Deutsche Telekom AG
(LTS:0MPH)
€
29.47
+2.23 (+8.19%)
Market Cap: 139.41 Bil
Enterprise Value: 302.39 Bil
PE Ratio: 16.02
PB Ratio: 2.23
GF Score: 70/100 
Q2 2026 Deutsche Telekom AG Earnings Call Transcript
Aug 06, 2026 / 12:00PM GMT
Release Date Price:
€29.47
(+8.19%)
Key Points
Positve
- Deutsche Telekom AG (DTEGF) delivered strong group organic sales revenue growth of 3.9% and organic EBITDA growth of 7.4% in the first half of 2026, with adjusted EPS growing by 10.3%.
- T-Mobile US remains the clear growth leader in the US, with organic EBITDA growth of 9.6% and peer-leading ARPA growth, supported by strong account additions and network leadership.
- The company announced a significant step-up in shareholder returns, proposing an additional EUR3 billion share buyback facility for 2026, bringing total shareholder remuneration to almost EUR10 billion, the highest ever.
- The European segment continues to perform consistently, delivering its 34th consecutive quarter of organic EBITDA growth, with 4% organic service revenue and EBITDA growth.
- T-Systems has become a strategic asset, securing flagship contracts like Volkswagen's global private cloud network and the central citizen app with SAP, positioning it well for digital sovereignty demand.
- Deutsche Telekom AG (DTEGF) raised its group free cash flow guidance to around EUR20 billion for 2026, reflecting T-Mobile's guidance increase and strong cash generation.
- The company's leverage ratio remains prudent at 2.68 including leases, well below its 2.75 target, providing balance sheet headroom for additional capital returns.
- Germany delivered its 39th consecutive quarter of EBITDA growth, with mobile service revenue accelerating to 2.4% and broadband revenue growth improving to 1.9%.
- The company's industrial AI cloud in Munich, built with NVIDIA, is fully sold out with 10,000 GPUs, demonstrating strong demand for sovereign and AI-ready infrastructure.
- Deutsche Telekom AG (DTEGF) received 11 out of 11 Ookla awards for network quality, reinforcing its position as a quality leader in the market.
Negative
- Deutsche Telekom AG (DTEGF) experienced significant share price volatility, trading at the bottom of its long-term valuation ranges despite strong operational performance.
- The German broadband market remains challenging, with the company losing 20,000 broadband customers in the quarter due to price-related churn following back-book price increases.
- The company faces potential competitive threats from satellite providers like SpaceX's Starlink, which could impact the market perception and long-term growth prospects.
- Reported revenues in the European segment were impacted by the deconsolidation of Romania and planned unwind of wholesale transit revenues, creating headwinds.
- The order book at T-Systems was slower due to phasing, with expectations of a stronger second half to achieve full-year growth targets.
- The company's fiber penetration and net adds in Germany, while improving, are still not at the desired accelerated run rate to fully monetize fiber investments.
- Wholesale service revenues in Germany declined due to rolling over price increases from previous years, though no further deterioration is anticipated.
- The company faces complexity in its relationship with T-Mobile US, including third-party transaction requirements and independent procurement activities in areas like Apple accounts.
- There is uncertainty regarding the outcome of upcoming spectrum auctions in the US, though the company has prepared for both C-band and 2.7 gigahertz opportunities.
- The German market remains highly promotional despite some price increases, with competitors like 1&1 removing tariffs below EUR6.99 but the environment still competitive.
Hannes Wittig;Senior Vice President
Deutsche Telekom AG - Head of Investor Relations Deutsche Telekom
()
Good afternoon, everyone, and welcome to Deutsche Telekom's second quarter 2026 conference call. Joining me today are our CEO, Tim Hoettges; and our CFO, Christian Illek. Tim will begin with an overview, followed by Christian, who will take you through our quarterly performance and group financials in greater detail. After this, we have time for Q&A.
Before handing over to Tim, please take note of the usual disclaimer included in our presentation and shown here. Also, please be aware that this conference will be recorded and uploaded to the internet.
And now it's my pleasure to hand over to Tim.
Timotheus Hoettges
Deutsche Telekom AG - Chairman of the Management Board, Chief Executive Officer
Thank you, Hannes, and welcome, everybody, here today. I'm happy to present another set of strong results and a material step up in our returns to shareholders. But let me quickly start with a snapshot on the results.
Already have an account? Log in
Get the full story
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
7-Day Free Trial · Cancel Anytime
Subscription fee may be tax deductible.
Excellent 
4.6 out of 5 
Trustpilot
Trustpilot
Survey
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
Follow Us
Disclaimers