Deutsche Telekom (DTE) Stock Gains After Beating Q1 Expectations

Key Highlights

• First-quarter adjusted EBITDA AL reached €11.5bn, prompting Deutsche Telekom to lift its 2026 target to approximately €47.5bn
• Net profit on an adjusted basis jumped 6.5% to €2.6bn, while revenues climbed 0.4% to €29.9bn
• The company’s U.S. subsidiary, T-Mobile, delivered 217,000 postpaid account gains and increased its annual projections
• Germany’s fiber infrastructure expansion reached a significant benchmark with 13 million households now able to access FTTH services
• Chief Executive Tim Höttges noted business activities continue “largely unaffected” despite global uncertainties

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Deutsche Telekom delivered impressive first-quarter earnings on Wednesday, surpassing analyst expectations and revising its annual profit forecast upward. Shares (ETR: DTEGn) gained 1.65% in response to the announcement.

Deutsche Telekom AG, DTE.DE

The telecommunications giant reported adjusted EBITDA AL of €11.5 billion for the period, representing a 2.0% increase compared to the prior year — though organic growth registered at 7.5% when currency headwinds are factored out.

Total revenues stood at €29.9 billion, reflecting a modest 0.4% rise on a reported basis but demonstrating 4.7% organic expansion. The disparity between these figures underscores the significant impact of U.S. dollar weakness on consolidated results.

Adjusted earnings per share increased 6.5% to reach €2.6 billion, translating to 54 euro cents per share.

Management upgraded the 2026 adjusted EBITDA AL projection to roughly €47.5 billion from the previous €47.4 billion estimate. The free cash flow AL target was also enhanced to exceed €19.8 billion, while the adjusted EPS forecast remained at €2.20.

U.S. Operations Drive Growth Momentum

The American division continues to serve as the primary growth catalyst for the group. T-Mobile US generated service revenue of $18.9 billion during the first quarter, marking an 11.5% year-over-year increase. The unit’s adjusted EBITDA AL surged 12.9% to $9.1 billion.

Postpaid account growth totaled 217,000 for the three-month period, pushing the cumulative base to 34.4 million. T-Mobile subsequently revised its annual postpaid net account addition forecast to a range of 950,000–1,050,000, representing an increase from the prior 900,000–1,000,000 band.

This enhanced outlook at the subsidiary level directly influenced Deutsche Telekom’s decision to elevate its consolidated guidance.

German Fiber Network Expansion Reaches Key Threshold

In its home market, Deutsche Telekom achieved a notable infrastructure milestone during the first quarter: its fiber-optic network now reaches more than 13 million residential properties across Germany.

FTTH subscriber numbers reached 2.2 million, with market penetration advancing from 15.5% to 17.1% over the trailing twelve-month period.

German mobile service revenue expanded 2.1%, while the company secured 200,000 new branded contract customers during the quarter.

Overall Germany segment revenue increased 2.1% on an organic basis to €6.3 billion. The segment’s adjusted EBITDA AL posted organic growth of 2.5%.

Traditional copper-based connections declined by 3,000 in the first quarter — a development consistent with the ongoing transition toward fiber-based infrastructure.

The European operations segment attracted 127,000 mobile contract subscribers, gained 54,000 broadband customers, and added 30,000 television customers. Regional revenue grew 2.1% organically to €3.1 billion.

T-Systems, the enterprise IT services division, recorded order intake growth of 3.6% organically to €994 million. Revenue in this segment advanced 2.1% to €1.0 billion, with digital offerings providing the primary impetus. Adjusted EBITDA AL for T-Systems rose 4.0% to €84 million.

Deutsche Telekom’s 4.7% organic revenue expansion in the first quarter, combined with upgraded annual forecasts, demonstrates consistent operational execution across its principal business units.

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