T-Mobile US Customer Growth Fails to Lift Deutsche Telekom as Revenue Miss Stings
Published on 07/24/2026 at 03:11 | Redaktion boerse-global.de
Deutsche Telekom shareholders endured one of the sharpest single-day declines in recent months on Thursday, as a mixed earnings report from its 54%-owned US subsidiary triggered a sell-off that erased a chunk of the stock’s July recovery. The Bonn-based group’s shares closed at €26.05, down 4.19%, after T-Mobile US posted quarterly results that beat profit estimates but fell short on revenue.
The US carrier reported second-quarter earnings per share of $2.99, comfortably above the consensus forecast of $2.59, while revenue climbed 7.9% to $22.79 billion — just shy of analyst expectations. Net income edged up only modestly to $3.24 billion from $3.22 billion a year earlier, weighed down by $146 million in amortization charges tied to the UScellular acquisition and a $46 million network restructuring cost. The adjusted core EBITDA improved 12% to $9.5 billion, and management lifted its full-year guidance for adjusted free cash flow to a range of $18.4 billion to $18.8 billion, up from the previous $18.1 billion to $18.7 billion.
Investor attention, however, zeroed in on the customer metrics. T-Mobile US added 277,000 new postpaid subscribers in the quarter, beating the 259,000 estimate but representing a 13% decline year-over-year. The postpaid churn rate ticked up to 0.99% from 0.92%, while average revenue per account rose 2% to $152.91 and service revenue grew 9% to $19 billion. Management guided for roughly 250,000 postpaid net additions in the third quarter, and noted that 60% of new customers opted for premium rate plans — a shift that partially explains the ongoing repricing of the tariff structure.
The competitive landscape added further pressure. Rival AT&T reported 432,000 new wireless subscribers the same day, easily surpassing the 338,500 consensus, and posted adjusted earnings per share of $0.65 versus the $0.59 estimate. The stark contrast reinforced concerns that T-Mobile US may be temporarily ceding market share as it restructures its pricing.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
T-Mobile US shares slid as much as 8% in New York trading, dragging Deutsche Telekom lower throughout the European session. The German stock now sits roughly 4.3% below its 50-day moving average of €27.22 and about 24% off the 52-week high of €34.35 touched in late February. Traders flagged a key support zone between €26 and €26.50 that came under threat during the session. The pullback gave back a portion of the rally that had lifted the stock from below €24 in July to over €27 earlier this month.
Deutsche Telekom has been pressing ahead with its share buyback program regardless. Between July 13 and 17, the company repurchased 1.35 million shares on Xetra at weighted average prices ranging from €26.41 to €27.25 — levels just above the current trading price. Since the start of the year, the group has bought back more than 35 million shares for over €1 billion, completing the second tranche of the program while the third remains active. An additional vote of confidence came from board member Rodrigo Francisco Diehl, who purchased 2,999 shares on July 1 at prices between €24.15 and €24.64, for a total transaction value of roughly €73,430.
Analyst views remain split heading into the group’s own half-year results. On July 21, Deutsche Bank Research cut its price target on Deutsche Telekom from €42 to €40, citing growing structural competition from satellite internet services such as Starlink and large-scale AI infrastructure projects by rivals. The bank maintained its "Buy" rating. Just days earlier, on July 15, Citigroup had raised its price target ahead of the earnings release, keeping its existing recommendation.
Deutsche Telekom at a turning point? This analysis reveals what investors need to know now.
All eyes now turn to August 6, when Deutsche Telekom is scheduled to publish its second-quarter and first-half 2026 financial results. Investors will be watching closely to see whether the strong operational momentum at T-Mobile US translates into a meaningful boost for the parent company’s consolidated numbers — or whether the market’s disappointment with the revenue miss proves a more lasting concern.
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