Vodafone Q1 FY27: Organic Service Revenue +5.2%, EBITDAaL +6.2%, Guidance Lifted to Upper End
VOD sits 50% above its 52-week low of $10.66 on light trading volume (0.3× avg).
Summary
Vodafone posted Q1 FY27 organic service revenue growth of 5.2% and Adjusted EBITDAaL growth of 6.2%, with every segment contributing. Full-year guidance was raised to the upper end of the updated ranges, incorporating the Safaricom consolidation and strong operational momentum.
Key Events · Earnings and Guidance · VOD
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Strong Q1 Organic Growth
Organic service revenue increased 5.2% year-over-year, with growth in all segments: Germany +1.2%, UK +0.6%, Other Europe +1.0%, Africa +12.6%. Organic Adjusted EBITDAaL grew 6.2% to €2.9 billion, while the margin improved 0.6pp to 28.5%.
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Guidance Raised to Upper End
FY27 guidance has been updated to include the Safaricom consolidation: Adjusted EBITDAaL is now €13.0-€13.3 billion, and Adjusted free cash flow is €2.6-€2.9 billion. Management expects to deliver the upper end of these ranges.
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Safaricom Consolidation Impact
The completed acquisition of an additional 20% stake in Safaricom adds €1.1 billion to FY27 Adjusted EBITDAaL on a 9-month basis, with no impact on free cash flow. Safaricom will be fully consolidated from 1 July 2026.
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Operating Profit Boosted by Remeasurement Gain
Operating profit surged to €3.9 billion, including a €3.0 billion non-cash gain from remeasuring the previously held Safaricom stake to fair value upon obtaining control.
Analysis · VOD · Technology
A strong start to FY27 saw broad-based organic growth across all segments, with organic service revenue up 5.2% and Adjusted EBITDAaL rising 6.2% on improved operating leverage. Reflecting the Safaricom consolidation—which contributes €1.1 billion to EBITDAaL—the company raised its full-year guidance to the upper end of the new ranges. The results reinforce the turnaround narrative and back the medium-term growth ambitions set out in May.
At the time of this filing, VOD was trading at $16.02 on NASDAQ in the Technology sector, with a market capitalization of approximately $35.1B. The 52-week trading range was $10.66 to $16.61. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.