Deutsche Telekom Balances AI Expansion and Buybacks Against Satellite Threat to T-Mobile US

Deutsche Telekom's third-quarter 2026 results landed on November 5 with the group reporting revenue of EUR 31.1 billion and adjusted EBITDA AL of EUR 12.2 billion. Adjusted net profit came in at EUR 3.0 billion, according to company figures. Alongside the numbers, Europe's largest telecoms group rolled out a package of shareholder payouts, buyback plans and fresh infrastructure spending.

Guidance Raised, Dividend Proposed

Management lifted its full-year 2026 forecast for adjusted EBITDA AL to around EUR 47.6 billion and now expects free cash flow AL of roughly EUR 20.1 billion. Shareholders are set to receive a dividend of EUR 1.10 per share for the 2026 financial year, subject to a formal proposal. Looking further out, the group has earmarked up to EUR 2 billion for share buybacks in 2027.

The current repurchase programme is already running at pace. Between November 2 and November 6, the company bought back around 5.22 million of its own shares. Since the programme began on August 10, roughly 49.4 million shares had been acquired through November 6.

Munich AI Factory Gets a Blackwell Boost

Beyond the financials, Deutsche Telekom said on Monday it would expand its AI factory in Munich's Tucherpark to 20 megawatts, committing just under a further quarter of a billion euros to the project. The buildout will include NVIDIA Blackwell Ultra B300 systems.

Analysts Weigh In

Barclays raised its price target on Deutsche Telekom from EUR 32 to EUR 33 while reaffirming its "Overweight" rating, according to media reports. The broker's upbeat stance comes with a caveat: investor sentiment remains weighed down by competitive risks facing T-Mobile US, particularly from satellite communications rivals.

DZ Bank also revisited its valuation following the nine-month report and the slightly raised outlook. On November 5 it cut its fair value from EUR 35 to EUR 33 but kept its "Buy" rating. The shares were up 0.3% at EUR 26.10 on the day.