BT Group Results Small Beat

BT reported a small beat in 4Q26 results and introduced FY27 guidance largely in line with consensus. Goldman Sachs maintains a 'Buy' rating, expecting material FCF acceleration and shareholder return upside as fiber roll-out costs begin to decline.

Key Takeaways

• 1.BT delivered a small 4Q26 results beat compared to consensus, primarily driven by robust performance in Consumer and Business units.
• 2.Openreach line losses of -203k were better than the consensus estimate of -227k, providing reassurance regarding altnet competition.
• 3.Significant Free Cash Flow (FCF) acceleration is expected from FY27, with post-pension FCF projected to rise from £0.5bn to £1.3bn+.

Table of Contents

• In the detail
• Valuation and risks
• Disclosure Appendix
• GS Factor Profile
• M&A Rank
• Quantum
• Disclosures
• Company-specific regulatory disclosures
• Distribution of ratings/investment banking relationships
• Price target and rating history chart(s)
• Target price history table(s)
• Regulatory disclosures
• Ratings, coverage universe and related definitions
• Global product; distributing entities
• General disclosures

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