2026

Strong

<h3 id="key-highlights">Key Highlights</h3><ul><li>Vodafone shares jumped 4.3% to 119.5p following an impressive Q1 performance</li><li>Quarterly revenue increased 9.7% year-over-year to €10.3 billion in the three months through June 30</li><li>Company upgraded adjusted core earnings guidance to €13–€13.3 billion for the full year</li><li>Management now anticipates delivering results at the upper end of both earnings and cash flow guidance</li><li>Germany’s service revenue exceeded consensus by 1.2%, identified by Morgan Stanley as the most significant upside</li></ul>Shares of Vodafone advanced 4.3% to 119.5 pence on Monday following the telecommunications giant’s robust first-quarter performance and improved full-year outlook.<a href="https://knockoutstocks.com/stock/VOD" rel="noopener noreferrer nofollow"> <img src="https://knockoutstocks.com/api/stocks/VOD/embed" alt="VOD Stock Card"> Vodafone Group Public Limited Company, VOD </a>For the three-month period ending June 30, total revenue reached €10.3 billion, representing a 9.7% increase compared to the prior year. Service revenue climbed 9.8% to €8.6 billion, with organic growth of 5.2%.The company’s adjusted EBITDAaL increased 6.7% to €2.9 billion, reflecting organic growth of 6.2%, supported by service revenue expansion and enhanced operating leverage.<div class="embed-x"><blockquote class="twitter-tweet">Vodafone Q1 2026 Earnings -Service Rev. EU 8.63B (est EU 8.28B) -UK Organic Service REV. +0.6% (est +0.54%) -Organic Service REV. +5.2% (est +4.55%) -Germany Organic Service Rev. +1.2% -Sees FY Adj FCF High End Of EU 2.6B To EU 2.9B -Sees FY Adj. EBITDA At High End Of EU 13.0B To…— LiveSquawk (@LiveSquawk) <a href="https://x.com/LiveSquawk/status/2081623358995665349?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">July 27, 2026</a></blockquote></div>Chief Executive Margherita Della Valle characterized the quarter as a “good start to this financial year,” highlighting widespread growth momentum across all business segments.<h3 id="strong-performance-in-germany-and-african-markets">Strong Performance in Germany and African Markets</h3>In Germany, <a href="https://coincentral.com/vodafone-vod-stock-falls-as-investors-await-july-27-trading-update/" rel="noopener noreferrer nofollow">Vodafone’s</a> most significant market, organic service revenue expanded 1.2%. Morgan Stanley highlighted that German service revenue of €2.74 billion exceeded consensus estimates by 1.2% — representing the quarter’s most notable outperformance.Analysts observed that the anticipated deceleration in German growth failed to occur, marking a distinctly positive development.African operations delivered exceptional results, with service revenue growth accelerating sharply to 15% in the first quarter, compared to 7% in the previous period. Egypt and Vodacom’s international operations were primary contributors.The UK market similarly exceeded expectations, with service revenue surpassing consensus by 70 basis points, supported by robust fixed-line performance.<h3 id="outlook-enhanced-following-safaricom-integration">Outlook Enhanced Following Safaricom Integration</h3>The company elevated its full-year projections after consolidating Safaricom into its financials. Vodacom finalized the acquisition of an additional 20% interest in Safaricom on June 30, with full consolidation taking effect from July 1, 2026.The revised guidance targets adjusted core earnings between €13 billion and €13.3 billion, with adjusted free cash flow projected at €2.6–€2.9 billion for the fiscal year ending March 2027. The company indicated it expects performance at the upper end of both ranges.<a href="https://coincentral.com/morgan-stanley-downgrades-adobe-and-salesforce-over-ai-growth-concerns/" rel="noopener noreferrer nofollow">Morgan Stanley</a> observed that the top end of the new guidance exceeds consensus estimates by 1.1% for core earnings and 4.3% for free cash flow projections.Significantly, analysts emphasized the guidance improvement is “fully organic” — not merely attributable to the Safaricom addition. Emerging markets strength, reduced macroeconomic headwinds, and energy hedging strategies all played contributory roles.Morgan Stanley maintains an “equal-weight” rating on Vodafone with a 115 pence price target. The firm had anticipated a 3–5% stock price movement following the quarterly announcement.Restructuring and integration expenses are projected to reach approximately €700 million during the current year, with roughly €400 million related to the VodafoneThree combination.The post <a href="https://blockonomi.com/vodafone-vod-stock-surges-4-3-on-strong-q1-results-and-upgraded-outlook/" rel="noopener noreferrer nofollow">Vodafone (VOD) Stock Surges 4.3% on Strong Q1 Results and Upgraded Outlook</a> appeared first on <a href="https://blockonomi.com" rel="noopener noreferrer nofollow">Blockonomi</a>.

Vodafone (VOD) Stock Surges 4.3% on Strong Q1 Results and Upgraded Outlook

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