Abstract

VEON Ltd will release fiscal Q2 2026 results on July 31, 2026 Pre-MKt; current expectations center on revenue of 1.22 billion US dollars, EBIT of 317.00 million, and adjusted EPS of 1.61, with investors watching digital monetization initiatives and the impact of recent funding on net earnings.

Market Forecast

Forecasts for the current quarter point to revenue of 1.22 billion US dollars, up 19.01% year over year, EBIT of 317.00 million (up 33.19% YoY), and adjusted EPS of 1.61 (up 68.95% YoY). Margin guidance for the quarter has not been formally provided, so investors are referencing the prior quarter’s margin structure as a baseline for comparison when the company reports.

Core connectivity is expected to anchor performance, with steady data usage and pricing discipline supporting the revenue trajectory; management’s full‑year top-line guidance lift earlier this year underpins confidence in continuity of growth. The most promising area remains direct digital services and platforms, which generated 303.00 million US dollars last quarter and are positioned to benefit from expanding content and financial-services ecosystems; while segment-level YoY growth was not disclosed, the group’s forecast 19.01% YoY revenue increase suggests continued momentum from this mix shift.

Last Quarter Review

The previous quarter delivered revenue of 1.20 billion US dollars (up 17.06% YoY), a gross profit margin of 87.43%, GAAP net profit attributable to the parent company of 99.00 million US dollars, a net profit margin of 8.24%, and adjusted EPS of 1.39 (up 2.21% YoY).

A key financial highlight was the sharp quarter‑on‑quarter rebound in net profit, which rose 419.35%, indicating stronger operational leverage and a cleaner comparison versus the prior period. Main-business performance was balanced: Telecom and Infrastructure revenue reached 898.00 million US dollars and Direct Digital revenue was 303.00 million US dollars; segment-level YoY splits were not disclosed, while group revenue grew 17.06% YoY, signaling broad-based expansion across services.

Current Quarter Outlook

Main business: Connectivity and Infrastructure

Within the connectivity and infrastructure operations, the near-term setup emphasizes stability in core mobile and broadband, alongside disciplined monetization of data usage. The previous quarter’s gross margin of 87.43% provides a high base that reflects the economics of a service-centric revenue mix; the decisive factor for this quarter is how operating costs and network investments shape the flow-through to EBIT and net income. Given the 17.06% YoY top-line expansion last quarter and a 19.01% YoY revenue growth forecast for the current quarter, pricing, package upgrades, and incremental data adoption are expected to carry momentum into July’s print.

Geographic breadth across the group typically diversifies revenue drivers, and the company’s focus on network quality and service availability supports churn control and incremental ARPU initiatives. On the cost side, absolute levels of opex and energy-related expenses, as well as any spending tied to resilience and capacity, are meaningful to quarter‑to‑quarter margin dynamics. In this context, EBIT is forecast at 317.00 million US dollars, which, if realized, implies continued cost discipline. The bridge from EBIT to net profit will depend on below-the-line items, but the prior quarter’s net margin of 8.24% establishes a reference for investors when assessing progress against profitability aims and the sustainability of earnings growth.

Another aspect investors will parse is the cadence of capex and its alignment with return expectations. Infrastructure spending often clusters around spectrum, network upgrades, and resiliency; the payback manifests through ARPU uplift and churn reduction rather than immediate revenue spikes. The previous quarter’s quarter-on-quarter rebound in net profit (+419.35%) indicates improved economics and/or one-off normalization; sustaining this trend will require consistent operating execution in the largest markets and effective pass-through of value-added services on top of base connectivity.

Most promising business: Digital platforms and financial services

Direct Digital contributed 303.00 million US dollars last quarter and remains the most promising growth lever for both revenue and cash generation. Engagement catalysts have broadened, including rights that bring major sporting content to consumers in Bangladesh via Toffee, which is designed to deepen usage and support advertising and subscription monetization. The recently announced collaboration with a global payments leader to expand accessible financial services in Ukraine, Kazakhstan, Pakistan, and Uzbekistan enlarges the addressable opportunity for digital financial services, where cross-sell into telecom customer bases can be powerful.

In the current quarter, digital initiatives continue to expand the ecosystem with content, payments, and adjacent mobility offerings. The acquisition of micro‑mobility capabilities in Ukraine aims to enrich the platform mix and user utility, and while the immediate revenue impact of such bolt‑ons is small, the strategic significance lies in more frequent user interactions across services. These moves can enhance average revenue per user and reduce churn by embedding customers more tightly into the company’s platform.

