Deutsche Telekom reports resilient first-quarter growth and raises 2026 financial guidance despite volatile market conditions

Deutsche Telekom reports resilient first-quarter growth and raises 2026 financial guidance despite volatile market conditions

(IN BRIEF) Deutsche Telekom delivered a resilient first-quarter performance in 2026, reporting organic growth across revenue, earnings, and cash flow despite volatile market conditions and currency headwinds. The Group increased net revenue to EUR 29.9 billion and raised its full-year adjusted EBITDA AL guidance to around EUR 47.5 billion following stronger expectations from T-Mobile US. Fiber-optic adoption in Germany continued to grow steadily, with more than 13 million homes now connected to Deutsche Telekom’s fiber network. T-Mobile US recorded further customer and revenue growth, while the Europe operating segment and T-Systems also maintained positive momentum. The company highlighted stable operational performance across its businesses and reaffirmed its ability to navigate uncertain global conditions while continuing to invest in network expansion and digital infrastructure.

(PRESS RELEASE) BONN, 13-May-2026 — /EuropaWire/ — Deutsche Telekom AG continued its growth trajectory during the first quarter of 2026, delivering higher revenue, profitability, and cash flow while increasing its full-year financial outlook amid ongoing global economic and geopolitical uncertainty.

The telecommunications group reported first-quarter net revenue of EUR 29.9 billion, representing organic growth of 4.7% compared with the same period last year. Service revenues increased organically by 4.6% to EUR 25.0 billion, while adjusted EBITDA AL rose by 7.5% on an organic basis to EUR 11.5 billion. Free cash flow AL improved by 0.7% year-on-year to EUR 5.7 billion.

Reported growth figures were lower due to the weaker U.S. dollar compared with the prior-year period. On a reported basis, total revenue increased by 0.4%, service revenue by 0.8%, and adjusted EBITDA AL by 2.0%.

Tim Höttges, CEO of Deutsche Telekom, said the Group had demonstrated resilience during turbulent market conditions, emphasizing that the company’s operations remained stable and largely insulated from broader global disruptions. He also confirmed that Deutsche Telekom had modestly raised its financial guidance for the full 2026 financial year.

The revised outlook follows an upgraded forecast from the company’s U.S. subsidiary, T-Mobile US
. Deutsche Telekom now expects adjusted EBITDA AL of around EUR 47.5 billion for 2026, slightly above its previous forecast of EUR 47.4 billion. The company also anticipates free cash flow AL of more than EUR 19.8 billion, while maintaining its adjusted earnings-per-share target of around EUR 2.20.

Adjusted net profit increased by 6.5% during the reporting period to EUR 2.6 billion, corresponding to adjusted earnings per share of EUR 0.54. On an unadjusted basis, net profit declined by 28.2% to EUR 2.0 billion, mainly because the prior-year period included positive write-up effects on investments that were not repeated in 2026.

In its domestic market, Deutsche Telekom continued expanding its fiber-optic infrastructure footprint. More than 13 million homes in Germany are now able to connect directly to the company’s fiber network. The number of households actively using fiber-to-the-home (FTTH) contracts rose to 2.2 million, while the penetration rate increased from 15.5% to 17.1% over the past 12 months.

At the same time, legacy copper-based broadband infrastructure continued to decline. In a relatively sluggish broadband market environment, the company’s broadband customer base in Germany fell marginally by 3,000 lines during the quarter.

Mobile service revenues in Germany rose by 2.1% in the first quarter, while branded contract customer additions reached 200,000. Total revenue in the Germany operating segment increased organically by 2.1% year-on-year to EUR 6.3 billion. Adjusted EBITDA AL in the segment rose organically by 2.5% to EUR 2.7 billion.

In the United States, T-Mobile US introduced a new reporting structure focused on postpaid accounts rather than total postpaid and prepaid customer numbers. At the end of March 2026, the company reported 34.4 million postpaid accounts, representing an increase of 217,000 during the quarter and growth of 6% compared with the previous year.

T-Mobile US also raised its own full-year expectations for postpaid net account additions to between 950,000 and 1.05 million accounts, up from its earlier guidance range of 900,000 to 1 million.

Financial momentum in the United States remained strong, with service revenues increasing by 11.5% year-on-year to USD 18.9 billion during the first quarter. Adjusted EBITDA AL rose by 12.9% to USD 9.1 billion.

Across the Europe operating segment, Deutsche Telekom’s national subsidiaries continued recording customer growth between January and March 2026. The segment added 127,000 new mobile contract customers, 54,000 broadband customers, and 30,000 television customers during the quarter.

Organic revenue growth in the Europe segment reached 2.1%, bringing total revenue to EUR 3.1 billion. Adjusted EBITDA AL increased organically by 3.5% to EUR 1.2 billion.

The company’s enterprise and IT services arm, T-Systems
, maintained the positive operational trend established during 2025. Order intake increased organically by 3.6% year-on-year to EUR 994 million, while revenue rose organically by 2.1% to EUR 1.0 billion. The Digital business continued to serve as the primary growth driver for the division. Adjusted EBITDA AL at T-Systems increased by 4.0% to EUR 84 million during the reporting period.

As of 31 March 2026, Deutsche Telekom employed approximately 196,586 people globally, slightly below the prior-year level. International operations accounted for more than 78% of total Group revenue during the quarter.

Headquartered in Bonn, Deutsche Telekom remains one of the world’s largest integrated telecommunications providers, operating mobile and fixed-line networks, broadband infrastructure, digital platforms, enterprise IT services, and cloud solutions across Europe and North America.

FULL RELEASE

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Media contact:

Andreas Fuchs
Spokesperson and Telekom Blogger

media@telekom.de
+49 228 181 49494

SOURCE: Deutsche Telekom