London, June 16, 2026, 12:05 BST.
- Vodafone traded close to 113p. Shares recovered after falling 2.81% on Monday. The stock was among the worst on the FTSE 100 that session.
- Vodafone CEO Margherita Della Valle said Europe needs bigger telecom firms if it wants to pay for digital infrastructure.
- Vodafone’s Q1 FY27 trading update lands July 27. Investors are watching that day.
Vodafone Group PLC steadied in London on Tuesday after dropping hard earlier in the week. Shares traded around 112.75p to sell and 112.85p to buy at AJ Bell, up 0.23%. Volume hit 15.3 million. Vodafone slumped 2.81% on Monday, lagging the FTSE 100, which slipped 0.39%. Tuesday saw a modest rebound after the heavy loss.
Vodafone’s strategy is in the spotlight this week. CEO Margherita Della Valle urged Europe to relax merger rules, saying at the Reuters NEXT Europe summit in London that only bigger telecom companies can pay for digital networks. “If we want this, we need more investment, which needs scale,” Della Valle said. M&A decisions matter for Vodafone stock. The company’s turnaround depends on expanding in core markets, like the UK, where it’s waiting for the Vodafone-Three merger. Reuters
Vodafone bulls are sticking with the restructuring pitch after the latest results. FY26 revenue came in at €40.5 billion, with organic service revenue up 5.4%. Adjusted EBITDAaL was €11.4 billion, and adjusted free cash flow hit €2.6 billion. Adjusted EBITDAaL takes out interest, tax, depreciation and amortisation after lease costs, and free cash flow comes post operations and investment spend. The board raised the total dividend by 2.5% to 4.6125 eurocents. Vodafone also wrapped up its second €2 billion buyback.
Vodafone’s debt risk goes up with its planned buyout. The company plans to pay £4.3 billion in cash to take its VodafoneThree stake to 100% from 51%. If it gets the deal done, pro forma net leverage will climb by 0.4 times. This ratio measures debt against earnings. The buyout still needs approval under the UK National Security and Investment Act. Vodafone targets closing in the second half of 2026. Investors have to consider the timing for regulators and the work to merge the operations.
Vodafone shares traded near 113p, putting the price-to-earnings ratio at 9.85 and a 3.55% dividend yield, AJ Bell data shows. Market cap stands at about £26.0 billion. The stock has rallied since dropping to 67.5457p last year but is still under the 52-week high of 131.10p. At this price, Vodafone stock isn’t cheap or much of a bargain—it looks fairly valued. Some investors are still looking for a UK cash-flow recovery, but the overhangs in Germany, debt worries, and merger uncertainty remain. Vodafone updates investors next on July 27 with its Q1 FY27 trading update, and follows with H1 FY27 results on November 10.
