Telefónica (TEF) Q1 2026 earnings summary

Executive summary

• Revenue, adjusted EBITDA, and adjusted OpCFaL grew year-over-year at constant FX, supported by the Transform & Grow plan and robust commercial momentum in Spain and Brazil.

• Net financial debt reduced by €1.5bn to €25,342m, with leverage ratio at 2.72x, driven by asset disposals and operational efficiencies.

• Nearly completed exit from Hispam, including sales in Colombia, Chile, and signed sale of Mexico.

• Confirmed €0.15 per share dividend for 2026, with strong liquidity and proactive refinancing.

• Strategic focus on customer experience, B2B/B2B growth, infrastructure expansion, and operational simplification.

Financial highlights

• Q1 2026 revenue reached €8,127m, up 0.8% year-over-year at constant FX; adjusted EBITDA rose 1.8% to €2,836m.

• Adjusted OpCFaL increased 2.4% to €1,375m; CapEx-to-revenue ratio at 10.7%.

• Free cash flow was €333m, reflecting typical Q1 seasonality.

• Adjusted net income from continuing operations was €482m, down 21.5% year-over-year.

• Net loss of €411m due to €798m loss from discontinued operations related to divestments.

Outlook and guidance

• 2026 guidance reaffirmed: revenue and adjusted EBITDA growth of 1.5–2.5% at constant FX; adjusted OpCFaL to grow over 2%.

• CapEx-to-revenue ratio targeted at ~12%; FCF guidance for FY26 is ~€3.0bn.

• Dividend of €0.15/share confirmed for 2026.

• Leverage reduction on track toward 2.5x target by 2028.

• Mid-term (2025–2028) revenue and EBITDA CAGR of 1.5–2.5%; accelerating to 2.5–3.5% for 2028–2030.