BT Group FY26 Profit Rises; Lifts Dividend, Transformation Plan Target; Sees Growth Ahead

BT Group reported FY26 profit increases driven by lower specific items and cost control, while revenues fell. Profit before tax rose 8% to £1.44bn and profit after tax was £1.08bn; adjusted EBITDA was £8.23bn. The board raised the transformation-plan target to £3.7bn (from £3.0bn), extended the programme to FY2030 and raised the cost-to-achieve to £1.4bn. BT lifted its final dividend to 5.87p (full-year 8.32p) and provided FY27 guidance: adjusted EBITDA £8.2–8.3bn, adjusted revenue £19.0–19.5bn and UK service revenue £15.1–15.4bn. Market impact is mixed: dividend and raised transformation ambition are mildly positive for investor sentiment and dividend-focused exposures, while declining revenue and lower adjusted EPS signal caution. Overall the results may be modestly supportive for UK-listed telecoms and the UK 100 index but reflect ongoing execution and revenue headwinds.