'No major surprises' in Vodafone results, say JPMorgan analysts

Shares of London-listed telecom operator Vodafone rose 1.75% at 10 a.m. London time after reporting 2025 full-year results that met analyst forecasts.

JPMorgan analysts said the company's outlook for the 2026 financial year was "broadly in-line," but cautioned that adjusted profits derived from Vodafone's European operations were likely to be 3% below expectations, at the halfway point for the year.

The Wall Street bank's analysts said Vodafone's German operations had fallen short of expectations because it did not add enough broadband subscribers and did not capitalize on the fourth-quarter weakness of its competitor Deutsche Telekom.

"We expect consensus to lower German estimates but raise [rest of the world] forecasts, such that group forecasts overall are broadly unchanged," said JPMorgan analyst Akhil Dattani.

British telecoms company Vodafone announced an annual operating loss of €411 million ($462.7 million) on Tuesday, citing impairment charges in Germany and Romania of €4.5 billion.

The company had posted an annual operating profit of €3.7 billion the previous year.

The 2025 loss came as Vodafone reported a 2% rise in annual revenue, reaching €37.4 billion.

Analysts had expected total revenue of €38.1 billion, according to LSEG data.

Vodafone shares were up 0.3% at 8:22 a.m. London time, after paring losses from the start of trading.

Looking ahead to 2026, the company noted that its financial performance could be impacted by "significant uncertainty" in the current macroeconomic climate, particularly regarding trade and foreign exchange rates.

The company expects adjusted net operating profit after rental expenses to range between €11 billion and €13 billion. This figure for fiscal year 2025 was approximately €11 billion, in line with expectations.