Shares of Telia declined roughly 2% following the release of its fourth-quarter results, which fell short of expectations. The telecommunications company reported an adjusted EBITDA that was below consensus estimates, despite revenue generally aligning with forecasts. Investors reacted negatively, as the miss raised concerns about profitability and future growth prospects in a competitive market.

Specifically, Telia's adjusted EBITDA reached SEK 7.69 billion, underperforming the Morgan Stanley consensus. Although the company's Q4 revenue of SEK 21.3 billion met expectations, the EBITDA margin of 36.1% and the missed dividend expectations weighed on sentiment. The guidance for 2026, though in line, did little to offset the immediate disappointment.

Looking at regional performance, Sweden saw mobile service revenue growth, but Norway and Finland faced headwinds. Morgan Stanley analysts anticipate underperformance based on the Q4 miss. These results highlight the challenges Telia faces in a rapidly evolving telecom sector. The market will be watching to see how Telia navigates these challenges.

Telia's dividend for 2025 was set at SEK 2.05 per share, a slight increase but also below expectations. The company's future hinges on its ability to drive growth in key markets. Investors should watch service revenue trends and the success of its expansion strategies. The company must balance investments and returns to satisfy shareholders.