Vivendi (ENXTPA:VIV) Stock Recovery Looks Thin Against A 92.7x P/E

Vivendi stock has been grinding lower for months, yet the latest half year numbers tell a cleaner story than the share price implies. At €1.49 after Friday’s close, the stock reflects pressure, while the headline this time is simple. Vivendi is back to posting profits on a small base, and those profits are being asked to carry a very heavy valuation.

H1 2026 net income of €28 million on €140 million of revenue translates into modest earnings power that sits against a rich P/E multiple and a dividend that recent profits and cash flows struggle to cover. That disconnect is what matters now.

Is Vivendi a rare case where modest profits justify a 92.7x P/E, or is the stock simply priced for perfection at €1.49? See how the current earnings, dividend coverage and cash flows line up in our valuation analysis for Vivendi

H1 2026 Earnings Summary

• Revenue (H1 2026 vs H1 2025): €140 million vs. €145 million (decline of 3.4%)
• Net Income, Excluding Extra Items (H1 2026 vs H1 2025): €28 million vs. €30 million (decline of 6.7%)
• Basic EPS (Earnings Per Share) (H1 2026 vs H1 2025): €0.03 vs. €0.030238 (broadly flat, slight decline of 0.8%)
• Trailing Twelve Month Net Income, Excluding Extra Items (H1 2026 vs H1 2025): €16 million vs. a loss of €240 million (returned to profit on a trailing basis)

If you prefer clear visuals instead of another wall of numbers and fine print, explore Vivendi’s full financial picture, including how its valuation compares with recent earnings, in an interactive format with our company report for Vivendi.

Vivendi bullish story: margins and portfolio in focus

Supporters argue Vivendi is quietly turning into a leaner media and entertainment holding company that can earn more from each euro of revenue through cost cuts, higher value content and portfolio clean up. H1 2026 gives that view some backing. Group revenue slipped 3.4%, yet Gameloft EBITA rose 10.1% helped by a mix shift toward higher value PC and console titles and tighter cost control. Corporate recurring operating costs fell 13.8%, which points to progress on overhead reduction. The consolidation of V Collection in Q2 2026 also lines up with the idea of greater focus on premium content and luxury media. These are concrete steps that point toward better margin quality and a more coherent portfolio, even if they are still building from a relatively small revenue and profit base.

Vivendi bear case: growth strain and execution risk

Skeptics worry that Vivendi faces structural pressure in mature European media, rising competition from global platforms and complex reorganizations that may weigh on growth and increase earnings volatility. The H1 2026 numbers do show some of that strain. Revenue declined 3.4%, and net income excluding extra items dipped 6.7% year on year to €28 million, which leaves modest earnings to support the current equity story. Reported trailing net income only recently swung back from a large loss to a €16 million profit, so the track record of consistent profitability is still short. The stock has also fallen about 32% over 90 days, which signals that investors remain cautious on the pace of portfolio simplification and monetization. The ongoing EU legal process adds a governance and regulatory overhang, even though the French court ruling on control removed one separate concern.

After a 32% share price decline over 90 days, modest trailing profits and one off items, review Vivendi’s deeper risk profile in our risk analysis for Vivendi which shows 3 important warning signs.

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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.

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