Spain’s Telefónica raised its profit and cash-flow targets for 2026 on Thursday after third-quarter net profit from continuing operations jumped 151.3% to €860 million, even as it trimmed its revenue outlook for the year.

Revenue in the three months to September rose 4.8% to €8.43 billion, or 2.2% at constant exchange rates, while adjusted earnings before interest, tax, depreciation and amortisation rose 6.2% to €3.08 billion. Free cash flow from continuing operations reached €1.02 billion in the quarter, up 220.1% on a year earlier.

Nine-month profit up by a fifth

For the first nine months of 2026, net profit from continuing operations rose 21.6% to €1.33 billion. Revenue reached €24.83 billion, up 2.8%, and adjusted earnings rose 4.6% to €8.85 billion, which the company described as its strongest increase in a decade.

Spain remained the largest contributor, with quarterly revenue of €3.32 billion, up 2.6%, while Brazil grew revenue by 15.4% at real exchange rates. The group ended September with 302.1 million accesses, 5% more than a year earlier.

Guidance raised — except for revenue

Telefónica lifted its 2026 adjusted earnings growth target to slightly above 2.5%, from a previous range of 1.5% to 2.5%, and raised its free cash flow objective to about €3.1 billion. At the same time it cut its revenue growth range to 1% to 1.5%, from 1.5% to 2.5%, pointing to weaker device sales.

Net financial debt fell by €1.6 billion over the quarter to €25.19 billion at the end of September, taking leverage to 2.63 times earnings. The company confirmed a cash dividend of €0.15 per share, payable in June 2027. Telefónica shares were about 2.6% lower in late-morning trading in Madrid despite the upgraded profit outlook, as investors focused on the softer revenue guidance.