Deutsche Telekom's Solid Quarter Meets a Muted Reception as Buyback Falls Short
Published on 11/08/2026 at 06:51 | Editorial boerse-global.de
Deutsche Telekom delivered a quarter that beat expectations on both revenue and operating profit, yet its shares couldn't hold their pre-market gains and at one point shed more than three percent. The sticking point, according to market reports cited by Reuters, was the size of the buyback the company has earmarked for 2027: at up to EUR 2 billion, it came in below the average analyst estimate of EUR 3 billion, as dpa-AFX noted. The proposed dividend of EUR 1.10 per share for the 2026 financial year also landed slightly short of what the market had been hoping for.
Analysts Trim Targets but Keep Their Conviction
Goldman Sachs lowered its price target for the stock on Friday to EUR 36 from EUR 38, while reaffirming its "Buy" rating. Analyst Andrew Lee revised his estimates to reflect the quarterly report, updated forecasts for T-Mobile US and recent currency movements. The DZ Bank followed suit a day earlier, cutting its fair value to EUR 33 from EUR 35 but sticking with its buy recommendation. Its reassessment was prompted by the nine-month report and the group's slightly raised outlook.
Growth Engine Keeps Humming
Underneath the payout disappointment, the operating picture remained robust. Third-quarter 2026 revenue reached EUR 31.1 billion, a rise of 5.5 percent on an organic basis. Adjusted EBITDA AL climbed 8.0 percent organically to EUR 12.2 billion, and adjusted net profit came in at EUR 3.0 billion — up 12.7 percent year on year.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
Those figures gave management the confidence to lift full-year guidance. Deutsche Telekom now expects adjusted EBITDA AL of around EUR 47.6 billion for 2026, with free cash flow AL of roughly EUR 20.1 billion. Investors will get the full picture on February 25, 2027, when the company reports fourth-quarter and full-year 2026 results.
Network Honors and an Internal Parts Market
Away from the numbers, the group had operational news to trumpet. It reported first place in Computer BILD's mobile network test, claiming its 15th consecutive victory in the comparison with an overall grade of "very good (1.2)."
On Wednesday the company also unveiled the "Telekom Equipment Exchange," a platform through which its national subsidiaries can pass on and reuse surplus network equipment internally. The offering is aimed at the group's own country companies and at hardware that can be redeployed within the group.
In data-center infrastructure, T-Systems is examining a collaboration with Dresden-based Sparxity. The two signed a letter of intent on Tuesday to assess how Sparxity's energy-efficient AI chips and computing systems could be integrated into T-Systems' infrastructure.
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