Key HighlightsOrange shares climbed over 3% following strong first-half financial performance that exceeded market expectationsThe Africa and Middle East segment posted exceptional results, with second-quarter revenue surging 15% compared to last yearThe company upgraded its full-year EBITDAaL growth forecast to exceed 4%; organic cash flow projection increased to approximately €4.3 billionReported net income reached €3.6 billion, significantly enhanced by a €2.4 billion gain from MasOrange transactionThe telecom giant entered into a preliminary agreement with Bouygues Telecom and Free to purchase SFR togetherShares of Orange SA advanced more than 3% during Monday trading, reaching an intraday peak of €17.19 on the Paris exchange, following the release of first-half financial results that surpassed analyst projections and prompted the French telecommunications company to upgrade its full-year guidance for the second consecutive time this year.Orange S.A., ORANYThe company reported first-half revenue of €20.95 billion, exceeding the consensus projection of €20.76 billion. EBITDAaL reached €6.13 billion, surpassing the analyst average of €6.11 billion.The shares momentarily exceeded Morgan Stanley’s €16.50 valuation target. The investment bank kept its “equal-weight” stance, observing that robust performance in the Middle East and Africa region, combined with the improved guidance, were offsetting challenges in the Spanish market. $ORA (Orange) H1 2026 Update Guidance raised again… but Africa & Middle East growth is the real story KEY METRICS H1 Revenue: €20.95B (beat consensus €20.76B) 2026 EBITDAaL Growth Target: raised to >4% (from >3%) Core takeaway: Second… pic.twitter.com/M78RquzyYB— Emmanuel – Big Tech & AI Investor (@EmmanuelInvest) July 28, 2026The Africa and Middle East territories emerged as the star performers. Regional revenue surged 13.9% during the six-month period, with the second quarter specifically showing a 15% year-over-year increase. The company attracted 10 million additional mobile data subscribers across these markets.Management now anticipates full-year EBITDAaL expansion exceeding 4%, an upgrade from the previous projection of above 3%. The organic cash flow target was increased by 7.5% to approximately €4.3 billion — a figure Orange states is 4.2% higher than internal consensus estimates.Performance Across European MarketsFrench operations produced a slight positive surprise, with second-quarter revenue growing 0.1% versus Morgan Stanley’s expectation of a 1% contraction. The investment bank observed that underlying first-half performance, excluding one-time wholesale impacts, remained flat and trailed the company’s full-year objectives.The Spanish market represented a challenging area. MasOrange service revenue declined 2% while first-half EBITDAaL contracted 3%. Orange finalized the purchase of Lorca’s 50% ownership in MasOrange during June for €4.25 billion, securing complete operational control of the Spanish business. Management anticipates stronger performance during the latter half of the year.Reported net income totaled €3.6 billion for the half-year period, representing a €3.7 billion year-over-year increase. This figure was substantially boosted by a €2.4 billion accounting benefit from the MasOrange consolidation and the reversal of a restructuring charge from the previous year. On an adjusted basis, net income grew 11.8% to €1.35 billion.Net financial debt expanded to €35.7 billion from €22.5 billion at the conclusion of 2025, primarily due to the MasOrange transaction. The net debt-to-EBITDAaL leverage ratio increased to 2.4x. The company maintains a medium-term objective of reducing this metric to approximately 2x.Strategic SFR Acquisition AgreementOn June 6, Orange disclosed that it had executed a memorandum of understanding with Bouygues Telecom and Free to jointly purchase SFR from Altice France. Orange’s portion of the total €20.35 billion enterprise valuation amounts to roughly 27%, representing approximately €5.6 billion.The transaction would bring an estimated 4 million mobile subscribers and 1 million fixed broadband customers into the French portfolio. Regulatory clearance is necessary, with completion anticipated no earlier than the second half of 2027.Additionally, Orange revealed a partnership with Morrison to establish data center facilities in France, aiming for 400 MW of total capacity, supported by a €3 billion capital investment program.The board proposed a 2026 dividend of €0.79 per share, scheduled for distribution in 2027, pending shareholder ratification.The post Orange (ORAN) Surges 4% on Strong African Performance and Upgraded Full-Year Outlook appeared first on Blockonomi.