Telefónica (TEF) Q2 2026 earnings summary

Executive summary

• Delivered strong Q2 and H1 2026 results, accelerating growth in adjusted EBITDA and operating cash flow after leases, with Spain and Brazil outperforming and Germany progressing on transformation.

• Upgraded 2026 adjusted OpCFaL guidance to over 3% growth, reflecting operational leverage and efficiency gains.

• Free cash flow reached €611 million in Q2 and €944 million in H1 2026, with further acceleration expected in H2.

• Net financial debt reduced to €25.3 billion as of June 2026, with leverage at 2.68x.

• Confirmed €0.15 per share dividend for 2026, payable in June 2027.

Financial highlights

• H1 2026 revenue reached €16,392 million (+1.7% y-o-y); Q2 revenue €8,265 million (+3.0% y-o-y).

• Adjusted EBITDA for H1 2026 was €5,768 million (+3.8% y-o-y); Q2 adjusted EBITDA €2,933 million (+6.4% y-o-y).

• Adjusted OpCFaL for H1 2026 was €2,654 million (+4.0% y-o-y); Q2 adjusted OpCFaL €1,279 million (+6.7% y-o-y).

• CapEx-to-revenue ratio at 11.6% for H1 2026, flat year-on-year.

• Adjusted net income from continuing operations was €954 million in H1 2026.

Outlook and guidance

• Upgraded 2026 adjusted OpCFaL growth target to over 3% year-over-year.

• Revenue and adjusted EBITDA expected to grow 1.5%-2.5% year-over-year at constant exchange rates.

• Free cash flow guidance for 2026 is approximately €3,000 million, with H2 acceleration expected.

• CapEx-to-revenue ratio forecasted at around 12% for 2026.

• Target leverage reduction to 2.5x EBITDAAL by 2028.