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Telefonica posts higher 9-mth revenue; cuts FY revenue forecast

By Reuters News


Overview

  • Spain telecom operator's nine-month 2026 revenue rose 2.8% to EUR 24.8 bln

  • Adjusted EBITDA for nine months rose 4.6% to EUR 8.8 bln

  • Capex/revenue ratio remained broadly stable at 12%


Outlook

  • Telefonica sees 2026 revenue growth of 1%-1.5% vs prior forecast of 1.5%-2.5%

  • Company expects 2026 adjusted EBITDA growth slightly above 2.5% y-o-y (before 1.5%-2.5%)

  • Telefonica targets 2026 FCF of ~€3.1 bln, up from ~€3.0 bln


Result Drivers

  • B2B AND DIGITAL SERVICES - Co said growth in B2B and digital services contributed to revenue and margin gains

  • COMMERCIAL MOMENTUM - Co cited strong commercial momentum and high single-digit B2B revenue growth in Spain and Brazil

  • EFFICIENCY GAINS - Co attributed margin improvement to restructuring, automation and digitalisation


Company press release: Full Story


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

9M Revenue

EUR 24.83 bln

9M Adjusted EBITDA

EUR 8.85 bln

9M Capex

EUR 3.005 bln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 13 "hold" and 7 "sell" or "strong sell"

  • The average consensus recommendation for the integrated telecommunications services peer group is "buy."

  • Wall Street's median 12-month price target for Telefonica SA is €3.80, about 8.4% above its November 11 closing price of €3.51

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago


Reuters Recommended Reads

  • Nov 10 - Vodafone H1 revenue growth beats analyst estimates, helped by acquisitions, B2B demand; outlook raised

  • Nov 11 - Israel's Bezeq Telecom profit jumps as fibre network deployment continues

  • Nov 10 - Telecom Italia third-quarter core profit comes in line with expectations


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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