Last Updated: 9 June 2026
Vodafone Group is one of Europe and Africa's largest telecommunications operators, providing mobile, fixed broadband, TV and business connectivity services, plus the fast-growing M-Pesa mobile-money platform through its African subsidiary Vodacom. After several transformational years — selling Vodafone Spain and Vodafone Italy, merging its UK business with Three UK, and rebasing its dividend — the group has reshaped itself around four divisions (Europe, Africa, Business and Investments). Its FY2026 results (year ended 31 March 2026), published on 11 May 2026, showed a return to top-line growth: total revenue rose 8.0% to €40.5bn, helped by the consolidation of VodafoneThree, a recovering Germany and double-digit growth in Africa. This report presents the figures from Vodafone's own filings only, with no analyst opinions or price targets.
1. Company Snapshot
| Field | Value |
|---|---|
| Ticker | VOD.L (London Stock Exchange) / VOD (Nasdaq ADR) |
| Index | FTSE 100 |
| Sector | Communication Services — Telecommunications |
| Market cap | ~£25.4bn (≈ €29.2bn), June 2026 |
| Share price | 110.4p (early June 2026) |
| Revenue (FY2026) | €40.46bn (+8.0%) |
| Adjusted EBITDAaL (FY2026) | €11.35bn |
| Adjusted basic EPS (FY2026) | 10.72 eurocents |
| Dividend per share (FY2026) | 4.6125 eurocents (yield ~3.6%) |
| CEO | Margherita Della Valle (since January 2023) |
| CFO | Luka Mucic |
| Employees | c. 92,800 (as at 31 March 2025) |
| Fiscal year end | 31 March |
| Headquarters | Newbury, United Kingdom |
2. Bull & Bear Case
Bull Case
- Return to growth: FY2026 total revenue rose 8.0% to €40.5bn and organic service revenue grew 5.4%, with Germany returning to growth in Q4 (1.3%) after a difficult TV-law transition — evidence the turnaround is taking hold.
- UK scale via VodafoneThree: the merged VodafoneThree is now the UK's largest mobile operator with over 28 million customers, and Vodafone is buying out CK Hutchison's 49% stake to take full control, targeting £700m of annual cost and capex synergies by FY30.
- African growth engine: Africa delivered 12.9% organic service revenue growth, with Vodacom's M-Pesa fintech platform (revenue up 23.1% to €494m) providing a structural, under-penetrated growth runway.
- Cash returns and progressive dividend: adjusted free cash flow of €2.6bn supports a now-rebased, progressive dividend (raised 2.5% to 4.6125c) and €4bn of buybacks over two years, with a clean leverage target of 2.25–2.75x.
Bear Case
- Germany still fragile: Germany — the single largest market at 30% of revenue — only just returned to growth, with organic service revenue down 0.2% across FY2026; a stalled recovery would undermine the whole investment case.
- High leverage: net debt rose to €25.4bn after consolidating VodafoneThree's debt and the buyback, leaving limited balance-sheet flexibility against rising rates.
- GAAP losses and dividend history: the group reported a basic loss per share from continuing operations in both FY2025 and FY2026, and halved its dividend in FY2025 — a reminder that reported profitability and capital returns have been under pressure.
- Emerging-market FX: a large share of growth comes from Türkiye, Egypt and South Africa, where currency depreciation against the euro repeatedly erodes reported results.
3. Business Segments
Vodafone reports by geography. The table shows each region's share of FY2026 total revenue (€40,461m); the small remainder relates to Common Functions and intra-group eliminations.
| Segment | % of revenue | What it is |
|---|---|---|
| Germany | 30.0% | Largest market (€12.1bn revenue); mobile, broadband and TV, undergoing a turnaround after a TV-bulk-marketing law change. |
| UK | 22.7% | VodafoneThree (€9.2bn revenue), the UK's biggest mobile operator with 28m+ customers across Vodafone, Three, VOXI, SMARTY and Talkmobile. |
| Africa | 20.7% | Vodacom (€8.4bn revenue) across South Africa, Egypt, Tanzania, DRC and more, including the M-Pesa fintech platform. |
| Other Europe | 14.1% | Portugal, Ireland, Greece, Romania, Albania and other European markets (€5.7bn revenue). |
| Türkiye | 8.5% | Vodafone Türkiye (€3.4bn revenue), a high-inflation but fast-growing mobile market. |
4. Business Model
Vodafone earns money by selling connectivity — mobile and fixed-line subscriptions to consumers and businesses — and increasingly from adjacent digital and financial services.
