Vodafone Group Plc (LON:VOD) has announced its FY26 Preliminary Results
Vodafone: simpler, stronger, growing“
After the transformation of the last three years, we are now a simpler company with a stronger growth outlook. Our strategic progress has generated good Group service revenue momentum for the year, together with profit and cash flow at the upper end of our guidance range. We returned to top line growth in Germany, alongside strong performances across Africa and in Türkiye. Our early successes from the UK merger integration reinforce our confidence in its potential and I am delighted that we are now gaining full ownership.Looking ahead, we will continue to drive continuous improvements across our business, with customer experience as our number one priority. We are now well set for mid-term growth.”
Margherita Della Valle, Group Chief Executive
Financial highlights
| 4.5% | Achieved top end | €3.1 billion | Medium term Adj. FCF growth ambition | |||
| Adjusted EBITDAaL organic growth | FY26 financial guidance | Total shareholder returns | ||||
– Total revenue: Increased 8.0% to €40.5 billion (FY25: €37.4 billion), due to strong service revenue growth and the consolidation of Three UK, partially offset by foreign exchange movements.
– Service revenue: Grew 8.8% to €33.5 billion (FY25: €30.8 billion) and on an organic basis increased 5.4% with growth in all segments except Germany.
– Germany: Organic service revenue decreased 0.2% in FY26, with gradual improvement throughout the year to 1.3% growth in Q4. Mobile market competitive intensity and the final TV law impact were offset by higher wholesale revenue, Consumer broadband ARPU improvement and strong digital services demand in Business.
– UK: Organic service revenue increased 0.3% with growth in our Consumer and Wholesale segments, partially offset by Business decline due to planned managed services contract terminations.
– Other Europe and Türkiye: Organic service revenue grew 0.5% in Other Europe with good performance across markets offset by competitive pressure in Portugal. Service revenue in Türkiye increased 10.8% in euro terms.1
– Africa: Maintained double-digit organic service revenue growth (FY26: 12.9%), supported by growth above inflation in Egypt and Vodacom’s international markets.
– Business: Organic service revenue grew 3.2%, with double digit growth in digital services.
– Adjusted EBITDAaL: Increased 3.8% to €11.4 billion (FY25: €10.9 billion), and 4.5% on an organic basis, driven by service revenue growth, only partially offset by continued commercial investment.
– Operating profit: Increased by €3.2 billion to €2.8 billion (FY25: loss of €0.4 billion), due to Adjusted EBITDAaL growth and non-cash impairment charges in the prior year, partially offset by higher depreciation and amortisation following the consolidation of Three UK.
– Shareholder returns: The final €0.5 billion tranche of the second €2 billion buyback programme completed on 11 May 2026. Total dividends per share are 4.6125 eurocents in FY26 (FY25: 4.5 eurocents), a 2.5% increase year-on-year, in line with our commitment to a progressive dividend policy announced in November 2025.
– Top end of FY26 guidance range achieved: Adjusted EBITDAaL at €11.6 billion and Adjusted free cash flow at €2.6 billion on a guidance basis.
Strategic highlights
– A new chapter: Following our transformation actions, we are entering a new chapter as a simpler and stronger business, and our external environment is creating new opportunities, with new demand for high quality connectivity and a more supportive regulatory context.
– A clear strategy: Our strategy is focused on continuing to deliver operational progress across our priorities of Customers, Simplicity and Growth. This will drive improved performance and provide us with strong foundations for future growth.
– A growth outlook: With our diversified growth portfolio, we will continue to drive attractive returns for our shareholders. Vodafone’s growth portfolio gives us the confidence in our medium-term ambition to deliver double-digit Adjusted free cash flow growth, driving continued Adjusted free cash flow growth in euro terms.
Note: 1. Excluding the impact of hyperinflationary accounting adjustments.
