Telefónica swings to €464 million profit in January-September, raises 2026 targets

Back in profit after a loss-making year

Telefónica reported a net profit of 464 million euros for January to September 2026, compared with a loss of 1,080 million euros in the same period of 2025. The figures were filed with Spain's securities regulator, the CNMV, on Thursday, 12 November. The swing reflects two very different parts of the group. Continuing operations, covering Spain, Brazil, Germany and the United Kingdom, earned 1,333 million euros, up 21.6%, while discontinued operations, mainly the Hispanic American businesses being sold, lost 870 million euros. Group revenue reached 24,825 million euros, up 2.8% at real exchange rates and 1.0% at constant rates.

Jan-Sep 2025-1,080

Jan-Sep 2026464

Jan-Sep 2025

-1080 million euros

Jan-Sep 2026

464 million euros

Data from the article text

Third quarter accelerates

Between July and September, net profit reached 802 million euros, up 191.1% on the year before. Continuing operations contributed 860 million euros (up 151.3%), while discontinued operations recorded a loss of 58 million euros (down 13.3%). Third-quarter revenue rose 4.8% at real exchange rates to 8,433 million euros, or 2.2% at constant rates. The company said this was its fourth consecutive quarter of simultaneous growth in its main financial metrics, driven mainly by revenue, adjusted EBITDA and adjusted OpCFaL in Spain and Brazil. Marc Murtra, the group's executive chairman, linked the performance to the execution of the Transform & Grow plan.

“Telefónica has once again delivered solid results this third quarter. The main financial metrics have grown simultaneously for the fourth consecutive quarter as a result of improved operating metrics.”

Spain and new European partnerships

Telefónica España, led by Borja Ochoa, posted revenue of 9,828 million euros in the first nine months, up 2.5% and its strongest growth for that period in more than 15 years. Its adjusted EBITDA reached 3,501 million euros, up 2.3%, and its third-quarter revenue came in at 3,316 million euros, up 2.6%. In the Spanish business, retail revenue grew 4.1% while wholesale revenue fell 4.5%. Telefónica also agreed a new alliance with NOS on advanced defence and security solutions. It is also exploring satellite spectrum options and direct-to-device services with Deutsche Telekom, Orange and Vodafone.

Debt reduction and exits from Latin America

Net debt, as the company reports it, stood at 25,186 million euros at the end of September, down 10.8% from a year earlier. The group cut 1,600 million euros of debt in the first nine months, the largest reduction since 2021. Telefónica has spent recent years selling its Hispanic American operations, with Chile, Peru, Ecuador, Argentina and Mexico already divested. Venezuela remains to be sold, which the company treats as the most complex of the exits. Once the remaining sales are done, the group would keep Brazil as its only operation in the region.

Continuing operations1,333

Discontinued operations-870

Total net result464

Continuing operations

1333 million euros

Discontinued operations

-870 million euros

Total net result

464 million euros

Data from the article text

Raised targets and dividend

Telefónica raised several full-year targets, all defined at constant exchange rates and excluding Venezuela. Adjusted EBITDA growth is now expected to be slightly above 2.5%, up from 1.5-2.5%. Growth in adjusted OpCFaL after leases is now targeted above 3.5%, after a July revision from above 3%. The free cash flow target rose to around 3,100 million euros from around 3,000 million euros. The board also confirmed a dividend of 0.15 euros per share for 2026, payable in June 2027.