Vodafone shares slip on weak German growth despite guidance hold
By Frank Prenesti
Date: Thursday 05 Feb 2026
(Sharecast News) - Telecoms operator Vodafone said it expected full year earnings to be at the upper end of forecasts after a strong third quarter, supported by top line growth in Germany and Turkey, although investors seemed unimpressed, marking shares in the company lower.
The company on Thursday said revenue in the period increased by 6.5% to €10.5bn. Service revenue grew by 7.3% to €8.5bn as higher turnover from the consolidation of Three UK and Telekom Romania assets were partially offset by foreign exchange movements.
Group adjusted core earnings rose 2.3% on an organic basis to €2.8bn. Vodafone expects earnings of €11.3 - 11.6bn and adjusted free cash flow of €2.4-2.6bn.
Service revenue growth of 0.7% in Germany - Vodafone's biggest market - missed forecasts, hitting the shares in London trade. UK service revenue declined by 0.5%.
However, the story was different in Africa, where service revenue grew 13.5%, while Turkey rose 3.7%.
"Recent news had given investors hope the problems in Vodafone's largest market - Germany - were behind it. However, its third-quarter update offered a serving of schadenfreude for its detractors as German growth slipped to a trickle," said AJ Bell head of Markets Dan Coatsworth.
"This overshadowed a more robust performance elsewhere and raised questions about whether the regulatory-driven issues in the German market were truly behind the company. If November's first dividend hike in seven years gave a signal that Vodafone's recovery, following years of stagnation, was finally in motion that signal feels patchier today.
"Vodafone may still be on track to deliver full-year profit and cash at the upper end of guidance, and the integration of Three UK may be progressing as planned but after an extended period of regular disappointments, shareholders can be forgiven for being cynical."
Reporting by Frank Prenesti for Sharecast.com
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