Vodacom shares jump after annual report. What's next?

In 2026, Vodacom was experiencing its best times, at least in terms of the stock market and the company's value to investors. The first quarter was outstanding, with shares hitting an all-time high.

Then came a multi-month decline — and today, after the earnings report and the management call, the trend has flipped. The company entered the second half of May with a solid YTD gain, and year-on-year the stock holds an impressive 18% return.

So what's in the report?

The numbers are strong across the board. Group service revenue grew 10.6% to R133.6 billion (12.9% on a normalised basis). EBITDA jumped 12.8% to R62.6 billion, with margins expanding to 37.4%. And the headline figure everyone was watching — earnings per share — climbed 22.9% to 1,053 cents.

The dividend? Even better. Vodacom declared a total dividend of 735 cents for the year, up 18.5%, beating analyst expectations of around 705 cents. The final dividend of 405 cents is payable in June — more on that in a minute.

What's driving the growth?

Vodacom is no longer just a South African story and that's the whole point. Egypt was the standout, with revenue up over 40% and net profit jumping 49.9% in rand terms. The International segment grew revenue 13% and EBITDA 27%. Safaricom (Kenya and Ethiopia) contributed R4.6 billion to group operating profit, up 38.3%.

South Africa is still the biggest market at R93 billion in revenue, but it's the more mature, slower-growing piece of the puzzle now. The real engine is the rest of the continent.

Vodacom added 26 million customers in one year, bringing the total to 237.3 million across eight markets. That's more than double the Vision 2030 annual target, so management raised the long-term goal from 260 to 275 million. Financial services customers hit 103 million, with that target lifted to 130 million.

From a technical analysis perspective

It's clear the uptrend is back. Technical indicators on Investing.com unanimously point to a Strong Buy. Don't trust abstract technical analysis? Then look at the fundamentals - revenue growth of 10.6%, EPS up 22.9%, dividend beating estimates. The numbers and the chart are telling the same story.

Analyst consensus is a bit more cautious at Neutral, with a 12-month price target around R153 - but the high estimate sits at R215, which would mean serious upside if Vision 2030 keeps delivering like this.

Vodacom shares after annual report is published

Forecast for Vodacom and summary

Disclaimer: This article is for informational purposes only and is not investment advice. Do your own research before making investment decisions.

Given the latest report, the company has every chance of further growth by the end of the year. The most optimistic forecasts point to up to 37% upside over the next 12 months, with the stock potentially renewing its previous highs.

The next dividend payment is in June, so if you decide to buy shares today, you won't have to wait long for the payout. Traders will also be pleased to enter the market far from the highs, with daily upward momentum following a multi-month correction. Therefore, investing in Vodacom right now looks entirely reasonable and could positively impact your investment portfolio.