Deutsche Telekom Lifts 2026 Outlook and Payout as Höttges Makes His Case in Berlin
Published on 11/09/2026 at 13:10 | Editorial boerse-global.de
Deutsche Telekom has given investors two reasons to look past a dividend increase that landed slightly short of consensus: a raised full-year outlook and another clean sweep in Germany's network rankings. The Bonn-based carrier said it now expects roughly EUR 47.6 billion in adjusted EBITDA AL for 2026, alongside free cash flow AL of about EUR 20.1 billion.
The guidance upgrade came as the group reported third-quarter 2026 revenue of EUR 31.1 billion, representing organic growth of 5.5%. Adjusted EBITDA AL reached EUR 12.2 billion, up 8.0% on an organic basis, while adjusted net profit climbed 12.7% to EUR 3.0 billion. According to Reuters, the quarterly figures beat market expectations.
Management also flagged a planned dividend of EUR 1.10 per share. Reuters and dpa-AFX both noted the increase fell marginally short of what the market had been hoping for.
Network Test Crown Retained
For the 15th consecutive time, the group's network took top honors in a German magazine's annual test, earning a grade of "very good (1.2)." Deutsche Telekom singled out its 5G coverage, connection speeds and latency as the standout results. In presenting the findings, the company emphasized both the availability and the performance of its mobile connections, with achieved data rates among the headline figures.
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Analysts Stay Positive After the Numbers
JPMorgan kept its "Overweight" rating on the stock on Thursday following the quarterly release, with a price target of EUR 38. Analyst Akhil Dattani pointed to service revenue and network hardware sales among the supporting factors. DZ Bank, by contrast, trimmed its fair value to EUR 33 on Thursday, according to media reports, while leaving its "Buy" recommendation unchanged.
AI Infrastructure in the Spotlight
Separately, Deutsche Telekom has scheduled a press conference in Munich on AI infrastructure under the banner "AI Factory 2.0: More digital sovereignty for customers in Germany and Europe" — a theme that puts the focus squarely on infrastructure for customers in Germany and Europe.
Just over a week ago, T-Systems and Sparxity signed a letter of intent to collaborate on energy-efficient AI computing infrastructure. The plan covers the integration and validation of Sparxity's AI chips and computing systems for Telekom data centers, with the next chip generation slated for rollout in 2028. Energy efficiency sits at the heart of the proposed partnership, which spans both chips and computing systems.
Höttges on Starlink — and on Berlin
Chief executive Tim Höttges also weighed in on SpaceX's mobile ambitions in a media report published on Saturday. A competitive network requires on-the-ground presence and substantial capital, he said, referring to the planned Starlink mobile offering. His deeper concern, according to the report, is a new communications business model — he drew a parallel with the upheaval Tesla triggered in the auto industry, framing the worry around potential changes to how the business operates rather than merely the construction of a rival network.
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On the corporate front, Handelsblatt reported on Wednesday, citing four insiders, that Höttges is lobbying Chancellor Friedrich Merz and the German government for backing of a combination between Deutsche Telekom and T-Mobile US.
Investors will get the next full set of figures when the group publishes its fourth-quarter and full-year 2026 results on February 25, 2027.
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