Deutsche Telekom Raises 2026 Outlook as Q3 Earnings Grow, Plans €2 Billion Buyback

Deutsche Telekom raised its 2026 earnings and cash flow outlook after reporting third-quarter revenue of €31.1 billion, up 7.5% year on year, and a 9.9% increase in adjusted EBITDA after leases to €12.21 billion. The group also announced plans to buy back up to €2 billion of shares in 2027 and proposed a dividend of €1.10 per share for 2026.

The German telecoms group reported 5.5% organic revenue growth and an 8% organic increase in adjusted EBITDA after leases, excluding exchange-rate movements and changes in the scope of consolidation. T-Mobile US remained the principal earnings driver, while the company’s Polish operations also expanded.

Quarterly net profit rises nearly 14%

Net profit attributable to Deutsche Telekom shareholders increased 13.8% to €2.76 billion in the third quarter. Adjusted net profit rose 12.7% to €3.01 billion, while reported earnings per share increased to €0.58 from €0.50 a year earlier.

For the first nine months, group revenue increased 4.1% to €90.91 billion, but reported net profit declined 8% to €7.26 billion. Adjusted net profit increased 10.2% to €8.39 billion.

Full-year guidance raised for the third time

Management now expects adjusted EBITDA after leases (EBITDA AL) of approximately €47.6 billion in 2026, compared with the previous guidance of €47.5 billion. Its forecast for free cash flow after leases was increased to €20.1 billion from €20 billion.

The company retained its outlook for recurring adjusted earnings per share of €2.20. The latest upgrade primarily reflects stronger expectations for T-Mobile US.

Buyback and dividend proposals

Deutsche Telekom plans to repurchase up to €2 billion of its own shares in 2027. The planned 2027 programme follows an increase in the separate 2026 buyback ceiling from €2 billion to €5 billion.

Management also plans to propose a dividend of €1.10 per share for the 2026 financial year, 10% above the previous year. The dividend proposal remains subject to shareholder approval.

T-Mobile US contributes around two-thirds of adjusted EBITDA AL

The US segment generated revenue of €20.48 billion, up 9.1%, and adjusted EBITDA AL of €8.14 billion, up 13.1%. In US dollars, revenue was $23.56 billion and adjusted EBITDA AL reached $9.36 billion.

T-Mobile US added 274,000 postpaid accounts, bringing the total to almost 35 million. The scale of the American business makes the dollar exchange rate and US competition important factors in Deutsche Telekom’s consolidated results.

German and European operations expand

Revenue in Germany rose 3.9% to €6.60 billion, while adjusted EBITDA AL increased 1.5% to €2.77 billion. The operator added 284,000 mobile contract customers under its own brands and 190,000 fibre-to-the-home customers.

The wider European segment, which includes Poland, the Czech Republic, Hungary, Greece and Austria, reported revenue of €3.31 billion, up 4.2%, and adjusted EBITDA AL of €1.31 billion, up 6.3%.

T-Mobile Poland revenue rises 7.9%

Deutsche Telekom’s country-level figures show that its Polish business generated €465 million in third-quarter revenue, up from €431 million a year earlier. Adjusted EBITDA AL increased to €134 million from €125 million, a rise of around 7%.

For January through September, Polish revenue reached €1.335 billion, up 3.7%, while adjusted EBITDA AL increased 9.3% to €393 million.

At the end of September, T-Mobile Poland served 13.518 million mobile customers and 809,000 broadband customers. The group changed the definition of some customer categories in Poland and Greece from January 2026 without restating the comparable historical figures, limiting direct comparisons for certain customer metrics.

These figures relate to the Polish business before European segment consolidation adjustments, rather than to the entire Deutsche Telekom group.

T-Systems records stronger order intake

The Systems Solutions division reported €1.08 billion in revenue, up 6.5%, and €132 million in adjusted EBITDA AL, compared with €127 million a year earlier.

New orders rose 28.1% to €883 million. The group cited industrial AI cloud projects as well as the timing of orders that had shifted from an earlier quarter.

Cash flow and debt

Free cash flow after leases was €5.70 billion in the quarter, compared with €5.62 billion a year earlier. Operating cash flow totalled €10.91 billion, while cash capital expenditure declined 20.4% to €4.28 billion.

Net debt including lease liabilities stood at €134.21 billion at the end of September, compared with €132.52 billion at the end of 2025. Net debt excluding lease liabilities was €100.52 billion.

What adjusted EBITDA AL measures

EBITDA is earnings before interest, taxes, depreciation and amortisation. Deutsche Telekom reported conventional EBITDA of €13.37 billion for the quarter and EBITDA after leases of €11.75 billion.

Adjusted EBITDA AL, which excludes certain special items and incorporates the economic effect of lease payments, was €12.21 billion. The company uses this measure in its full-year guidance.

Sources: Deutsche Telekom, third-quarter and nine-month 2026 results, 5 November 2026; Reuters. Original Polish article on CEO.com.pl.

For information only. This article does not constitute investment advice.