Deutsche Telekom's €560M Buyback Tranche Fails to Lift Stock from Oversold Territory as T-Mobile US Restructuring Weighs
Published on 07/05/2026 at 19:55 | Redaktion boerse-global.de
Deutsche Telekom finds itself in an uncomfortable disconnect. The Bonn-based group is channeling billions into share repurchases and carries an improved credit rating, yet its stock closed Friday at €25.20 — a whisker above the 52-week low of €23.54 touched just days earlier. The shares have shed 4.22% in a week, 10.16% over the past month, and 9.58% since the start of the year. From the February peak of €34.35, the stock has retreated 26.64%, leaving it deep in bear-market territory relative to that high.
The third tranche of the company's €2 billion buyback programme kicked off on 1 July. Under this phase, Deutsche Telekom will repurchase up to €560 million worth of its own shares through 30 September. To date, more than 35 million shares have been bought back, representing roughly €1 billion of the total envelope. Yet the buying has not arrested the slide — the stock continues to drift lower even as the company steps up its capital-return efforts.
Investor attention is firmly fixed on the United States, where T-Mobile US faces a period of operational upheaval. The American subsidiary plans to shut down its 2G network on 3 August 2026, freeing up spectrum for 5G and 6G services. More disruptive is a legal clash with Broadcom over VMware licensing support. Court documents reveal that T-Mobile US must migrate more than 300,000 CPU cores and over 1,000 applications off the current platform after Broadcom secured an injunction, though support is guaranteed until early August next year. The sheer scale of the move — affecting tens of thousands of virtual machines — has injected uncertainty into the near-term outlook.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
Adding to the pressure, new satellite-based competitors such as Starlink are intensifying rivalry in the US mobile market. Barclays recently trimmed its price target on the stock to €36.50, flagging the threat from direct-to-cell satellite services. European regulators are also stirring debate on harmonising 5G and 6G spectrum auctions, a factor that could reshape long-term cost dynamics across the continent.
On the positive side, the underlying financial picture remains robust. Fitch Ratings upgraded Deutsche Telekom's credit score to A-, highlighting the strong free cash flow generated by T-Mobile US. The group is targeting free cash flow of around €19.8 billion by the end of 2026. Meanwhile, the chart paints a technically oversold picture: the stock trades 12.43% below its 200-day moving average of €28.78 and 8.49% below the 50-day line. The relative strength index stands at 36.9, suggesting a short-term bounce may be overdue.
In a minor personnel shift, Dr. Uwe Heckert took over as chief executive of the Detecon consulting arm on 1 July, succeeding Jürgen Schäfer. While such management moves typically generate little market reaction, all eyes are now on 6 August, when the group releases its second-quarter and first-half results. The quarterly numbers will be the clearest test yet of whether the strong cash flow story can outweigh the gathering clouds over T-Mobile US.
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