BT Group PLC: Remain cautious on challenging revenue outlook

Research evidence excerpt

BT Group PLC: Remain cautious on challenging revenue outlook

Equity Research

European Telecom Services

9 June 2026

BT Group PLC

Remain cautious on challenging

revenue outlook

BT continues to execute on its cost transformation, which is BT.L/BT/A LN UNDERWEIGHT

supporting profitability. However, we see the revenue outlook Unchanged

remaining challenging for both retail and wholesale, with European Telecom Services UnchangedNEUTRAL

voice headwinds also impacting. Other markets offer better Price Target GBp 160

mid-term growth prospects. We remain UW, 160p PT (was raised 7% from GBp 150

150p). Price (05-Jun-26) GBp 202 Potential Upside/Downside -20.6%

Source: Bloomberg, Barclays Research

BT's 2H26 and FY27e – a challenging revenue outlook, with cost cutting supporting

EBITDA: BT reported a broadly in line 2H26 result, compared to our estimates, company Market Cap (GBP mn) 20084

consensus and the FY26 outlook. The FY27 outlook was also broadly in line, with BT confirming Shares Outstanding (mn) 9967.64

FY27 and FY30 FCF targets. We note that there remains clear revenue pressure across most Free Float (%) 83.99

business units – due in part to intense competition, but also some voice pressure accelerated by 52 Wk Avg Daily Volume (mn) 13.6

the impending PSTN switch-off. As we show in the report, this does position the UK as one of the Dividend Yield (%) 4.13

weaker markets in Europe. Accelerated cost cutting continues to support profitability, but we Return on Equity TTM (%) 8.46

note continued copper sales (FY26 and FY27e) and handset factoring are supporting group Current BVPS (GBp) 126

FCF. BT did announce a modest dividend increase, bringing its FY27e yield into line with Source: Bloomberg

European peers.

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