Highlights

  • Vodafone reported Group total revenue increased 6.5% year-on-year to EUR 10.452 billion in Q3 FY26.
  • The company’s Service revenue grew 7.3%, supported by Africa growth and business consolidation effects.
  • FY26 Adjusted EBITDAaL guidance was reiterated at EUR 11.3 billion to EUR 11.6 billion.
  •  The company’s adjusted free cash flow guidance for FY26 remains between EUR 2.4 billion and EUR 2.6 billion

Vodafone Group Plc (LSE:VOD) shares are down by 4.77% to GBX 109.20 during the morning session on 5 February 2026, despite the release of its Q3 FY26 Trading Update outlining favourable revenue growth across multiple regions and progress against its full-year financial guidance. The update covers the three months ended 31 December 2025 and reflects contributions from Europe, Africa, and recent business consolidations.

For the quarter, group total revenue increased by 6.5% year-on-year to EUR 10.5 billion, compared with EUR 9.8 billion in Q3 FY25. The increase was driven primarily by service revenue growth and the consolidation of the Three UK and Telekom Romania assets, while foreign exchange movements partially offset reported growth.

Service Revenue Trends by Region

Group service revenue rose 7.3% to EUR 8.5 billion in Q3 FY26, compared with EUR 7.9 billion a year earlier. On an organic basis, service revenue increased by 5.4%, following 5.8% growth in Q2 FY26.

In Germany, service revenue increased by 0.7% year-on-year, supported by higher wholesale revenue. The UK recorded a 0.5% organic decline in service revenue, reflecting the absence of previously flagged one-off project revenue in the prior year. Vodafone stated that the integration of its UK business is progressing in line with expectations.

Other European markets recorded organic service revenue growth of 1.2%, with competitive conditions in Portugal and Romania partially offsetting gains elsewhere. In Türkiye, service revenue increased by 3.7% in euro terms. Africa continued to record double-digit organic service revenue growth of 13.5%, supported by performance across all markets and continued expansion in financial services.

Profitability and Cash Flow Metrics

Adjusted EBITDAaL increased by 2.3% on an organic basis to EUR 2.8 billion in Q3 FY26. On a year-to-date basis, Adjusted EBITDAaL rose 5.3% organically to EUR 8.5 billion. Vodafone indicated that quarterly phasing remains aligned with its full-year expectations.

Operating profit declined by 52.7% year-on-year to EUR 0.5 billion, reflecting merger and acquisition activity and temporary non-cash accounting impacts related to Indian operations.

Capital Allocation and FY26 Guidance

As of February 2026, Vodafone has completed EUR 3.5 billion of share buybacks since May 2024, with a further EUR 500 million tranche commencing during February. The company reiterated its FY26 guidance, expecting Adjusted EBITDAaL in the range of EUR 11.3 billion to EUR 11.6 billion and adjusted free cash flow between EUR 2.4 billion and EUR 2.6 billion. Vodafone also confirmed plans to increase the FY26 dividend per share by 2.5%, as announced in November 2025.

FAQ

  1. What were the key takeaways from Vodafone’s Q3 FY26 trading update?

Vodafone reported higher group revenue and service revenue in Q3 FY26, supported by Europe and Africa, while reaffirming its FY26 profit and cash flow guidance.

  1. How did regional performance vary during the quarter?

Service revenue increased in Germany, Türkiye, and Africa, while the UK recorded a modest organic decline linked to prior-year one-off business revenue.

  1. What capital return measures did Vodafone highlight?

The company completed EUR 3.5 billion in share buybacks since May 2024 and commenced an additional EUR 500 million tranche in February 2026.