Deutsche Telekom raised its full-year 2026 guidance after reporting solid first-quarter growth driven by T-Mobile US, fiber broadband expansion, and resilient service revenue trends across its European operations. The company posted Q1 revenue of €29.9 billion, up 0.4% year-over-year on a reported basis, while adjusted EBITDA AL rose to €11.52 billion. Organic service revenue increased 4.6% to €25.0 billion. Deutsche Telekom now expects full-year adjusted EBITDA AL of approximately €47.5 billion, slightly above prior guidance of €47.4 billion, with free cash flow after leases projected to exceed €19.8 billion.
T-Mobile US remained the primary growth engine for the Bonn-based operator. Deutsche Telekom, which owns roughly 53% of T-Mobile US, benefited from stronger U.S. wireless subscriber growth and improved cash flow guidance from its American subsidiary. Management also highlighted continued investments in fiber and 5G infrastructure in Germany and Europe, while pointing to expanding AI infrastructure ambitions. CEO Tim Höttges said Deutsche Telekom is evaluating additional expansion of its AI cloud data center operations in Munich in collaboration with NVIDIA. The company also referenced growing partnerships in critical infrastructure security, including collaboration with Rheinmetall on drone defense systems for German infrastructure.
Net profit declined year-over-year to approximately €2.04 billion due largely to currency effects and one-time items, although adjusted net profit rose 6.5% to €2.6 billion. Investors also continue to watch speculation surrounding a possible future merger structure involving Deutsche Telekom and T-Mobile US, though executives declined to comment on reported discussions during the earnings presentation. Deutsche Telekom shares traded higher following the results and revised guidance.
- Q1 2026 revenue: €29.9 billion
- Organic service revenue growth: +4.6%
- Adjusted EBITDA AL: €11.52 billion
- Adjusted net profit: €2.6 billion
- Full-year 2026 EBITDA AL guidance: ~€47.5 billion
- Free cash flow after leases guidance: >€19.8 billion
- Deutsche Telekom ownership stake in T-Mobile US: ~53%
- Continued focus on fiber, 5G, AI cloud infrastructure, and sovereign digital infrastructure initiatives
- AI cloud expansion under consideration in Munich with NVIDIA collaboration
- Ongoing infrastructure security partnership discussions with Rheinmetall
“We are maintaining our course in volatile markets and continue to deliver broad-based growth across our business,” Deutsche Telekom management said alongside the earnings release. The company added that demand for connectivity, cloud infrastructure, and AI-enabled services continues to support long-term investment priorities.
🌐 Analysis: Deutsche Telekom increasingly positions itself as more than a traditional telecom operator, leveraging T-Mobile US cash flow and scale to fund investments in AI infrastructure, sovereign cloud initiatives, and next-generation digital services. The company’s growing focus on AI data centers aligns with broader European efforts to establish domestic AI compute capacity amid rising demand from enterprises and governments.
🌐 The results also reinforce a wider industry trend where telecom operators seek new growth vectors beyond connectivity. Competitors including Orange, Vodafone, Telefónica, and BT continue to pursue AI-enabled operational automation, cloud partnerships, and infrastructure monetization strategies, while hyperscalers and GPU cloud providers increasingly influence telecom capital allocation decisions.
