Deutsche Telekom raises 2026 profit outlook to 47.6 billion euros for the third time
Key Facts
Deutsche Telekom raised its forecast for fiscal 2026 for the third time after reporting on November 5 that adjusted EBITDA after leases grew 8% organically to 12.2 billion euros in the third quarter. The company said its new adjusted earnings forecast was about 47.6 billion euros, compared with about 47.5 billion euros previously, and raised its forecast for free cash flow after leases to about 20.1 billion euros from about 20.0 billion euros. Reuters reported that quarterly results beat analysts’ expectations. The company attributed the higher forecast to improved estimates for its T-Mobile US unit. The financial report was released on November 5, before this story was published on November 12.
Reported growth in adjusted earnings was 9.9%, including the impact of reporting factors, compared with organic growth of 8%. In the same quarter, free cash flow after leases rose 1.4% to 5.7 billion euros, providing another indication of operating cash performance. The forecast revision represents a limited increase in the annual adjusted earnings target, from about 47.5 billion euros to about 47.6 billion euros, while the free cash flow estimate moved from about 20.0 billion euros to about 20.1 billion euros. The company began the year forecasting adjusted earnings of about 47.4 billion euros and free cash flow of about 19.8 billion euros, then raised its earnings guidance to about 47.5 billion euros in May. The latest update thus extended a series of forecast increases during the year.
The units’ results showed differing sources of growth, with strong performance in the United States and increases in Germany and Europe. T-Mobile US added 274,000 postpaid accounts between June and September, bringing the total close to 35 million accounts. Its service revenue rose 6.3% year on year to 19.4 billion dollars, while adjusted EBITDA after leases increased 11.4% to 9.4 billion dollars. In Germany, revenue rose 3.9% to 6.6 billion euros, and adjusted earnings grew 1.5% to 2.8 billion euros. The Europe unit recorded organic growth of 4.3% in adjusted earnings to 1.3 billion euros, and organic revenue growth of 4.2% to 3.3 billion euros.
The chief executive said the company was on track to exceed its annual targets, adding: "We are well on track to achieve our 2026 targets; we will not just meet them, but exceed them." On shareholder returns, the management board intends to propose a dividend of 1.10 euros per share for fiscal 2026 at the 2027 shareholders’ meeting, an increase of 10% on the dividend for fiscal 2025. The company also plans to buy back shares worth up to 2 billion euros during fiscal 2027. In the market reaction on results day, shares fell 2.5% by 11:52 GMT on November 5, and a trader told Reuters the decline was linked to lower-than-expected payouts and renewed merger concerns. DTEGY closed at 29.05 dollars on November 11, according to EL7 data.
On German infrastructure, the company recorded a record addition of 190,000 new customers to its fiber-to-the-home network during the third quarter. In the first nine months of 2026, adjusted net profit rose 10.2% to 8.393 billion euros, while reported net profit fell 8.0% to 7.255 billion euros. The divergence highlights how the earnings picture differs depending on whether adjusted items are excluded or included, alongside the operating profit growth recorded in the quarter. Deutsche Telekom set February 25, 2027, as the date for publishing its fourth-quarter and full-year 2026 results. Those results are expected to show the full-year outcome against the forecasts the company raised in November.