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VEON
(NASDAQ:VEON)
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Rating:70Outperform
Price Target:
$58.00
▲(13.70% Upside)
Action:Reiterated
Date:08/01/26
VEON’s score is driven primarily by a very positive earnings outlook (raised FY26 guidance, strong growth and cash generation, and supportive capital allocation) and attractive valuation (low P/E). These strengths are tempered by financial risk from elevated leverage and only neutral technical positioning around key moving averages.
Positive Factors
Rapid digital revenue growth
Sustained double‑digit digital growth indicates a structural shift in VEON’s revenue mix toward higher‑margin, platform-based services. With digital platforms reaching hundreds of millions of users and digital EBITDA margin near 36%, the company can scale revenue without proportionate capex, improving long‑term margin durability and diversification away from pure connectivity.
Negative Factors
Elevated leverage remains a structural overhang
High historical leverage limits financial flexibility and raises sensitivity to macro shocks or currency volatility in emerging markets. Even with recent refinancing, elevated debt ratios increase interest expense risk and constrain the pace of buybacks or M&A until sustained free cash flow materially reduces net debt over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid digital revenue growth
Sustained double‑digit digital growth indicates a structural shift in VEON’s revenue mix toward higher‑margin, platform-based services. With digital platforms reaching hundreds of millions of users and digital EBITDA margin near 36%, the company can scale revenue without proportionate capex, improving long‑term margin durability and diversification away from pure connectivity.
Read all positive factors
VEON (VEON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.62B
Dividend YieldN/A
Average Volume (3M)76.88K
Price to Earnings (P/E)76.9
Beta (1Y)0.94
Revenue Growth12.62%
EPS Growth19.57%
CountryUS
Employees18,938
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.68
Shares Outstanding68,767,470
10 Day Avg. Volume60,153
30 Day Avg. Volume76,883
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)2.82
Price to Sales (P/S)0.84
P/FCF Ratio5.98
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$70.00Price Target Upside37.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)6.76
Revenue Forecast (FY)$5.02B
VEON Business Overview & Revenue Model
Company Description
VEON Ltd. provides telecommunications and digital services in Pakistan, Ukraine, Kazakhstan, Bangladesh, and Uzbekistan. The company offers mobile telecommunications services under prepaid and postpaid subscriptions, including value-added and call...
How the Company Makes Money
VEON primarily generates revenue by selling connectivity services to consumers and businesses. The core revenue stream is mobile service revenue, which includes (1) recurring access/usage fees from subscribers on postpaid plans and (2) prepaid cus...
VEON Earnings Call Summary
Earnings Call Date:Jul 31, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed materially positive momentum: strong top-line growth (17% YoY), very rapid digital revenue and EBITDA expansion (digital +53.6% revenue, +66.2% EBITDA), improved cash generation (operating cash flow +238% in Q2), stronger balance sheet liquidity and a formalized share-cancellation program. Management raised FY guidance and emphasized a repeatable digital 'flywheel' across markets. Remaining negatives are largely manageable: prior-year accounting items that affect comparability, country-specific operational/regulatory headwinds (Bangladesh energy outages, Kazakhstan VAT impact), unchanged headline mobile subscriber counts, and the need for fintech licenses in some markets. Overall, positives outweigh the listed challenges.Positive Updates
Strong Top-Line Growth
Q2 revenue grew 17% year-over-year to $1.27B; first-half revenue also up 17% to $2.47B. Management raised full-year revenue growth guidance to 15%–18%.
Negative Updates
Exceptional Accounting Items Affect Comparability
Q2 comparables distorted by prior-year items: $489M gain on Pakistan tower sale in prior-year period and a prior Bangladesh provision release; this quarter included a $22M fair-value loss on Kyivstar Group warrants.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Q2 revenue grew 17% year-over-year to $1.27B; first-half revenue also up 17% to $2.47B. Management raised full-year revenue growth guidance to 15%–18%.
