Vodafone raised its full-year profit and cash flow guidance on 10 November 2026 after first-half revenue rose 11.4% to €21.9 billion, even as the telecoms group reported a statutory loss of €3.6 billion. The upgrade came in the company's half-year results for the six months to 30 September 2026, published through the London Stock Exchange's regulatory news service.

Total revenue increased from €19.6 billion a year earlier, helped by the consolidation of Safaricom, VodafoneThree and Telekom Romania. Service revenue, the recurring income from connectivity and related services, grew 12.8% to €18.4 billion, or 5.8% on an organic basis. Adjusted EBITDAaL, Vodafone's preferred profit measure after lease costs, rose 12.6% to €6.5 billion, a 6.4% increase organically.

Chief executive Margherita Della Valle said the group had made a strong start to a new growth chapter and was confident enough to upgrade its outlook for the year. The company now expects full-year adjusted EBITDAaL of €13.2 billion to €13.4 billion, up from €13.0 billion to €13.3 billion, and adjusted free cash flow of €2.8 billion to €3.0 billion, up from €2.6 billion to €2.9 billion. At the midpoints, the new ranges imply organic growth of about 7% in adjusted EBITDAaL and about 21% in adjusted free cash flow.

A €3.6bn loss behind the upgrade

The headline loss contrasts sharply with the improved guidance. Vodafone swung from a profit of €1.1 billion in the same period last year to a loss of €3.6 billion, driven by non-cash accounting charges rather than trading. The largest was a €4.85 billion impairment on its German business, linked mainly to higher German government bond yields and the effect of a European Court of Justice ruling. Vodafone also wrote down €2.2 billion of deferred tax assets in the UK after buying out CK Hutchison's remaining stake in VodafoneThree.

Despite the loss, Vodafone raised its interim dividend by 2.5% to 2.306 eurocents per share, in line with its progressive dividend policy. The company also reported about €200 million of gross cost savings in the first half, including around 3,000 role reductions across its European operations and shared services, as part of a productivity programme announced in May.

Germany still the problem, Africa the engine

Germany, Vodafone's largest European market, remained the weak spot. Organic service revenue there rose just 0.4%, with broadband and wholesale growth offsetting continued declines in television and pressure on mobile. Revenue in Germany was €6.05 billion, up 1% on the year. In the UK, revenue rose 10.2% to €4.9 billion, reflecting the consolidation of VodafoneThree, with organic service revenue up 0.9%.

Africa provided the strongest momentum. Revenue from Vodafone's African operations rose 37.4% to €5.43 billion, with organic service revenue up 13.4% across all of Vodacom's markets. Vodafone Business also improved, with organic service revenue growth of 5.8% in the half and 6.6% in the second quarter, which the company described as its best-ever quarterly growth for the division.

The results leave Vodafone's turnaround story finely balanced. Trading is improving and cash generation is set to grow, but the German impairment shows how exposed the group remains to interest rates and regulation in its biggest market. Investors will now watch whether the second half delivers the growth implied by the upgraded guidance. The figures are reported results, not investment advice, and the share price can move in either direction.