Vodafone Shares Dip: German Operations Underperform, Adjusted Earnings Miss Estimates

Deep News05-12

Focus: A Look at Q1 2026 U.S. Stock Earnings Reports

Vodafone Group PLC's stock has risen over 17% year-to-date.

Shares of the British telecommunications giant Vodafone fell following its earnings report. The core reasons were a decline in service revenue from its largest market, Germany, and adjusted earnings that slightly missed market expectations.

The UK telecom company reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) after leases of €11.35 billion (approximately $13.38 billion) for the fiscal year ended March 31, compared to €10.93 billion in the prior year.

According to a company-compiled consensus of analyst estimates, the market had anticipated this adjusted EBITDA to be €11.48 billion.

Vodafone's London-listed shares fell 3.5% in early trading to £1.16; the stock's year-to-date gain remains just over 17%.

Russ Mould, an analyst at investment firm AJ Bell, noted in a client research report that the share price decline stems partly from the significant prior gains and partly from the lack of positive surprises in the just-ended fiscal year and the start of the new one.

He pointed out: "The market is even slightly disappointed. The company's growth outside Europe is stronger, while Vodafone has not yet provided a convincing enough performance regarding whether its German operations can get back on track."

During the reporting period, the group's total revenue increased to €40.46 billion from €37.45 billion the previous year.

The company stated that revenue from the German market, which contributes about one-third of the group's total revenue, decreased to €12.13 billion from €12.18 billion, with organic service revenue down 0.2%. This was primarily impacted by intensified market competition and revisions to television-related regulations.

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