Research
Research Alert: Vodafone Fy 26 Results Met Guidance Amid Mixed Regional Performance
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Vodafone's FY 26 (Mar.) revenue rose 8.0% to EUR40.5B with organic service revenue growth of 5.4% to EUR33.5B, hitting top-end guidance and meeting analyst expectations. Adjusted EBITDAaL increased 4.5% organically to EUR11.4B, though margin declined 1.1%-pts to 28.1% due to Three UK consolidation while strong Africa performance (+14.0% EBITDAaL growth) offsetting European market weakness. We think the "improvement trajectory" in Germany will be the crucial swing factor in the future. Management guides FY 27 adjusted EBITDAaL of EUR11.9B-12.2B and adjusted FCF of EUR2.6B-2.9B, reflecting confidence in simplified structure. The accelerated GBP4.3B buyout of CK Hutchison's 49% U.K. stake was a mild surprise but signals confidence in integration progress, allowing tighter strategic control. Vodafone returned EUR3.1B to shareholders (EUR1.1B dividends, EUR2.0B buybacks) with leverage at 2.2x, bottom of target range. We believe the turnaround is gaining traction though challenges remain in European markets.
$VOD