Vodafone Group (VOD) Q3 2026 earnings summary

Executive summary

• Group service revenue grew 5.4% in Q3, with strong contributions from Africa, Türkiye, and Germany, and continued growth in Europe; 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, supporting expectations to deliver at the upper end of FY26 guidance.

• Strategic priorities advanced, including improved customer experience in Germany, accelerated network investment in the UK, and successful integration of Three UK and Telekom Romania assets.

• Acquisition of Skaylink completed to support digital and cloud services growth.

• Vodacom's acquisition of a 20% stake in Safaricom announced, reinforcing African leadership.

Financial highlights

• Group service revenue up 5.4% year-over-year in Q3; Europe up 0.4%, Africa up 13.5%, Türkiye up 3.7% in euro terms, and Egypt up 33.1% in euro terms.

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

• Group total revenue rose 6.5% year-over-year to €10.5 billion in Q3, driven by Africa and asset consolidations.

• New customer ARPU in Germany up 21% year-over-year, stabilizing consumer broadband revenues.

• Net Promoter Scores increasing across the group.

Outlook and guidance

• On track to deliver at the upper end of FY26 guidance for Adjusted EBITDAaL (€11.3–11.6 billion) and Adjusted free cash flow (€2.4–2.6 billion).

• FY26 dividend per share expected to grow by 2.5%, reflecting medium-term free cash flow growth.

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

• U.K. to see a step up in CapEx in 2027, coinciding with peak investment in the 5G network.

• Multi-year growth trajectory for adjusted free cash flow and EBITDA remains intact through 2027.