LONDON — Vodafone has raised its financial outlook for the 2027 financial year after reporting a stronger first quarter, giving investors fresh confidence in the telecommunications group's turnaround strategy.

The company reported 5.2% organic growth in service revenue during the quarter, while adjusted EBITDAaL increased 6.2%. Vodafone said service revenue grew across all of its major segments, with the UK also recording positive momentum.

Vodafone now expects to deliver the upper end of its updated full-year guidance, forecasting adjusted EBITDAaL of €13 billion to €13.3 billion and adjusted free cash flow of €2.6 billion to €2.9 billion. The revised outlook includes the impact of consolidating Safaricom following the transaction's completion.

The company's UK operations recorded 0.6% growth in service revenue, while Vodafone said integration progress following its UK combination with Three remains on track. Its wider business operations also benefited from strong growth in Africa and improved performance in Europe.

The results mark an important moment for Vodafone as it focuses on simplifying operations, improving customer performance and accelerating growth. Investors will now watch whether the stronger first-quarter momentum can continue through the remainder of the financial year.