05:46 AM EST, 11/12/2026 (MT Newswires) -- Telefónica (TEF.MC) revised most of its full-year 2026 targets upward after reporting robust third-quarter results that marked the fourth consecutive quarter of constant and real growth across its primary key performance indicators. In its Thursday earnings release, the Spanish telecommunications company raised its projected adjusted EBITDA growth to "slightly above" 2.5% year over year from the previous range of 1.5% to 2.5% and its adjusted operating cash flow after leases to over 3.5% from over 3% earlier. Free cash flow is expected to be 3.1 billion euros, compared with the previous guidance of 3 billion euros. Meanwhile, Telefónica lowered its revenue growth target range to 1% to 1.5% from the prior goal of 1.5% to 2.5% due to handset sales performance. The company also set a new service revenue growth outlook of 1.5%. The company's revenue rose 4.8% year over year to 8.43 billion euros in the third quarter, up 2.2% in constant terms, driven by accelerating service revenue and returning handset growth. Profit attributable to equity holders of the parent from continuing operations reached 860 million euros, up year over year from 342 million euros. Chief Operating Officer Emilio Gayo noted that the fundamentals of its "Transform & Grow" strategy remain "intact," bolstered by its current execution. "We are undergoing a comprehensive transformation process to boost our competitiveness, underpinned by decisions such as the almost complete exit of Hispam, restructuring programs in Spain, the global units and Germany, efficiencies delivery coming from a more simplified operation model, AI, digitalization, automation, legacy shut-downs. We are developing new sources of growth like digital services in B2B, ecosystem in B2C, opportunities in sovereign digital infrastructure, Edge Computing, AI services and the AI Gigafactory initiative," Gayo said. Telefónica's Madrid-listed shares were down over 2% in midday Thursday trading.

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