How it earns: the bulk of revenue is recurring service revenue (€33.5bn of the €40.5bn total in FY2026), billed monthly to consumer and business customers. Vodafone Business adds enterprise connectivity, IoT and cloud/security services, while M-Pesa monetises mobile money across Africa.
Unit economics: telecoms is capital-intensive. Vodafone converts service revenue into €11.35bn of adjusted EBITDAaL (a 28.1% margin) but must fund heavy network capital additions (€7.3bn in FY2026) and spectrum, so the key shareholder metric is adjusted free cash flow, which was €2.6bn.
Capital allocation: free cash flow funds a progressive dividend (4.6125c in FY2026) and share buybacks (€4bn over two years), with leverage managed to a 2.25–2.75x net debt/EBITDAaL target. Portfolio reshaping — exiting Spain and Italy, doubling down on the UK and Africa — is central to lifting returns on capital.
5. Financial Health
Figures below are from Vodafone's preliminary results announcements (primary RNS filings) and are on a continuing-operations basis in euros, reflecting the disposals of Vodafone Spain and Vodafone Italy. GAAP EPS is basic earnings/(loss) per share from continuing operations; adjusted EPS is adjusted basic EPS.
| Year | Revenue (€bn) | YoY % | GAAP EPS (c) | Adjusted EPS (c) | Dividend/share (c) | Net debt (YE, €bn) |
|---|---|---|---|---|---|---|
| FY2023 | €37.67bn | — | 43.66c | 11.28c | 9.00c | €33.4bn |
| FY2024 | €36.72bn | -2.5% | 4.45c | 7.47c | 9.00c | €33.2bn |
| FY2025 | €37.45bn | +2.0% | -15.86c | 7.87c | 4.50c | €22.4bn |
| FY2026 | €40.46bn | +8.0% | -1.20c | 10.72c | 4.6125c | €25.4bn |
Note: FY2023 GAAP EPS was flattered by disposal gains (Vantage Towers, Vodafone Ghana); FY2025 reflected large non-cash impairment charges. Adjusted basic EPS is the cleaner underlying trend. Vodafone reports half-yearly; the period table below shows the most recent half against the prior-year half and the FY2026 full year.
| Quarter / Half | Revenue (€bn) | Adjusted EBITDAaL (€bn) |
|---|---|---|
| H1 FY2026 (to 30 Sep 2025) | €19.6bn | €5.73bn |
| H1 FY2025 (to 30 Sep 2024) | €18.3bn | €5.41bn |
| Full year (FY2026) | €40.46bn | €11.35bn |
FY2026 cash flow and balance sheet (per the FY26 results statement): adjusted free cash flow €2,621m; depreciation and amortisation of owned assets €8,481m; operating profit €2,844m; net debt €25,411m; cash and cash equivalents €8,913m (cash plus short-term investments €12.4bn). The FY26 interim dividend was 2.25c, paid 5 February 2026.
6. Valuation
Raw metrics, June 2026. Not opinions on whether the stock is cheap or expensive.
| Metric | Value |
|---|---|
| Market cap | ~£25.4bn (≈ €29.2bn) |
| Trailing P/E (GAAP) | n/m — FY2026 GAAP basic loss per share of 1.20 eurocents (continuing operations) |
| P/E (forward) | ~11.8x (share price ≈ €1.27 / FY2026 adjusted basic EPS €0.1072; FY27 EBITDAaL guided €11.9–12.2bn) |
| P/S (TTM) | 0.72x (market cap €29.2bn / FY2026 revenue €40.46bn) |
| EV/EBITDA (TTM) | ~4.8x (EV ~€54.6bn / adjusted EBITDAaL €11.35bn; EV = market cap €29.2bn + net debt €25.4bn per FY26 balance sheet) |
| P/FCF | ~11.1x (market cap €29.2bn / adjusted free cash flow €2.62bn FY2026) |
| Enterprise value | ~€54.6bn (market cap €29.2bn + net debt €25.4bn per FY26 balance sheet) |
| 52-week high | 122.05p |
| 52-week low | 72.20p |
| Dividend yield | ~3.6% (4.6125c / €1.27 share price) |
| Short interest (% of float) | Not published in US format for this LSE primary listing — the UK regime only requires net short positions ≥0.5% of issued capital to be disclosed to the FCA; no individually disclosable short positions were on the FCA register as at June 2026. |
| Days to cover | Not published for LSE primary listing (see short interest note above) |
7. What They're Building
Vodafone's forward agenda centres on a "simpler Vodafone" organised around four divisions (Europe, Africa, Business, Investments), each with distinct growth drivers, supported by scaled shared operations and platforms.