Financially, the digital segment’s contributions are likely to skew margin‑accretive over time if content and customer acquisition costs are paced against unit economics. While segment-level YoY growth was not disclosed for the prior quarter, the group’s upgraded full‑year revenue growth outlook to 11–14% suggests management’s conviction that digital and platform services will continue to provide incremental tailwinds across regions. For the quarter at hand, watch for commentary on monthly active users, paying ratios, and early monetization indicators tied to the new partnerships; these datapoints can validate trajectory beyond the headline revenue and EPS prints.

Key stock‑price drivers this quarter

Three factors are likely to matter most for the share price reaction around the results. The first is the balance of topline acceleration versus margin quality. With revenue expected to rise 19.01% YoY and EBIT forecast to climb 33.19% YoY, the market will look for confirmation that cost discipline and mix are supporting both gross and operating margins, especially given last quarter’s high 87.43% gross margin baseline. If digital monetization shows early benefits without undue content or acquisition cost spikes, that would underpin confidence in out‑year earnings power.

The second is the translation from EBIT to bottom line given capital structure developments. The group recently priced a 1.40 billion US dollars bond offering, and it initiated investor meetings in advance for a dual‑tranche notes deal coupled with a tender offer for 2027 notes. These actions can optimize the maturity profile and liquidity, yet they also shape interest expense in the near term. Investors will therefore scrutinize the net interest line and any remarks on refinancing plans to assess how much of the forecast EPS growth of 68.95% YoY stems from operations versus financial engineering, and how sustainable this is into subsequent quarters.

The third is execution signals within the digital roadmap and regional initiatives that may not be immediately revenue‑accretive but can influence sentiment. Agreements to explore AI‑ready infrastructure in Ukraine and memorandums supporting digital infrastructure in Uzbekistan indicate longer‑term capacity building. Even if these projects contribute primarily in future periods, evidence of steady progress reinforces the platform narrative. Near‑term, tangible indicators such as Toffee engagement trends and early outcomes from the financial‑services collaboration will carry weight in the stock’s response because they demonstrate that the strategy is translating into measurable user and revenue metrics.

Analyst Opinions

The balance of commentary collected during the period is bullish, with a ratio of bullish to bearish views at 100% to 0% based on tracked notes and headlines. Notably, an established brokerage initiated coverage at Outperform with a 70 US dollars price target, and the broader analyst set carries an average rating of Buy with a mean price target cited at 81.50 US dollars. The bullish case hinges on three pillars: visible revenue acceleration supported by an upgraded 2026 growth outlook to 11–14%, a demonstrable ramp in digital monetization engines that leverage the existing user base, and strengthened financial flexibility after recent capital market transactions.

The recent quarter’s results offered the first step in this thesis: revenue grew 17.06% YoY to 1.20 billion US dollars and adjusted EPS edged up to 1.39, while the quarter-on-quarter net profit rebound of 419.35% improved confidence in earnings normalization. For the current quarter, consensus looks for a 19.01% YoY revenue increase to 1.22 billion US dollars and a 68.95% YoY jump in adjusted EPS to 1.61, which bulls argue is consistent with operating leverage from connectivity and incremental contributions from digital services. They also emphasize that partnerships in payments and media, along with measured M&A to broaden platform utility, can enhance customer lifetime value and diversify growth beyond traditional telecom revenue streams.

On profitability, positive voices point to the 33.19% YoY forecast increase in EBIT to 317.00 million US dollars as evidence that cost discipline and a richer mix could sustain margin improvement. They acknowledge that recent bond issuance will shape net interest, but view the refinancing and tender approach as proactive balance‑sheet management that clarifies the maturity tower and supports ongoing investment in network and platforms. From this angle, near‑term EPS prints are expected to benefit primarily from operations, with financing costs managed within the uplift implied by revenue and EBIT expectations.

Analysts also highlight tangible catalysts in the digital portfolio. Streaming rights that bring a global football tournament to Bangladesh on Toffee are seen as an opportunity to deepen user engagement and broaden monetization via advertising and subscriptions. Meanwhile, the joint effort with a global payments partner to expand financial services across multiple key markets is framed as a scalable growth vector that can boost ARPU and transaction‑based revenue while reinforcing retention. Early indications—such as MAU growth, payment volumes, and cross‑sell penetration—will be monitored as leading indicators for subsequent quarters.

Finally, the prevailing view is that message discipline on guidance and execution details will be pivotal for the stock reaction. Since the company previously raised its full‑year revenue growth guidance to 11–14% while maintaining its EBITDA growth estimate, bulls expect management to reiterate confidence and fill in color on drivers by geography and product. If the company prints in line or ahead on revenue and EPS and pairs this with constructive commentary on digital engagement and capital costs, bullish analysts believe the shares can re‑rate toward their published targets in the coming months.