Vodafone (VOD) Q4 2026 earnings summary

Executive summary

• Achieved the upper end of FY 2026 guidance with strong organic growth in adjusted EBITDA and free cash flow, driven by service revenue increases across Europe and Africa.

• Entering FY 2027 with a simpler, stronger business and a diversified, balanced portfolio positioned for growth, following significant portfolio reshaping including the sale of Spain and Italy and integration of Vodafone Three UK.

• Strategic focus on simplification, operational efficiency, customer experience reset, and growth in markets with sustainable structures, scale, and strong positions, especially in Europe and Africa.

Financial highlights

• Group service revenue grew 5.1% in Q4, with growth in both Europe and Africa; total revenue rose to €40.5bn, service revenue to €33.5bn, and adjusted EBITDAAL to €11.4bn.

• Adjusted EBITDA grew organically by 4.5% in FY 2026, at the upper end of guidance; adjusted free cash flow increased to €2.6bn.

• Dividend per share increased by 2.5% to 4.6125 eurocents, following a progressive dividend policy.

• Net debt/Adjusted EBITDAAL leverage at 2.2x, at the lower end of the target range.

• Statutory loss for the year was €49m, a significant improvement from the prior year loss of €3,746m.

Outlook and guidance

• FY 2027 guidance: Adjusted EBITDAAL €11.9–12.2bn, adjusted free cash flow €2.6–2.9bn, with continued growth targeted.

• Medium-term ambition for double-digit organic adjusted free cash flow growth and stable capital intensity.

• Europe expected to be broadly stable in FY 2027, with growth in Africa and Turkey supporting group-level growth.

• EBITDA in Germany expected to decline in FY 2027, with stabilization targeted in the medium term.

• Restructuring and integration costs in FY 2027 expected to peak at €0.7bn, mainly due to UK integration.