Vodafone Group Plc

Vodafone said FY '26 performance came in at the upper end of expectations. Group service revenue growth was 5.1% in Q4, with growth across Europe and Africa. FY '26 adjusted EBITDAaL grew 4.5% organically, adjusted free cash flow was EUR 2.6 billion, and the full-year dividend increased 2.5%. For FY '27, management guided for continued good growth in both adjusted EBITDAaL and adjusted free cash flow, with Europe expected to be broadly stable overall, Germany still declining, and the U.K. growing as meaningful cost synergies begin to come through.

Margherita Della Valle framed FY '26 as the start of a “new chapter” after a three-year transformation in portfolio, capital structure, and operating model. She said Vodafone is now simpler, stronger, and operating from scaled positions in its markets, with more supportive industry conditions around pricing, spectrum, and scale. Her tone was confident on the medium term, repeatedly pointing to growth in FY '27 and beyond and a midterm ambition for double-digit organic free cash flow growth.

Maria López Álvarez focused on the drivers behind the outlook: Europe is a balanced mix of market trends, with Germany expected to decline, the U.K. expected to deliver strong growth from the first meaningful delivery of cost synergies, and Africa and Turkey continuing to grow well. She said FY '27 free cash flow growth should be supported by good adjusted EBITDA growth and broadly stable capital intensity by market, while CapEx will peak in the U.K. this year and then come down. She also said the midterm free cash flow outlook is fully organic, excluding portfolio effects and currency assumptions.

Analysts pressed management on Germany, asking whether the implied FY '27 decline suggests ongoing pressure and whether subscriber losses are being tolerated in exchange for pricing actions. Management answered that Germany’s mobile market remains fundamentally unchanged, retail service revenue is still under pressure, and EBITDA will decline in FY '27, but they believe the business is making progress and can stabilize and grow over time. Questions on M&A and leverage were answered by saying the U.K. buyout was always planned, leverage should move back into the lower half of the range by end-FY '27, and the focus remains on organic execution. On the U.K., management said revenue synergy opportunities are real even if pricing competition stays intense, driven by lower churn, cross-selling, and the expanded footprint.