Telenor Shares Plunge After Slashing Full-Year Financial Guidance

Shares of Telenor plummeted on Tuesday after the Norwegian telecommunications firm significantly downgraded its full-year financial guidance for 2026. The stock fell by as much as 11.9% to NOK 127.9, hitting a new 52-week low and erasing a large portion of its gains from the past year.

Revised Outlook

Telenor announced the revised forecast alongside its second-quarter earnings, citing multiple operational and economic pressures. The company warned investors that it now expects key financial metrics to be weaker than previously anticipated.

Key changes to the 2026 guidance include:

• Organic adjusted EBITDA growth: Now forecast to be flat to slightly negative, a sharp reversal from the prior outlook of flat to low single-digit growth.
• Free cash flow (before M&A): The forecast was narrowed to approximately NOK 10 billion, down from a previous range of NOK 10–11 billion.

Operational Headwinds

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CEO Benedicte Schilbred Fasmer attributed the downgrade to a combination of factors impacting its core markets. These include slower-than-expected revenue growth in Norway and Finland, elevated operating costs, and headwinds from specific contracts.

Furthermore, the company highlighted a challenging macroeconomic environment in Bangladesh. Telenor's Nordic business now faces trimmed forecasts for both service revenue and EBITDA growth, while its Asia segment continues to weigh on the group's overall performance. The company noted that benefits from an ongoing transformation program are not expected to become more visible until the end of the year.

Market Context

The severe market reaction reflects not only the disappointing guidance but also a pre-existing negative sentiment among analysts. In late June, for instance, Barclays had already cut its rating on Telenor stock to underweight.

The combination of a surprise guidance cut, operational difficulties across both its Nordic and Asian divisions, and growing analyst skepticism created the conditions for Tuesday's significant sell-off. Investors will now be closely monitoring for signs of the promised turnaround in the second half of 2026.