EarningsQ2 2026 Earnings Report

Telefonica (TEFN) Q2 2026 Earnings Report

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Previous Report: Q1 2026

MX:TEFN Q2 2026 EPS Results

Actual EPS$1.45

Consensus EPS$2.32

Beat/MissMissed by -$0.87

One Year Ago EPS$1.45

MX:TEFN Q2 2026 Revenue Results

Actual Revenue$174.53B

Expected Revenue$170.92B

Beat/MissBeat by +$3.60B

YoY Revenue Growth-3.57%

Earnings Announcement Details

QuarterQ2 2026

Date07/29/2026

TimeBefore Open

Conference CallWednesday, July 29, 2026

MX:TEFN Upcoming Earnings

Telefonica's next earnings date is estimated for November 12, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:TEFN Q2 2026 Earnings Call

0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026

Earnings Call Date:Jul 29, 2026|

% Change Since:

Earnings Call Sentiment|Positive

The call conveyed clear operational momentum in Spain and Brazil, improved group profitability and cash flow metrics, a net-debt reduction and an upgraded adjusted operating cash flow after leases target (over 3%). These positives were tempered by material challenges in Germany and at VMO2 — including sharp handset-related revenue declines, restructuring charges and elevated leverage at the UK JV — plus seasonal free cash flow headwinds. Overall, the company presented stronger execution and upgraded cash-flow guidance while acknowledging localized disruption that management is actively addressing.

Company Guidance

Telefónica upgraded its 2026 adjusted operating cash flow after leases guidance from “over 2%” to “over 3%,” while maintaining adjusted EBITDA guidance (previous full‑year EBITDA growth range ~1.5–2.5%) and expecting to be at the high end of that EBITDA range but at the low end of its revenue‑growth range due to weaker handset sales; service revenue grew ~0.9–1.0% in H1. Free cash flow was EUR 611m in Q2 (EUR 944m H1), up EUR 278m sequentially and described as back‑end loaded with acceleration expected in H2; adjusted EBITDA and adjusted operating cash flow after leases increased ~+2.7% and +2.9% respectively, operating cash flow after leases margin rose +0.4 pp YoY, and CapEx/revenue remained 11.6% (flat YoY). Net financial debt fell to EUR 25.3bn with net‑debt/EBITDA around 2.68–2.78x (target 2.5x by 2028), interest cost down to 2.95% from 3.23% L12M; VMO2 confirmed 2026 revenue and adjusted EBITDA guidance; B2B revenue +6.7% and B2C +1.4%; and the 2026 dividend was set at EUR 0.15 payable June 2027.

Group profitability and cash flow improvement

Adjusted EBITDA grew +2.7% year-on-year in Q2; adjusted operating cash flow after leases increased +2.9% year-on-year. Free cash flow improved sequentially to EUR 611m in the quarter (EUR 278m higher vs Q1) and reached EUR 944m in the first half of 2026.

Upgraded guidance for adjusted operating cash flow after leases

Group 2026 guidance for adjusted operating cash flow after leases was upgraded from 'over 2%' to 'over 3%', reflecting confidence from improved operating leverage and H2 back-end loaded cash generation.

Net debt reduction and financing progress

Net financial debt reduced to EUR 25.3bn and net leverage at roughly 2.7x (net debt-to-EBITDA ~2.7x). Completed diversified financing including an inaugural Australian dollar bond and five financing transactions year-to-date, raising EUR 4.5bn long-term financing; interest costs decreased from 3.23% to 2.95% over the last 12 months.

Strong performance in Spain

Spain revenue accelerated to +2.9% year-on-year; adjusted EBITDA growth +2.3% and adjusted operating cash flow after leases +3.7% year-on-year. TV accesses +7%; churn at record low 0.7%; convergent ARPU above EUR 91 (market-leading). Complaints down 54% year-on-year; AI-driven upselling/retention/sales increased by ~20% and software upgrade time reduced by ~70%.

Robust results in Brazil (Vivo)

Vivo delivered revenue and adjusted EBITDA growth ahead of inflation. Contract mobile net adds +6% year-on-year; mobile churn low at 1.1%; total mobile ARPU +5.7%. Convergent customers up 29% year-on-year. B2C digital services grew +33.6% over the last 12 months. Adjusted EBITDA and adjusted operating cash flow after leases grew +11% and +18% year-on-year, respectively.

Network and digital investment progress

Fiber passed expanded to 77 million premises across core markets; 5G standalone coverage averaged 83% in core markets. Spain deployed edge nodes (presentation noted 17 edge nodes) and Telefónica participates as tech partner in a Spanish AI Gigafactory consortium. VMO2 reported almost 9 million gigabit-enabled premises and UK 5G standalone covering 87% of the population.

B2B momentum

Group B2B revenue growth +6.7% year-on-year with digital services (cloud, managed cybersecurity, SD-WAN) gaining traction. In Brazil, cloud and digital solution revenues grew over 20% in the last 12 months; Spain reports >50% of B2B revenue from premium digital services.

Operational efficiency and cost programs

Group capturing efficiencies via redundancy programs, AI, automation, legacy shutdowns and tech/operational excellence. Spain redundancy program on track to deliver EUR 250m of savings in 2026 (H1 ~EUR 90m, Q1 ~EUR 20m).

MX:TEFN Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Nov 12, 2026	2026 (Q3)	2.52 / -	1.871	―
Jul 29, 2026	2026 (Q2)	2.32 / 1.45	1.453	0.00% (0.00)
May 14, 2026	2026 (Q1)	2.40 / 1.05	1.635	-35.56% (-0.58)
Feb 24, 2026	2025 (Q4)	2.25 / 1.29	-3.596	135.86% (+4.89)
Nov 04, 2025	2025 (Q3)	2.07 / 1.87	1.98	-5.50% (-0.11)
Jul 30, 2025	2025 (Q2)	1.91 / 1.45	1.961	-25.93% (-0.51)
May 14, 2025	2025 (Q1)	1.65 / 1.63	1.961	-16.67% (-0.33)
Feb 27, 2025	2024 (Q4)	2.45 / -3.60	-7.664	53.08% (+4.07)
Nov 07, 2024	2024 (Q3)	1.78 / 1.98	1.743	13.54% (+0.24)
Jul 31, 2024	2024 (Q2)	1.76 / 1.96	1.199	63.64% (+0.76)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed