Deutsche Telekom Raises the Bar with Strong Results and Ambitious Targets

Deutsche Telekom beats 2025 forecasts, announces €1.00 dividend & €2B buyback. T-Mobile US drives growth as firm sets confident 2026 targets and partners with NVIDIA on AI.

Investors in Deutsche Telekom have been rewarded with a robust set of financials for 2025, with the company not only exceeding its own upgraded forecasts but also laying out an ambitious roadmap for the year ahead. A record dividend, a substantial share buyback, and confident guidance for 2026 underscore management's bullish stance. The question now is what underpins this growing optimism.

Shareholder Returns Take Center Stage

The telecom giant is planning to return more capital to its investors. A dividend of €1.00 per share is proposed for 2025, marking an 11% increase over the previous year. Furthermore, a share repurchase program of up to €2 billion is underway for 2026. The company has already bought back more than 10 million of its own shares since the start of the year.

Operational Performance Exceeds Expectations

Deutsche Telekom's 2025 operational story was one of broad-based growth. On an organic basis, which uses constant exchange rates, group revenue advanced by 4.2% to €119.1 billion. Adjusted EBITDA AL saw organic growth of 4.7%, reaching €44.2 billion. On a currency-adjusted basis, this key profit metric hit €45.5 billion, surpassing the recently raised target of approximately €45.3 billion.

Cash generation remained strong, with Free Cash Flow AL coming in at €20.2 billion, slightly above the €20.1 billion goal. Adjusted net profit increased by 3.7% to €9.7 billion, resulting in adjusted earnings per share of €2.00.

The market has responded positively to this performance. Over a 30-day period, the share price gained 24.68%, closing at €33.95 on Friday.

T-Mobile US: The Unwavering Growth Engine

The group's U.S. subsidiary, T-Mobile US, continues to be the primary growth driver. In 2025, it increased service revenue by 7.8% to $71.3 billion, while its adjusted EBITDA AL grew 6.8% to $33.0 billion. Notably, the pace of postpaid customer additions accelerated, with 7.8 million net new customers compared to 6.1 million the year before.

The strategic importance of T-Mobile US was further emphasized. In February 2026, Deutsche Telekom increased its stake in the subsidiary to 52.8%. Following the earnings release, CEO Tim Höttges also stated that no sale of T-Mobile US shares from the company's holdings is planned for 2026.

A Concrete and Confident Plan for 2026

Looking forward, Deutsche Telekom has set clear and elevated targets. For 2026, the group is aiming for an adjusted EBITDA AL of approximately €47.4 billion (representing growth of about 7%), Free Cash Flow AL of around €19.8 billion, and adjusted earnings per share of roughly €2.20 (a currency-adjusted increase of approximately 10%).

This financial outlook is operationally supported by a major technological initiative: a partnership with NVIDIA to build an industrial AI cloud, valued at one billion euros. This platform is scheduled to go live in the first quarter of 2026.

The upcoming milestones to watch are the Annual General Meeting on April 1, 2026, and the release of first-quarter results on May 13, 2026. These events will provide the first indications of whether the company can immediately translate its higher 2026 targets into daily business performance.