Shares in Vodafone fell 8% today despite reporting total revenue growth of 8% in FY26 to 鈧�40.5 billion.
The telecoms giant expects to see profit before tax of almost 拢1.9bn, compared to a 拢1.5bn loss in FY25, as it simplifies its business.
It also recently announced plans to take full ownership of VodafoneThree after agreeing a 拢4.3bn deal to buy the 49% stake it does not already own. That deal is set to complete in the second half of 2026.
However investor sentiment was dampened by the decision to pause share buybacks to prioritise taking full control of the joint venture; disappointing results in Germany, its largest market; and missing its overall adjusted earnings forecast.
Vodafone reported a decline in service revenue in Germany, where it lost 77,000 mobile contract clients and 90,000 broadband customers in the last quarter.
Adjusted EBITDAaL (EBITDA after leases) for the year were 鈧�11.35bn, missing analyst expectations of 鈧�11.48bn.
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Chief executive Margherita Della Valle said: “After the transformation of the last three years, we are now a simpler company with a stronger growth outlook.
“Our strategic progress has generated good group service revenue momentum for the year, together with profit and cash flow at the upper end of our guidance range.
鈥淲e returned to top line growth in Germany, alongside strong performances across Africa and in T眉rkiye. Our early successes from the UK merger integration reinforce our confidence in its potential and I am delighted that we are now gaining full ownership.
“Looking ahead, we will continue to drive continuous improvements across our business, with customer experience as our number one priority. We are now well set for mid-term growth.”