Vodafone Group Public Limited Company Reported A Surprise Loss, And Analysts Have Updated Their Forecasts

Shareholders of Vodafone Group Public Limited Company (LON:VOD) will be pleased this week, given that the stock price is up 15% to UK£0.78 following its latest yearly results. Revenues came in at €37b, in line with estimates, while Vodafone Group reported a statutory loss of €0.16 per share, well short of prior analyst forecasts for a profit. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Vodafone Group after the latest results.

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Following last week's earnings report, Vodafone Group's 13 analysts are forecasting 2026 revenues to be €38.0b, approximately in line with the last 12 months. Vodafone Group is also expected to turn profitable, with statutory earnings of €0.074 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €38.4b and earnings per share (EPS) of €0.072 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for Vodafone Group

There were no changes to revenue or earnings estimates or the price target of UK£0.84, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Vodafone Group, with the most bullish analyst valuing it at UK£1.34 and the most bearish at UK£0.55 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2026. Historically, Vodafone Group's top line has shrunk approximately 5.2% annually over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.2% per year. So it's pretty clear that, although revenues are improving, Vodafone Group is still expected to grow slower than the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Vodafone Group's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Vodafone Group analysts - going out to 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Vodafone Group that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.