BofA Sees 'Mixed' Fiscal Q2 for Vodafone Amid Expected German Legal Cost Drag

05:21 AM EDT, 10/15/2026 (MT Newswires) -- BofA Global Research expects Vodafone Group's (VOD.L) fiscal second-quarter performance to be "mixed", flagging headwinds in its German market, including the impact of a recent legal ruling against past price hikes on its earnings. "German numbers are likely to remain mixed in Q2 with weak adds, but some positive ARPU evolution as VOD pursues a value over volume strategy. That said, VOD will need to adjust for both a provision and revenue de-recognition in H2 due to the ruling against its 2023 price increases, this should weigh against H2 and FY28 prospects," analysts said in an earnings preview note focused on European telecoms. Meanwhile, the research firm expects the UK market to sustain positive growth driven by the ongoing Three integration, while African operations are anticipated to maintain "strong" momentum. Factoring in German trends and favorable euro currency movements, analysts raised their fiscal 2027 EBITDAaL and cash flow forecasts by 0.3% and 0.7%, respectively, while lowering their fiscal 2028 estimates by 1% and 1.2%. Ahead of the British telecommunications company's fiscal first-half results on Nov. 10, BofA rates the stock at underperform, with a price objective of 0.98 pound sterling.