Deutsche Telekom Wins ECB Digital Euro Role and Another Network Crown as Goldman Trims Target

Deutsche Telekom has landed a decade-long mandate from the European Central Bank to help run the plumbing of the digital euro, a win that lands alongside fresh network-test honours and a modestly lowered price target from Goldman Sachs.

The ECB picked the Bonn-based carrier, working with payments firm Nexi, to provide core connectivity services for the digital euro under a ten-year contract, according to a dpa-AFX report dated 30 October. Telefonica was named as the second independent network service provider. The award sits well outside Telekom's core mobile business and gives the group a foothold in Europe's flagship central bank digital currency project.

On the network side, Telekom reported that IMTEST and zafaco crowned it the winner among four German operators, awarding an overall grade of "sehr gut" (1.24). Measurements for that test ran from 31 August to 27 September, so the accolade published today reflects network performance during that window. It follows Friday's news that the company took first place in Computer BILD's nationwide mobile network test — a title Telekom says it has now secured for the 15th consecutive time, with particular strength in 5G speed and coverage.

Munich AI Factory Gets a Further Quarter-Billion

Telekom also announced yesterday that it will plough close to another quarter of a billion euros into expanding its AI factory in Munich's Tucherpark, lifting capacity to 20 megawatts. The buildout will add NVIDIA Blackwell Ultra systems, marketed as B300, and the first expansion stage is already fully booked, according to the company. Telekom is additionally weighing a further broadening of its commitment in Bavaria, though no final investment decision has been taken.

Chief executive Tim Höttges' recent remarks about growing concerns surrounding Nvidia therefore arrive at a moment when Telekom is deepening its reliance on the US chip designer's hardware.

Guidance Raised After a Strong Quarter

Just over a week ago the group posted organic revenue growth of 5.5% to EUR 31.1 billion, with adjusted EBITDA AL up 8.0% organically to EUR 12.2 billion. Those figures prompted an upgrade to its 2026 outlook: Telekom now expects adjusted EBITDA AL of around EUR 47.6 billion and free cash flow AL of roughly EUR 20.1 billion.

Shareholders were offered more as well. The company said it will propose a dividend of EUR 1.10 per share for 2026 and dangled share buybacks worth up to EUR 2 billion for 2027.

Against that backdrop, Goldman Sachs lowered its price target on the stock to EUR 36 from EUR 38 on Friday, according to media reports. The bank kept its buy recommendation intact, meaning the cut came without any change in rating.