Orange SA: Yesterday‘s results underscore Orange‘s operational strength. Still multiple legs to the equity story

Research evidence excerpt

Orange SA: Yesterday‘s results underscore Orange‘s operational strength. Still multiple legs to the equity story

J P M O R G A N Europe Equity Research

29 July 2026

Orange SA Overweight

ORAN.PA, ORA FP

Yesterday’s results underscore Orange’s operational Price (28 Jul 26):€17.17

strength. Still multiple legs to the equity story Price Target (Dec-27):€21.80

Against the backdrop of a 14% sell-off from its mid-May record highs, yesterday’s European Telecommunication

results served as a timely reminder of the resilience of Orange’s operational Services

performance, and why we continue to see material ongoing upside ahead: (1) Q2 Akhil Dattani AC

delivered another “beat and raise”. Impressively, H1 overall saw Orange report (44-20) 7134-4725

revenues +4%, EBITDA +5% and EPS +11%, (2) We see these trends as akhil.dattani@jpmorgan.com

sustainable. This implies upside risk to management’s already ambitious 2028 J.P. Morgan Securities plc

CMD targets, (3) Simply taking 2028E guidance positions Orange on an enviable Ankur Baheti, CFA

11% EFCF yield. This is before considering likely forecast upgrades, cost (91-86) 5796-8820

ankur.baheti@jpmchase.com

synergies associated with the SFR deal, and potential longer-term market repair. J.P. Morgan India Private Limited

Put together, Orange still remains on the JPMorgan AFL as our top sector pick.

Specialist Sales contact details:

The positives: Q2 revs +3.5% y/y organically (Q1 +3.5%) were 2% ahead of Scott Silver - Specialist Sales -

company consensus led by A&ME, Europe and France. EBITDA +3.9% y/y (Q1 European TMT

+6.6%) was 0.6% ahead. As such, the FY26E EBITDAaL guide was upgraded to (44-20) 7134-0412

>+4% (prev >3%, cons 4.1%), and organic CF to c€4.3bn (prev c€4bn, cons scott.silver@jpmorgan.com

€4.1bn).