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BT Group plc
(LSE:BT.A)
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Rating:61Neutral
Price Target:
216.00 p
â–²(4.55% Upside)
Action:Reiterated
Date:09/15/26
Overall score reflects a stable but not high-momentum fundamental backdrop: strong cash generation and EBITDA strength are tempered by elevated leverage and limited recent revenue growth. Technicals are supportive (price above major moving averages with positive MACD), valuation is reasonable with a solid dividend yield, and the latest earnings call was constructive on guidance and medium-term free-cash-flow improvement despite notable near-term headwinds.
Positive Factors
Openreach network scale and fiber growth
Openreach’s extensive infrastructure and continued fiber rollout create a durable network position with broad customer reach. Rising connections and take-up can improve utilization of the asset base, support recurring wholesale and retail revenue, and strengthen BT’s competitive position over the medium term.
Negative Factors
Elevated leverage and reduced balance-sheet flexibility
High leverage limits BT’s financial flexibility while the company continues to fund substantial network investment and manage pension obligations. Lower equity further reduces balance-sheet capacity, making the group more sensitive to weaker earnings, cash-flow shortfalls, or a slower pace of deleveraging.
Read all positive and negative factors
Positive Factors
Negative Factors
Openreach network scale and fiber growth
Openreach’s extensive infrastructure and continued fiber rollout create a durable network position with broad customer reach. Rising connections and take-up can improve utilization of the asset base, support recurring wholesale and retail revenue, and strengthen BT’s competitive position over the medium term.
Read all positive factors
BT Group plc (BT.A) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£18.59B
Dividend Yield4.24%
Average Volume (3M)14.63M
Price to Earnings (P/E)11.9
Beta (1Y)0.62
Revenue Growth-3.55%
EPS Growth2.13%
CountryUK
Employees77,200
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.16
Shares Outstanding9,967,640,000
10 Day Avg. Volume22,232,638
30 Day Avg. Volume14,625,930
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)1.67
Price to Sales (P/S)1.07
P/FCF Ratio11.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£232.50Price Target Upside12.54% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)0.18
Revenue Forecast (FY)£18.25B
BT Group plc Business Overview & Revenue Model
Company Description
Headquartered in London, UK, BT Group plc is a global telecommunications leader, operating across the United Kingdom, Europe, the Middle East, Africa, the Americas, and Asia Pacific. Established in 2001 (initially as Newgate Telecommunications Lim...
How the Company Makes Money
BT Group makes money primarily by selling connectivity and related services under recurring subscription and usage-based models across consumer, business, and wholesale channels. Key revenue streams include: (1) Consumer services: monthly fees for...
BT Group plc Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented strong operational and strategic progress: record Openreach build and connections, clear transformation delivery ahead of plan, improved customer satisfaction and a credible path to higher normalized free cash flow (GBP 2bn in FY27 and GBP 3bn by FY30). At the same time the group faces near-term revenue and legacy headwinds (equipment decline, PSTN-related voice drag, International pressures), modest margin impacts in Consumer and Business, and some pension and working-capital sensitivities. Management reconfirmed guidance, increased the dividend modestly and extended transformation to provide additional confidence in medium-term targets.Positive Updates
Record Openreach build and connections
Openreach built a record 4.8 million homes and businesses in the year (including 1.5 million in Q4), has passed ~23 million premises and is on track to reach 25 million by end of the calendar year; 9 million premises passed in the last 2 years and record 2.2 million customer connections (now >9 million customers, 39% take-up).
Negative Updates
Group revenue decline and equipment weakness
Adjusted revenue declined ~4% year-on-year to GBP 19.6bn, driven principally by lower equipment sales and international divestments.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Openreach build and connections
Openreach built a record 4.8 million homes and businesses in the year (including 1.5 million in Q4), has passed ~23 million premises and is on track to reach 25 million by end of the calendar year; 9 million premises passed in the last 2 years and record 2.2 million customer connections (now >9 million customers, 39% take-up).
