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BT Group plc
(LSE:BT.A)
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Rating:55Neutral
Price Target:
215.00 p
▼(-1.17% Downside)
Action:Reiterated
Date:06/15/26
The score is driven primarily by stable but not high-growth financials (strong operating cash flow and EBITDA, offset by leverage, soft recent revenue, and pressured free cash flow). Earnings-call guidance and transformation execution provide a meaningful positive offset, while valuation is a notable drag due to the high P/E and technicals are mildly negative-to-neutral.
Positive Factors
Strong operating cash flow
Improving operating cash flow provides a durable cash-generation base to fund fiber build, service obligations and debt servicing. This supports sustained investment in network upgrades and cushions balance sheet stress while enabling transformation spend without relying solely on external financing.
Negative Factors
Elevated leverage
High absolute leverage reduces financial flexibility to fund large capex cycles and makes the firm more sensitive to interest-rate shifts and refinancing risk. With equity base contracted, balance-sheet strain can constrain strategic optionality and increase the cost of future growth or M&A.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating cash flow
Improving operating cash flow provides a durable cash-generation base to fund fiber build, service obligations and debt servicing. This supports sustained investment in network upgrades and cushions balance sheet stress while enabling transformation spend without relying solely on external financing.
Read all positive factors
BT Group plc (BT.A) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£18.99B
Dividend Yield4.42%
Average Volume (3M)19.22M
Price to Earnings (P/E)64.1
Beta (1Y)0.69
Revenue Growth-3.55%
EPS Growth2.13%
CountryUK
Employees91,700
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.12
Shares Outstanding9,967,640,000
10 Day Avg. Volume15,844,759
30 Day Avg. Volume19,219,665
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)1.67
Price to Sales (P/S)1.07
P/FCF Ratio11.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£240.71Price Target Upside10.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.18
Revenue Forecast (FY)£19.21B
BT Group plc Business Overview & Revenue Model
Company Description
Headquartered in London, UK, BT Group plc is a global telecommunications leader, operating across the United Kingdom, Europe, the Middle East, Africa, the Americas, and Asia Pacific. Established in 2001 (initially as Newgate Telecommunications Lim...
How the Company Makes Money
BT Group primarily makes money by selling telecommunications and connectivity services on recurring subscription and usage-based terms across consumer and business markets. Key revenue streams include: (1) Consumer connectivity: monthly fees from ...
BT Group plc Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented strong operational and strategic progress: record Openreach build and connections, clear transformation delivery ahead of plan, improved customer satisfaction and a credible path to higher normalized free cash flow (GBP 2bn in FY27 and GBP 3bn by FY30). At the same time the group faces near-term revenue and legacy headwinds (equipment decline, PSTN-related voice drag, International pressures), modest margin impacts in Consumer and Business, and some pension and working-capital sensitivities. Management reconfirmed guidance, increased the dividend modestly and extended transformation to provide additional confidence in medium-term targets.Positive Updates
Record Openreach build and connections
Openreach built a record 4.8 million homes and businesses in the year (including 1.5 million in Q4), has passed ~23 million premises and is on track to reach 25 million by end of the calendar year; 9 million premises passed in the last 2 years and record 2.2 million customer connections (now >9 million customers, 39% take-up).
Negative Updates
Group revenue decline and equipment weakness
Adjusted revenue declined ~4% year-on-year to GBP 19.6bn, driven principally by lower equipment sales and international divestments.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Openreach build and connections
Openreach built a record 4.8 million homes and businesses in the year (including 1.5 million in Q4), has passed ~23 million premises and is on track to reach 25 million by end of the calendar year; 9 million premises passed in the last 2 years and record 2.2 million customer connections (now >9 million customers, 39% take-up).
Read all positive updates
Company Guidance
The Group reiterated clear near‑ and medium‑term guidance: for FY‑27 total revenue of about £19.0–19.5bn, U.K. service revenue £15.1–15.4bn, adjusted EBITDA £8.2–8.3bn, accounting CapEx ~£4.3bn and normalized free cash flow of £2.0bn (up from £1.5bn in FY‑26), with a path to £3.0bn normalized FCF by FY‑30. Management extended the transformation to deliver £3.7bn gross savings (cost to achieve £1.4bn) within a FY‑25–FY‑30 window (remaining £2.2bn of savings, ~¾ in FY‑27/28), expects total labor (incl. subcontractors) to fall to 75–80k by FY‑30, and plans restructuring costs of ~£200m p.a. in the next two years (then ~£100m). Openreach targets 25m premises passed by year‑end (build cost ~£300/home), >50% of broadband customers on full fiber this year, line losses ~800k, and reiterated dividend growth of low‑to‑mid single digits per annum until BBB+ metrics are reached.BT Group plc Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
48
Neutral
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.36B | 19.65B | 20.36B | 20.80B | 20.85B | 21.33B |
| Gross Profit | 9.54B | 14.57B | 14.99B | 9.71B | 13.78B | 13.80B |
| EBITDA | 7.36B | 7.52B | 7.27B | 6.46B | 7.23B | 6.88B |
| Net Income | 1.05B | 1.08B | 1.05B | 855.00M | 1.27B | 1.47B |
Balance Sheet | ||||||
| Total Assets | 50.98B | 49.98B | 50.98B | 51.74B | 49.77B | 50.88B |
| Cash, Cash Equivalents and Short-Term Investments | 2.81B | 1.72B | 2.81B | 2.31B | 3.46B | 4.65B |
| Total Debt | 23.33B | 22.72B | 23.33B | 23.48B | 21.95B | 22.84B |
| Total Liabilities | 38.07B | 37.41B | 38.07B | 39.22B | 34.48B | 39.20B |
| Stockholders Equity | 12.91B | 12.56B | 12.91B | 12.52B | 15.30B | 11.68B |
Cash Flow | ||||||
| Free Cash Flow | 2.05B | 1.86B | 2.05B | 984.00M | 1.30B | 1.06B |
| Operating Cash Flow | 6.99B | 7.03B | 6.99B | 5.95B | 5.91B | 5.96B |
| Investing Cash Flow | -5.01B | -3.77B | -5.01B | -3.54B | -3.56B | -3.24B |
| Financing Cash Flow | -2.11B | -3.11B | -2.11B | -2.43B | -2.56B | -3.22B |
BT Group plc Technical Analysis
Negative
217.55
Price Trends
213.68
Negative
211.51
Negative
197.18
Negative
Market Momentum
-5.78
Positive
39.84
Neutral
23.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BT.A, the sentiment is Negative. The current price of 217.55 is above the 20-day moving average (MA) of 199.76, above the 50-day MA of 213.68, and above the 200-day MA of 197.18, indicating a bearish trend. The MACD of -5.78 indicates Positive momentum. The RSI at 39.84 is Neutral, neither overbought nor oversold. The STOCH value of 23.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BT.A.