Read all positive updates
Company Guidance
Management raised FY26 guidance to revenue growth of 15–18% and EBITDA growth of 9–12% (capex outlook unchanged), and committed to cancel at least $100m of shares annually after $183m of buybacks since August 2024. The upgrade is backed by Q2/H1 momentum — Q2 revenue $1.27bn (+17%) and H1 $2.47bn (+17%), telecom revenue $929m, digital revenue $342m (+53.6%) with digital EBITDA $123m (+66.2%, ~36% margin) — plus much stronger cash generation (Q2 operating cash flow $463m, +238%; H1 OCF $860m; H1 equity free cash flow $320m, +47.5%) and a reinforced balance sheet following a $1.4bn bond (cash $2.2bn incl. $468m at HQ, net debt excl. leases $1.8bn, lease‑adjusted leverage ~1.1x).VEON Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
44
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.78B | 4.47B | 4.00B | 3.70B | 3.75B | 3.85B |
| Gross Profit | 3.74B | 3.12B | 3.49B | 3.26B | 3.28B | 3.37B |
| EBITDA | 1.67B | 2.16B | 1.48B | 1.39B | 1.64B | 1.84B |
| Net Income | 59.12M | 541.13M | 415.00M | -2.53B | -162.00M | 674.00M |
Balance Sheet | ||||||
| Total Assets | 10.27B | 9.21B | 8.04B | 8.22B | 15.08B | 15.92B |
| Cash, Cash Equivalents and Short-Term Investments | 2.69B | 1.73B | 2.05B | 2.33B | 3.23B | 2.34B |
| Total Debt | 5.85B | 5.14B | 4.69B | 5.16B | 8.18B | 10.65B |
| Total Liabilities | 8.35B | 7.58B | 6.78B | 7.15B | 14.32B | 14.42B |
| Stockholders Equity | 1.92B | 1.34B | 1.10B | 858.00M | 569.00M | 586.00M |
Cash Flow | ||||||
| Free Cash Flow | 828.02M | 630.64M | 523.00M | 1.58B | 1.92B | 1.94B |
| Operating Cash Flow | 1.65B | 1.38B | 1.15B | 2.11B | 2.56B | 2.64B |
| Investing Cash Flow | -991.74M | -804.58M | -778.00M | -2.24B | -1.66B | -1.46B |
| Financing Cash Flow | 234.58M | -557.41M | -551.00M | -1.15B | 116.00M | -465.00M |
VEON Technical Analysis
Positive
51.01
Price Trends
52.51
Positive
51.80
Positive
51.92
Positive
Market Momentum
0.52
Negative
64.96
Neutral
92.17
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VEON, the sentiment is Positive. The current price of 51.01 is below the 20-day moving average (MA) of 52.56, below the 50-day MA of 52.51, and below the 200-day MA of 51.92, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 64.96 is Neutral, neither overbought nor oversold. The STOCH value of 92.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VEON.
VEON Risk Analysis
VEON disclosed 54 risk factors in its most recent earnings report. VEON reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
be unable to keep pace with technological changes and evolving industry standards, which could harm our competitive position and, in turn, materially harm our business; Q4, 2023
2.
Our reputation could be adversely impacted by negative developments in respect of the Beeline brand, which remains a trademark of our former subsidiary, VimpelCom (as defined below). If we elect to undertake a rebranding exercise, it may involve substantial costs and may not produce the intended benefits if it is not favorably received by our existing and potential customers, suppliers and other persons with whom we have a business relationship. Q4, 2023
3.
