VEON (NasdaqGS:VEON) has opened 2026 with Q1 numbers that put the focus squarely on earnings quality, reporting US$1.2 billion in revenue and basic EPS of US$1.42, while trailing twelve month EPS sits at US$7.65 on revenue of US$4.6 billion. Over recent quarters the company has seen revenue move from US$998 million in Q4 2024 to US$1.03 billion in Q1 2025, US$1.09 billion in Q2 2025 and US$1.20 billion in Q1 2026, with quarterly EPS ranging from a loss of US$2.00 in Q3 2025 to US$8.50 in Q2 2025. With trailing net income at US$532 million and net margins in the data set holding just above 11%, this result frames a story where consistency of profitability is just as important as the headline growth drivers investors are watching.

See our full analysis for VEON.

With the latest numbers on the table, the next step is to see how this earnings profile lines up against the big narratives around VEON’s growth potential, risk profile and the quality of its recent profitability.

TTM Net Margin Holds Around 11.6%

• Over the last 12 months VEON reported net income of US$532 million on US$4.6 billion of revenue, giving a trailing net margin of 11.6%, slightly above the 11.2% margin in the prior year period.
• Consensus narrative points to digital services and young, urban customer bases as key earnings drivers, and this 11.6% margin aligns with that view but also shows a ceiling for now, since digital revenues are described as having structurally lower EBITDA margins than the core telecom business.
  • The margin uptick from 11.2% to 11.6% sits alongside trailing EPS of US$7.65, which is below the very large five year average earnings growth rate cited at 43.1% per year, so the current margin level may not fully match the faster growth implied by the longer term trend.
  • At the same time, analysts in the consensus narrative are assuming profit margins can move to 13.9% in a few years, so the latest 11.6% figure gives you a concrete reference point to judge how ambitious that assumption looks.

One Off US$267 Million Gain Distorts EPS Trend

• Trailing net income of US$532 million includes a one off gain of US$267 million, while quarterly net income in the last five reported quarters swung between a loss of US$131 million in Q3 2025 and a profit of US$595 million in Q2 2025, highlighting how much non recurring items and volatility have shaped the last year’s EPS path.
• Bears argue that heavy exposure to unstable markets and lower margin digital expansion make future profitability fragile, and the reliance on a US$267 million one off gain in the last 12 months adds weight to that caution.
  • The quarterly pattern, with Q3 2025 and Q4 2025 both showing losses despite trailing earnings growth of 16.4%, suggests that a single strong quarter and the one off gain did a lot of work in delivering the current 11.6% margin.
  • Given that bearish analysts still model earnings of US$560.7 million by around 2028, the fact that US$532 million of reported profit today includes US$267 million from a non recurring source lets you test whether that longer term earnings path looks robust enough without similar boosts.

Stay cautious about headline EPS in a year that leans on a large one off gain, and see how skeptics frame that risk in their full narrative. 🐻 VEON Bear Case

P/E Of 7x Versus Industry’s 16.2x

• VEON is trading on a trailing P/E of 7x compared with 16.2x for the Global Wireless Telecom industry and 18.6x for peers, while analysts’ summary points to an implied price target of US$83.64 against the current share price of US$53.92.
• Bullish investors argue that digital growth, asset monetization and segment listings could justify a much higher multiple, and the current 7x P/E together with the US$83.64 target and 91% discount to a DCF fair value of US$600.65 is what they point to as evidence of that gap.
  • On the fundamentals side, trailing revenue of US$4.6 billion and EPS of US$7.65 are paired with forecast earnings growth of about 7.6% per year, which bulls see as a base case that could be supported by expanding digital revenues and higher margin fintech services.
  • However, interest coverage is flagged as weak, so the same low P/E ratio that excites bulls also reflects the market’s focus on leverage and financing costs, and you can weigh that against the size of the valuation gap to both US$83.64 and the DCF fair value figure.

If you want to see how optimistic investors connect today’s 7x P/E with those higher targets, take a look at the full bullish thesis. 🐂 VEON Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for VEON on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With a mix of positives and clear pressure points in this story, now is the time to check the details for yourself and decide where you stand. To balance the upside case with the concerns flagged by the data, take a moment to review the 5 key rewards and 2 important warning signs

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VEON’s reliance on a US$267 million one off gain, earnings volatility across recent quarters and flagged weak interest coverage all point to balance sheet risk.

If that mix of non recurring boosts and financing pressure feels uncomfortable, it is worth checking companies screened for stronger financial footing with the solid balance sheet and fundamentals stocks screener (45 results)

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.