EL7.AI
StocksMedium•22 October 2026•
4 min read

Telia raises targeted earnings growth to 3–4% and cash flow to SEK 9 billion

Key Facts

1Telia raised its 2026 target for adjusted operating earnings growth to 3–4% from about 3%, and raised the minimum target for free cash flow to SEK 9 billion.
2Service revenue increased 3.3% on a like-for-like basis in the third quarter of 2026.
3Free cash flow rose to SEK 3.7 billion in the third quarter, from SEK 2.9 billion a year earlier.
4Telia's plan announced on October 12 targets about 900 job cuts and gross annual savings of SEK 1 billion, with the full effect from 2028.

Telia raised its 2026 target for like-for-like adjusted operating earnings growth to a range of 3–4%, from about 3% previously, and raised the minimum target for free cash flow to SEK 9 billion. CEO Patrick Hofbauer said the financial results were "somewhat better than expected," attributing this to service revenue growth and lower operating expenses. The revision provides a clearer picture of the earnings and cash trajectory for the rest of the year, after the company maintained its forecast for adjusted earnings growth of about 3% in the second quarter. Telia said the higher guidance reflects progress in performance, alongside improved third-quarter indicators compared with the same period a year earlier.

Telia's third-quarter revenue was SEK 21.3 billion, compared with SEK 19.9 billion a year earlier. Service revenue increased 3.3% on a like-for-like basis, with major contributions from Sweden, Norway and the Baltic countries, according to the company's disclosure. In the second quarter, service revenue growth on the same basis was 2.8%, indicating an acceleration in this measure in the third quarter. The company said service growth in its main markets supported results, without attributing the improvement to a single factor. Revenue for the first nine months of the year was SEK 62.0 billion, compared with SEK 59.7 billion in the corresponding period of 2025.

Adjusted operating earnings rose 2.9% on a like-for-like basis in the third quarter, while operating expenses fell 2.6%, according to Telia's report. The company said service revenue growth in most markets and lower operating expenses supported earnings; in the previous quarter it had indicated growth of about 2%, before the reported rate rose to 2.9%. In the second quarter, adjusted earnings growth was 3.4% on the same basis, with an annual forecast of about 3% at the time. In the first nine months of 2026, adjusted earnings grew 3.5% on a like-for-like basis. Hofbauer said service growth and expense reductions were behind the results exceeding the company's expectations by a limited margin.

Free cash flow improved to SEK 3.7 billion in the third quarter, from SEK 2.9 billion in the corresponding period a year earlier, and reached SEK 7.8 billion in the first nine months, compared with SEK 6.9 billion. Cash flow from operating activities rose to SEK 20.3 billion in the first nine months, from SEK 20.1 billion a year earlier. Telia attributed the strength in free cash flow to operating earnings growth, lower capital expenditure and a positive working capital contribution. The company said its leverage ratio was 2.00 times at the end of the third quarter, the lower bound of its target range. The increase in the annual minimum free cash flow forecast to SEK 9 billion comes amid this rise recorded through the end of September.

Net income was SEK 2.9 billion in the third quarter, compared with SEK 2.5 billion in the corresponding period, and earnings per share rose to SEK 0.69 from SEK 0.60. These measures differ from the adjusted growth metrics the company used in updating its annual outlook. Analyst consensus estimates showed adjusted revenue and adjusted operating earnings above the median forecasts, while it would not be accurate to say that net income, revenue or total operating earnings all beat estimates. In a snapshot published on Telia's website on October 22, its Stockholm-listed share rose 4.80% to SEK 48.26. Nasdaq Stockholm's delayed price record for the same date showed a close of SEK 47.94, up 4.10% on the day.

The results come as the company advances a plan to cut costs and relocate more operations. On October 12, Telia announced a proposal to cut about 900 jobs across the company, targeting gross annual savings of SEK 1 billion, with the full effect expected in 2028. After the quarter ended, Telia was selected as a key partner and radio access network supplier for Sweden's new national emergency communications network. The company is scheduled to publish its year-end report for the period from January to December 2026 on January 28, 2027, the next scheduled date for its financial results.