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Vodafone (VOD) AI Stock Analysis
Vodafone
(LSE:VOD)
The score is primarily held back by inconsistent profitability and meaningful leverage relative to cash flow, despite resilient cash generation and a return to revenue growth. The latest earnings call supports a moderately positive outlook (growth guidance, free cash flow delivery, dividend increase) but highlights ongoing Germany pressure and a temporary leverage bump. Technically, signals are mixed with near-term weakness versus short-term moving averages, while valuation is constrained by negative earnings despite a moderate dividend yield.
Vodafone (VOD) vs. iShares MSCI United Kingdom ETF (EWC)
- Market Cap
- GBP 27.07B
- Dividend Yield
- 3.41%
- Average Volume (3M)
- 63.59M
- Price to Earnings (P/E)
- -71.1
- Beta (1Y)
- 0.80
- Revenue Growth
- 11.08%
- EPS Growth
- 87.73%
- Country
- UK
- 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...
How the Company Makes Money
Vodafone primarily makes money by selling telecommunications connectivity and related services to consumers and businesses. The core revenue stream is service revenue from mobile subscriptions and usage: customers pay recurring monthly fees for postp...
Vodafone Earnings Call Summary
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.
Q4-2026 Updates
Positive Updates
Negative Updates
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 Financial Statement Overview
Summary
Cash generation is a key strength (solid operating and free cash flow), but free cash flow fell year over year and does not fully cover the current debt load (coverage ~0.55), implying gradual deleveraging. Revenue returned to growth in 2026, yet reported profitability remains inconsistent with net losses and significant volatility, keeping overall financial quality only slightly above average.
Income Statement
48NeutralBalance Sheet
56NeutralCash Flow
63Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 40.13B | 40.08B | 37.45B | 36.72B | 45.71B | 45.58B |
| Gross Profit | 12.63B | 12.61B | 12.52B | 12.26B | 14.86B | 15.01B |
| EBITDA | 15.36B | 15.91B | 11.61B | 14.78B | 25.79B | 16.86B |
| Net Income | -408.45M | -393.25M | -4.17B | 1.14B | 11.84B | 2.24B |
Balance Sheet | ||||||
| Total Assets | 130.04B | 130.04B | 128.52B | 144.35B | 155.52B | 154.05B |
| Cash, Cash Equivalents and Short-Term Investments | 15.77B | 15.77B | 15.49B | 10.53B | 18.48B | 14.73B |
| Total Debt | 52.69B | 52.69B | 53.14B | 54.36B | 61.50B | 67.18B |
| Total Liabilities | 75.52B | 75.52B | 74.61B | 83.35B | 91.04B | 96.98B |
| Stockholders Equity | 50.68B | 50.68B | 52.74B | 59.97B | 63.40B | 54.78B |
Cash Flow | ||||||
| Free Cash Flow | 8.52B | 8.45B | 8.67B | 9.70B | 13.10B | 13.53B |
| Operating Cash Flow | 13.39B | 13.27B | 15.37B | 16.56B | 18.05B | 18.08B |
| Investing Cash Flow | -5.50B | -5.45B | 4.76B | -6.12B | -379.00M | -6.87B |
| Financing Cash Flow | -9.65B | -9.56B | -15.28B | -15.86B | -13.43B | -9.71B |
Vodafone Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:VOD, the sentiment is Negative. The current price of 117.10 is below the 20-day moving average (MA) of 119.69, below the 50-day MA of 122.74, and above the 200-day MA of 114.03, indicating a neutral trend. The MACD of -1.56 indicates Positive momentum. The RSI at 41.30 is Neutral, neither overbought nor oversold. The STOCH value of 23.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:VOD.
Vodafone Risk Analysis
Vodafone disclosed 13 risk factors in its most recent earnings report. Vodafone reported the most risks in the "Macro & Political" category.
