Full Breakdown
Orange Telecom Raises 2026 Earnings Forecast Following Strong Q1 Results
4/23/2026, 11:02:57 PM
Strong First-Quarter Performance
On April 23, 2026, French telecom group Orange (ORAN.PA) announced an increase in its earnings forecast for the year following first-quarter results that surpassed market expectations. The company reported a 6.6% rise in earnings before interest, taxes, depreciation, and amortization after leases (EBITDAaL), reaching €2.60 billion, which exceeded analysts' consensus of €2.58 billion. Revenue for the quarter also grew by 3.5%, totaling €10.1 billion, surpassing the anticipated €10 billion.
The growth was significantly driven by the Africa and Middle East region, which experienced a 12.7% increase in revenue, bolstered by a remarkable 19.4% rise in mobile data usage. In contrast, Orange's largest market, France, saw a more modest growth of 2.3%, generating €4.4 billion in revenue. The company also reported an increase in its customer base, adding 54,000 fixed broadband and 40,000 mobile customers in France.
Financial Resilience and Strategic Moves
Orange's finance chief, Laurent Martinez, highlighted the company's resilience against energy market volatility, noting that it is fully hedged on European energy costs through 2026 and over 90% covered for 2027. This stability is further enhanced in the Africa and Middle East region, where the use of solar power on network sites mitigates exposure to energy price fluctuations.
CEO Christel Heydemann confirmed that the planned sale of the satellite services unit, Globecast, is expected to finalize later in 2026. She emphasized that this divestiture is part of routine portfolio management rather than a reaction to financial pressures, asserting that Orange has the capacity to fund its upcoming acquisitions through its own cash flow.
Criticism and Opposition
While the financial results are positive, some analysts express caution regarding the sustainability of growth in the Africa and Middle East markets, given the competitive landscape and potential regulatory challenges in these regions. Concerns have also been raised about the implications of decommissioning the 2G network and accelerating the phaseout of legacy copper infrastructure in France, which could affect customer service and satisfaction.
Official Statements & Responses
In response to the strong quarterly performance, Orange management stated, "We are pleased with our results, particularly in the Africa and Middle East region, which continues to be a significant growth driver for our business." The company has adjusted its full-year EBITDAaL growth forecast to more than 3%, up from the previous estimate of around 3%.
What's Next
Looking ahead, Orange plans to continue its focus on expanding its services in the Africa and Middle East regions while managing its portfolio strategically. The completion of the Globecast sale and ongoing investments in technology and infrastructure will be critical as the company navigates the evolving telecommunications landscape.
