Highlights

  • BT Group Q3 adjusted revenue declined 4% year-on-year to GBP 4.976bn, reflecting service, equipment, and disposal impacts.
  • The company’s reported profit before tax declined to GBP 183m, impacted by a GBP 214m loss share from the Sports JV.
  • Openreach expanded FTTP coverage to 21.4m premises, with 571k net fibre additions during the quarter.
  • BT reiterated full-year guidance, targeting cash flow of around GBP 2.0bn next year and GBP 3.0bn by decade-end.

BT Group plc (LSE:BT.A) shares surged 2.11% to GBX 209.33 during the morning session on 5 February 2026, extending gains that have lifted the stock 44.17% over the past year. The company release its Q3 trading update on 5 February 2026 for the quarter and nine months ended 31 December 2025, which outlined operational progress alongside mixed financial trends.

The stock remains in the green territory despite the company reported year-on-year declines across revenue, EBITDA and profit. The modest share price move suggests investors may be weighing longer-term network progress and guidance continuity against near-term financial pressure reflected in the quarter’s results.

For the third quarter, BT reported adjusted revenue of GBP 4.976bn, compared with GBP 5.183bn in the prior year, reflecting a year-on-year decline of 4%. The reduction was attributed to lower service revenue, softer equipment sales in Consumer and Business, and the impact of completed disposals in international operations. Adjusted UK service revenue declined 2% to GBP 3.835bn, with legacy voice continuing to weigh on performance.

Adjusted EBITDA for the quarter came in at GBP 2.078bn, down 1% year-on-year. BT noted that lower revenue was largely offset by ongoing cost transformation initiatives. Reported profit before tax for Q3 was GBP 183m, down GBP 244m, mainly due to a GBP 214m share of losses from the Sports joint venture.

Network Build and Openreach Momentum

Operationally, BT continued to expand its fibre and mobile networks during the period. Openreach passed more than 1m premises with FTTP for an eighth consecutive quarter, taking total coverage to 21.4m premises, including 5.9m in rural areas. The company remains on track to reach 25m premises by December 2026.

Customer demand for FTTP remained elevated, with net additions of 571k during the quarter, lifting total connected premises to 8.2m. Openreach broadband ARPU increased 4% to GBP 16.8, supported by higher fibre take-up and pricing actions. However, total broadband lines declined by 210k quarter-on-quarter, with full-year losses now expected to be around 850k.

Consumer, Business and International Performance

In Consumer, all major customer bases grew again, including broadband, postpaid mobile, and TV. Consumer service revenue was flat year-on-year, with broadband ARPU at GBP 41.8 and postpaid mobile ARPU at GBP 19.2, both down 1%.

The Business division reported progress in its transformation, although Q3 performance was affected by contract milestone timing and cost phasing. In International, all targeted disposals were completed, reducing quarterly revenue by GBP 45m.

Guidance and Outlook

BT stated that it remains on track to deliver its full-year financial outlook and guidance metrics. The company reiterated expectations for a cash flow inflection to approximately GBP 2.0bn in the next financial year, followed by a further increase to around GBP 3.0bn by the end of the decade. Management indicated that these targets remain unchanged despite year-on-year declines in revenue and profit during the third quarter, reflecting confidence in the existing financial framework and planned trajectory.

FAQ

What drove BT Group’s share price increase on 5 February 2026?
The move followed BT’s Q3 trading update, which showed operational progress and reiterated full-year guidance.

How did BT perform financially in Q3 FY26?
Adjusted revenue declined 4% year-on-year to GBP 5.0bn, while adjusted EBITDA fell 1% to GBP 2.1bn.

Is BT maintaining its FY26 outlook?
Yes, BT stated it remains on track to achieve its full-year guidance and cash flow targets.