Telefónica Shares Dive as New Strategy Sees Lower Free Cash Flow

Telefónica SA shares fell the most in more than five years after Spain’s largest telecom operator by revenue cut its free cash flow guidance and halved its 2026 dividend.

Telefónica lowered its free cash flow guidance for this year to about €1.9 billion ($2.2 billion), from about €2.6 billion previously, the Madrid-based telecommunications group said in its third-quarter earnings statement Tuesday. It will cut its dividend €0.15 per share next year from €0.30 for 2025, it said in a separate filing.