Deutsche Telekom’s Buyback Machine Grinds On as T-Mobile Revenue Miss Bites
Published on 07/24/2026 at 07:42 | Redaktion boerse-global.de
The arithmetic of Deutsche Telekom’s stock is getting harder to ignore. On Thursday, shares in the Bonn-based telecoms giant slid 4.22 percent to close at €26.08, wiping out weeks of modest gains in a single session. The trigger came from across the Atlantic, where US subsidiary T-Mobile US posted second-quarter numbers that left the market cold — despite a headline profit beat.
T-Mobile US reported net income of $3.2 billion for the three months to June, with earnings per share of $2.99 sailing past the $2.59 consensus forecast. The problem was on the top line. Revenue climbed 7.9 percent to $22.8 billion, but that still fell short of analyst expectations. A churn rate that ticked up to 0.99 percent in the postpaid segment added to the unease, as did $146 million in impairment charges tied to the UScellular acquisition. Management did raise its full-year guidance for adjusted free cash flow to a range of $18.4 billion to $18.8 billion, but the revenue miss proved the dominant narrative.
Because T-Mobile US accounts for the lion’s share of Deutsche Telekom’s group earnings, the disappointment landed directly on the parent company’s stock. The sell-off has pushed the share price roughly 4 percent below its 50-day moving average of €27.22, a technical signal that short-term momentum has soured. The picture looks starker still against the 200-day average of €28.67, which the stock now trails by more than 9 percent — a gap that suggests the current weakness is more than a fleeting wobble.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
None of this has deterred the buyback programme. Deutsche Telekom launched the third tranche of its 2026 repurchase scheme on July 1, with a planned volume of up to €560 million running through to September 30. Between July 13 and 17, the company bought back 1,351,740 of its own shares at weighted average prices ranging from €26.42 to €27.26. That followed 1,412,830 shares purchased in the prior week, bringing the total since the tranche began to roughly 3.67 million shares. For the full year, the group has earmarked up to €2 billion for buybacks — a steady hand on the wheel even as the share price slides.
Analyst sentiment remains broadly constructive, though targets are being trimmed. Deutsche Bank Research lowered its price objective from €42 to €40 on July 21, while keeping a “Buy” rating. The revision reflected a more cautious view on the group’s future cash flow trajectory, with analysts also pointing to a shifting competitive backdrop. New technology entrants such as SpaceX’s Starlink and the Stargate AI initiative have altered the landscape, making Deutsche Telekom’s relative shine less bright than in prior years. Still, the bank sees value in the stock’s cheap valuation relative to peers and the prospect of greater clarity on potential M&A.
The next big test arrives on August 6, when Deutsche Telekom reports its own second-quarter figures. Investors will be watching closely to see whether the revenue softness at T-Mobile US is a group-wide issue or something that other divisions can offset. With the stock now trading 24 percent below its 52-week high of €34.35, the stakes are clear: a solid set of numbers could help the shares break out of their current funk, while another disappointment would likely deepen the pressure. For now, the buybacks provide a floor, but they cannot manufacture a catalyst.
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