Vodafone reported a 7.3% increase in service revenue for Q3 FY26, reaching €8.5 billion. Overall revenue grew 6.5% to €10.5 billion, boosted by the consolidation of Three UK and Telekom Romania. Strong performance in Turkey and Africa helped offset currency headwinds. However, the German market, Vodafone's largest, showed sluggish growth, falling short of expectations.

Despite the positive overall figures, Germany's modest growth of 0.7% to €2.7 billion is a concern. The U.K. saw a slight organic service revenue decline of 0.5%. Africa continued its strong performance, with 13.5% organic service revenue growth for a second consecutive quarter. Vodafone reiterated its FY26 outlook, expecting results at the upper end of its target ranges.

Vodafone's adjusted EBITDAaL increased 2.3% organically to €2.8 billion. The company is maintaining its dividend policy with a planned 2.5% increase. Vodafone completed €3.5 billion in share buybacks since May 2024 and launched a new €500 million tranche. This performance comes as the telecom industry faces increasing competition and evolving market dynamics.

Investors will be watching Germany closely, as stronger performance there is vital for overall growth. The ongoing integration of Three UK is another key area to monitor. While Vodafone anticipates continued growth, the performance in its core European markets, particularly Germany, will be a key indicator of its future success and ability to compete with other telecom giants.