Key Takeaways
- Deutsche Telekom upgraded its 2026 adjusted EBITDA AL projection to approximately €47.5bn following robust Q1 performance
- Net profit on an adjusted basis increased 6.5% to €2.6bn while revenues ticked up 0.4% to €29.9bn
- T-Mobile US contributed significantly with 217,000 postpaid account gains and an upgraded annual forecast
- German fiber expansion reached a key benchmark: FTTH network now accessible to 13 million households
- CEO Tim Höttges noted business activities continue “largely unaffected” by global turbulence
Deutsche Telekom delivered impressive first-quarter performance on Wednesday, surpassing analyst expectations on core metrics while raising its full-year earnings outlook. Shares (ETR: DTEGn) climbed 1.65% in response to the announcement.
The company reported adjusted EBITDA AL of €11.5 billion, representing a 2.0% increase compared to the prior-year period—or a more substantial 7.5% gain when measured organically, excluding foreign exchange headwinds.
Total revenues reached €29.9 billion, showing a modest 0.4% reported increase, though organic growth registered at 4.7%. The significant disparity between these figures reflects the substantial impact of dollar weakness on consolidated results.
Adjusted net income advanced 6.5% to €2.6 billion, translating to 54 euro cents per diluted share.
Management elevated its 2026 adjusted EBITDA AL projection to roughly €47.5 billion from the previous €47.4 billion target. Free cash flow AL expectations were also bumped higher to exceed €19.8 billion. The adjusted earnings per share forecast of €2.20 remained intact.
CEO Tim Höttges maintained a balanced tone in his statement: “Our business operations remain stable, largely unaffected by events around the globe. In fact, we have slightly raised our guidance.”
T-Mobile US Powers Group Performance
The American subsidiary continues serving as the primary growth driver. T-Mobile US delivered service revenues 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. Management elevated its full-year postpaid net account addition target range to 950,000–1,050,000, up from the prior 900,000–1,000,000 band.
This guidance enhancement directly influenced Deutsche Telekom’s decision to raise group-level projections.
German Fiber Network Reaches Important Threshold
In its home market, Deutsche Telekom achieved a significant infrastructure milestone during Q1: its fiber-optic network now reaches more than 13 million residential locations throughout Germany.
FTTH customer connections stood at 2.2 million, with penetration rates advancing from 15.5% to 17.1% on a trailing twelve-month basis.
German mobile service revenues expanded 2.1%, while branded contract subscriber additions totaled 200,000 during the quarter.
Overall Germany segment revenues increased 2.1% organically to €6.3 billion. Adjusted EBITDA AL for this division rose 2.5% on an organic basis.
Traditional copper-based connections decreased by 3,000 in Q1—a pattern consistent with the continuing shift toward fiber infrastructure.
The European operations segment added 127,000 mobile contract subscribers, 54,000 broadband connections, and 30,000 television customers. Segment revenues 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. Revenues expanded 2.1% to €1.0 billion, propelled by digital services offerings. Adjusted EBITDA AL at T-Systems improved 4.0% to €84 million.
Deutsche Telekom’s 4.7% organic revenue expansion in Q1 combined with upgraded annual targets demonstrates consistent operational execution across its primary business units.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
