Telefonica (TEF.MC): Strong Spain drives 2Q26 results beat and OpFCF guidance raise

Research evidence excerpt

Telefonica (TEF.MC): Strong Spain drives 2Q26 results beat and OpFCF guidance raise

Equity Research

29 July 2026 | 7:55AM BST

Telefonica (TEF.MC): Strong Spain drives 2Q26 results beat and OpFCF

guidance raise

Telefonica delivered a strong 2Q26 with results ahead of consensus and OpFCF Andrew Lee

+44(20)7774-1383 |

guidance upgraded, mainly driven by growth acceleration in Spain. The guidance andrew.j.lee@gs.com

Goldman Sachs International

update implies a 3%+ upgrade to consensus FCF estimates for FY26 and beyond.

Sofija Rakicevic

With the company confident on the scope to sustain Spanish growth we expect +44(20)7774-6556 |

today’s update to be taken positively by investors and drive confidence in sofija.rakicevic@gs.comGoldman Sachs International

management’s guidance of further accelerating growth into 2028. Our recent Mollie Witcombe

Spanish field trip highlighted an attractive Spanish macro backdrop and broadly +44(20)7051-6252mollie.witcombe@gs.com|

unchanged competitive intensity in better than average mobile and broadband Goldman Sachs International

Elyasmarket structures. Today’s results also highlight improved execution. We reiterate Halima | +44(20)7774-6503

Buy on Telefonica arguing Spain and Brazil can power material ROIC halima.elyas@gs.com Goldman Sachs International

improvement of 3pp over the next five years which should drive a material

Mridul Agrawal

rerating and amplified share price upside given TEF’s gearing. We continue to be +1(332)245-7969 |

mridul.y.agrawal@gs.com

meaningfully more constructive on the Spanish market than consensus. Investors Goldman Sachs India SPL

continue to question capital allocation and a potential requirement of a capital raise,

two issues that continue to weigh on investor sentiment.