Telefonica Upgrades 2026 Profit and Cash Flow Targets
Telefonica raised its 2026 core profit and free cash flow targets following strong third-quarter growth and a reduction in leverage.
Telefonica upgraded its 2026 core profit and free cash flow targets on Thursday, citing strong third-quarter growth and reduced leverage. The telecommunications group now expects earnings before interest, tax, depreciation and amortisation (EBITDA) to increase by slightly more than 2.5% this year, an increase from its previous forecast range of 1.5% to 2.5%.
The company raised its free cash flow target to €3.1 billion and increased its adjusted operating cash flow after leases growth forecast to more than 3.5%. However, the group lowered its annual revenue-growth forecast to a range of 1% to 1.5%, down from the previous 1.5% to 2.5% estimate.
These financial adjustments follow a third-quarter revenue increase of 2.2% to €8.43 billion. The company is currently implementing a simplified operating model designed to increase cash generation and lower debt across its primary markets in Spain, Britain, Brazil, and Germany. Additionally, the company confirmed a cash dividend of €0.15 per share payable in June 2027.
