Deutsche Telekom Lifts 2026 Targets as Q3 Earnings Climb, AI Partnerships Deepen
Published on 11/07/2026 at 18:11 | Editorial boerse-global.de
Deutsche Telekom has raised its full-year outlook after a strong third quarter, pairing the upgrade with a higher dividend and a fresh buyback pledge — even as two of Germany's most closely watched research houses trimmed their price targets on the stock.
Earnings Beat Drives Guidance Upgrade
For the third quarter of 2026, the Bonn-based group reported revenue of EUR 31.1 billion, representing organic growth of 5.5%. Adjusted EBITDA AL climbed 8.0% organically to EUR 12.2 billion, while adjusted net profit came in at EUR 3.0 billion, up 12.7% year on year.
Buoyed by those figures, management lifted its 2026 guidance: adjusted EBITDA AL is now expected at around EUR 47.6 billion, with free cash flow AL seen at roughly EUR 20.1 billion. The board intends to propose a dividend of EUR 1.10 per share for 2026, and has signalled a share buyback of up to EUR 2 billion for 2027.
The company also confirmed it will publish fourth-quarter and full-year 2026 results on 25 February 2027.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
Buyback Already Under Way
The group is not waiting for next year to return capital. Between 26 and 30 October, it repurchased roughly 6 million of its own shares, bringing the cumulative total bought back under the current programme to about 44.2 million as of 30 October.
Network Test Victory Adds to the Narrative
Alongside the financial update, Deutsche Telekom announced another win in the Computer BILD mobile network test, earning an overall grade of "very good (1.2)." According to the company, its network led rivals on 5G speed and coverage, and it also highlighted latency performance.
Analysts Trim Targets but Keep Bullish Ratings
Goldman Sachs cut its price target on the shares from EUR 38 to EUR 36 on Wednesday, while retaining its buy recommendation. A day earlier, DZ Bank had lowered its fair value from EUR 35 to EUR 33, with media reports indicating it likewise kept a "buy" rating. Both houses thus reduced their valuation marks without abandoning their positive stance.
AI Infrastructure Push Takes Shape
On the corporate front, T-Systems — the group's enterprise IT arm — signed a memorandum of understanding on Tuesday with Sparxity, a Dresden-based AI infrastructure specialist, to expand energy-efficient AI computing capacity and bolster European sovereign AI infrastructure. The plan envisions integrating energy-efficient AI computing technology into Telekom data centres, with the next chip generation slated for rollout in 2028.
The Sparxity tie-up follows an agreement struck on 28 October between T-Systems and Banco Sabadell covering the expanded use of agent-based AI within the Spanish banking group.
Deutsche Telekom at a turning point? This analysis reveals what investors need to know now.
Boardroom Change
In a personnel move, Jan Hofmeyr took charge of the Product and Technology division on 1 November.
Investor Webcast Scheduled
Private investors will get a direct briefing on the quarter on 10 November, when the company hosts a live webcast from 18:00 to 19:00 CET.
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