VEON boosted its 2026 revenue forecast after strong Q1 growth in mobile data usage and digital financial services.
VEON has started the year of 2026 on an impressive first-quarter note to up its full-year revenue growth targets after achieving strong results so far. The telecom digital company is now predicting growth of 11% to 14% in 2026, which was higher than the earlier-banded range of 9% to 12%.
The improved forecast is driven by growing demand for mobile data, the fast pace of digital financial services growth and better monetisation of Veon’s expanding digital ecosystem. The company’s operations are expanding to new emerging markets such as Pakistan, Bangladesh, Ukraine, and Kazakhstan, and it has been positioning itself as more than just a telecom operator.
Strong Q1 Performance Signals Momentum
In the first quarter of 2026, Veon’s revenue increased by about 17% compared to the same period in 2025, bringing the quarterly revenue to approximately $1.2 billion. The company also saw a strong contribution from its Ebitda performance, with almost a 17% to 18% increase, suggesting solid profits from the top-line growth. The most significant trend in the quarter was the significant rise in mobile internet use in Veon’s major operating markets. The growth in smartphone penetration and digital engagement is resulting in an increase in data usage, which is still a key contributor to recurring revenue growth.
Digital services were also a big driver of the earnings beat. The company’s digital platforms have reported revenue growth of over 57% YoY, reflecting the rapid growth of the Veon ecosystem strategy. This includes services under the fintech umbrella, digital wallets, super apps, and embedded mobile solutions to enhance customer interaction beyond simply telecom connectivity.
Digital Transformation Is Becoming the Core Growth Engine
Veon’s latest results highlight a broader transformation happening across the telecom industry. The traditional voice and SMS business is losing relevance and operators are shifting their attention to digital payments, mobile commerce, and platforms based on the ecosystem. This shift is now beginning to materialize for Veon in terms of the benefits it provides to its financial results. The company is reaping gains from improved take-up of digital financial services and greater demand for mobile internet use in emerging markets in which digital infrastructure continues to grow at a rapid pace.
The value of fintech growth is especially notable considering that digital financial services tend to drive more engagement which leads to better long-term customer retention. In addition to subscriber growth, Veon has now started to prioritize enhancing its monetization per user, through integration and digital products. The company has also been enhancing its operational efficiency with network enhancements and cost-cutting measures. The enhancements are helping to keep margins stable as Veon invests heavily in infrastructure and the digital expansion.
Investor Confidence Improves After Forecast Upgrade
The market was pleased with Veon’s positive guidance as well as Q1 results. The levels of trading activity after the results indicated that investors seemed to have shown more interest in the company, especially after seeing tangible gains in time and money from the digital transformation strategy. The new guidance has been seen as a step of confidence from management by analysts. The revised outlook indicates that Veon has no plans to reverse its current growth pattern, and it clearly values its cash flow more than ever.
Veon is playing up to be a higher growth telecom and digital ecosystem story compared to many of its global peers, who continue to experience slow growth and price erosion. It also offers exposure to emerging markets, and less mature mobile internet adoption trends and younger populations than developed markets.
Risks Still Remain
Veon still has a number of key challenges ahead, despite the momentum. Volatility of the currency is a significant problem – a lot of the company’s revenue comes from emerging markets, and financial reporting is sometimes pegged to the performance of the U.S. dollar. Some areas in which Veon is active are also plagued by geopolitical problems. Operations or consumer demand may be affected by economic disruption, regulatory uncertainty or political tensions.
The company is also continuing to invest significantly in 4G, 5G, digital infrastructure and also in promoting its own 5G network in India.The company is also continuing to spend heavily on 4G, 5G and digital infrastructure, which would require a significant capital expenditure, and is also promoting its own 5G network in India. These investments can strain short-term cash flow if growth is uneven or stagnates, but can help sustain long-term growth. Another aspect of competition that investors are closely watching is the ongoing competition between telecom operators and technology companies in the fintech and digital ecosystem services sectors.
Veon’s Transformation Story Continues
The overall telecom industry is going through a big structural change and Veon seems to be in between it. Beyond being just a connectivity provider, the company is shifting its business model to a digital-first platform business with a mix of fintech, mobile commerce, entertainment and digital services.
The improved 2026 forecast indicates management expects these areas to remain strong throughout the year. More guidance upgrades could be possible later in 2026 if demand for mobile data is on the rise and digital monetisation continues to grow. But it will be vital to execution. Investors will wait to see if Veon can continue to expand its ecosystem without sacrificing profitability and keeping spending on infrastructure within the black.
Conclusion
The increase in the 2026 revenue growth guidance to 11%–14% highlights how Veon is enjoying the benefits of a successful execution of its operations and the overall trend of digitalization in emerging markets. The first-quarter findings revealed good performance across mobile data usage, fintech services, and in the growth of digital platforms. But more than that, they were also embracing the notion that Veon is no longer only a connectivity-focused telecom provider. The company is becoming more and more a digital ecosystem business based on data, mobile finance and integrated consumer services.
Although risks associated with emerging markets, currency fluctuations and infrastructure spending are significant, the prospects are seemingly positive. Veon’s success in its efforts to transform itself into a digital firm may give it a chance to emerge as one of the more dynamic global telecom growth stories.
FAQs
What was the reason for Veon to increase its 2026 revenue estimate?
Veon (VOD) raised its forecasts after reporting more than expected digital revenue growth as well as growth in mobile data usage and better operating efficiency in some emerging markets in the first quarter.
What will Veon’s growth projection be in 2026?
The company has raised its revenue outlook for 2026 to come in at the range of 11% to 14% from its previous range of 9% to 12%.
Which of the following was the biggest driver of Veon’s performance in Q1?
Those that were contributing the best were higher consumption of smartphone data, fast growth in digital financial services and better monetization of Veon’s digital ecosystems platforms.
Is Veon changing its business model?
Yes. Veon is increasingly shifting from a traditional telecom company toward a broader digital services and fintech ecosystem focused on mobile apps, payments, and integrated digital experiences.
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