London, UK – June 4, 2026 – Vodafone Group Plc shares experienced a modest uptick on Thursday, following the release of its robust full-year financial results for fiscal year 2026. The telecommunications giant reported an 8.0% increase in total revenue, reaching €40.5 billion, a significant improvement from the previous year's €37.4 billion. This growth was primarily driven by strong service revenue increases and the successful consolidation of Three UK into its operations.
Financial Performance Exceeds Expectations
The company announced that its service revenue grew by 8.8% to €33.5 billion for FY26, with organic service revenue growth reaching 5.4% globally. This performance was particularly strong across Africa and Türkiye, with Germany also showing positive top-line growth. Adjusted EBITDAaL saw an organic increase of 4.5% to €11.4 billion, indicating improved operational efficiency despite commercial investments. A notable turnaround was observed in operating profit, which swung from a loss of €0.4 billion in the prior year to a profit of €2.8 billion in FY26. This improvement was attributed to the growth in Adjusted EBITDAaL and non-cash impairment charges in the previous year, partially offset by increased depreciation and amortization following the Three UK consolidation.
Shareholder Returns and Strategic Moves
In line with its commitment to shareholder returns, Vodafone's Board declared a total dividend per share of 4.6125 eurocents for FY26, representing a 2.5% increase year-on-year. The final dividend per share of 2.3625 eurocents is set to be paid in August 2026, following shareholder approval at the Annual General Meeting. The company also highlighted the completion of its €4 billion share buyback program since May 2024. A significant strategic move was the earlier-than-expected completion of the acquisition of CK Hutchison's 49% stake in VodafoneThree, consolidating full ownership of UK operations and enhancing strategic flexibility. This move is expected to deliver substantial cost and CapEx synergies.
Market Reaction and Future Outlook
Vodafone shares saw a slight increase in trading on June 4, 2026, reflecting positive investor sentiment following the earnings release and dividend announcement. The company's reported figures align with its guidance, and management expressed confidence in the mid-term outlook, aiming for double-digit organic growth in adjusted free cash flow. Strategic priorities moving forward include enhancing customer experience, expanding in the business-to-business (B2B) sector, and capitalizing on opportunities in African markets. The company anticipates continued good growth in both adjusted EBITDA and adjusted free cash flow for FY27. However, Germany's EBITDA is expected to remain under pressure in FY27 due to ongoing mobile market competition, though European EBITDA is projected to be broadly stable, with strong UK growth offsetting the German decline. The ex-dividend date for the final dividend was June 4, 2026, for ordinary shareholders.