The company has reported a loss of €411 million against a backdrop marked by recent divestments in Latin America, which have resulted in a €798 million reduction in profit. Despite this, revenue and EBITDA remain on an upward trend and debt is falling, with a net debt/EBITDA ratio of 2.72x (versus 2.8x in 2025).
Reported by Consejeros Editorial Team
Telefónica (TEF) recorded a net loss of €411 million in the first quarter of 2026, compared with a loss of €1,304 million in the first quarter of 2025, due mainly to the accounting impact of divestments in Latin America, particularly in Chile, Colombia and Mexico.
Specifically, the net result from discontinued operations showed a loss of €798 million between January and March, “primarily due to the impact of the disposals carried out in Chile, Colombia and Mexico”, as the company explained in its statement. However, adjusted net profit from continuing operations, which reflects the recurring performance of the business, reached €482 million in the quarter. Unadjusted net profit from continuing operations stood at €386 million in the first three months of the year.
Notable highlights include the increase in revenue, adjusted EBITDA and accesses, whilst reducing debt. Revenue amounted to €8.127 billion between January and March, with year-on-year growth of 0.8% at constant exchange rates and 0.4% in current terms. Meanwhile, adjusted EBITDA reached €2.836 billion, 1.8% higher than in the same period last year at constant exchange rates and 1.3% higher in current terms, whilst adjusted operating cash flow after leases (OpCFaL) rose to €1.375 billion, up 2.4% at constant exchange rates and 1.6% at current exchange rates.
Management maintains 2026 targets: revenue growth 1.5%–2.5% (0.8% in Q1 26), underlying EBITDA 1.5%–2.5% (1.8% in Q1 26), EBITDAaL – Capex up 2% (up 2.4% in Q1 26), Capex/sales 12% (10.7% in Q1 26) and FCF €3 billion (€333 million in Q1 26).
It also confirms the dividend of €0.15 per share, to be paid in June 2026.
Solid performance despite the change in scope
“The first-quarter figures reflect consistent and sustained performance thanks to solid business fundamentals, an appropriate level of investment and a high-quality, differentiated network, together with an excellent customer experience. ‘This, combined with our financial discipline, has significantly reduced debt during the quarter,’ noted Telefónica’s CEO, Emilio Gayo.
The analysis team at Renta 4 views these figures positively, stating that they ‘have met our revenue forecast, exceeded the consensus estimates and slightly exceeded underlying EBITDA’. Although net profit fell short of forecasts, due to much higher-than-expected losses from discontinued operations, they point out that the results exclude Colombia and Chile from 5 and 10 February, respectively, whilst Mexico is listed as a discontinued operation.
Analysts at Bankinter, for their part, note that these are better-than-expected results. Although, in accounting terms, the divestments in Telefónica Hispam’s subsidiaries continue to have a negative impact, having reduced profits by €798 million during Q1 2026, they note that “this was already expected” and emphasise that, on a like-for-like basis for revenue and EBITDA, the positive trend remains intact. ‘In short, solid results, distorted by the change in scope and with low organic growth, but with a positive trend’.
The market is expected to react positively to these results; indeed, in early trading the company’s shares surged by up to 5%.
