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Vodafone Shares Rise on Upbeat Revenue and Raised Full-Year Outlook
Summary
The British telecom giant reported stronger-than-expected first-quarter revenue and lifted its guidance for core earnings and cash flow, citing strong organic growth and its expanding African operations.
Vodafone (VOD) shares gained on Monday after the company released a strong first-quarter trading update and raised its full-year financial outlook, citing robust organic growth and the expansion of its operations in Africa.
Strong Quarterly Performance
In a trading update for the quarter ending in June 2026, Vodafone reported better-than-expected results that surpassed analyst expectations. The company posted significant year-over-year growth, driven by solid performance across its segments.
Key financial highlights from the report include:
- Total Revenue: Climbed nearly 10% to €10.3 billion.
- Service Revenue: Grew 9.8% to €8.6 billion.
- Organic Service Revenue: Increased by 5.2%, stripping out the effects of currency fluctuations and M&A activity.
- Adjusted EBITDA AL: Rose 6.2% on an organic basis to €2.9 billion.
AdUpgraded Guidance and Market Factors
Alongside the strong results, Vodafone lifted its full-year forecast, now anticipating that adjusted core earnings and free cash flow will be at the upper end of its previously stated ranges. The company attributed the upgraded guidance partly to the consolidation of Safaricom, following the acquisition of an additional 20% stake by its majority-owned subsidiary Vodacom.
A supportive macroeconomic environment also contributed to the stock's rally. European equities advanced amid easing geopolitical tensions, which also caused a sharp drop in Brent crude futures. Lower energy costs are generally beneficial for capital-intensive companies like telecom operators. The combination of strong fundamentals and a positive market backdrop pushed Vodafone shares to a session high of 119.15 pence.
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