The defining project is the UK. Having completed the Vodafone UK and Three UK merger on 31 May 2025, Vodafone agreed in May 2026 to acquire CK Hutchison's 49% of VodafoneThree for £4.3bn, taking full ownership to accelerate integration and the £700m of annual cost and capital-expenditure synergies targeted by FY30. In Germany, the priority is completing the turnaround after the TV-marketing law change, with the market returning to growth in Q4 FY2026.
In Africa, Vodacom is investing in fibre-to-the-home, fixed wireless access, satellite connectivity and its M-Pesa fintech platform, and in December 2025 closed a fibre joint venture with Maziv in South Africa. The group is also targeting up to €2bn of gross efficiency and synergy potential and around €1bn of net European opex reduction across FY27–FY30, while investing in 5G standalone, sovereign and secure enterprise solutions, and GenAI services for business customers. Follow the price on our Live Charts page.
8. Competitive Landscape
Vodafone competes against national incumbents and pan-European operators across its footprint. By market value it is mid-sized among European telecom majors.
| Peer | Market cap (June 2026) | Key 2025 metric |
|---|---|---|
| Deutsche Telekom (DTE.DE) | ~$179bn | Europe's largest telecom by value; majority owner of US leader T-Mobile US. |
| Orange (ORA.PA) | ~$58bn | French incumbent with strong positions in France, Spain and Africa. |
| BT Group (BT-A.L) | ~$27bn | UK incumbent; Openreach fixed network and EE mobile compete directly with VodafoneThree. |
| Telefónica (TEF.MC) | ~$25bn | Spain-based, with O2 in the UK/Germany (Virgin Media O2 JV) and large Latin American operations. |
9. Leadership & Ownership
Margherita Della Valle has been Chief Executive Officer since January 2023, having previously served as Group CFO; she has led the portfolio reshaping, dividend rebasing and the VodafoneThree merger. Luka Mucic is Group Chief Financial Officer. The Board reports performance through four operating divisions, with adjusted EBITDAaL and adjusted free cash flow as the primary measures.
No material insider transactions were disclosed via RNS during the period; recent director (PDMR) activity related to routine share-plan awards and dividend share alternatives rather than open-market dealing. The CEO's FY2026 total remuneration was disclosed at £10.13m.
10. Risks
- Germany execution (high relevance): Germany is 30% of revenue and only just returned to growth; competitive intensity and the residual TV-law impact could stall the recovery.
- Leverage & financial: net debt of €25.4bn (rising after consolidating VodafoneThree) limits balance-sheet flexibility and leaves the group exposed to higher refinancing costs.
- UK integration: realising the £700m VodafoneThree synergy target depends on complex network and systems integration; delays or customer churn would erode the deal's value.
- Emerging-market FX: Türkiye, Egypt and South Africa contribute meaningful growth but expose reported euro results to sharp local-currency depreciation.
- Regulatory & spectrum: telecoms is heavily regulated; spectrum auctions (e.g. Türkiye's 5G award) and pricing or consolidation rules can raise costs or constrain returns.
- Competitive intensity: mature European markets face price competition and high capital requirements (5G, fibre), pressuring margins and free cash flow.
- Dividend sustainability: having halved the payout in FY2025, the progressive dividend depends on continued free-cash-flow growth, which is sensitive to capex, FX and macro conditions.
11. Recent Developments
- 11 May 2026 — FY2026 preliminary results. Total revenue up 8.0% to €40.5bn, organic service revenue up 5.4%, adjusted EBITDAaL up 3.8% to €11.35bn; dividend raised 2.5% to 4.6125c; top end of FY26 guidance achieved.
- 11 May 2026 — VodafoneThree full ownership. Vodafone agreed to acquire CK Hutchison's 49% stake in VodafoneThree for £4.3bn, taking full control of the UK business and targeting £700m of annual synergies by FY30.
- 11 May 2026 — buyback completed. The final €0.5bn tranche of the second €2bn share buyback programme completed, taking total buybacks to €4bn over two years.
- 2 Dec 2025 — South Africa fibre JV. Vodacom's fibre joint venture with Maziv closed after regulatory approval, expanding the country's open-access fibre platform.
- 11 Nov 2025 — H1 FY2026 results. First-half total revenue up 7.3% to €19.6bn with the full-year outlook raised, driven by the UK merger and African growth.
- 31 May 2025 — VodafoneThree merger completed. The combination of Vodafone UK and Three UK created the UK's largest mobile operator, with 28m+ customers.
12. Key Dates
- 27 Jul 2026 — Q1 FY2027 trading update
- Expected Jul 2026 — Annual General Meeting
- Expected Nov 2026 — H1 FY2027 half-year results
- Expected Feb 2027 — FY2026 final dividend payment and Q3 FY2027 trading update
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Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.