French telecommunications giant Orange has once again lifted its full-year guidance after posting record first-half growth in 2026, powered by surging demand across Africa and the Middle East and boosted by the recent consolidation of its Spanish operations following the completion of its MasOrange merger.
Record-Breaking First Half
Orange reported group revenues of 20.9 billion euros for the first half of 2026, up 3.5% year-on-year, alongside EBITDAaL — a key earnings metric closely watched across the telecom industry — that climbed 5.0% to reach 6.1 billion euros. Both figures topped analyst expectations, with second-quarter revenue alone coming in at 10.85 billion euros against a consensus estimate of 10.66 billion euros, while EBITDAaL for the quarter reached 3.53 billion euros versus a forecast of 3.51 billion euros.
Group net income for the half stood at 3.6 billion euros, while adjusted net income rose 11.8% to 1.35 billion euros. Organic cash flow also strengthened considerably, increasing by half a billion euros to reach 2.2 billion euros for the period, reflecting solid underlying operational momentum across the company’s key markets.
Africa and the Middle East Remain the Engine of Growth
Once again, it was Orange’s Africa and Middle East division that did the heaviest lifting, posting revenue growth of 13.9% to reach 4.58 billion euros for the half — extending a remarkable streak of double-digit expansion that has now stretched for well over a year. That growth was broad-based, with mobile data revenue climbing 20.8%, fixed broadband up 13%, the company’s Orange Money mobile payments platform growing 14.6%, and business services revenue rising 11.9%.
The region’s EBITDAaL surged an even more impressive 16.1%, reinforcing its status as the clear engine of the group’s overall performance. Notably, Orange has also been investing heavily in sustainable infrastructure across the continent, with solar-powered network sites increasing 24% year-on-year and now accounting for 31% of all sites in the region — a shift that both reduces costs and insulates the division from energy price volatility.
The Spain Deal Adds Fresh Momentum
Beyond its African operations, Orange’s results were further boosted by the completion of its long-anticipated full takeover of MasOrange, which made Orange the largest telecom operator in Spain. The transaction was fully consolidated into Orange’s financials starting in June 2026, having previously been accounted for under the equity method for the first five months of the year. Spain’s operations returned to EBITDAaL growth of 2.2% in June, the first full month following the deal’s completion — a meaningful turnaround for a market that had struggled with fierce price competition in recent years.
Orange also confirmed it had signed a joint memorandum of understanding covering the potential acquisition of SFR, a move that could further reshape the competitive landscape of the European telecom sector if it proceeds.
Steady Performance Elsewhere
Beyond its two standout growth markets, Orange’s core French business grew a more modest 1.2% for the half, while its broader European operations, grouped under the “Europe 6” banner, expanded by 4.1%. Orange Business, the group’s enterprise-focused unit, continued to show signs of stabilization, narrowing its EBITDAaL decline to negative 6.4%, an improvement from the negative 7.2% decline recorded in the prior half.
Raised Guidance and Shareholder Returns
Buoyed by these results, Orange raised its full-year 2026 guidance, now projecting EBITDAaL growth exceeding 4%, up from its previous target of above 3%. The company also lifted its organic cash flow target to approximately 4.3 billion euros, an increase from its prior guidance of around 4 billion euros. Alongside the improved outlook, Orange confirmed a 2026 dividend of 0.79 euros per share, payable in 2027 pending shareholder approval.
What It Means Going Forward
Orange’s upgraded guidance reflects growing confidence that its diversified footprint — spanning a maturing but stabilizing French market, a newly bolstered Spanish operation, and a rapidly expanding African and Middle Eastern business — can sustain momentum through the remainder of the year. With capital expenditure remaining disciplined at roughly 15.2% of revenue and further consolidation opportunities like the SFR talks still on the table, Orange appears well positioned to continue building on what has already been one of its strongest half-year performances in recent memory.
