||||
| Service revenue growth | FY25 | FY26 | ||||||||||||||||||||||||||||
| Q1 | Q2 | H1 | Q3 | Q4 | H2 | Total | Q1 | Q2 | H1 | Q3 | ||||||||||||||||||||
| % | % | % | % | % | % | % | % | % | % | % | ||||||||||||||||||||
| Germany | (1.5) | (6.2) | (3.9) | (6.4) | (6.0) | (6.2) | (5.0) | (3.2) | 0.5 | (1.4) | 0.7 | |||||||||||||||||||
| UK | 2.0 | 2.9 | 2.4 | 7.6 | 5.7 | 6.7 | 4.5 | 15.2 | 38.0 | 26.7 | 31.1 | |||||||||||||||||||
| Other Europe1 | 1.6 | 2.1 | 1.9 | 2.2 | 1.1 | 1.7 | 1.8 | 0.3 | 0.1 | 0.2 | 3.5 | |||||||||||||||||||
| Türkiye | 54.7 | 18.8 | 33.2 | 97.5 | 15.2 | 50.4 | 42.3 | 22.1 | 18.7 | 20.3 | (13.5) | |||||||||||||||||||
| Africa | 1.6 | 0.3 | 0.9 | 4.1 | 8.8 | 6.4 | 3.7 | 7.3 | 8.4 | 7.9 | 8.2 | |||||||||||||||||||
| Group | 3.2 | 0.2 | 1.7 | 5.6 | 2.3 | 4.0 | 2.8 | 5.3 | 10.8 | 8.1 | 7.3 | |||||||||||||||||||
| Organic service revenue growth2 | FY25 | FY26 | ||||||||||||||||||||||||||||
| Q1 | Q2 | H1 | Q3 | Q4 | H2 | Total | Q1 | Q2 | H1 | Q3 | ||||||||||||||||||||
| % | % | % | % | % | % | % | % | % | % | % | ||||||||||||||||||||
| Germany | (1.5) | (6.2) | (3.9) | (6.4) | (6.0) | (6.2) | (5.0) | (3.2) | 0.5 | (1.4) | 0.7 | |||||||||||||||||||
| UK | – | 1.2 | 0.6 | 3.3 | 3.1 | 3.2 | 1.9 | 0.9 | 1.2 | 1.1 | (0.5) | |||||||||||||||||||
| Other Europe1 | 2.3 | 2.6 | 2.5 | 2.6 | 0.8 | 1.7 | 2.1 | 0.2 | (0.5) | (0.1) | 1.2 | |||||||||||||||||||
| Türkiye | 91.9 | 89.1 | 90.3 | 83.4 | 73.2 | 78.1 | 83.4 | 63.8 | 48.4 | 55.6 | 38.5 | |||||||||||||||||||
| Africa | 10.0 | 9.7 | 9.9 | 11.6 | 13.5 | 12.6 | 11.3 | 13.8 | 13.5 | 13.7 | 13.5 | |||||||||||||||||||
| Group | 5.4 | 4.2 | 4.8 | 5.2 | 5.4 | 5.3 | 5.1 | 5.5 | 5.8 | 5.7 | 5.4 | |||||||||||||||||||
| Group profitability | FY25 | FY26 | ||||||||||||||||||||||||||||
| Q1 | Q2 | H1 | Q3 | Q4 | H2 | Total | Q1 | Q2 | H1 | Q3 | ||||||||||||||||||||
| Operating profit/(loss) (€m) | 1,545 | 837 | 2,382 | 1,022 | (3,815) | (2,793) | (411) | 1,015 | 1,147 | 2,162 | 483 | |||||||||||||||||||
| Adjusted EBITDAaL (€m)2 | 2,681 | 2,730 | 5,411 | 2,828 | 2,693 | 5,521 | 10,932 | 2,748 | 2,980 | 5,728 | 2,816 | |||||||||||||||||||
| Adjusted EBITDAaL margin %2 | 29.7 | 29.5 | 29.6 | 28.8 | 28.8 | 28.8 | 29.2 | 29.3 | 29.1 | 29.2 | 26.9 | |||||||||||||||||||
| Organic Adjusted EBITDAaL growth %2 | 5.1 | 2.5 | 3.8 | 2.2 | 0.3 | 1.3 | 2.5 | 4.9 | 8.7 | 6.8 | 2.3 | |||||||||||||||||||
Notes:
1. Other Europe markets comprise Portugal, Ireland, Greece, Romania, Czech Republic and Albania.
2. Non-GAAP measure. See page 8 for more information.
| Germany ⫶ Continued service revenue growth | |||||
| 32% of Group service revenue | Q3 FY26 | Q3 FY25 | Reported | Organic | |
| €m | €m | change % | change %1 | ||
| Total revenue | 3,092 | 3,090 | 0.1 | ||
| – Service revenue | 2,726 | 2,706 | 0.7 | 0.7 | |
| – Other revenue | 366 | 384 | |||
Note:
1. Non-GAAP measure. See page 8 for more information.
Growth
Total revenue increased by 0.1% to €3.1 billion as service revenue growth was offset by lower equipment revenue. Service revenue increased by 0.7% (Q2: 0.5%) due to higher wholesale revenue and strong demand for digital services in Business, partially offset by mobile ARPU pressure due to competitive intensity. The sequential improvement in growth in the quarter was driven by higher mobile wholesale revenue, which was partially offset by the phasing of service provider payments.
Mobile service revenue grew by 2.8% in Q3 (Q2: 3.8%) as higher wholesale revenue was partially offset by continued ARPU pressure, and the phasing of service provider payments. By the end of the quarter, we had successfully completed the migration of 1&1 customers onto our network. We now have more than 12 million 1&1 customers using our nationwide 5G network and expect the revenue contribution to reach full run-rate in Q4 FY26.
