Deutsche Telekom (DTE) Stock Rises After Crushing Q1 Expectations

Key Takeaways

• The company upgraded its 2026 adjusted EBITDA AL target to approximately €47.5bn following robust quarterly performance
• First-quarter adjusted net profit increased 6.5% to €2.6bn, while revenue climbed 0.4% to €29.9bn
• T-Mobile US delivered 217,000 postpaid account net adds and upgraded its annual guidance
• German fiber deployment reached 13 million homes with FTTH network access
• CEO Tim Höttges noted business operations continue “largely unaffected” by global uncertainty

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Deutsche Telekom delivered impressive first-quarter earnings on Wednesday, surpassing analyst expectations on critical measures and lifting its annual profit outlook. Shares (ETR: DTEGn) climbed 1.65% in response to the announcement.

Deutsche Telekom AG, DTE.DE

The telecommunications giant reported adjusted EBITDA AL of €11.5 billion for the period, representing year-over-year growth of 2.0%—expanding to 7.5% when measured organically, excluding foreign exchange headwinds.

Total revenue hit €29.9 billion, reflecting a modest 0.4% increase on a reported basis, though organic growth registered a healthier 4.7%. The discrepancy highlights the significant drag from U.S. dollar weakness during the quarter.

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Adjusted net profit advanced 6.5% to €2.6 billion, translating to 54 euro cents per share.

Management elevated its 2026 adjusted EBITDA AL projection to roughly €47.5 billion from the prior €47.4 billion estimate. The free cash flow AL forecast was also increased to exceed €19.8 billion. The adjusted earnings per share target remained at €2.20.

CEO Tim Höttges offered a cautiously optimistic tone: “Our business operations remain stable, largely unaffected by events around the globe. In fact, we have slightly raised our guidance.”

T-Mobile US Powers Growth Momentum

The company’s American subsidiary continues to serve as its primary growth driver. T-Mobile US generated 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.

The wireless carrier added 217,000 postpaid accounts during the three-month period, pushing the total to 34.4 million. Management raised its full-year postpaid net account addition forecast to a range of 950,000–1,050,000, up from the earlier 900,000–1,000,000 projection.

This upward revision at T-Mobile directly influenced Deutsche Telekom’s decision to enhance its consolidated group-level targets.

German Fiber Expansion Reaches Key Threshold

In its home market, Deutsche Telekom achieved a significant infrastructure benchmark during the opening quarter: over 13 million German households now have access to direct fiber-optic network connections.

Fiber-to-the-home customers reached 2.2 million, with penetration rates climbing from 15.5% to 17.1% compared to twelve months earlier.

German mobile service revenues expanded 2.1%, while the company secured 200,000 new branded contract subscribers during the quarter.

The Germany segment reported organic revenue growth of 2.1% to €6.3 billion. Adjusted EBITDA AL for the division increased 2.5% on an organic basis.

Legacy copper-based line connections declined by 3,000 in Q1—a pattern consistent with the broader industry shift toward fiber infrastructure.

The European division added 127,000 mobile contract subscribers, 54,000 broadband connections, and 30,000 television customers. Organic revenue growth reached 2.1% to €3.1 billion.

T-Systems, the company’s enterprise IT services division, recorded order intake growth of 3.6% organically to €994 million. Revenue expanded 2.1% to €1.0 billion, propelled by digital services offerings. The unit’s adjusted EBITDA AL rose 4.0% to €84 million.

Deutsche Telekom’s 4.7% organic revenue expansion in Q1 combined with upgraded annual forecasts demonstrates consistent execution across its major business segments.