Telefónica raises 2026 free cash flow forecast to about €3.1 billion
TEF•Telefónica raised its 2026 free cash flow forecast to about €3.1 billion from about €3 billion, while lowering its revenue growth guidance to 1%-1.5%. Third-quarter free cash flow rose 220.1% year over year to €1.02 billion.
1. Updated 2026 outlook
Telefónica now expects adjusted EBITDA growth slightly above 2.5% and adjusted operating cash flow growth above 3.5% at constant exchange rates. It cut its revenue growth guidance to 1%-1.5% from 1.5%-2.5% and introduced a service revenue growth target of about 1.5%.
2. Cash flow and dividend
Third-quarter free cash flow reached €1.02 billion, up 220.1% year over year, supported by stronger operating performance and a Spanish tax refund. The €0.15-per-share dividend remains payable in June 2027.
