Key Highlights
- Shares of Deutsche Telekom jumped 5.9% to €28.95 following second-quarter earnings release.
- Quarterly revenue reached €29.9 billion, marking a 4.4% increase from the prior year.
- Adjusted EBITDA AL grew 7.5% to €11.8 billion, surpassing analyst forecasts.
- Adjusted net profit reached €2.8 billion, up 11.1% year over year.
- Adjusted earnings per share improved 12.7% to €0.58.
Shares of Deutsche Telekom advanced 5.9% to €28.95 during Thursday trading after the telecommunications company unveiled impressive second-quarter financial results and announced a significant expansion to its 2026 share repurchase program. The quarterly performance exceeded analyst expectations and demonstrated robust momentum across primary business segments. The stock price moved considerably higher from its 52-week low of €23.55 established earlier this year.
Strong Quarterly Performance Drives Stock Movement
Deutsche Telekom delivered second-quarter revenue totaling €29.9 billion, representing a 4.4% gain compared to the same period last year. Adjusted EBITDA expanded 6.8% to €13.4 billion, while adjusted EBITDA AL advanced 7.5% to €11.8 billion, exceeding Wall Street projections.
Adjusted net profit reached €2.8 billion, reflecting an 11.1% year-over-year increase. Adjusted earnings per share grew 12.7% to €0.58, topping the analyst consensus forecast of approximately €0.56. Reported net profit decreased 6.3% to €2.4 billion, and reported EPS slipped 5% to €0.51.
The telecommunications giant increased its 2026 share buyback authorization to a maximum of €5 billion. Management added up to €3 billion to the previously announced program, with repurchases planned to continue until December 2026.
This enhanced repurchase initiative could decrease outstanding share count and potentially boost earnings per share metrics. The expansion signals management’s confidence in generating sufficient cash flow to reward investors while preserving strategic financial objectives.
T-Mobile US Contribution Bolsters Results
T-Mobile US continued serving as a critical growth engine for the parent organization. Strong subscriber additions and earnings momentum from the American subsidiary contributed meaningfully to Deutsche Telekom’s quarterly operational achievements.
The stock movement reflected company-specific catalysts. Competitors including Vodafone, Telefónica, and Orange had not issued comparable quarterly reports, while broader European equity markets provided minimal directional support throughout the trading session.
For the six-month period ending June 2026, revenue increased 2.4% to €59.8 billion. Net profit declined 17.7% to €4.5 billion, while earnings per share fell 16.6% to €0.93.
Deutsche Telekom reaffirmed its 2026 adjusted EBITDA AL forecast at €47.5 billion and maintained adjusted EPS guidance at €2.20. The company upgraded free cash flow AL expectations from €19.8 billion to approximately €20 billion, providing additional positive momentum for Deutsche Telekom stock. The consistent full-year outlook helped alleviate investor concerns regarding the decline in reported profitability.
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