Vodafone Lifts FY27 Guidance as German Slide and €4.85 Billion Impairment Test the Story
Published on 11/11/2026 at 04:02 | Editorial boerse-global.de
Vodafone has raised its outlook for the 2027 financial year, projecting adjusted operating profit after lease costs (EBITDAaL) of EUR 13.2 to 13.4 billion. The group also lifted its adjusted free cash flow target to EUR 2.8 to 3.0 billion. Investors, however, greeted the upgrade coolly: the stock was down 1.8% on the day.
The improved guidance rests on first-half momentum. For the six months of FY27, Vodafone posted adjusted EBITDAaL of EUR 6.5 billion, an organic gain of 6.4%. Group service revenue reached EUR 18.4 billion, up 5.8% on an organic basis, while total revenue climbed 11.4% to EUR 21.9 billion.
A Loss Beneath the Headline
Reported profit tells a different story. Vodafone booked a net loss of EUR 3.6 billion for the half, dragged down by a EUR 4.85 billion impairment on its German business and a EUR 2.2 billion write-down on active deferred tax assets in the UK. Those charges sit alongside the raised operating and cash flow targets, sharpening the contrast between the underlying trend and the balance sheet hit.
Shareholders are nonetheless getting more: the interim dividend rises 2.5% to 2.306 eurocents per share.
Should investors sell immediately? Or is it worth buying Vodafone?
Germany Becomes the Swing Factor
The decisive variable for the upgraded targets is Germany, where organic service revenue slipped 0.5% after previously growing 1.2%, according to Reuters. Enterprise customers and Africa delivered stronger performances, and the question for investors is whether those businesses can keep offsetting the German drag.
Vodafone is moving to shore up the unit. First-half gross savings came to EUR 200 million, including the elimination of 3,000 positions. The German division intends to simplify its structures and lean more heavily on artificial intelligence, with investment also directed toward IT, fibre networks and digital services, as it looks to sharpen its competitive edge.
What to Watch Next
The direction of German service revenue matters more than group growth in isolation. Stabilisation there would remove a major burden; a deepening decline would force the other divisions to carry more of the load. Analysts and investors will therefore be tracking the German figures and the resilience of growth elsewhere together at each reporting date.
Vodafone at a turning point? This analysis reveals what investors need to know now.
Beyond its core markets, Vodafone set a network expansion goal in Ireland on Thursday: more than 70% 5G Standalone coverage by 2028.
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