Deutsche Telekom Lifts 2026 Targets as Q3 Profit Climbs and AI Deals Pile Up
Published on 11/07/2026 at 03:10 | Editorial boerse-global.de
Deutsche Telekom capped a busy week of quarterly reporting and partnership announcements by raising its full-year outlook, with Europe's largest telecoms group now guiding toward a adjusted EBITDA AL of roughly EUR 47.6 billion for 2026 and free cash flow AL of about EUR 20.1 billion.
The upgrade came alongside third-quarter figures showing adjusted net profit up 12.7% to EUR 3.0 billion. Revenue for the period reached EUR 31.1 billion, an organic advance of 5.5%, while adjusted EBITDA AL — earnings before interest, tax, depreciation and amortisation after lease costs — rose 8.0% on an organic basis to EUR 12.2 billion. Reported growth outpaced the organic rates, with revenue up 7.5% and adjusted EBITDA AL ahead by 9.9%.
Shareholder returns featured prominently in the board's presentation. Management is planning a dividend of EUR 1.10 per share and has earmarked as much as EUR 2 billion for share buybacks in 2027.
Analysts Hold Their Ground
Deutsche Bank Research kept its "Buy" rating on the stock following the results, reiterating a EUR 40 price target.
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The quarter's commercial momentum was matched by progress on the technology front. T-Systems, the group's enterprise IT arm, signed a memorandum of understanding with Sparxity at the Digital Summit on Tuesday covering cooperation on energy-efficient AI computing infrastructure. Under the plan, Sparxity's next chip generation would be deployed in Telekom data centres in 2028.
That agreement builds on a separate arrangement disclosed on 28 October, when Banco Sabadell and T-Systems agreed to expand the lender's use of agent-based AI. The Spanish bank will draw on T-Systems' "T-AI Agentic Hub" platform.
Telekom is keeping the AI theme front and centre. A press conference on "AI Factory 2.0" is scheduled for 9 November from 10:00 in Munich, with AI infrastructure for Germany and Europe on the agenda.
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Payments Role in the Digital Euro
In another vote of confidence from Brussels, the European Central Bank said on 30 October that it had selected Deutsche Telekom Business Solutions and Nexi Payments as joint service providers for the digital euro platform's network connectivity. The contract took effect on 28 September and is initially intended to support the platform's pilot operation.
On the network side, Telekom notched its 15th consecutive overall victory in the Computer BILD mobile network test, earning an overall grade of "very good (1.2)." The company attributed the win to advantages in 5G availability, speed and latency.
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