Latest Risks Added
3 New RisksVodafone Peers Comparison
Overall Rating
GB:GAMA85Outperform
GB:AAF65Neutral
GB:BT.A61Neutral
GB:VOD56Neutral
GB:ZEG54Neutral
GB:MAI37Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| 85Outperform | GBP 974.99M | 14.43 | 18.45% | 2.02% | 7.45% | 8.37% | |
| 65Neutral | GBP 9.37B | 17.42 | 23.91% | 1.99% | 27.10% | 49.66% | |
| 61Neutral | GBP 22.14B | 13.82 | 12.84% | 3.65% | -3.55% | 2.13% | |
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
| 56Neutral | GBP 27.59B | -71.08 | -0.79% | 3.41% | 11.08% | 87.73% | |
| 54Neutral | GBP 3.96B | -70.22 | -23.48% | ― | ― | ― | |
| 37Underperform | GBP 10.86M | -3.62 | -19.65% | ― | -6.96% | -553.88% |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| GB:VOD | Vodafone Group plc | 116.85 | 33.65 | 40.44% | |
| GB:BT.A | Bt Group Plc (Bt.A) | 227.70 | 55.32 | 32.09% | |
| GB:GAMA | Gamma Communications | 1097.00 | 143.69 | 15.07% | |
| GB:MAI | Maintel Holdings | 58.00 | -87.00 | -60.00% | |
| GB:ZEG | Zegona Communications | 1758.00 | 639.47 | 57.17% | |
| GB:AAF | Airtel Africa Plc | 267.40 | -23.48 | -8.07% |
Vodafone Corporate Events
Vodafone Updates Market on Share Capital and Voting Rights
NeutralVodafone Group, a major European and African telecoms operator, serves hundreds of millions of mobile and broadband users while also running a large global IoT platform and extensive subsea cable infrastructure. Its growing capabilities in satellite-...
Vodafone Discloses Share Sale by Senior Executive Joakim Reiter
NeutralVodafone Group has disclosed that Joakim Reiter, its Chief External and Corporate Affairs Officer, sold 500,000 ordinary shares in the company on 18 September 2026. The transaction, executed on the London Stock Exchange at a price of £1.26725 pe...
Vodafone Confirms Updated Voting Rights and Share Capital Structure
NeutralVodafone Group has updated investors on its capital structure, confirming that as of 28 August 2026 it has 24,328,991,329 ordinary shares in issue, of which 1,186,030,176 are held in treasury. This leaves a total of 23,142,961,153 voting rights, a ke...
Vodafone Brings Societe Generale In as Funding Partner for German Fibre JV
PositiveVodafone’s German fibre joint venture, OXG, will gain a new shareholder as Societe Generale agrees to acquire a 50% stake in OXG Glasfaser Beteiligungs-GmbH from Geodesia Holding. This move brings in a committed funding partner for OXG and is e...
Vodafone Aligns Subordination Terms Across Long-Dated Subordinated Debt
PositiveVodafone has amended the terms of several long-dated capital securities and subordinated notes, including euro- and sterling-denominated instruments maturing between 2078 and 2086, to align their subordination provisions. The changes ensure these ins...
Vodafone Discloses Share Sale by Vodacom CEO Shameel Joosub
NeutralVodafone Group disclosed that Shameel Joosub, CEO of its subsidiary Vodacom Group, has sold 745,000 ordinary Vodafone shares on the London Stock Exchange. The transaction, carried out at a price of £1.195 per share on 7 August 2026, totals appro...
Vodafone Executives Boost Holdings Through Dividend Reinvestment Plan
PositiveVodafone has disclosed share acquisitions by senior executives under EU Market Abuse Regulation reporting rules, signalling continued managerial participation in the company’s dividend reinvestment programme. Chair Jean-François van Boxmee...
Vodafone Adds 612,740 Ordinary Shares to London Listing
NeutralVodafone Group has admitted 612,740 new ordinary shares to trading on the London Stock Exchange, increasing its total shares in issue to 24,328,991,329. The newly admitted securities are fully fungible with existing ordinary shares, ensuring equal ri...
Vodafone Discloses Executive Share Award and Sale Under Global Incentive Plan
NeutralVodafone Group, a major telecoms operator across Europe and Africa, provides mobile, broadband and digital connectivity to about 370 million customers in 17 countries, with further investments and partnerships expanding its global reach. The company...
