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Deutsche Telekom lifts 2026 outlook, plans up to €2 billion buyback - Finance news and analysis from Global Banking & Finance Review
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Deutsche Telekom lifts 2026 outlook, plans up to €2 billion buyback

Published by Global Banking & Finance Review

Posted on November 5, 2026

2 min read

· Last updated: November 5, 2026

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Deutsche Telekom Lifts 2026 Outlook and Announces €2 Billion Share Buyback

Deutsche Telekom's Financial Performance and Shareholder Returns

Upgraded 2026 Outlook

Nov 5 (Reuters) - Deutsche Telekom raised its 2026 outlook for the third time in a year on Thursday and announced plans to buy back up to €2 billion ($2.25 billion) of shares in 2027, extending a run of stronger-than-expected performance.

EBITDA AL Projections

The Germany-based telecom operator now expects full-year adjusted earnings before interest, taxes and amortisation after leases (EBITDA AL) of around €47.6 billion, up from around €47.5 billion previously, reflecting stronger expectations for its U.S. subsidiary T-Mobile US.

Dividend Increase

Deutsche Telekom also said it plans to pay a dividend of €1.10 per share for 2026, up 10% from the prior year.

Recent Financial Results

Third-Quarter Performance

The Bonn-based group reported third-quarter adjusted EBITDA AL of €12.2 billion, up from €11.1 billion a year earlier and above a company-provided analyst consensus of €11.9 billion.

Growth Drivers

Growth was supported by continued strength at T-Mobile US and expansion in the group's German mobile and fibre businesses.

Share Buyback Initiatives

2026 and 2027 Buyback Plans

The latest buyback plan follows the company's decision in August to increase its 2026 repurchase programme by €3 billion to as much as €5 billion, citing what it viewed as an undervaluation of its shares relative to historical levels.

Shareholder Considerations

Deutsche Telekom's focus on dividends and buybacks comes as some investors debate whether excess cash would be better returned to shareholders than deployed in a potential transaction involving T-Mobile US, an idea some shareholders have criticised as complex and uncertain.

(Reporting by Emanuele Berro in Gdansk; Editing by Matt Scuffham)

Key Takeaways

  • 2026 EBITDA AL outlook lifted to ~€47.6 billion as U.S. business exceeds expectations
  • Plans up to €2 billion share buyback in 2027 and a 10 % higher dividend of €1.10 per share
  • The moves follow a broader €5 billion 2026 buyback strategy and reflect investor preference for cash returns amid merger rumor uncertainty

References

Frequently Asked Questions

What is Deutsche Telekom's new 2026 earnings outlook?
Deutsche Telekom now expects 2026 full-year adjusted EBITDA AL of around €47.6 billion, up from approximately €47.5 billion previously.
How much is Deutsche Telekom’s planned share buyback?
The company announced plans to buy back up to €2 billion of shares in 2027.
What is Deutsche Telekom’s planned dividend for 2026?
Deutsche Telekom plans to pay a dividend of €1.10 per share for 2026, an increase of 10% from the prior year.
What drove Deutsche Telekom’s revenue growth?
Growth was driven by the strength of T-Mobile US and expansion in Deutsche Telekom’s German mobile and fibre businesses.
Why is Deutsche Telekom increasing buybacks and dividends?
The company believes its shares are undervalued and is focusing on returning excess cash to shareholders through buybacks and dividends.

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