Deutsche Telekom pairs T-Mobile US-led growth with a European infrastructure moat, disciplined buybacks, and a base-case 9.3% annualized five-year total return.
Overview
Deutsche Telekom is an integrated telecom operator whose recurring mobile, broadband, convergence, and enterprise services span Germany, the U.S., CEE, and global IT. T-Mobile US contributes approximately 66% of group revenue and is the principal growth engine; Germany contributes around 22% and supplies cash-generative fixed and mobile infrastructure. Its competitive position rests on T-Mobile’s mid-band 5G lead, German and CEE network assets, fiber buildout, and MagentaEINS bundles that support retention and pricing. Q2 2026 revenue was €29.90 billion, up 3.3% organically, while Adjusted EBITDA AL reached €11.80 billion, up 7.3%; adjusted net profit rose 11.1% to €2.78 billion. Management raised 2026 FCF AL guidance to around €20.0 billion and maintained Adjusted EBITDA AL guidance of around €47.5 billion and adjusted EPS of around €2.20. At €26.89, shares trade at 10.87x trailing earnings, about 12.2x guided 2026 EPS, and 5.99x EV/EBITDA AL. **The key near-term catalyst is the expanded €5 billion 2026 buyback**, alongside AI-enabled cost savings targeted by 2027. Fiber execution, FX, and transatlantic capital allocation remain key watch points.