Vodafone (VODI) AI Stock Analysis

Vodafone

(XETRA:VODI)

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Positive Factors

Broad Revenue and Cash Flow GrowthBroad-based service revenue growth across Europe and Africa, together with higher adjusted EBITDAaL and substantial free cash flow, indicates improving operating momentum. This supports continued network investment, strengthens financial resilience, and provides capacity to fund shareholder returns and medium-term growth.

Negative Factors

Meaningful LeverageVodafone carries meaningful leverage relative to equity and its current cash generation does not fully cover total debt. Although liquidity is workable, the debt burden limits financial flexibility and means deleveraging may be gradual, especially if operating performance weakens.

Vodafone (VODI) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 27.59B
Dividend Yield: 3.22%
Average Volume (3M): 772.27K
Price to Earnings (P/E): -72.6
Beta (1Y): 0.37
Revenue Growth: 8.05%
EPS Growth: 88.63%
Country: Germany
Employees: 91,128
Sector: Communication Services
Sector Strength: 60
Industry: Telecommunications Services

Vodafone Business Overview & Revenue Model

Company Description

Vodafone Group Public Limited Company provides telecommunication services in Germany, the United Kingdom, rest of Europe, Turkey, and South Africa. It offers mobile and fixed services; connectivity business solutions, such as digital services, the In...

Vodafone Earnings Call Summary

Earnings Call Date:May 11, 2026(Q4-2026)|% Change Since:4.38%|Next Earnings Date:Nov 09, 2026

Earnings Call SentimentPositive

The call balanced clear operational and financial progress — strong Q4 service revenue growth (5.1%), solid adjusted EBITDAaL organic growth (4.5%), EUR 2.6bn adjusted free cash flow, dividend increase, and a reinstated midterm target of double-digit organic free cash flow growth — against notable near-term challenges concentrated in Germany (retail service revenue still negative, expected EBITDA decline) and some U.K. B2B timing headwinds and a temporary leverage bump from the VodafoneThree buyout. Management emphasized portfolio simplification, disciplined leverage, UK synergy capture, and AI-driven productivity, indicating confidence in medium-term delivery despite the regional pressures.

Positive Updates

Group Revenue Momentum

Group service revenue growth remained strong in Q4 at 5.1%, with growth across both Europe and Africa, signaling broad-based top-line momentum.

Negative Updates

Germany — EBITDA and Retail Revenue Pressure

Management expects German EBITDA to remain under pressure in FY '27 with retail service revenue growth still negative; TV remains a headwind and the mobile market is described as competitive with lingering price-reset flow-through impacting volumes and revenue.

Company Guidance

Vodafone said FY‑26 hit the upper end of expectations with Q4 group service revenue up 5.1% (Europe and Africa both growing), FY‑26 organic adjusted EBITDAaL +4.5% and adjusted free cash flow of EUR 2.6bn, and a FY‑26 dividend increase of 2.5%; for FY‑27 management guides to continued “good” growth in both adjusted EBITDAaL and adjusted free cash flow (Europe broadly stable at the midpoint, Germany expected to see an EBITDA decline while the U.K. should grow as it benefits from ~2 months of VodafoneThree ownership, early synergies and the first meaningful cost/CapEx synergies), expects U.K. CapEx to peak in FY‑27 then fall, and targets double‑digit organic midterm growth in adjusted free cash flow (organic guidance only), with Vodacom also targeting double‑digit midterm growth; other quantified items mentioned included the GBP 4.2bn U.K. buyout, GBP 700m of cost/CapEx synergies to deliver by 2030, expanding FWA to 3.7m U.K. homes, Africa’s fintech >100m users, and a plan to return to the lower half of Vodafone’s leverage corridor by end FY‑27.

Vodafone Risk Analysis

Vodafone disclosed 13 risk factors in its most recent earnings report. Vodafone reported the most risks in the "Macro & Political" category.

Macro & Political - Risks related to catastrophic events or geopolitical conditions that may disrupt the company’s business

Latest Risks Added

3 New Risks

1.TCFD disclosureQ4, 2021

2.Disintermediation and failure to innovateQ4, 2021

3.IT transformationQ4, 2021

Vodafone Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

DE:VODI against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GB:GAMA	85Outperform	GBP 974.99M	14.37	18.45%	2.03%	7.45%	8.37%
GB:AAF	65Neutral	GBP 9.37B	17.72	23.91%	2.06%	27.10%	49.66%
GB:BT.A	61Neutral	GBP 22.14B	13.80	12.84%	3.66%	-3.55%	2.13%
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GB:ZEG	54Neutral	GBP 3.96B	-70.65	-23.48%	―	―	―
GB:MAI	37Underperform	GBP 10.86M	-3.62	-19.65%	―	-6.96%	-553.88%

* Communication Services Sector Average

Performance Comparison

DE:VODI and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:VODI	Vodafone Group plc	1.43	0.47	49.74%
GB:BT.A	Bt Group Plc (Bt.A)	227.30	52.00	29.66%
GB:GAMA	Gamma Communications	1092.00	123.92	12.80%
GB:MAI	Maintel Holdings	58.00	-92.00	-61.33%
GB:ZEG	Zegona Communications	1766.00	665.15	60.42%
GB:AAF	Airtel Africa Plc	259.00	-29.12	-10.11%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Vodafone AI Stock Analysis