Vodafone raises FY27 adjusted profit forecast to €13.2–€13.4 billion
Key Facts
On November 10, Vodafone raised its FY27 guidance, targeting adjusted earnings before interest, tax, depreciation, amortization and leases of €13.2 billion to €13.4 billion, and adjusted free cash flow of €2.8 billion to €3.0 billion. The company had announced a range of €13.0 billion to €13.3 billion for adjusted earnings and €2.6 billion to €2.9 billion for free cash flow in July. Vodafone said in its first-half results presentation that the new guidance reflects improved revenue and the delivery of operating cost savings. The new range implies expected organic growth of 6% to 8% in adjusted earnings and 17% to 25% in free cash flow. The upgrade follows first-half growth in group revenue and adjusted profit, while performance in Germany remained weak.
Group revenue was €21.9 billion in the first half of FY27, compared with €19.6 billion in the corresponding period of FY26. Service revenue rose to €18.4 billion from €16.3 billion, according to the results presentation. Adjusted earnings before interest, tax, depreciation, amortization and leases were €6.5 billion, against €5.7 billion a year earlier. The metric grew 6.4% organically year on year. The results show revenue and adjusted profit growth in the period before the annual guidance was raised.
The company attributed part of its improved performance to operating savings of more than €200 million in the first half. It said it cut about 3,000 jobs across Europe and shared operations during the period, and announced cuts or redeployment of a further 2,300 jobs in Germany. The company did not state a target in its presentation for the German action related to profit margins. In the UK, Vodafone delivered €50 million in merger synergies in the first half. The group expects about €100 million in these savings in the second half of FY27.
Performance in Germany remained weaker than the group's results: organic service revenue there grew 0.4% in the first half, while adjusted earnings before interest, tax, depreciation, amortization and leases fell 3.2%. Vodafone said continued declines in TV activity reduced service revenue growth by about one percentage point. It also cited pressure on average mobile revenue per user. The period's results included a non-cash impairment charge of €4.85 billion related to Germany. The company attributed the charge mainly to higher German government bond yields and the effect of a European Court of Justice ruling.
By contrast, organic service revenue in the Africa segment grew 13.4% in the first half, with growth in all markets in the segment, according to the company. Digital service revenue in Vodafone Business rose 19.7% organically, and the group said strong demand for cloud services accelerated growth in the second quarter. Digital services accounted for 27.8% of service revenue in the unit, up 3.1 percentage points year on year. In the first quarter of FY27, group service revenue had grown 5.2% organically and adjusted earnings before interest, tax, depreciation, amortization and leases 6.2%, according to a July update. Net debt to adjusted earnings stood at 2.3 times in the first half, compared with 2.5 times in the corresponding period of FY26.
Vodafone said its target is to deliver more than €2 billion a year in gross operating expense savings across Europe and shared operations by FY30. It had achieved 10% of cumulative progress toward that target by the end of the first half of FY27. The company's London-listed shares closed at 116.95 pence on November 9, 2026, according to EL7 data. Vodafone set February 3, 2027, for its FY27 third-quarter trading update. It also set May 18, 2027, for the announcement of FY27 results.