Deutsche Telekom’s Share Price Faces Twin Squeeze From Labour Strife and Market Jitters

Deutsche Telekom faces a 16% stock slide and labor strikes in Germany, while T-Mobile US beats Q1 estimates and a €42 price target offers 50% upside.

The German telecoms giant is navigating a turbulent period on multiple fronts. Its stock has shed nearly 4% since the start of the year, trading at roughly €26.76 — a level that sits around 17% below its 50-day moving average and dangerously close to its 52-week trough. The sell-off has been sharp: the shares have lost almost 16% of their value in recent weeks.

A glimmer of relief came from across the Atlantic this week. T-Mobile US, the group’s American subsidiary, delivered a robust set of first-quarter numbers that beat analyst expectations. Customer additions surged, revenue climbed 11%, and adjusted operating profit rose 12%. The news provided a modest lift to Deutsche Telekom’s stock in early trading on Wednesday.

Deutsche Bank analyst Robert Grindle responded by reaffirming his “Buy” rating on the stock with a €42 price target — implying potential upside of more than 50% from current levels. Management also moved to quash lingering speculation about a possible merger between T-Mobile US and its parent company, noting that any such transaction would require approval from minority shareholders. The clarification has given investors greater planning certainty.

But the positive signals from the US are being offset by mounting pressure at home. The Ver.di trade union has escalated its industrial action, expanding full-day warning strikes from northern and eastern Germany on Tuesday to include North Rhine-Westphalia, Saxony, Saxony-Anhalt and Thuringia on Wednesday. The walkouts follow a second round of wage talks on April 27 that ended without any offer from the employer side.

Ver.di is demanding a 6.6% pay increase over a 12-month term for roughly 60,000 employees covered by the collective agreement, along with an annual member bonus of €660. Trainees and dual-study students would receive an extra €120 per month. Union strike leader Pascal Röckert warned that customers would feel the impact through reduced call centre availability, delays in technical support, disruptions to fibre-optic expansion, and appointment cancellations.

The labour dispute adds a political dimension to the company’s financial outlook. Deutsche Telekom had previously announced a €2 billion share buyback programme for 2026 — a figure that unions routinely cite as evidence that the company has room to offer higher wages.

On the earnings front, the group’s adjusted EBITDA rose 2.8% organically in 2025 to €44.2 billion, with a target of roughly €47.4 billion for 2026. The next round of wage negotiations is scheduled for May 11-12, just two days before the company releases its own first-quarter results on May 13. Whether an employer offer materialises by then will likely shape how the market interprets the quarterly numbers.

Analysts expect full-year earnings per share of €2.19 for the current year, a noticeable improvement on the prior year. The dividend is also forecast to rise to €1.14 per share for the full year, up from the €1.00 paid last time.

Away from the immediate headwinds, Deutsche Telekom continues to invest in its domestic infrastructure. The group switched on 65 new mobile sites last month as it seeks to strengthen its position in the German market.