London, Feb 5, 2026, 08:53 GMT — Regular session
- Vodafone shares dropped roughly 4% in early London trading following a third-quarter trading update
- The telecom group confirmed its full-year profit and cash flow forecasts and announced an additional €500 million share buyback tranche
- Investors are now eyeing Vodafone’s FY26 results, due May 12
Shares of Vodafone Group Plc dropped 4.4% to 109.35 pence by 0830 GMT on Thursday, following the release of the company’s third-quarter trading update. 1
The decline is significant since Vodafone is still viewed as a cash play. Investors are focused on whether revenue gains in Europe can translate into consistent free cash flow — the cash remaining after investments — to support ongoing buybacks and dividends.
Germany still holds the key. Small shifts in service revenue—the main figure excluding equipment sales—could tip the year-end results significantly.
Vodafone credited growth in Germany, along with solid contributions from Turkey and Africa, for keeping it on course to hit full-year profit and cash flow targets at the top end of guidance. Group revenue rose 6.5% to 10.5 billion euros. The company reaffirmed its adjusted core earnings forecast — a key operating profit metric — of 11.3-11.6 billion euros and free cash flow guidance of 2.4-2.6 billion euros through March. It also announced the next 500 million euro share buyback tranche will begin Thursday. CEO Margherita Della Valle described integration of the Three UK unit as “making very good progress.” 2
Vodafone will pay an interim dividend of 2.25 euro cents per ordinary share on Thursday, according to its shareholder information. 3
The broader market showed weakness, as the FTSE 100 slipped roughly 0.4% in early trading. 4
The risk lies in the company’s slight uptick in German service revenue faltering, coupled with the UK integration taking more time than anticipated. Any delay would hit cash flow first — and that’s exactly what investors have been focused on.
Vodafone is set to release its FY26 results on May 12, offering a clearer picture of cash flow and progress on the UK integration. 5
