Deutsche Telekom's Buyback Machine Keeps Rolling as AI Savings Plan Takes Shape

Deutsche Telekom has repurchased 21,018,668 shares since August 10 and plans €2.5 billion in annual AI-driven indirect cost savings by 2030.

Deutsche Telekom has repurchased 3,720,584 of its own shares on the open market during the trading week spanning September 28 to October 2, the Bonn-based carrier disclosed in its latest interim buyback update. That brings total repurchases to 21,018,668 shares since the program launched on August 10, with every transaction routed through the Xetra platform.

The steady retirement of stock tightens the supply available on the free float and provides a mathematical lift to earnings per share. It also runs alongside a broader operational overhaul, as management works to modernize cost structures and free up capital for network investment.

AI Push Targets €2.5 Billion in Indirect Cost Savings

At its AI Investor Day in Bonn, the company laid out plans to cut annual indirect costs by roughly €2.5 billion by 2030, measured against a 2023 baseline, using artificial intelligence and automation. A portion of those savings is earmarked for digital transformation and the continued build-out of fiber infrastructure in Germany.

The group is also hunting new revenue. In the enterprise segment outside the United States, Deutsche Telekom is targeting around €800 million in AI-related sales by 2030. Early deployments have already produced measurable gains, with customer complaints down roughly 30%, according to the company. More than 100,000 employees have completed related training, and tools such as the "Frag Magenta" service chatbot now handle complex customer interactions automatically.

Fiber, Cloud and Green Energy Round Out the Portfolio

Infrastructure expansion continues in parallel. Deutsche Telekom reported that 222,000 additional fiber connections were completed in August, lifting the total number of households and businesses with access to its fiber tariffs to 14.1 million.

On the digital services front, the carrier struck a partnership on September 29 with software firm caery to automate administrative processes at health and long-term care insurers. Tasks including benefit assessments, billing and payouts will be handled via artificial intelligence, with data processing running in the company's own public cloud environment.

The company is also reaching beyond telecommunications entirely. Together with Rabot Energy, it launched three electricity tariffs sourced entirely from renewable energy on the previous Thursday, distributed to customers through the Magenta Moments loyalty program inside its own app. The move follows a string of initiatives aimed at broadening the customer base and opening new revenue streams.

Analysts Split as Price Targets Diverge

Market reaction to the twin strategy of capital returns and structural cost-cutting has been mixed. Goldman Sachs reiterated its buy rating with a price target of €38, and Berenberg also recommends the shares, putting fair value at €35.20.

More cautious voices have emerged elsewhere. One analyst team slashed its target sharply from €37 to €28.10, citing uncertainty over a possible combination with T-Mobile US and persistent competitive pressure in the German broadband market.

The stock closed at €26.87 on the previous day, a gain of 1.1%, and added 0.8% to reach €26.80 in the latest session. It remains below its 50-day moving average of €28.01 and sits 22% below its 52-week high.

Investors will get a clearer read on current trading next month. Deutsche Telekom has scheduled the release of its third-quarter 2026 financial results for November 5. Whether management can deliver the planned cost reductions on schedule may determine if the shares regain momentum in the months ahead.