Vodafone (VOD) Q3 2026 earnings summary

Executive summary

• Group service revenue grew 5.4% year-over-year in Q3, with strong contributions from Africa, Türkiye, and Germany; UK performance in line with expectations despite a decline due to tough prior year comparatives.

• Adjusted EBITDAaL increased 2.3% in Q3 and 5.3% year-to-date to €8.5bn, supporting expectations to deliver at the upper end of FY26 guidance.

• Strategic priorities advanced, including improved customer experience in Germany, network upgrades in the UK, and acquisition of Skaylink to boost digital and cloud services.

• Integration of Three UK and Telekom Romania assets completed, with ongoing network investments and synergy realization.

• Acquisition of a controlling stake in Safaricom strengthens African leadership and growth prospects.

Financial highlights

• Group service revenue up 5.4% year-over-year in Q3; organic service revenue up 5.4%; total revenue rose 6.5% to €10.5 billion.

• Adjusted EBITDAaL grew 2.3% in Q3 and 5.3% year-to-date to €8.5bn.

• Germany Q3 service revenue up 0.7% year-over-year, supported by wholesale and digital services; new customer ARPU up 21%.

• Africa Q3 service revenue up 13.5%, with strong growth in Egypt and Vodacom Internationals.

• €3.5 billion in share buybacks completed since May 2024; next €500 million tranche commencing.

Outlook and guidance

• FY26 Adjusted EBITDAaL guidance raised to €11.3–€11.6bn; Adjusted FCF guidance €2.4–€2.6bn.

• On track to deliver at the upper end of FY26 guidance for profit and cash flow; dividend per share to increase by 2.5%.

• Leverage ratio expected in the lower half of the 2.25–2.75x range.

• U.K. to see peak CapEx in 2027 as part of a £11 billion 5G investment plan.