TEF Ties Up With IQM & CESGA to Deploy Spain's First Quantum Computers

Telefonica, S.A. TEF and IQM Quantum Computers have signed a purchase agreement with the Galician Supercomputing Center (CESGA) to deploy two full-stack quantum computers. Scheduled for delivery by June 2026, the deployment positions CESGA among Europe’s most advanced high-performance computing (HPC) centres and significantly strengthens Spain’s role in next-generation computing technologies.

IQM will deliver a 54-qubit IQM Radiance system for HPC centres and a 5-qubit IQM Spark system for education by June 2026. The deployment will boost CESGA’s advanced computing capabilities and strengthen its position as a key national and European research infrastructure. The systems will be available to researchers and leading companies, supporting experiments that combine quantum computing, AI and HPC.

Telefonica’s involvement underscores the growing importance of quantum computing beyond academia. As a global telecommunications provider, it envisions quantum technology as a foundational pillar of future digital infrastructure.

TEF Supports Europe’s Tech Autonomy Through New Strategy

Telefonica has launched Transform & Grow, a five-year strategy to drive sustainable growth, strengthen its leadership in Spain, Germany, the U.K. and Brazil, and accelerate its technological and operational evolution. The plan focuses on delivering a best-in-class customer experience, expanding B2C convergence and digital services, scaling its B2B and public-sector business, advancing network and IT capabilities, simplifying its operating model and developing top talent.

Telefonica targets up to €2.3 billion in savings by 2028 and €3 billion by 2030 through efficiency and digital transformation. Financial goals include 1.5–2.5% revenue and EBITDA CAGR through 2028, accelerating to 2.5–3.5% from 2028–2030, alongside stronger, de-risked free cash flow and continued investment-grade strength. The company has confirmed a dividend of €0.30 per share for 2025, set a dividend of €0.15 per share for 2026, and plans to allocate 40–60% of free cash flow to dividends for 2027–2028.

Management reiterates its commitment to Europe’s strategic autonomy and to advancing the region’s technological capabilities. While its 2026–30 Strategic Plan does not assume market consolidation, the company remains prepared to pursue opportunities should they emerge. Telefonica warns that Europe’s fragmented telecom landscape has led to underinvestment and growing dependence on external technologies, especially compared with the United States and China.

According to industry analysts, as highlighted by Telefonica, potential consolidation in its key markets could unlock €18–€22 billion in synergies, delivering value to stakeholders across the ecosystem, including buyers, sellers, customers and the broader ecosystem, through increased investment and innovation.

TEF’s Zacks Rank & Stock Price Performance

Telefonica currently carries a Zacks Rank #2 (Buy). In the past six months, shares have declined 22.6% against the Zacks Diversified Communication Services industry’s growth of 0.2%.

Other Key Picks From the Computer and Technology Space

Some other top-ranked stocks from the broader technology space are Ubiquiti Inc. UI, Ericsson ERIC and Clearfield, Inc. CLFD. UI sports a Zacks Rank #1 (Strong Buy), while ERIC and CLFD carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

UI’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 54.15%. In the last reported quarter, Ubiquiti delivered an earnings surprise of 39.52%. Its shares have surged 44.9% in the past six months.

Ericsson earnings beat the consensus estimate in three of the trailing four quarters while missing in one, with the average surprise being 13.51%. Ericsson’s long-term earnings growth rate is 8.4%. Its shares have gained 18.5% in the past year.

Clearfield’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 92.47%. In the last reported quarter, CLFD delivered an earnings surprise of 44.44%. Its shares have lost 5.4% in the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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