Telefonica (NYSE:TEF) raised its 2026 outlook for adjusted operating cash flow after leases after reporting stronger second-quarter momentum in Spain and Brazil, while maintaining its other full-year targets amid handset weakness in Germany and pressure in the U.K.
Chairman and CEO Marc Murtra said the company now expects adjusted operating cash flow after leases to grow by more than 3% in 2026, up from its prior outlook of more than 2%
He said the upgrade reflected improved operating leverage and performance in Spain and Brazil. “We are on track to fulfill 2026 guidance in all other metrics,” Murtra said. However, he said revenue growth is expected to land at the low end of the company’s range because of weaker handset sales, particularly in Germany. Telefonica maintained its adjusted EBITDA outlook and expects to finish at the high end of that range.
Group Financial Performance and Cash Flow At the group level, service revenue rose 0.9% year over year in the second quarter, supported by accelerating growth in Spain and, to a lesser extent, Brazil, according to CFO Juan Azcue. B2B revenue increased 6.7%, while B2C revenue rose 1.4%. Adjusted EBITDA increased 2.7% in the quarter, and adjusted operating cash flow after leases grew 2.9%.