Vodafone Group Plc released its Q2 FY26 earnings for the quarter ending September 30 2025, reporting total revenue of €19.6 billion, up 7.3 % from €18.3 billion in the same period a year earlier. Service‑sector revenue grew 5.8 % to €16.3 billion, driven by strong demand in the UK, Turkey, and Africa, and a return to top‑line growth in Germany after the impact of the MDU TV law change subsided.
The company’s segment performance highlights a mixed but overall positive picture. In Germany, service revenue accelerated as wholesale volumes rebounded and the company leveraged its network assets to capture new customers. The UK merger with Three accelerated integration, delivering early synergies and a faster‑than‑expected network consolidation. Africa continued double‑digit organic growth at 13.5 %, while Turkey and Egypt posted euro‑term growth of 14.8 % and 32.5 % respectively, underscoring the strength of Vodafone’s high‑growth markets.
Margin dynamics remained solid. Adjusted EBITDA rose 6.8 % in H1 FY26, with an adjusted EBITDA‑aL margin of 29.7 % in Q1 FY26, a 0.4‑percentage‑point improvement from the prior year. The margin expansion reflects a favorable mix shift toward higher‑margin digital services and disciplined cost management, offsetting modest price pressure in legacy markets.
Vodafone reiterated its full‑year FY26 guidance at the upper end of its previous range, targeting adjusted EBITDA‑aL of €11.3‑11.6 billion and adjusted free cash flow of €2.4‑2.6 billion. The company also announced a 2.5 % increase in its final FY26 dividend and introduced a progressive dividend policy, signaling confidence in sustainable cash‑flow generation and a commitment to shareholder returns.
Management emphasized the positive trajectory. Chief Executive Margherita Della Valle said, “Vodafone will now grow,” and added that “in the second quarter we saw service revenue accelerating, with good performances in the UK, Turkey and Africa, and a return to top‑line growth in Germany.” She highlighted the company’s focus on structural growth in Germany and the strategic benefits of the UK merger integration.
Investors welcomed the results, citing the accelerated revenue growth, margin resilience, and the company’s confidence in meeting upper‑end guidance. The announcement reinforced Vodafone’s narrative of a focused, high‑growth strategy backed by disciplined capital returns.
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