Deutsche Telekom: Record Viewership, Robust Q1, and Fiber Policy Tailwinds Can't Stem Slide to 22% Below High

Despite 4.7% revenue growth and a €2B buyback, Deutsche Telekom shares fell 5.68% on the week, as investor skepticism on fiber uptake persists.

Deutsche Telekom’s stock is buckling under selling pressure even as the telecoms giant posts strong quarterly numbers, launches a €2 billion share buyback, and secures regulatory backing for its fibre expansion. The disconnect between operational momentum and market sentiment has rarely been wider.

The group reported first?quarter organic revenue growth of 4.7% to €29.9 billion, with adjusted EBITDA AL climbing 7.5% to €11.5 billion. Free cash flow after leases reached €5.7 billion. Management responded by raising full?year guidance: adjusted EBITDA AL is now expected at around €47.5 billion, free cash flow AL above €19.8 billion, and adjusted earnings per share at €2.20. These figures form the bedrock of a bull case that has yet to convince equity markets.

Political support has also gathered pace. On 8 June the federal government, states, municipalities and the telecom industry signed a memorandum of understanding dubbed “Bestes Netz für Deutschland” that targets roughly 5.6 million new fibre connections in 2026 alone. Shortly after, the cabinet approved a revision of the Telecommunications Act designed to accelerate rollout. A key provision is the planned “right to full build?out”: once fibre reaches a building, operators will be allowed to take over the internal wiring, a move that could speed up deployment in apartment blocks and bring monetisation forward. Yet investors remain sceptical, focusing instead on high capital spending and tepid demand for fibre services. While the Telekom Fibre Factory connects about 2.5 million new households each year, the uptake of FTTH subscriptions has been modest, delaying the expected earnings kick.

The stock closed Friday at €26.72, down 5.68% on the week and more than 8% over the past month. Year?to?date the shares are off 4.13%. The current price sits 22% below the 52?week high of €34.35 set in February and just 2.81% above the 52?week low of €25.99 touched in November 2025. Technically, the stock is trading below both its 50?day and 200?day moving averages, and the relative strength index of 33.3 is flirting with oversold territory. Friday’s turnover of around 11 million shares underscored the intensity of the selling.

Operational bright spots are not lacking. MagentaTV set a historic streaming record during the first week of the FIFA World Cup, logging 36 million viewers across its three channels — more than any previous event on the pay?TV platform. Meanwhile T?Systems, the IT arm, struck a partnership with SupplyOn to inject artificial intelligence into industrial supply chains, aiming to automate processes and improve efficiency. Neither milestone has halted the slide.

The buyback programme, one of the most aggressive in the sector, is also struggling to prop up the stock. Deutsche Telekom has earmarked up to €2 billion for repurchases in 2026. The current tranche, capped at €550 million, is slated to run until the end of June. During the first weeks of June the company bought shares at an average price of €28.49 — roughly 6% above the latest closing level. Even that level of demand has failed to arrest the downward trend.

The next major test comes on 6 August, when the group publishes second?quarter results. The market will scrutinise free cash flow generation, fibre?deployment costs and any early signs that the new regulatory framework is lifting customer uptake. Until then, the gap between a solid fundamental story and a weakening chart looks set to persist.