Telefonica projects higher growth and lower leverage for 2026 as core markets rally
The telecom giant expects core profit growth up to 2.5 percent this year. Shares rose today amid strong results in Brazil and Spain despite a large net loss.
Insights:
Telefónica, S.A. reported its fourth-quarter and full-year results on February 24, 2026, announcing that it expects adjusted core profit to grow between 1.5% and 2.5% in 2026. This forward guidance is part of a new strategy (leverage reduction and targets) aimed at improving the company’s balance-sheet trajectory. The announcement, which directly impacts investor expectations and dividend timing, was met with a positive market reaction as shares rose at the open of trading today.
Alongside the profit guidance, the company confirmed its dividend and capex targets, providing clarity on its capital allocation plans. These confirmations follow strong performances in Spain 
ES and Brazil 
BR. Specifically, Telefónica's Spanish unit and Telefónica's Brazil operations were key contributors to the company's recent financial success.
ES and Brazil BR. Specifically, Telefónica's Spanish unit and Telefónica's Brazil operations were key contributors to the company's recent financial success.
