GET DAILY SIGNALSLiberty Global (LBTYA) Q3 Earnings: Revenue Jumps 59.1% on VodafoneZiggo Consolidation
Key Takeaways
- Liberty Global reported third-quarter 2026 revenue of roughly $1.92 billion, up 59.1% year over year, reflecting the consolidation of VodafoneZiggo after the company acquired Vodafone's 50% stake in July 2026.
- Net earnings swung to a profit of $547.7 million from a loss of $83.4 million a year earlier, with diluted earnings per share (EPS) of $1.32 versus a consensus estimate of -$0.24.
- The bottom-line swing was driven largely by non-operating items, including a $652.3 million income tax benefit, $325.8 million in derivative gains, and a $121.6 million gain tied to the VodafoneZiggo acquisition.
- On a rebased basis, revenue grew about 1%, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) across reportable segments fell 5.7% on a reported basis.
- The newly formed Ziggo Group posted combined revenue growth of 1.4% on a rebased basis, with VodafoneZiggo returning to revenue growth for the first time since Q2 2024.
- The planned Ziggo Group spin-off remains on track for Q2 2027, while the Virgin Media O2 joint venture launched an £800 million transformation program.
Earnings Context and Why It Matters
Liberty Global's third-quarter results capture a pivotal moment in the company's ongoing restructuring. The quarter marked the formal creation of the Ziggo Group, combining VodafoneZiggo in the Netherlands with Belgium's Telenet, and the results are the first to consolidate VodafoneZiggo following the July 2026 buyout of Vodafone's stake. Investors are closely watching whether the Benelux operations can sustain their improving commercial momentum, while the Virgin Media O2 joint venture in the UK continues to face competitive and pricing pressure. Against that backdrop, the report offers a clearer read on the durability of rebased revenue growth and the progress of the planned Ziggo spin-off. I also checked this using Tickeron’s AI Screener to see how LBTYA compares to others in the industry.
Reported Results
Liberty Global reported consolidated revenue of approximately $1.92 billion for the quarter ended September 30, 2026, up 59.1% on a reported basis, driven primarily by the consolidation of VodafoneZiggo. On a rebased basis, which adjusts for acquisitions, disposals, and foreign exchange, revenue grew about 1%. Net earnings reached $547.7 million, a sharp swing from an $83.4 million loss in the prior-year quarter, producing diluted EPS of $1.32 compared with a consensus estimate of -$0.24.
The profit surge, however, was heavily influenced by non-operating items: a $652.3 million income tax benefit, $325.8 million in derivative gains, and a $121.6 million gain related to the VodafoneZiggo acquisition. Adjusted EBITDA across reportable segments declined 5.7% on a reported basis to roughly $2.05 billion. Within the Ziggo Group, revenue of $1,906.5 million fell 1.9% on a reported basis but rose 1.4% rebased, while adjusted EBITDA declined 6.3% to $674.8 million. The company confirmed its full-year 2026 guidance for its operating units, including Virgin Media O2's expected 3% to 5% declines in service revenue and adjusted EBITDA. From what I see, the non-operating gains explain much of the headline profit but do not change the underlying operating picture.
Market Reaction and Investor Sentiment
Liberty Global shares climbed in the wake of the report, supported by the headline swing to profitability and the top-line jump from the VodafoneZiggo consolidation. Investor sentiment was tempered, however, by the recognition that much of the EPS beat stemmed from one-time items rather than operating momentum, and by the fact that adjusted EBITDA declined on a rebased basis across most segments. The confirmation of the Ziggo spin-off timeline and the announced €669 million sale of VodafoneZiggo's tower assets provided additional positive catalysts, while persistent subscriber and ARPU (average revenue per user) pressure in the UK market remained a key area of caution for the market.
Forward Outlook and Key Factors to Monitor
Looking ahead, investors should track the execution of the Ziggo Group spin-off, which management reaffirmed is on schedule for Q2 2027. The new leadership team under CEO Stephen van Rooyen and CFO Jany Fruytier is expected to drive synergy capture and operational integration, and the outcome of the planned €1.2 billion to €1.4 billion in non-core asset disposals will be important for the group's deleveraging plans.
In the UK, Virgin Media O2's £800 million transformation program will be a central theme, with roughly £400 million in run-rate cost savings targeted for 2027 and the full amount by 2029. Management also flagged a strategic shift toward a 2 Gbps upgrade on its HFC (hybrid fiber-coaxial) network, halting proprietary fiber expansion to prioritize capital efficiency.
Key metrics to monitor include broadband and postpaid mobile subscriber trends across the Netherlands, Belgium, the UK, and Ireland, along with fixed and mobile ARPU movements. Adjusted free cash flow, which turned positive at $81.7 million in the quarter but remained negative for the nine-month period, will also be closely watched as capital spending programs evolve. I’m watching this closely as the spin-off timeline approaches.
Using AI Tools in My Research Process
In my analysis of LBTYA, I turned to Tickeron’s AI Screener to quickly filter comparable names in the telecom sector and review recent technical patterns. The tool helped surface relevant benchmarks without hours of manual work, allowing me to cross-check revenue trends and valuation multiples against peers. It is a practical addition to the workflow when evaluating companies undergoing major restructuring like this one.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
LBTYA's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for LBTYA turned positive on October 28, 2026. Looking at past instances where LBTYA's MACD turned positive, the stock continued to rise in 32 of 46 cases over the following month. The odds of a continued upward trend are 70%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where LBTYA's RSI Indicator exited the oversold zone, 19 of 30 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 63%.
The Momentum Indicator moved above the 0 level on November 02, 2026. You may want to consider a long position or call options on LBTYA as a result. In 56 of 95 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 59%.
Following a +9.65% 3-day Advance, the price is estimated to grow further. Considering data from situations where LBTYA advanced for three days, in 147 of 281 cases, the price rose further within the following month. The odds of a continued upward trend are 52%.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LBTYA declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 71%.
LBTYA broke above its upper Bollinger Band on November 03, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for LBTYA entered a downward trend on November 03, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Seasonality Score of 22 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 26 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 37 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.315) is normal, around the industry mean (2.075). P/E Ratio (-0.944) is within average values for comparable stocks, (-4.500). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (8.005). Dividend Yield (0.000) settles around the average of (0.119) among similar stocks. P/S Ratio (0.727) is also within normal values, averaging (5.777).
The Tickeron Price Growth Rating for this company is 76 (best 1 - 100 worst), indicating slightly worse than average price growth. LBTYA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 96 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LBTYA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock worse than average.
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General Information
a provider of cable television and internet services
Industry MajorTelecommunications