Deutsche Telekom Extends Network Test Streak as Buy Ratings Hold Despite Trimmed Price Targets

Deutsche Telekom has secured another pair of network-quality plaudits, reporting first place among Germany's four mobile operators in the IMTEST and zafaco network test with an overall grade of "very good (1.24)." The result, announced today, keeps the Bonn-based group at the top of that particular ranking. It follows Friday's disclosure that the company had also taken first place in the Computer BILD mobile network test for the 15th time in a row, earning a grade of "very good (1.2)" and leading the field on 5G availability, 5G speed and latency.

The network wins come alongside a busy stretch of corporate news. Having already published third-quarter figures, the group lifted its guidance for 2026 and now expects adjusted EBITDA AL of around EUR 47.6bn and free cash flow AL of roughly EUR 20.1bn. In the third quarter of 2026, revenue reached EUR 31.1bn, an organic increase of 5.5%. Adjusted EBITDA AL for the period came in at EUR 12.2bn, up 8.0% organically, while adjusted net profit stood at EUR 3.0bn.

Shareholder Returns and Buyback Progress

On the strength of those numbers, the management board proposed a dividend of EUR 1.10 per share and flagged share buybacks of up to EUR 2bn for 2027. Separately, the company confirmed yesterday that it had repurchased around 5.22 million of its own shares under its existing buyback programme, with the purchases made between 2 and 6 November. The mandatory disclosure documents the execution of the current programme rather than the announcement of a new repurchase volume, and the planned 2027 purchases are distinct from transactions already completed.

Analysts Cut Targets, Keep Buy Calls

Valuation marks moved lower even as the buy recommendations stayed in place. According to media reports, Goldman Sachs cut its price target to EUR 36 from EUR 38 on Friday while reaffirming its "Buy" rating. DZ Bank lowered its fair value to EUR 33 from EUR 35 on Thursday and kept its "Kaufen" verdict. Both houses pulled back their targets without altering their fundamental recommendation on the stock, which was up 0.5% at EUR 26.31 today.

AI Buildout in Munich

Beyond the financials, the group is pushing ahead with the expansion of its AI factory in Munich's Tucherpark, where capacity is set to rise to 20 megawatts. Deutsche Telekom plans to add NVIDIA Blackwell Ultra systems and invest just under a further quarter of a billion euros. An additional expansion of its commitment in Bavaria is under review, though no investment decision has yet been taken. The company is scheduled to publish results for the fourth quarter and the full 2026 financial year on 25 February 2027.