Deutsche Telekom Ties Bigger Payout and €2 Billion Buyback to an Upgraded 2026 Outlook
Published on 11/07/2026 at 11:51 | Editorial boerse-global.de
Deutsche Telekom is putting more cash in shareholders' hands. Alongside a raised full-year forecast, the Bonn-based group said on Thursday that it intends to buy back up to €2 billion of its own stock in 2027 and will propose a dividend of €1.10 per share for the 2026 financial year.
The distribution plan sits on top of an improved guidance range. Management now expects adjusted EBITDA AL of roughly €47.6 billion for 2026 and free cash flow AL of about €20.1 billion.
Third-quarter momentum
The upgrade follows a solid set of quarterly figures. Organic revenue advanced 5.5% to €31.1 billion in the third quarter of 2026, while adjusted EBITDA AL climbed 8.0% organically to €12.2 billion. Adjusted net profit came in at €3.0 billion, up 12.7% year on year.
Investors will get the full picture on 25 February 2027, when the company publishes results for the fourth quarter and the whole of 2026.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
Two houses, two verdicts
Analysts remain split on what the quarter is worth. Goldman Sachs trimmed its price target to €36 from €38 on Wednesday while keeping a "Buy" rating. Bernstein Research, reviewing the same numbers a day later, reiterated "Market-Perform" with a target of €28.10 — a gap that leaves the two houses on opposite sides of the fence.
Network bragging rights and an AI pipeline
On the operational front, the operator reported another victory in the Computer BILD mobile network test, earning an overall grade of "very good (1.2)". According to the company, it led rivals on 5G speed and coverage and also highlighted its latency performance.
Further out, T-Systems is laying groundwork in artificial intelligence infrastructure. On Tuesday the Telekom subsidiary signed a letter of intent with Dresden-based AI infrastructure firm Sparxity to collaborate on energy-efficient AI computing, with the aim of strengthening sovereign European AI capacity. The signing took place at the German government's digital summit, according to Telekom. Under the plan, energy-efficient AI computing technology would be integrated into Telekom data centres, with the next chip generation slated for rollout in 2028 — meaning the arrangement is still at the declaration-of-intent stage.
Deutsche Telekom at a turning point? This analysis reveals what investors need to know now.
That deal is not the group's only AI tie-up. Banco Sabadell had already reached an agreement with T-Systems on 28 October to expand the use of agent-based AI within the banking group.
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