Telefonica today announced its results for the third quarter of 2026, a period in which its revenue rose to €8,433 million (+4.8 per cent at real exchange rates and +2.2 per cent at constant exchange rates), adjusted EBITDA rose to €3,078 million (+6.2% at real exchange rates and +2.8% at constant exchange rates), adjusted operating cash flow after leases (adjusted OpCFaL) increased to €1,364 million (+10.6% at real exchange rates and +7.2% at constant exchange rates), and free cash flow from continuing operations reached €1,018 million (+220.1% at real exchange rates). Furthermore, continuing operations recorded a net profit of €860 million in the third quarter (+151.3 per cent) and €1,333 million in the first nine months of the year (+21.6 per cent).
Between July and September, the company posted its fourth consecutive quarter of simultaneous growth across its key financial metrics, both at real and constant terms. This performance has been driven primarily by strong growth in revenue, adjusted EBITDA and adjusted OpCFaL in Spain and Brazil.
The results achieved in Q3 and 9M 2026 have led the company to upgrade several of the financial targets set for the year, based on a constant exchange rate. Specifically, it is raising the growth target for adjusted EBITDA to slightly above 2.5 per cent from 1.5-2.5 per cent; it is again increasing the growth target for adjusted OpCFaL to over 3.5 per cent, having already revised it upwards in July from over 2 per cent to over 3 per cent; and it has raised the free cash flow (FCF) target to around €3.1bn from around €3bn. Telefónica has also introduced a new target, consisting of service revenue growth of around 1.5 per cent in 2026; it maintains the targets for the capital expenditure-to-revenue ratio (CapEx/Revenue) to stand at around 12 per cent and for leverage to be gradually reduced towards the 2028 target of 2.5 times EBITDAaL; and it has adjusted the total revenue growth target for 2026 to 1-1.5 per cent, down from the previous 1.5-2.5 per cent.
The third-quarter results also enable Telefónica to confirm a cash dividend of 0.15 euros per share for the 2026 financial year, payable in June 2027, subject to approval by the Annual General Meeting of Shareholders. In June 2026, the company made a cash payment of 0.15 euros per share, which corresponded to the second instalment of the dividend for the 2025 financial year.
“Telefónica has once again delivered solid results in the third quarter. Our key financial metrics have all grown together for the fourth consecutive quarter, driven by stronger operating metrics. This sustained performance is the result of the disciplined execution of our Transform & Grow plan. The plan is proving its effectiveness and allows us to be more ambitious. We are raising our full-year growth guidance for adjusted EBITDA and adjusted OpCFaL, and lifting our free cash flow outlook,” said Marc Murtra, Executive Chairman of Telefónica.