Read all positive updates
Company Guidance
The Group reiterated clear near‑ and medium‑term guidance: for FY‑27 total revenue of about £19.0–19.5bn, U.K. service revenue £15.1–15.4bn, adjusted EBITDA £8.2–8.3bn, accounting CapEx ~£4.3bn and normalized free cash flow of £2.0bn (up from £1.5bn in FY‑26), with a path to £3.0bn normalized FCF by FY‑30. Management extended the transformation to deliver £3.7bn gross savings (cost to achieve £1.4bn) within a FY‑25–FY‑30 window (remaining £2.2bn of savings, ~¾ in FY‑27/28), expects total labor (incl. subcontractors) to fall to 75–80k by FY‑30, and plans restructuring costs of ~£200m p.a. in the next two years (then ~£100m). Openreach targets 25m premises passed by year‑end (build cost ~£300/home), >50% of broadband customers on full fiber this year, line losses ~800k, and reiterated dividend growth of low‑to‑mid single digits per annum until BBB+ metrics are reached.BT Group plc Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
48
Neutral
Cash Flow
60
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 19.65B | 20.36B | 20.80B | 20.85B | 21.33B |
| Gross Profit | 14.57B | 14.99B | 9.71B | 13.78B | 13.80B |
| EBITDA | 7.52B | 7.27B | 6.46B | 7.23B | 6.88B |
| Net Income | 1.08B | 1.05B | 855.00M | 1.27B | 1.47B |
Balance Sheet | |||||
| Total Assets | 49.98B | 50.98B | 51.74B | 49.77B | 50.88B |
| Cash, Cash Equivalents and Short-Term Investments | 1.72B | 2.81B | 2.31B | 3.46B | 4.65B |
| Total Debt | 22.72B | 23.33B | 23.48B | 21.95B | 22.84B |
| Total Liabilities | 37.41B | 38.07B | 39.22B | 34.48B | 39.20B |
| Stockholders Equity | 12.56B | 12.91B | 12.52B | 15.30B | 11.68B |
Cash Flow | |||||
| Free Cash Flow | 1.86B | 2.05B | 984.00M | 1.30B | 1.06B |
| Operating Cash Flow | 7.03B | 6.99B | 5.95B | 5.91B | 5.96B |
| Investing Cash Flow | -3.77B | -5.01B | -3.54B | -3.56B | -3.24B |
| Financing Cash Flow | -3.11B | -2.11B | -2.43B | -2.56B | -3.22B |
BT Group plc Technical Analysis
Neutral
206.60
Price Trends
199.09
Negative
197.64
Negative
197.84
Negative
Market Momentum
-1.87
Positive
48.19
Neutral
41.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BT.A, the sentiment is Neutral. The current price of 206.6 is above the 20-day moving average (MA) of 197.95, above the 50-day MA of 199.09, and above the 200-day MA of 197.84, indicating a bearish trend. The MACD of -1.87 indicates Positive momentum. The RSI at 48.19 is Neutral, neither overbought nor oversold. The STOCH value of 41.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:BT.A.
BT Group plc Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | £980.35M | 14.41 | 18.45% | 2.03% | 7.45% | 8.37% | |
65 Neutral | £11.02B | 20.81 | 23.72% | 1.73% | 26.75% | 104.78% | |
61 Neutral | £18.59B | 11.92 | 12.84% | 4.24% | -3.55% | 2.13% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | £3.92B | -43.46 | -8.95% | 12.38% | ― | ― | |
59 Neutral | £28.75B | -75.75 | -0.79% | 3.14% | 11.08% | 87.73% | |
55 Neutral | £2.17B | 111.74 | 73.63% | <0.01% | 5.99% | -67.74% |
* Communication Services Sector Average
GB:BT.A
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BT Group plc Corporate Events
DividendsRegulatory Filings and Compliance
BT Group Executives Reinvest Dividends in Additional Shares
Neutral
Sep 11, 2026
BT Group plc has disclosed a series of share transactions by senior executives, in line with EU Market Abuse Regulation reporting requirements. The notifications cover ordinary shares of 5p each in the company, all acquired through dividend reinve...
