Telefónica returned to net profit in the second quarter of 2026, posting €73m against a €51m loss a year earlier, and lifted its full-year guidance for a key cash-flow metric. The operator’s adjusted EBITDA rose 6.4% at real exchange rates (2.7% at constant exchange rates) to €2.93bn on revenue of €8.265bn, which grew 3% at real rates from €8.021bn. The company now expects adjusted operating cash flow after leases to grow by more than 3% in constant currency, up from a previous target of above 2%.

The improvement was driven by accelerating growth in Telefónica’s main markets of Spain and Brazil, which the company said pushed revenue and EBITDA higher. The operator also recorded a €265m provision to cover a restructuring of its German business. Excluding disposals, net profit from continuing operations came in at €87m, down from €262m a year earlier, reflecting the charge.

For the first half of 2026, Telefónica reported revenue of €16.392bn, up 1.7% at real rates, and adjusted EBITDA of €5.768bn, up 3.8%. The results support the company’s previously announced cash dividend of €0.15 per share for the 2026 financial year, payable in June 2027 subject to shareholder approval. Telefónica’s shares traded at €3.76 on the IBEX 35 on the morning of the announcement, up 0.86% on the day.

The revised cash-flow target and confirmed dividend provide a clearer financial outlook for investors. No further guidance changes were announced, and the company reiterated its other full-year goals: revenue and adjusted EBITDA growth of 1.5%–2.5% in constant currency, an investment-to-revenue ratio of around 12%, and free cash flow of approximately €3bn, with a leverage target of 2.5 times EBITDA by 2028.