assurance that our Ukrainian network will not sustain major damage or that such damage can be repaired in a timely manner as the war continues. In addition, with increased targeting of Ukraine's electrical grid, we have faced challenges ensuring that our network assets have a power source. While we have taken measures to manage this risk, there can be no assurance that we will be able to obtain sufficient power sources in the future. See "Market Risks--The ongoing war between Russia and Ukraine is having, and will continue to have, an impact on our business financial condition, results of operations, cash flows and prospects" and "Operational Risks--We have experienced and are continually exposed to cyber-attacks and other cybersecurity threats, both to our own operations or those of our third party providers, that may lead to compromised or inaccessible telecommunications, digital and financial services and/or leaks or unauthorized processing of confidential information, and perceptions of such threats may cause customers to lose confidence in our services. Q4, 2023
VEON Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $6.39B | 25.16 | 5.46% | 0.33% | 51.86% | 11.59% | |
70 Outperform | $3.62B | 76.90 | 4.15% | ― | 12.62% | 19.57% | |
64 Neutral | $3.01B | 6.67 | 15.59% | ― | -71.02% | ― | |
63 Neutral | $4.31B | 8.70 | 24.22% | 8.17% | 0.82% | -9.40% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $4.59B | 11.70 | 7.27% | 4.01% | 18.57% | 5.36% | |
57 Neutral | $3.57B | 19.12 | 2.75% | 30.29% | -56.04% | ― |
* Communication Services Sector Average
VEON
VEON
55.88
2.42
4.53%
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AD
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35.65
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TDS
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VEON Corporate Events
VEON Lifts 2026 Guidance as Digital Revenue Surges 54% and Balance Sheet Strengthens
Jul 31, 2026
VEON reported double-digit growth for the quarter and half year ended June 30, 2026, with total revenue up 17% year-on-year to USD 1.27 billion in 2Q26 and USD 2.47 billion in 1H26, driven by a 53.6% surge in digital revenue and solid 7.6% growth ...
VEON Details Risk Landscape in July 2026 Form 6-K Filing
Jul 31, 2026
VEON has filed a Form 6-K with the U.S. Securities and Exchange Commission for July 2026, providing management’s discussion and analysis tied to its unaudited interim condensed consolidated financial statements for the six months ended June ...
VEON MidCo Completes Tender Offer, Cuts 2027 Note Balance to $124.9 Million
Jun 17, 2026
On 17 June 2026, VEON MidCo B.V. reported the final results of a tender offer for its U.S.$1.014 billion 3.375% notes due 2027, originally launched on 18 May 2026 and guaranteed by VEON Amsterdam B.V. The offer followed the satisfaction of a new f...
VEON MidCo Hits Cap in Heavily Subscribed Tender for 2027 Notes
Jun 2, 2026
On 2 June 2026, VEON MidCo B.V., a Netherlands-based subsidiary of VEON Ltd., reported early results of a cash tender offer for its US$1.013 billion 3.375% notes due 2027, confirming strong investor participation and the satisfaction of its new fi...
VEON Upsizes Tender Offer for 2027 Notes to $875 Million
May 20, 2026
On May 20, 2026, VEON MidCo B.V., a Dutch subsidiary of VEON Ltd., announced that it has increased the maximum aggregate purchase price under its cash tender offer for its outstanding U.S.$1,013,973,000 3.375% notes due 2027 to U.S.$875,000,000 fr...
VEON Prices USD 1.4 Billion Bond Offering to Refinance Debt
May 20, 2026
On May 19, 2026, VEON priced a USD 1.4 billion senior unsecured bond offering through its subsidiary VEON Midco B.V., split into two equal tranches of USD 700 million each, maturing in 2031 and 2033 with coupons of 6.95% and 7.45% respectively, an...
VEON Launches Investor Roadshow for Dual-Tranche Dollar Notes and Tender Offer for 2027 Bonds
May 18, 2026
On May 18, 2026, VEON announced that its subsidiary VEON MidCo B.V. has begun investor meetings for a potential dual-tranche offering of unsecured U.S. dollar medium-term notes, comprising five-year and seven-year tranches with respective non-call...
VEON posts Q1 2026 results, balancing higher revenue with increased finance and tax costs
May 14, 2026
On May 14, 2026, VEON published unaudited interim condensed consolidated financial statements for the quarter ended March 31, 2026, reporting revenue of $1.2 billion and net profit of $123 million, in line with the prior year’s earnings but ...
VEON Lifts 2026 Revenue Outlook After Double-Digit Q1 Growth and Digital Surge
May 13, 2026
VEON reported a strong start to 2026, posting first-quarter revenue of $1.201 billion for the period ended March 31, 2026, up 17% year on year, driven by robust telecom and infrastructure performance and surging digital revenues, which jumped 57.7...
VEON Shareholders Re-elect Board and Chairman as Digital Strategy Delivers Strong FY25
May 11, 2026
VEON shareholders have reaffirmed their backing for the company’s digital growth strategy by re-electing all seven incumbent directors at the online Annual General Meeting held on May 11, 2026. The board, which includes founder Augie K Fabel...
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.