TLDRs:
- Vodafone shares rise above 100p following a large share repurchase program.
- Company bought 11.2 million shares, held in treasury, boosting investor confidence.
- Investors await February 5 update and interim dividend to gauge momentum.
- Analysts warn risks from German fibre competition and OXG joint venture.
Vodafone (VOD.L) shares gained roughly 1.1% on Tuesday morning, trading back above the psychologically significant 100p mark.
The rise followed the company’s disclosure of a fresh share repurchase, part of its ongoing buyback program initiated last November. By 08:37 GMT, Vodafone shares were hovering at 100.85 pence, reflecting renewed investor confidence as the telecom giant returns cash to shareholders while navigating operational challenges.
Vodafone Group Public Limited Company, VOD.L
€500M Buyback Strengthens Stock
On January 5, Vodafone acquired 11,188,516 ordinary shares from Merrill Lynch International at a volume-weighted average price of 99.70 pence. Prices for the shares purchased ranged from 98.06 pence to 100.90 pence.
These shares are now held in treasury, increasing Vodafone’s balance sheet flexibility while keeping the stock off the open market. After the transaction, Vodafone holds more than 1.39 billion shares in treasury out of a total of roughly 23.48 billion shares issued, excluding treasury stock.
Investors Eye February Catalysts
Market attention is now turning toward February 5, when Vodafone is set to release its Q3 FY26 trading update and pay an interim dividend of 2.25 euro cents per ordinary share.
Analysts say the dual events will be key for assessing the company’s operational momentum and cash generation amid competitive pressures. Investors are particularly focused on whether the stock can sustain gains above 100p in the lead-up to these updates, as round-number levels often act as psychological support or resistance in trading.
Potential Risks and Market Challenges
Despite the positive reaction to the buyback, UBS analysts caution that investors may be underestimating risks in Vodafone’s core markets. Intensifying competition in German fibre services, particularly in multi-dwelling units, and ongoing costs related to the OXG fibre joint venture could weigh on profitability.
Market participants are also monitoring whether operational challenges in key regions might temper returns or impact near-term stock performance.
Shareholders Watch Closely
Vodafone’s recent share repurchase signals a proactive approach to shareholder returns, yet the stock faces a tight calendar of upcoming events. The Q3 FY26 trading update, interim dividend, and full-year results scheduled for May 12 will provide investors with insight into whether Vodafone can maintain momentum while balancing growth and cash returns.
For now, the buyback has provided a clear boost, but sustainability will depend on both operational execution and market conditions.
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