Deutsche Telekom’s Glass Fibre Triumph Overshadowed by Labour Strife and Share Slump

T-Mobile US drives growth with record Q1 results, Berlin hits 1M fiber homes early, but wage disputes and a 20% stock dip from highs weigh on investor sentiment.

The Deutsche Telekom narrative has fractured into three distinct storylines: a booming US subsidiary, a record-breaking fibre milestone in Berlin, and a bitter wage dispute at home. For investors, the question is which of these threads will ultimately dictate the share price.

T-Mobile US Powers Ahead

The US arm, T-Mobile US, delivered a stellar first quarter in 2026. Service revenues jumped 11% to $18.8 billion, while adjusted core EBITDA climbed 12% to $9.2 billion. The performance prompted an upward revision to the full-year outlook, with the company now targeting up to 1.05 million net new postpaid customers — roughly 50,000 more than previously forecast.

This matters enormously for the parent company. Deutsche Telekom holds just over 53% of T-Mobile US, and that stake accounts for more than two-thirds of the group’s entire market capitalisation.

Fibre First in Berlin

On the domestic front, the group quietly notched a significant operational achievement. On 4 May, it announced that one million households in Berlin can now access a fibre-to-the-home connection — months ahead of an internal target originally set for year-end 2026. The rollout was particularly aggressive in Marzahn-Hellersdorf, where 23,000 new connections were added this year alone.

The following day, a fresh wave of expansion kicked off in North Rhine-Westphalia. In Hilden, the Telekom and local utility Stadtwerke began marketing gigabit tariffs to around 2,700 households and businesses, with plans to connect 27,000 sites by 2031. Nationwide, the company remains on track to extend fibre availability by 2.5 million households over the course of 2026.

Labour Disruption Escalates

Yet the cheer from the network build-out is being drowned out by industrial action. Ver.di, the trade union representing roughly 70,000 tariff employees, is demanding a 6.6% wage increase. The second round of negotiations on 27 April ended without any offer from management. The union responded with nationwide warning strikes, drawing more than 7,500 workers off the job. Customer appointments, technical services, and fibre-optic installation have all been affected.

Ver.di has weaponised the company’s €2 billion share buyback programme as leverage. Its argument is blunt: if the Telekom can afford to hand billions back to shareholders, it can afford to pay its workers more.

Share Price Under Pressure

The stock, meanwhile, continues to trade well below its recent highs. At around €27.30, it sits roughly 20% below the 52-week peak of €34.25 and has lost about 14% over the past twelve months. The current level is barely above the 52-week trough of €26.45. The 50-day moving average of €31.03 offers a stark reminder of how far the shares have fallen.

Analysts remain broadly constructive. The consensus price target stands at €38.12, with estimates ranging from €33 to €43. For 2026, earnings per share are expected to come in at roughly €2.18. Group revenue has edged up around 2.5% to €31.72 billion, while management forecasts adjusted EBITDA of approximately €47.4 billion for the full year, up from €44.2 billion in 2025.

Buybacks Continue

The share repurchase programme is grinding on regardless. In the week from 27 to 30 April alone, the Telekom bought back nearly 1.33 million of its own shares at an average price of €27.12, for a total outlay of roughly €36 million. Since the programme began in early April, more than 5.77 million shares have been retired.

Key Dates Ahead

Two events in May will shape the near-term outlook. On 11 and 12 May, the Telekom and ver.di sit down for the third round of wage talks, with a fourth round scheduled for 26 and 27 May. If both fail, pressure on management will intensify considerably.

Sandwiched between those sessions, on 13 May, the group publishes its first-quarter results. That release will reveal whether the tailwind from T-Mobile US is filtering through to the consolidated figures — or whether the labour conflict has already begun to leave its mark.