Vodafone Delivers Strong H1 FY26 Results, Raises Guidance

Vodafone Group Plc has announced robust H1 FY26 results, exceeding expectations and prompting an upward revision of its full-year guidance.

The telecommunications giant reported a surge in revenue driven by strong service revenue growth and the consolidation of Three UK, signaling a successful phase in its ongoing transformation.

Total revenue increased by 7.3% to €19.6 billion, compared to €18.3 billion in H1 FY25. Service revenue saw an even more impressive jump, growing by 8.1% to €16.3 billion on a reported basis and 5.7% organically.

Adjusted EBITDAaL, a key profitability metric, rose by 5.9% to €5.7 billion on a reported basis and 6.8% organically. Operating profit, however, decreased by 9.2% to €2.2 billion due to higher depreciation and amortization following the Three UK consolidation.

The company is rewarding shareholders with an interim dividend of 2.25 eurocents per share and has completed €3.0 billion of share buybacks since May 2024, with another €1.0 billion remaining.

The next €500 million tranche commences today. Reflecting confidence in its future cash flow growth, Vodafone introduced a new progressive dividend policy, projecting a 2.5% increase in the FY26 dividend per share.

Driven by the strong performance, Vodafone now anticipates delivering at the upper end of its FY26 guidance ranges, with Adjusted EBITDAaL expected to be between €11.3-11.6 billion and Adjusted free cash flow between €2.4-2.6 billion.

Driver Breakdown:

• Service Revenue Growth: Strong across key markets, particularly in the UK, Türkiye, and Africa.
• VodafoneThree Integration: Fast start with immediate network improvements and commercial momentum.
• Digital Services: Robust demand for digital and financial services, driving growth in the Business and Africa segments.

“Following the progress of our transformation, Vodafone has built broad-based momentum,” stated Margherita Della Valle, Group Chief Executive.

“Based on our stronger performance, we are now expecting to deliver at the upper end of our guidance range for both profit and cash flow, and as our anticipated multi-year growth trajectory is now under way, we are introducing a new progressive dividend policy, with an expected increase of 2.5% for this financial year.”

The return to growth in Germany, with a 0.5% increase in Q2, supported by the end of the TV law change impact and higher wholesale revenue, is a significant milestone.

Africa continues to deliver double-digit organic service revenue growth, driven by strong demand for data and financial services. The UK also showed promising growth of 1.2% in Q2, supported by strong commercial momentum.