Vodafone

VOD

Market cap $29B

Vodafone Group PLC (LSE:VOD) second quarter brought signs of operational improvement, but UBS argues the market has taken the good news too far. The shares have rallied more than 35% this year, helped by buybacks and a cleaner portfolio after the sale of Spain and Italy, yet the bank keeps its 'sell' rating and 80p price target.

Portuguese telecoms operators plan to spend 4.2 billion euros ($4.9 billion) on high-speed 5G networks and satellites over the next five years to support major projects such as data centres and AI, the Infrastructure Ministry said on Wednesday.

Bloomberg's 2025 Dividend Focus list highlights 36 dividend payers, with 16 qualifying as 'safer' due to free cash flow yields exceeding dividend yields. Top ten dividend stocks, including OZK, SLB, WM, and SUBCY, are projected to offer 12.5%-26.5% net gains by November 2026 based on analyst targets. Five 'IDEAL' stocks—CHHQF, VODAF, SUBCY, ITVPY, AVIFY—offer dividends from $1,000 invested that exceed their single share price, signaling potential buy opportunities.

UBS maintained its 'sell' recommendation on Vodafone Group PLC (LSE:VOD) despite second-quarter results that impressed elsewhere, arguing the stock has little room for upside. Group service revenue grew 5.8% in Q2, with earnings beating the City consensus by 2.2%, helped by a better-than-expected contribution from Europe.

Vodafone surged 8% after Q2 2026 results, fueled by a 2.5% dividend hike and a new progressive dividend policy. Despite operational improvements and positive EBITDAaL growth, VOD's fundamentals remain weak, with negative net income, negative ROIC, and negative free cash flow. Management's dividend increase appears premature given ongoing asset write-downs and cash flow challenges, raising concerns about long-term sustainability.

Vodafone has executed a successful turnaround, divesting underperforming units and merging its UK business with Three, driving improved growth prospects. VOD delivered strong H1 FY 2026 results, with revenue up 7.3% YoY and service revenue growth across key markets, especially Germany and Africa. The company raised guidance, announced a €2 billion buyback, and expects to grow its dividend by 2.5%, offering a forward yield of about 4.5%.

Vodafone Group Public Limited Company ( VOD ) Q2 2026 Earnings Call November 11, 2025 5:00 AM EST Company Participants Margherita Della Valle - Group Chief Executive & Executive Director Luka Mucic - Group CFO & Executive Director Conference Call Participants Maurice Patrick - Barclays Bank PLC, Research Division Akhil Dattani - JPMorgan Chase & Co, Research Division Carl Murdock-Smith - Citigroup Inc., Research Division Polo Tang - UBS Investment Bank, Research Division Emmet Kelly - Morgan Stanley, Research Division Joshua Mills - BNP Paribas, Research Division David Wright - BofA Securities, Research Division James Ratzer - New Street Research LLP Paul Sidney - Joh. Berenberg, Gossler & Co. KG, Research Division Robert Grindle - Deutsche Bank AG, Research Division Presentation Margherita Della Valle Group Chief Executive & Executive Director Good morning, everyone, and thank you for joining us today.

Vodafone Group PLC's (LSE:VOD) half‑year results prompted a renewed challenge from a group of 62 former franchisees pursuing a multi‑million‑pound High Court claim against the company. The group questioned why the claim, estimated at close to £90 million in potential damages and legal costs, is not disclosed as a contingent liability within the company's latest financial statements.

Vodafone share price popped and reached its highest level since August 2022 as the company's German business returned to growth. VOD soared to a high of 94p, up by about 67% from its lowest level in 2024.

Results were lifted by a return to growth in Germany and strength in its African operations.