Vodafone (VOD1N) Q4 2026 Earnings Report

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.

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.