Shares of KPN, the Dutch telecommunications firm, fell over 2% on Wednesday following a report of decelerating fourth-quarter service revenue growth. While meeting analyst expectations for most financial metrics, the company's performance triggered investor concern. The Amsterdam-listed company's results reflect the ongoing challenges facing telecom operators.

KPN reported group service revenue growth of 1.8% year-over-year in Q4, a slight increase from the previous quarter, but below earlier rates. Total adjusted revenues reached €1.48 billion, just shy of the €1.49 billion forecast. Consumer fixed service revenue growth slowed down significantly. However, mobile service revenue growth accelerated due to price increases.

Adjusted EBITDA after leases came in at €662 million, exceeding expectations. KPN announced a dividend of €0.20 per share and a €250 million share buyback program, both in line with forecasts. For 2026, KPN anticipates service revenue growth between 2-2.5%. Investors will be watching for signals of a rebound.

The slowdown in revenue growth raises questions regarding KPN's ability to sustain its performance. The company's future hinges on its ability to navigate a competitive market. Furthermore, the share buyback and dividend indicate confidence, but the market's reaction suggests caution. Analysts will be closely monitoring KPN's strategies.