T-Mobile US Growth of 11.5% Propels Deutsche Telekom to DAX Profit Lead, Yet Stock Remains 19% Below Peak

Deutsche Telekom posts record €5.8B operating profit, leading DAX, but shares fall 15% YoY as EBIT declines and market remains cautious on T-Mobile US sustainability.

The Bonn-based telecoms group posted an operating profit of €5.8 billion in the first quarter of 2026, enough to top the profit table of Germany’s blue-chip index. According to an EY analysis, that figure surpassed industrial heavyweights Allianz (€4.5 billion) and E.ON (€3.9 billion) by a clear margin. Yet the very strength of the earnings report has so far failed to translate into a corresponding lift for the company’s shares.

The group’s overall revenue rose organically by 4.7% to €29.9 billion in the quarter, while adjusted EBITDA AL climbed 7.5% on the same basis to €11.5 billion. Adjusted net profit increased 6.5% to €2.6 billion. The engine behind that growth was clearly T-Mobile US, where service revenue jumped 11.5% to $18.9 billion and adjusted EBITDA AL expanded 12.9% to $9.1 billion. The American subsidiary’s performance prompted its own upward revision to the full-year outlook, pulling the parent company’s forecast along with it.

For the full year, Deutsche Telekom now expects adjusted EBITDA AL of approximately €47.5 billion, a marginal increase from the prior target of €47.4 billion. Free cash flow after leases (AL) is projected at more than €19.8 billion, while adjusted earnings per share remain around €2.20. The dividend for the past financial year was set at €1.00, providing a yield that long-term shareholders can anchor to.

The EBIT figure of €5.8 billion, however, hides a year-on-year decline of 13.6%, contrasting with the DAX average EBIT growth of 4.4% over the same period. That drop, coupled with the fact that the group’s stock ended last Friday at €27.63 – roughly 15% lower than a year ago and nearly 19% below the 52-week high of €34.25 – has left some investors wondering where the market’s attention lies. The shares are also trading noticeably below the 200-day moving average, and chart analysts point to a recent bearish candlestick pattern that adds short-term technical pressure.

Nevertheless, a host of major investment banks remain bullish. Analysts at UBS, Deutsche Bank, Goldman Sachs, JP Morgan and DZ Bank all maintain buy recommendations. The consensus price target sits around €38, implying significant upside from current levels. Whether that upside materialises will depend in large part on whether T-Mobile US can sustain its elevated growth trajectory for the remainder of the year, a question that the company’s raised guidance has done little to resolve in the near term.

Deutsche Telekom’s structural advantage – its dependence on infrastructure and services rather than export-driven manufacturing – shields it from the weakness plaguing much of German industry. The first-quarter numbers underscore that insulation, but the market’s lukewarm reception suggests that even a profit crown does not automatically win a stock’s redemption.