Vodafone share price jumps as profit guidance rises
Vodafone raised full-year profit guidance after a strong first quarter, and the Vodafone share price rose 3.8% in early trading. The group now expects adjusted cash profit of €13.0–13.3bn and free cash flow of €2.6–2.9bn, aiming for the upper end of both ranges.
Key Takeaways
- First-quarter revenue rose 9.7% to €10.3bn, helped by Three UK consolidation.
- Organic service revenue grew 5.2% to €8.6bn across all segments.
- Organic adjusted cash profit (EBITDAaL) rose 6.2% to €2.9bn; margin hit 28.5%.
- FY27 guidance now includes Safaricom; Vodafone targets the top of upgraded ranges.
- Shares gained 3.8% in early trading after the update.
Investors watching net worth and wealth news got a clear signal on 27 July 2026: Vodafone’s turnaround narrative is gaining traction after another quarter of broad-based growth.
According to Hargreaves Lansdown, the update pointed to possible consensus upgrades, even as Germany and debt remain watchpoints for the longer story.
What did Vodafone report in its latest trading update?
Vodafone’s Q1 FY27 trading update showed total revenue up 9.7% to €10.3bn. Growth reflected stronger service revenue and the addition of Three UK sales, partly offset by foreign exchange.
Service revenue reached €8.6bn. On an organic basis it rose 5.2%, with every segment contributing positively.
Adjusted EBITDAaL increased 6.7% to €2.9bn, or 6.2% organically. The organic margin improved 0.6 percentage points to 28.5%, driven by revenue growth and operating leverage.
Group chief executive Margherita Della Valle said the company made a good start to its “new growth chapter,” citing better retail revenues in Germany, commercial momentum in the UK, and double-digit organic growth in Africa.
Why was Vodafone’s profit guidance raised?
Full-year guidance was updated after Vodacom completed a Safaricom deal that lifts the group’s shareholding to 55%. Safaricom will be fully consolidated from 1 July 2026.
Vodafone now guides for adjusted EBITDAaL of €13.0–13.3bn and adjusted free cash flow of €2.6–2.9bn. That range includes about nine months of Safaricom. Management expects to deliver the upper end of both ranges.
HL notes original FY27 ranges were lifted to fold in Kenya and Ethiopia. After the solid start, the company is steering toward the top of the new band.
The Financial Times separately framed the guidance move alongside billionaire Xavier Niel taking a stake in Vodafone, adding a high-profile ownership subplot for markets.
How did the Vodafone share price react, and what still matters?
HL reported the Vodafone share price was up 3.8% in early trading after the results landed. That move reflected relief that growth was broad-based and that cash-profit guidance now sits higher.
Risks remain. Germany is still the hardest market, with the branded customer business under pressure even as wholesale and fixed-line trends improve. Vodafone also plans to buy the remaining 49% of VodafoneThree, a step HL pegs at a £4.3bn cash cost that would raise leverage.
HL’s forward price/earnings ratio sits at 12.6 versus a ten-year average of 15.6, with a prospective dividend yield of 3.7%. Sustained German progress, VodafoneThree delivery, and cash-flow growth will decide whether today’s bounce sticks.