Deutsche Telekom Stock Sits on the Sidelines as Buybacks, Merger Rumours and a Union Ballot Collide
17.06.2026 - 13:13:16 | boerse-global.de
The disconnect between Deutsche Telekom’s operational momentum and its share price is becoming hard to ignore. First-quarter revenues climbed 4.7% organically to €29.9bn, while adjusted EBITDA AL jumped 7.5% to €11.5bn. Management responded by raising the full-year targets — €47.5bn in adjusted EBITDA AL and a free cash flow north of €19.8bn. Yet the stock has shed more than 20% from its February peak of €34.35, trading at €27.29 as of the close that day. The relative strength index of 37.4 signals the shares are technically stretched to the downside.
The buyback programme, a centrepiece of the company’s capital return strategy, has so far failed to get traction. In the first week of June the group repurchased 1.58m shares at an average price of €28.49, spending roughly €45m. The following week it bought another 971,332 shares for about €27m. The current second tranche runs until the end of June and is capped at €550m, part of a total €2bn programme for 2026. Most of the bought-back stock is slated for cancellation, which would mechanically lift earnings per share — the board targets €2.20 in adjusted EPS for the year. But the market has shrugged.
One factor weighing on sentiment is a report from the Wall Street Journal that Deutsche Telekom is exploring a full merger with its US subsidiary T-Mobile US via a new holding company. Under the proposed structure, shareholders of both listed entities would receive a pure share-exchange offer, a far-reaching corporate move that has unsettled investors. The uncertainty around the transaction’s implications — regulatory approvals, financing, potential dilution — has dampened enthusiasm for the shares.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
A more immediate event comes on Friday 19 June, when the ver.di union’s wage commission votes on the collective agreement struck with management at the end of May. The 33-month contract runs through to end-2028 and covers approximately 60,000 employees. Compensation will rise in two steps: an additional monthly payment of €340 from August 2026, increasing to €480 from July 2027, followed by a 2.4% across-the-board salary increase in June 2028. For the entire duration, the company has ruled out compulsory redundancies. The commission is recommending approval, and a positive outcome is widely expected. Clearing this hurdle would give management — and analysts — three years of predictable labour costs, a significant advantage when building earnings models.
Operationally, the underlying business continues to deliver. The group’s fibre rollout in Germany is a key growth driver, with penetration crossing 17% and more than 13 million households now having a direct connection. The broadband expansion is supporting both revenue growth and customer retention. On the financial side, buybacks continue but have yet to provide any meaningful tailwind; the stock remains roughly 19% off its 52-week high and has posted a marginal year-to-date loss.
With the union vote likely to go through, one cloud will lift. But the merger rumour and the persistent inability of a massive buyback to shore up the share price suggest investors are waiting for a clearer picture — either on the structure of the US business or on a catalyst that can rebuild confidence in the equity story.
Ad
Deutsche Telekom Stock: New Analysis - 17 June
Fresh Deutsche Telekom information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