Regulatory Filings and Compliance
BT Group updates total voting rights for August 2026
Neutral
Aug 28, 2026
BT Group has disclosed its total voting rights for the end of August 2026, reporting a capital base of 9,968,127,681 ordinary shares, of which 487,815 are held in treasury without voting rights. This leaves 9,967,639,866 voting shares in issue, a ...
Regulatory Filings and Compliance
BT Group Updates Market on Total Voting Rights at July Month-End
Neutral
Jul 31, 2026
BT Group plc reported that as of 31 July 2026 its issued share capital comprised 9,968,127,681 ordinary shares, of which 487,815 were held in treasury, resulting in 9,967,639,866 voting rights in the company. The disclosure provides investors with...
Executive/Board ChangesRegulatory Filings and Compliance
BT Group grants major restricted share award to incoming CFO
Positive
Jul 28, 2026
BT Group plc disclosed that Patricia Cobian, its chief financial officer designate, has been granted an award of 2,105,847 ordinary shares under the company’s restricted share plan at a reference price of £1.95 per share. The grant, con...
Business Operations and StrategyRegulatory Filings and Compliance
BT Group selects EY as new external auditor from 2029
Neutral
Jul 23, 2026
BT Group has named Ernst Young LLP as its next external auditor for the financial year ending 31 March 2029, following a formal competitive tender overseen by its Audit Risk Committee. The decision, approved by the board, aligns with regulatory ...
Business Operations and StrategyFinancial Disclosures
BT Group starts year strongly as fibre and 5G growth offset legacy voice drag
Positive
Jul 23, 2026
BT Group reported a solid start to its financial year, highlighting record demand for full-fibre broadband and expanded 5G+ coverage that now reaches 77% of the UK population. Fibre connections across Openreach and Consumer drove more than half of...
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsFinancial DisclosuresShareholder Meetings
BT Group Investors Back Dividend, Board and Capital Flexibility at AGM
Positive
Jul 9, 2026
BT Group shareholders strongly backed most resolutions at the 9 July Annual General Meeting, approving the 2025/26 accounts, directors’ remuneration report and a final dividend of 5.87p per share payable in September to investors on the Augu...
Regulatory Filings and Compliance
BT Group updates investors on total voting rights at June month-end
Neutral
Jun 30, 2026
BT Group plc is a major U.K. telecommunications and network services provider, offering fixed-line, broadband, mobile and converged connectivity solutions to consumers, businesses and public sector clients. The group plays a central role in the na...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
BT reshapes guidance as it carves out international unit for Verizon joint venture
Positive
Jun 29, 2026
BT Group has agreed with Verizon to combine their international operations into a 50:50 joint venture focused on multinational connectivity, prompting BT to classify its International division, including five recent non-core divestments, as a disc...
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
BT and Verizon to merge international units into $4bn connectivity joint venture
Positive
Jun 29, 2026
BT Group and Verizon have agreed to combine their international enterprise operations into a 50:50 joint venture aimed at serving more than 3,000 multinational customers across over 180 countries, with around $4 billion in combined annual revenue....
Regulatory Filings and Compliance
BT Group Executives Disclose Share Sales Following Vesting of Restricted Awards
Neutral
Jun 25, 2026
BT Group has reported a series of share transactions by senior executives following the vesting of awards under its restricted share plan. The moves involve ordinary shares in BT Group and were disclosed in line with EU Market Abuse Regulation req...
Executive/Board ChangesRegulatory Filings and Compliance
BT Group executives report vesting and sales of incentive shares
Neutral
Jun 18, 2026
BT Group has disclosed a series of share transactions by senior executives under its incentive schemes, in line with EU Market Abuse Regulation reporting requirements. The transactions involve ordinary shares under the company’s restricted s...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
BT Group grants equity awards to top executives under restricted share plan
Neutral
Jun 16, 2026
BT Group has granted sizeable awards of ordinary shares under its restricted share plan to several senior executives, including chief executive Allison Kirkby, at a reference price of £2.06 per share. Additional grants were made to heads of c...
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.