London, 08:32 GMT, February 5, 2026
- Vodafone launches a €500 million share buyback program set to continue through May
- Q3 revenue climbed 6.5%, driven by gains in Africa and Turkey that counterbalanced weakness in Germany
- The group reaffirmed its full-year profit and cash flow targets
Vodafone (VOD.L) announced a new €500 million share buyback Thursday, alongside a 6.5% jump in third-quarter revenue to €10.5 billion. The results put the company firmly on course to hit the top end of its full-year profit and cash flow targets. CEO Margherita Della Valle confirmed the group is “on track to deliver at the upper end” of its guidance. Vodafone’s shares have surged 73% over the last year. (Reuters)
The buyback is significant as Vodafone aims to present a steadier narrative to investors: consistent cash flow, slight progress in Europe, and fewer shocks. Telecom companies continue pouring money into networks, even as competition keeps price hikes in check.
Vodafone’s key challenge is still Germany, its largest market, where investors want to see evidence of sustained growth. The new buyback tranche sends a clear message—management insists the cash is available.
Vodafone has instructed Goldman Sachs International to buy shares as a riskless principal from Feb. 5 through no later than May 11, according to a regulatory filing. The purchases will take place on the London Stock Exchange and other approved venues. This comes under authority granted at Vodafone’s 2025 annual meeting to repurchase up to 3,715,558,736 ordinary shares. (Halifax)
TipRanks, referencing the company’s announcement, noted that the repurchased shares will be kept in treasury for eventual cancellation or to fund employee share awards, aiming to cut Vodafone’s share capital. It also pointed to the latest analyst rating it follows, which remains a “Buy” with a £124 target price. (TipRanks)
Service revenue climbed 7.3% to €8.5 billion in the quarter ending Dec. 31, driven by gains in Africa and the integration of Three UK and Telekom Romania, Il Sole 24 Ore Radiocor reported. Currency headwinds trimmed some of that growth. On an organic basis—excluding acquisitions and forex impacts—service revenue advanced 5.4%. Adjusted EBITDAaL, Vodafone’s main earnings metric post-leases, increased 2.3% to €2.8 billion. However, operating profit dropped sharply, down 52.7% to €0.5 billion. (Borsaitaliana)
Service revenue in Germany inched up 0.7% to €2.7 billion, a figure Investing.com described as below expectations despite Vodafone bringing 1&1 on as a wholesale client. Africa led the pack with a solid 13.5% organic service-revenue gain. Turkey also saw growth, rising 3.7% in euro terms. The UK, however, slipped 0.5%, weighed down by the absence of a one-off boost from the previous year. (Investing.com India)
Some investors are focusing on valuation rather than quarterly results to make their case for the stock. A Feb. 3 note from Zacks Equity Research pointed out that Vodafone’s ADR is trading at a forward price-to-earnings ratio of 9.98, below the industry average of 11.32. Its price-to-book ratio stands at 0.48. (P/E compares share price with expected earnings; P/B compares market value with net assets.) (Finviz)
The downside remains all too familiar: Germany’s gains remain modest, tougher competition hits parts of Europe, and currency shifts wipe out the benefits from faster-growing markets. Even with Vodafone claiming progress, the UK integration effort still faces execution risks.
Vodafone is counting on consistent cash returns and gradual operating gains to maintain investor confidence. The buyback itself poses little challenge; sustaining service revenue growth across Europe is the real test.