Vodafone discloses insider share transactions by senior executives and associates
NeutralVodafone Group, a major European and African telecoms provider, disclosed share dealings involving senior figures in line with EU Market Abuse Regulation requirements. The company, which operates extensive mobile, broadband, IoT and financial service...
Vodafone Updates Market on Total Voting Rights and Share Capital
NeutralVodafone has updated the market on its total voting rights and share capital as of 31 July 2026, reporting an issued share capital of 24.33 billion ordinary shares, of which about 1.22 billion are held in treasury. This leaves 23.11 billion voting ri...
Vodafone Sells VodafoneZiggo Stake to Liberty Global, Targets Debt Reduction
PositiveVodafone has completed the sale of its interests in VodafoneZiggo Group Holding to Liberty Global, receiving €1.0 billion in cash and a 10% stake in Ziggo Group, which will own VodafoneZiggo and Liberty Global’s Belgian subsidiary Telenet...
Vodafone Discloses Routine Share Purchase by Non-Executive Director
NeutralVodafone Group, a major telecoms provider in Europe and Africa, serves hundreds of millions of mobile and broadband users and operates extensive subsea cable and IoT infrastructure. The company also delivers mobile financial services to a large custo...
Vodafone Ties Executive Equity Awards to Cash Flow and ESG Targets
PositiveVodafone has granted global long-term incentive performance shares and market value share options to several senior executives, including Group Chief Executive Margherita Della Valle, CFO Pilar López and Vodafone Business CEO Marika Auramo, unde...
Vodafone Executives Exercise Performance Share Awards and Sell Shares for Tax
NeutralVodafone has disclosed a series of transactions by senior executives under its Global Incentive Plan, following the vesting of performance‑linked share awards. Chief Executive Margherita Della Valle, Group General Counsel and Company Secretary...
Vodafone Takes Full Control of VodafoneThree in £4.3bn Deal
PositiveVodafone has completed the £4.3 billion acquisition of CK Hutchison Group Telecom’s 49% stake in VodafoneThree, taking full ownership of the UK’s largest mobile operator and a fast-growing broadband provider. The deal, funded entirel...
Vodafone to Redeem Long-Dated Dollar Capital Securities
PositiveVodafone Group has announced it will redeem its NC5.25 Capital Securities due 2081 at par, paying 100% of the principal amount plus any accrued and unpaid interest on the redemption date. The move streamlines the company’s long-dated capital st...
Vodafone Executive Ahmed Essam Sells £3 Million in Shares
NeutralVodafone Group has disclosed a share transaction by Ahmed Essam, Executive Chairman of Vodafone Germany and CEO of European Markets, under EU Market Abuse Regulation requirements. Essam sold 2.5 million ordinary Vodafone shares on 28 July 2026 on the...
Vodafone strengthens board with appointment of Olaf Koch
PositiveVodafone Group has appointed Olaf Koch as a Non-Executive Director following shareholder approval at its 2026 Annual General Meeting. He will also join the company’s Remuneration Committee and ESG Committee, strengthening oversight of pay polic...
Vodafone AGM Backs Dividend, Governance Changes and Board Refresh
PositiveVodafone shareholders approved all substantive resolutions at the company’s Annual General Meeting held in London, including the receipt of the 2026 accounts, the re-election and election of most board members, and a final dividend of 2.3625 eu...
Vodafone lifts guidance after strong Q1 and Safaricom consolidation
PositiveVodafone reported a strong start to its 2027 financial year, with total revenue rising 9.7% to €10.3 billion and organic service revenue up 5.2%, driven by broad-based growth across Germany, the U.K., other European markets, Türkiye and do...
Vodafone Withdraws AGM Resolution After Sudden Board Resignation
NeutralVodafone Group Plc has withdrawn Resolution 7 from its 2026 Annual General Meeting agenda following the immediate resignation of board member Hatem Dowidar, meaning previously cast votes on his re-election as director will no longer be counted. The c...
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.
Date of analysis: Oct 11, 2026