Fixed service revenue decreased by 1.1% in Q3 (Q2: -2.3%), as TV headwinds were partially offset by strong demand for digital services in Business. Consumer broadband revenue has now stabilised supported by the retail pricing actions that we implemented between March 2025 and October 2025. As a result of these actions, broadband ARPU from new customers in the quarter was the highest in 3 years (+21.0% year-on-year). In January 2026, we announced additional changes to our broadband portfolio which are expected to further support ARPU trends.
Vodafone Business service revenue declined by 1.8% in Q3 (Q2: -1.6%), as lower mobile ARPU from customer contract renewals and pressure in core connectivity services were partially offset by strong digital services demand. In December 2025, we completed the acquisition of Skaylink, a cloud, digital transformation and security specialist. The acquisition will support the acceleration of our growth in key areas, such as professional and managed services, cloud and security in Germany and across Europe.
Customers
Despite continued competitive intensity in the mobile market, our Consumer contract customer base increased by 42,000 (Q2: 1,000) in the quarter. Growth in our total mobile contract customer base included 31,000 Business disconnections. We connected a further 2.6 million IoT devices, driven by good demand from the automotive sector.
Our broadband customer base declined by 63,000 during the quarter (Q2: -26,000), including a 47,000 decline
(Q2: -15,000) in customers on our gigabit capable network. The greater decline was primarily due to our focus on value as we continue to drive ARPU improvements for new customers. We continue to be the largest provider of fixed line gigabit connectivity in Germany, as we market gigabit speeds to almost 75% of German homes with 5 million fibre households beyond our own cable footprint of 25 million households. Our OXG joint venture’s buildout is continuing to progress with 460,000 homes passed and we are now able to market to 1.5 million homes.
Our TV customer base declined by 6,000 (Q2: 62,000). The structural decline in demand for standalone linear TV services was partially offset by our strategy to bundle basic TV with our broadband services.
Value-focused actions
We continue to focus on delivering value across our mobile and broadband products through our enhanced propositions. In broadband, higher ARPU from new customers was delivered through our price actions which included reduced promotions and an increase in one-time connection and in-home equipment fees. This will be further supported by ‘more-for-more’ speed upgrades launched in January 2026. In mobile, our Vodafone branded customer base continued to increase, driven by our enhanced product propositions and the continued growth in our customer satisfaction quarter-after-quarter, underpinned by our value-focused strategy.
| UK ⫶ Good progress in line with expectations | |||||
| 23% of Group service revenue | Q3 FY26 | Q3 FY25 | Reported | Organic | |
| €m | €m | change % | change %1 | ||
| Total revenue | 2,441 | 1,865 | 30.9 | ||
| – Service revenue | 1,975 | 1,507 | 31.1 | (0.5) | |
| – Other revenue | 466 | 358 | |||
Note:
1. Non-GAAP measure. See page 8 for more information.
Growth
Total revenue increased by 30.9% to €2.4 billion due to the consolidation of Three UK’s financial results following the completion of the merger on 31 May 2025. Service revenue increased by 31.1% (Q2: 38.0%). As expected, organic service revenue declined 0.5% (Q2: 1.2%), reflecting strong prior year comparatives offsetting continued good commercial momentum in both Consumer and Wholesale.
Mobile service revenue increased by 42.8% (Q2: 51.6%), and, as anticipated, organic growth in mobile service revenue was -1.8% (Q2: 0.4%), primarily due to a strong comparative in both Business and Wholesale in the prior year.
Fixed service revenue declined by 0.2% (Q2: 1.8%) and organic growth in fixed service revenue was 4.8% (Q2: 4.3%) with strong growth in Consumer broadband, partially offset by a decline in Business due to the continued impact of planned managed services contract terminations.
Vodafone Business service revenue declined by 4.3% (Q2: 1.5%). On an organic basis, Vodafone Business service revenue decreased by 5.4% (Q2: -1.7%). The step down in the quarter was due to the previously flagged one-off project revenue in the prior year.
Customers
In mobile, our contract customer base declined by 73,000 in the quarter, primarily driven by the disconnection of 53,000 very low-value Business SIMs. Three UK Consumer customer losses continued but, customer loyalty continued to improve across all brands, supported by our best-in-class customer experience, with Consumer contract churn reducing 1.7 percentage points year-on-year. Our prepaid brands, VOXI and SMARTY, continued to grow with 38,000 customer additions in Q3.
In fixed, we are the fastest growing broadband provider in the UK and our customer base increased by 64,000 in Q3. We now have the ability to serve 22 million households with gigabit speeds. In the quarter, we added 11,000 fixed wireless access (FWA) customers, reported under the mobile segment.
VodafoneThree Integration
On 31 May 2025, we completed the merger of Vodafone UK and Three UK. Full details of the transaction can be found here: Completion of Vodafone and Three merger in the UK.
VodafoneThree is now the biggest mobile network operator in the UK with over 28 million customers, with a multi-brand mobile strategy in Consumer through the Vodafone, Three, VOXI, SMARTY and Talkmobile brands. In November 2025, we launched our ‘Vodafone Together Family’ proposition which enables households to combine mobile and broadband services and rewards, alongside ‘Vodafone Secure Net’, our market leading security platform.
We have made a fast start with our merger integration including significant network improvements as part of our promise to deliver a best-in-class experience. Our spectrum and network sharing activation is ahead of plan, with 28.6 million Vodafone and Three customers already benefiting from seamlessly using both networks and we have upgraded over 8,000 radio sites, removing a total of 16,500 km2 of ‘not spot’ areas. Seven million Three and SMARTY customers are benefiting from improved 4G speeds of up to 40%, through sharing of combined spectrum.
