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Telefonica ( (TEF) ) has issued an update.
On 22 December 2025, Telefónica announced that, as part of its Transform & Grow Plan 2026–2030, it has reached agreements with major trade unions to extend collective bargaining agreements for Telefónica España and its corporate units through 31 December 2030 and to approve a new collective agreement for Movistar Plus+. In parallel, the company and unions agreed on exit plans covering around 5,500 employees across Telefónica España, Movistar Plus+ and various corporate units, with a total pre-tax provision of about €2.5 billion and expected average annual direct cost savings of roughly €600 million for the Group from 2028, while cash generation is projected to benefit as early as 2026 as departures begin in the first quarter. The measures, which include simplification of the operating model and a shift toward more flexible, digital ways of working, are designed to streamline operations, retain and attract talent, and strengthen Telefónica’s competitiveness in a highly contested telecoms landscape, with significant implications for its workforce structure and long-term cost base.
The most recent analyst rating on (TEF) stock is a Sell with a $3.40 price target. To see the full list of analyst forecasts on Telefonica stock, see the TEF Stock Forecast page.
Spark’s Take on TEF Stock
According to Spark, TipRanks’ AI Analyst, TEF is a Neutral.
Telefonica’s overall stock score is primarily impacted by its financial performance challenges, including declining revenue and profitability. The technical analysis indicates bearish momentum, further weighing down the score. While the high dividend yield offers some appeal, the negative P/E ratio reflects underlying financial difficulties.
To see Spark’s full report on TEF stock, click here.
More about Telefonica
Telefónica, S.A. is a Spain-based global telecommunications group providing fixed and mobile telephony, broadband, audiovisual and digital services, mainly through its Telefónica España, Telefónica Móviles España, Telefónica Soluciones and Movistar Plus+ units, with a strategic focus on digital transformation, efficiency and competitive positioning in a rapidly evolving communications market.
Average Trading Volume: 959,243
Technical Sentiment Signal: Sell
Current Market Cap: $22.63B
Find detailed analytics on TEF stock on TipRanks’ Stock Analysis page.