Deutsche Telekom stock holds near 26.34 euros as outlook rises

Deutsche Telekom stock traded at 26.34 euros on Lang & Schwarz at 11:42 CET on Thursday, November 12, 0.57 percent above the Xetra close of Wednesday, November 11. The move followed a stronger third quarter and an upgraded full-year outlook reported by Deutsche Telekom on November 5.

In its third-quarter results release, the company said organic revenue increased 5.5 percent year over year to 31.1 billion euros. Organic adjusted EBITDA AL rose 8.0 percent to 12.2 billion euros. On a reported basis, revenue grew 7.5 percent and adjusted EBITDA AL advanced 9.9 percent.

Higher targets and rising cash generation

Adjusted net profit climbed 12.7 percent to 3.0 billion euros in the quarter, while free cash flow AL increased 1.4 percent to 5.7 billion euros. The company attributed the higher full-year expectations to stronger prospects at T-Mobile US, its largest earnings contributor.

Deutsche Telekom now expects adjusted EBITDA AL of about 47.6 billion euros in 2026, compared with the previous forecast of about 47.5 billion euros. The free cash flow AL target rose to about 20.1 billion euros from about 20.0 billion euros. The recurring adjusted earnings-per-share forecast remained at 2.20 euros.

The outlook points to continued earnings momentum, but the increase in the targets is modest. Investors therefore remain focused on whether growth in the United States can offset softer trends in parts of the European business and support further cash returns.

Fiber and enterprise operations add support

Germany delivered revenue growth of 3.9 percent to 6.6 billion euros, while adjusted EBITDA AL increased 1.5 percent to 2.8 billion euros. The company added 11,000 broadband customers during the quarter, reversing a decline of 25,000 customers in the year-earlier period. Pure fiber additions reached a quarterly record of 190,000 customers.

In the United States, service revenue rose 6.3 percent to 19.4 billion US dollars and adjusted EBITDA AL increased 11.4 percent to 9.4 billion US dollars. T-Mobile US added 274,000 postpaid accounts between June and September, taking the total to nearly 35 million.

T-Systems also reported stronger new business. Order entry rose 27.7 percent year over year to 883 million euros, with Industrial AI Cloud identified as the main growth area. Organic revenue increased 5.7 percent to 1.1 billion euros.

Shareholder returns remain in focus

The Board of Management plans to raise the dividend to 1.10 euros per share for the 2026 financial year, a 10 percent increase from the 2025 financial year. Deutsche Telekom also plans to repurchase shares worth up to 2 billion euros in 2027. The proposals still require the applicable corporate approvals.

For investors, the combination of higher cash flow guidance, fiber momentum in Germany and continued US growth supports the operating case. The relatively small guidance increases also leave execution, currency movements, competition and regulatory developments as important factors for the shares.

The Deutsche Telekom stock is part of a broader German equity market tracked through the DAX.

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