Deutsche Telekom Raises 2026 Profit Targets After Earnings Beat

Deutsche Telekom raised its 2026 financial targets after reporting third-quarter earnings that exceeded analyst expectations. The company now projects adjusted core earnings of approximately €47.6 billion and free cash flow of around €20.1 billion for 2026.

Third-quarter revenue grew 7.5% year-over-year to €31.1 billion, while adjusted net profit rose 12.7% to €3 billion. This growth was primarily driven by the strong performance of T-Mobile U.S. In the German market, the company expanded its customer base by adding 11,000 broadband users and 284,000 branded mobile contract customers. Additionally, the Navteq Services GmbH unit saw orders increase 27.7% to €883 million.

Despite the positive earnings results, the company's board announced a 2027 share buyback of up to €2 billion and a dividend increase to €1.10 per share. Both the buyback amount and the dividend increase fell short of analyst expectations.