Veon (VEON) Q3 2026: A 55% EPS Beat Built on One-Time Gains
As seen on the 24/7 Wall St. homepage on November 6, 2026.
Veon swung to $188 million in profit attributable to owners a year after a loss, driven by Pakistan revenue growth on digital financial services. Revenue landed in line with estimates, so the earnings beat leans on disposal gains and the absence of last year's listing expense. A buyback started in September adds the near-term support.
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Veon reported diluted EPS of $2.67 for the third quarter of 2026, well above the consensus estimate of $1.72, a positive surprise of 55%. Revenue of $1.31 billion came in essentially flat against forecasts, edging just 0.09% below the $1.31 billion estimate while rising 17.2% year over year.
The profit swing from a $131 million loss in the prior-year quarter to $188 million in profit attributable to owners was driven partly by items that will not repeat. This quarter included a $31 million gain on the sale of QazCode software to Amdocs, a $30 million gain on subsidiary disposals including a $19 million Med Cable gain, a $10 million fair-value gain on the ADG resolution derivative, and a $25 million net foreign exchange gain. The prior-year quarter, meanwhile, was burdened by a $162 million Kyivstar Group listing expense and a $97 million loss on the Beeline Kyrgyzstan disposal, two charges that simply did not recur.
Pakistan remains Veon's most consequential growth engine. Quarterly revenue from that market climbed to $521 million from $405 million a year earlier, with digital financial services contributing $157 million of that total, up from $95 million. Ukraine added $351 million in revenue, and digital services there, including the Uklon ride-hailing and Tabletki.ua pharmacy platforms, reached $76 million, nearly double the $45 million recorded a year ago.
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The company's EPS history over the past eight quarters shows a volatile pattern. After a strong Q2 2025 result of $8.30, Veon posted losses in Q3 and Q4 of 2025 before returning to consistent beats starting in Q1 2026. The Q3 2026 result of $2.67 against a $1.72 estimate continues that recovery streak, though the one-time item mix will draw scrutiny from analysts trying to assess the underlying run rate.
Several risks remain visible in the filing. Finance costs rose to $174 million from $146 million, Ukraine holds $444 million in cash subject to currency upstreaming restrictions, and effective tax rates are elevated in key markets, running at 37% in Pakistan and 45% in Bangladesh. On the capital return side, Veon's third share buyback program, commenced in September 2026, targets up to $200 million in repurchases and had already bought back 13.97 million shares for $38 million through September 30.
Mentioned: VEON