Telefonica Expects Financial Improvement in 2026

Telefonica reported flat revenues for 2025 with a significantly higher net loss. The operator group, however, expects positive financial results this year.

The company said its revenue was flat year-on-year at €9.2 billion, as net loss attributable to shareholders increased from €1 billion in 4Q24 to €3.2 billion. Telefonica noted foreign exchange headwinds weighed on its earnings in the final quarter and full year, in which there were also non-recurring factors, spanning workforce restructuring costs, impairments, and other changes in the value of certain assets.

Telefonica said its guidance for 2026 is turning towards revenue growth of between 1.5% and 2.5%. Chairman and CEO Marc Murtra declared 2025 offered the first glimpses of success in a transformation program. The operator issued statements highlighting momentum and the launch of its Transform and Grow program in Q4, as Murtra indicated that its performance leaves it well-positioned for 2026 despite recording mixed numbers.

The operator pointed to good performances by its Spanish and Brazilian units, gains by its German business despite market maturity, an uninterrupted commercial performance by Telefonica Tech, and advances by its Infra unit. Telefonica highlighted constant currency gains in its metrics over the full year, the numbers Murtra used when declaring it met its financial targets. “We have embarked on a path of transformation, and today we have before us the first results that make us optimistic and allow us to continue courageously assuming calculated risks,” Murtra said.

Figures from units in Argentina, Peru, Uruguay, and Ecuador were all deconsolidated during 2025, with assets in Colombia listed as for sale before a deal was agreed earlier this month. The company reported these divisions as discontinued operations throughout the year, booking losses of €2.3 billion on them. The adjustments contributed to an annual net loss attributable to shareholders of €4.3 billion compared with €49 million in 2024. Annual revenue fell 1.5% to €35.1 billion.