Deutsche Telekom's Strong EBITDA and New Cyber Platform Fail to Lift Stock from 52-Week Low
04.07.2026 - 02:52:41 | boerse-global.de
Deutsche Telekom’s shares closed Friday at €25.18, down 0.47%, marking a fresh 52-week low and a 26.7% retreat from the February high of €34.35. The sell-off has accelerated in June, with the stock losing 10.23% over the past month. Yet behind the price weakness lies a business that, by several measures, is firing on all cylinders.
The Bonn-based group reported adjusted EBITDA AL of €44.2 billion for 2025 and expects earnings per share of roughly €2.20 this year — putting the stock on a price-to-earnings multiple of just 10, about 29% below its long-term average of the last two decades. A forward dividend yield of 4.1% from last year’s €1.00 per share payout, with analysts already pencilling in a rise to €1.10 for the next distribution, adds further support.
On Friday, Telekom also announced a partnership with Palo Alto Networks to launch “Sovereign Cortex with T Security”, a KI-driven cyber defense platform aimed at heavily regulated sectors such as healthcare, finance and critical infrastructure. The offering, slated for the third quarter of 2026, ensures data access, encryption and auditing fall under European law, with support delivered entirely from within Europe. The move is part of the company’s push beyond traditional mobile services into high-growth areas.
Yet two overhangs continue to weigh on sentiment. Market participants point to uncertainty over a potential full merger with US subsidiary T-Mobile US, which could alter the group’s structure. Meanwhile, competition from satellite-internet providers such as Starlink is adding to fears that Telekom’s core business may face pressure.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
To counter the gloom, management is pressing ahead with the third tranche of its €2 billion buyback programme, launched on 1 July 2026. The new phase, running until the end of September, has a budget of up to €560 million and could see the company repurchase as many as 23.5 million shares on Xetra. The two earlier tranches already accounted for roughly 35 million shares worth about €1.1 billion in the first half. The goal is to retire most of the bought-back stock, boosting earnings per share.
Board member Rodrigo Francisco Diehl added a personal vote of confidence, buying 2,000 shares at €24.64 on 29 June and another 1,000 at €24.15 the following day, investing roughly €73,000 in total.
Analyst opinion remains broadly positive despite the price slide. Barclays cut its price target from €39.50 to €36.50 on 1 July but kept an “Overweight” rating, while UBS reaffirmed its buy recommendation on 3 July. The consensus target stands at €38.19 — more than 50% above the current level. Of the 22 analysts following the stock, all maintain a buy call, citing the dividend, the buyback, and the new security partnership as catalysts.
Deutsche Telekom at a turning point? This analysis reveals what investors need to know now.
Technically, the relative strength index of 37.1 is approaching oversold territory, and the stock trades 12.5% below its 200-day moving average. The annualised volatility sits at 29.42%. Whether the €560 million tranche can stabilise the downtrend will become clearer when the company reports second-quarter and first-half results on 6 August 2026. Until then, the gap between operational strength and market perception remains wide.
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