Deutsche Telekom raises 2026 guidance and plans EUR 1.10 dividend after strong Q3
Adjusted net profit rose 12.7% to EUR 3.0 billion. The board also plans share buybacks of up to EUR 2 billion in 2027.
Deutsche Telekom reported third-quarter net revenue of EUR 31.1 billion, up 5.5% organically and 7.5% on a reported basis, according to company materials and telecoms.com. Adjusted EBITDA AL rose to EUR 12.2 billion (+8.0% organic / +9.9% reported). Adjusted net profit rose 12.7% to EUR 3.0 billion.
The group raised 2026 guidance again to about EUR 47.6 billion of adjusted EBITDA AL and about EUR 20.1 billion of free cash flow AL. It plans to propose a dividend of EUR 1.10 per share for 2026 and to buy back shares for up to EUR 2 billion in 2027.
Group and regional growth
T-Mobile US remains the largest contributor, with euro revenue up 9.1% (7.5% in US dollars) to more than EUR 20 billion, about two-thirds of the group, telecoms.com reported. Germany grew revenue 3.9% to EUR 6.6 billion, with 11,000 broadband net adds and 190,000 new pure-fibre customers in the quarter. European operations across nine mainly Central and Eastern European markets grew 4.2%.
Germany added 284,000 branded mobile contract customers and lifted mobile service revenues 2.9%. Domestic adjusted EBITDA AL rose a more modest 1.5% to EUR 2.8 billion. Group free cash flow AL in Q3 rose 1.4% to EUR 5.7 billion.
Guidance and shareholder returns
The interim report said guidance was raised to reflect higher expectations at T-Mobile US. Adjusted EBITDA AL guidance moved to about EUR 47.6 billion from about EUR 47.5 billion, and free cash flow AL to about EUR 20.1 billion from about EUR 20.0 billion. The planned EUR 1.10 dividend is a 10% increase on the prior year.
Separately, Deutsche Telekom increased its 2026 share buy-back programme by up to another EUR 3 billion in August, taking the potential 2026 total to up to EUR 5 billion, according to the interim highlights.
Strategy colour
CEO Tim Höttges said the figures set industry benchmarks and show the success of the strategy. At an October AI Investor Day in Bonn, the group said it expects about EUR 250 million of AI-related business revenue outside the United States in 2026, rising toward about EUR 800 million by 2030, with broader AI-driven revenue targets above EUR 1 billion in that period.
Network build-out and deals
As of 30 September 2026, Telekom said its German 5G network reached about 99% of the population and that 14.4 million households and companies can subscribe to a fibre line. Across its European footprint, national companies covered on average 95.4% of the population with 5G, with 12.0 million households able to access gigabit fibre.
Deal activity in the quarter included an agreement to acquire Polish fibre assets Fiberhost and Inea from a Macquarie-managed fund, subject to approvals, and continued US fibre and spectrum moves at T-Mobile US. On 19 October 2026, Deutsche Telekom, Orange, Telefónica and Vodafone signed a letter of intent to explore a joint bid for future European mobile satellite spectrum.
For founders selling into operators, the combination of raised cash-flow guidance and AI revenue targets outside the US is the practical takeaway: budget cycles still favour vendors that cut costs or add measurable service revenue inside Magenta's stack.
Why it matters for European founders and investors
A cash-generative European telco with a US growth engine remains a core reference for infrastructure, connectivity and industrial AI demand. Rising fibre and 5G coverage also matters for startups that need reliable last-mile and campus networks. Related coverage sits in our leaders section.
For European operators and vendors, Telekom's simultaneous guidance raise and higher dividend path underlines that US strength can still fund continental network build-out and shareholder returns in parallel.
What happens next
Management will take the EUR 1.10 dividend proposal to the 2027 shareholders' meeting, execute the remaining 2026 buybacks subject to authorisations, and pursue 2027 buybacks of up to EUR 2 billion while delivering the raised EBITDA and cash-flow targets.
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