Key HighlightsVodafone shares jumped 4.3% to 119.5p following an impressive Q1 performanceQuarterly revenue increased 9.7% year-over-year to €10.3 billion in the three months through June 30Company upgraded adjusted core earnings guidance to €13–€13.3 billion for the full yearManagement now anticipates delivering results at the upper end of both earnings and cash flow guidanceGermany’s service revenue exceeded consensus by 1.2%, identified by Morgan Stanley as the most significant upsideShares of Vodafone advanced 4.3% to 119.5 pence on Monday following the telecommunications giant’s robust first-quarter performance and improved full-year outlook.Vodafone Group Public Limited Company, VODFor the three-month period ending June 30, total revenue reached €10.3 billion, representing a 9.7% increase compared to the prior year. Service revenue climbed 9.8% to €8.6 billion, with organic growth of 5.2%.The company’s adjusted EBITDAaL increased 6.7% to €2.9 billion, reflecting organic growth of 6.2%, supported by service revenue expansion and enhanced operating leverage.Vodafone Q1 2026 Earnings-Service Rev. EU 8.63B (est EU 8.28B)-UK Organic Service REV. +0.6% (est +0.54%)-Organic Service REV. +5.2% (est +4.55%)-Germany Organic Service Rev. +1.2%-Sees FY Adj FCF High End Of EU 2.6B To EU 2.9B-Sees FY Adj. EBITDA At High End Of EU 13.0B To…— LiveSquawk (@LiveSquawk) July 27, 2026Chief Executive Margherita Della Valle characterized the quarter as a “good start to this financial year,” highlighting widespread growth momentum across all business segments.Strong Performance in Germany and African MarketsIn Germany, Vodafone’s most significant market, organic service revenue expanded 1.2%. Morgan Stanley highlighted that German service revenue of €2.74 billion exceeded consensus estimates by 1.2% — representing the quarter’s most notable outperformance.Analysts observed that the anticipated deceleration in German growth failed to occur, marking a distinctly positive development.African operations delivered exceptional results, with service revenue growth accelerating sharply to 15% in the first quarter, compared to 7% in the previous period. Egypt and Vodacom’s international operations were primary contributors.The UK market similarly exceeded expectations, with service revenue surpassing consensus by 70 basis points, supported by robust fixed-line performance.Outlook Enhanced Following Safaricom IntegrationThe company elevated its full-year projections after consolidating Safaricom into its financials. Vodacom finalized the acquisition of an additional 20% interest in Safaricom on June 30, with full consolidation taking effect from July 1, 2026.The revised guidance targets adjusted core earnings between €13 billion and €13.3 billion, with adjusted free cash flow projected at €2.6–€2.9 billion for the fiscal year ending March 2027. The company indicated it expects performance at the upper end of both ranges.Morgan Stanley observed that the top end of the new guidance exceeds consensus estimates by 1.1% for core earnings and 4.3% for free cash flow projections.Significantly, analysts emphasized the guidance improvement is “fully organic” — not merely attributable to the Safaricom addition. Emerging markets strength, reduced macroeconomic headwinds, and energy hedging strategies all played contributory roles.Morgan Stanley maintains an “equal-weight” rating on Vodafone with a 115 pence price target. The firm had anticipated a 3–5% stock price movement following the quarterly announcement.Restructuring and integration expenses are projected to reach approximately €700 million during the current year, with roughly €400 million related to the VodafoneThree combination.The post Vodafone (VOD) Stock Surges 4.3% on Strong Q1 Results and Upgraded Outlook appeared first on Blockonomi.