Vodafone Group swung to pretax profit for fiscal 2026 after a 8.8% rise in service revenue, the metric telecoms watch closely. The U.K. operator posted a 1.86 billion euros pretax gain for the year ending March 31, reversing a 1.48 billion euros loss the prior year.

Adjusted EBITDA, net of lease costs, climbed to 11.35 billion euros from 10.93 billion, while total revenue hit 40.46 billion euros, up from 37.45 billion. Growth stemmed from stronger service sales and the consolidation of Three UK, though foreign‑exchange swings muted gains in Germany where impairment hits hit 4.5 billion euros.

The turnaround signals that Vodafone’s cost‑cutting and network investments are paying off, bolstering its position against rivals like EE and Three. Investors will scrutinise whether the German impairment episode recurs, but the current earnings rebound offers a clearer path to long‑term profitability.

Vodafone’s 2026 results also reflect broader industry trends, as operators chase higher ARPU through bundled services and 5G rollouts. The company’s ability to lift service revenue without heavy capital outlays may attract further shareholder interest. Meanwhile, regulators will watch the German market closely to assess whether the impairment reflects a broader sectoral shift boldly.