BT Group plc Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | £757.54M | 16.20 | 13.14% | 2.23% | 11.46% | -3.50% | |
69 Neutral | £12.14B | 23.80 | 23.75% | 1.50% | 23.19% | 196.37% | |
62 Neutral | £2.23B | 56.04 | 115.68% | ― | 4.56% | 17.21% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | £24.33B | -62.14 | -0.79% | 3.74% | 11.08% | 87.73% | |
55 Neutral | £18.99B | 64.14 | 2.35% | 4.42% | -3.55% | 2.13% | |
51 Neutral | £3.88B | ― | -35.13% | ― | ― | ― |
* Communication Services Sector Average
GB:BT.A
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BT Group plc Corporate Events
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
BT Group Publishes 2026 Annual Report and Sets Date for Hybrid AGM
Neutral
Jun 11, 2026
BT Group plc has published its 2026 Annual Report and Notice of Meeting, making both documents available on its website and via the U.K. National Storage Mechanism. Hard copies have been sent to shareholders who requested them, ensuring broad acce...
Regulatory Filings and Compliance
BT Group updates total voting rights for May 2026
Neutral
May 29, 2026
BT Group plc reported that as of 29 May 2026 its issued share capital comprised 9,968,127,681 ordinary shares, of which 487,815 were held in treasury, leaving 9,967,639,866 shares carrying voting rights. The disclosed voting-rights total provides ...
Business Operations and StrategyExecutive/Board Changes
BT Group Sets CFO Transition and Updates Governance Framework
Positive
May 21, 2026
BT Group has appointed Patricia Cobian to join its board on 20 July 2026 as Group Chief Financial Officer designate, executive director and executive committee member, succeeding current CFO Simon Lowth from 1 September 2026, with Lowth remaining ...
Business Operations and StrategyDividendsFinancial Disclosures
BT Group steps up fibre and 5G rollout as cost cuts fund higher dividend
Positive
May 21, 2026
BT Group reported another year of strategic progress as it accelerated the rollout of its Openreach full fibre network, now passing 23 million premises, including 6.3 million in rural areas, and remaining on track to reach 25 million by December 2...
Business Operations and StrategyDividendsFinancial Disclosures
BT accelerates UK fibre and 5G build as profits rise and dividend policy is upgraded
Positive
May 21, 2026
BT Group reported a year of operational progress in the 12 months to 31 March 2026, accelerating its fibre rollout and strengthening its mobile position despite revenue pressure. Openreach’s full fibre network now passes 23 million premises,...
Regulatory Filings and Compliance
BT Group discloses director share purchase under employee investment plan
Positive
May 18, 2026
BT Group disclosed a director dealing under EU market abuse rules, reporting that Group General Counsel, Company Secretary and Director of Regulatory Affairs Sabine Chalmers had an acquisition of ordinary shares recorded through the BT Group Emplo...
Regulatory Filings and Compliance
BT Group Updates Total Voting Rights for April 2026
Neutral
Apr 30, 2026
BT Group plc reported that as of 30 April 2026 its issued share capital comprised 9,968,127,681 ordinary shares, of which 487,815 were held in treasury, leaving 9,967,639,866 ordinary shares carrying voting rights. The disclosed total voting right...
Business Operations and StrategyExecutive/Board Changes
BT Group Chair Adam Crozier to Become Experian’s Next Chairman While Retaining BT Role
Positive
Apr 21, 2026
BT Group said its chairman, Adam Crozier, has been appointed to the board of Experian as an independent non-executive director and chair designate from 12 May 2026, and will assume the role of chair following Experian’s annual general meetin...
Regulatory Filings and Compliance
BT Group Updates Total Voting Rights for March 2026
Neutral
Mar 31, 2026
BT Group plc reported that as of 31 March 2026 its issued share capital comprised 9,968,127,681 ordinary shares, of which 487,815 were held in treasury, leaving 9,967,639,866 shares carrying voting rights. The updated voting rights figure provides...
Regulatory Filings and Compliance
BT Group Director Ruth Cairnie Buys Shares in Board-Dealing Disclosure
Positive
Mar 30, 2026
BT Group plc disclosed a director dealing transaction involving independent non-executive director Ruth Cairnie, in line with market abuse regulation reporting requirements. The filing states that Cairnie purchased 5,000 ordinary BT Group shares a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.