Vodafone Shares Slip Despite Sales Rise and Strong Full-Year Results

Vodafone (LON: VOD) shares fell around 3.7% on Tuesday morning despite the telecoms giant posting a solid set of full-year results, with sales growth and both profit and free cash flow coming in at the upper end of its guidance range.

The FTSE-listed group reported total revenue of €40.5 billion for the year ending FY26, an 8.0% increase from €37.4 billion the prior year, boosted by strong service revenue growth and the consolidation of Three UK following its landmark merger. Service revenue rose 8.8% to €33.5 billion, with organic growth of 5.4% across all segments bar Germany.

Adjusted EBITDAaL grew 4.5% on an organic basis to €11.4 billion, hitting the top end of guidance, while Adjusted free cash flow came in at €2.6 billion, also at the upper end of the company’s guided range. Operating profit swung sharply to €2.8 billion from a loss of €0.4 billion the previous year, aided by the absence of material non-cash impairment charges that had weighed on FY25.

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Africa was a standout performer, delivering double-digit organic service revenue growth of 12.9%, while Türkiye surged 10.8% in euro terms. Germany, long a pressure point for the group, returned to growth in the final quarter, posting 1.3% organic service revenue expansion in Q4.

Group Chief Executive Margherita Della Valle struck an upbeat tone, saying Vodafone is “now a simpler company with a stronger growth outlook,” and reaffirmed the group’s medium-term ambition to deliver double-digit Adjusted free cash flow growth. Total dividends per share rose 2.5% to 4.6125 eurocents.