Deutsche Telekom's Buyback Nears End as Merger Speculation Drowns Out Solid Fundamentals
Published on 06/24/2026 at 10:52 | Redaktion boerse-global.de
The German telecoms giant is running out of catalysts to lift its languishing share price. Despite a multibillion-euro share repurchase program, a wage deal with the ver.di union, and a strong first-quarter performance, Deutsche Telekom's stock continues to hover near its 52-week low, weighed down by persistent merger speculation involving its US subsidiary T-Mobile US.
Buyback Tranche Winds Down Amid Persistent Weakness
The second tranche of the company's 2026 buyback program — capped at €550 million and launched in April — will expire on June 30. Since the start of the tranche, Deutsche Telekom has scooped up nearly 17 million of its own shares, including 1.65 million in the final week alone. Another €2 billion in repurchases is planned for the full year, with the bulk of the acquired equity set to be cancelled, boosting earnings per share mechanically. Yet the stock has barely reacted: it currently trades at €26.55, just 3.3% above its 52-week trough of €25.71 and roughly 23% below the year's peak of €34.35. The relative strength index sits at 34, a technically oversold reading.
The absence of a steady buyer after this buyback tranche expires compounds the market's unease. The next concrete catalyst will be the second-quarter earnings release on August 6. Until then, sentiment is likely to remain hostage to speculation about the company's corporate structure.
WSJ Report Fuels M&A Apprehension
Since June 11, a Wall Street Journal report has been hanging over the stock. The article outlined early-stage discussions about a potential merger between Deutsche Telekom and T?Mobile US into a multinational holding company, modeled on the Linde?Praxair combination with dual listings in the US and Europe. The plan is far from finalised — details could change, political backing would be required, and no decision is certain. Neither the company nor its management has commented on the speculation, but investors have been spooked nonetheless. The uncertainty has overshadowed what is otherwise a solid operational picture.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
Operating Strength Stays in the Shadows
The first quarter of 2026 delivered organic revenue growth of 4.7% to €29.9 billion, while adjusted EBITDA AL climbed 7.5% to €11.5 billion. Free cash flow after leasing reached €5.7 billion in the period. Encouraged by the momentum, management raised the full-year guidance: adjusted EBITDA AL of around €47.5 billion and free cash flow after leasing of more than €19.8 billion.
Labour relations have also stabilised. After four weeks of strike action, Deutsche Telekom and the ver.di union agreed in late May on a new collective bargaining agreement covering roughly 60,000 employees. The deal runs until the end of 2028, bans compulsory redundancies for its entire duration, and provides for total wage increases of about 8.5%. The extra monthly pay component will step up from €190 to €340 in August 2026 and to €480 in July 2027.
Meanwhile, MagentaTV posted record viewership: more than 6.5 million viewers tuned in for group-stage matches of the 2026 FIFA World Cup, more than double the audience for the home European Championship. The increase in new subscriptions was equally sharp.
Deutsche Telekom at a turning point? This analysis reveals what investors need to know now.
What Lies Ahead
Strong fundamentals are proving insufficient to offset the M&A overhang. With the second buyback tranche ending in a matter of days, the share will lose a regular source of demand. The next scheduled milestone is the second-quarter report on August 6. Until that delivers a potential new floor, the direction of the stock is likely to be dictated by developments around T?Mobile US.
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