Deutsche Telekom: Strong Results, Weak Stock — The Market's Mixed Message
Published on 06/29/2026 at 20:13 | Redaktion boerse-global.de
The numbers tell one story, the stock tells another. Deutsche Telekom’s adjusted operating profit climbed 7.5 percent to €11.5 billion in the first quarter, revenue hit nearly €29.9 billion, and credit rater Fitch just elevated the company’s debt to “A-”, citing its strong European footprint and the dependable cash flows from T-Mobile US. Yet on Monday, the shares plunged 5.32 percent to €24.91, touching a new 52-week low of €24.20 along the way. From this year’s peak, the stock has now surrendered more than 27 percent of its value.
A technical breakdown is compounding the selling. The relative strength index has dropped to 25.1 — deep into oversold territory — and a “death cross” has formed as short-term moving averages sliced below the 200-day line. That long-term average sits at €28.87, meaning the shares are trading roughly 14 percent beneath it. The sell-off accelerated after the company’s share buyback program, which had provided a steady floor in recent weeks, expired on June 30. The program, authorized for up to €550 million, officially ran out of time, removing a reliable buyer from the market at a delicate moment.
Adding to the uncertainty is a swirling merger narrative. Bloomberg reported in April that a full combination of T-Mobile US, which generates more than half of group revenue, with its parent could be one of the largest takeovers in corporate history. No official confirmation has emerged, but the speculation alone has injected a layer of risk that has traders betting on a binary outcome. Until clarity arrives, many are simply stepping aside.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
A longer-term threat is also weighing on sentiment. SpaceX’s Starlink is aggressively pushing into the consumer mobile market, and investors worry that the satellite service could eventually erode the pricing power and margins of T-Mobile US. For a company that relies so heavily on its American unit’s profitability, the Starlink advances are a dark cloud that no credit upgrade can dispel.
None of the fundamental positives have disappeared. Analysts still peg the average price target at €38.61, implying more than 50 percent upside from current levels. The projected dividend for 2026 stands at €1.13 per share. For the full year, management is targeting adjusted EBITDA of roughly €47.5 billion and free cash flow above €19 billion. Even the closure of the legacy MMS service on June 30, though symbolic of changing telecom standards, carries no material financial impact; the replacement RCS standard offers the same functionality without extra cost or infrastructure upkeep.
The immediate focus now pivots to August 6, when Deutsche Telekom reports second-quarter results. Chart watchers see a critical battleground at €26.00; if the stock cannot reclaim that level, the downtrend remains intact. Below that, the old 52-week support of €25.71 looms, and a break there would open the door to fresh lows. With the buyback backstop gone and the merger haze unresolved, the market has made clear that even solid earnings and a credit upgrade are not enough to halt the slide.
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Deutsche Telekom Stock: New Analysis - 29 June
Fresh Deutsche Telekom information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
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