Orange Lifts Full-Year Guidance on Robust Growth in Africa, Middle East, and Europe

French telecommunications group Orange has revised its full-year guidance upwards following a robust performance in the first half of 2026. The company reported better-than-expected results in both revenue and operational profitability, largely fueled by significant growth across its Africa, Middle East, and European segments. This development underscores the successful execution of Orange's "Trust the future" strategic plan.

Orange's revenue for the second quarter of 2026 reached €10.85 billion, marking a 3.5% year-on-year increase on a comparable basis. First-half revenue grew by 3.5% to €20.95 billion, surpassing analyst consensus estimates. Earnings Before Interest, Taxes, Depreciation, and Amortization after Leases (EBITDAaL) also demonstrated strong growth, rising by 3.9% to €3.53 billion in the second quarter and by 5.0% to €6.13 billion in the first half. This growth was significantly propelled by the Africa and Middle East region, which recorded a remarkable 13.9% revenue increase and a 16.1% rise in EBITDAaL. Revenues in Europe (excluding France) increased by 4.1%, while France saw a 1.2% growth.

Following these positive results, the company has raised its full-year 2026 EBITDAaL growth target from above 3% to above 4%. Additionally, its organic cash flow outlook has been increased from approximately €4 billion to around €4.3 billion. Organic cash flow for the first half surged by €0.5 billion to €2.2 billion. This strong cash generation performance is indicative of operational efficiency and effective cost control measures.

These financial advancements have positively impacted Orange's stock performance and bolstered market confidence in the company's long-term growth potential. Despite increasing competition within the telecommunications sector, Orange's strong presence in emerging markets and its investments in digitalization continue to maintain its solid market position. The completion of the 100% acquisition of MasOrange in June and the signing of a memorandum of understanding for the joint acquisition of SFR are also significant steps in its European consolidation strategy.

Orange's operations in Africa and the Middle East continue to drive double-digit growth, supported by increasing mobile data usage and the expansion of mobile financial services like Orange Money in the region. The expanding 4G and 5G networks in these areas contribute to a growing customer base and higher service revenues. In Europe, the increase in fiber optic subscribers and growth in retail services were other key factors supporting the company's performance. While Orange Business, the company's enterprise unit, experienced a slight decline in revenue due to challenging market conditions, growth in areas like cybersecurity offers promising prospects.

Analysts have largely welcomed Orange's revised guidance, noting the potential for long-term value creation from the company's strategic initiatives. Moving forward, the integration of MasOrange and the progression of the SFR acquisition process could further strengthen Orange's market share and operational synergies in Europe. Despite global economic uncertainties, the stable demand for telecommunication services and Orange's diversified geographical operations are expected to continue supporting its future growth.