Deutsche Telekom Beats 2026 Earnings Estimates Amid German and U.S. Growth

Deutsche Telekom AG reported that its 2026 earnings forecast exceeded analyst estimates, citing strong customer additions in Germany and the United States. The company said it expects adjusted EBITDAAL to reach about €47.4 billion, surpassing the €46.4 billion that analysts had anticipated.

The company’s majority stake in T-Mobile US Inc. has helped it navigate intense competition in its home market and other European regions. Growth in Germany was driven by increased fiber-optic subscriptions, with over 2 million active customers now using the service.

Deutsche Telekom added 584,000 households to its fiber-optic network in the country and reported 2,000 new broadband customers in the last quarter. Mobile service revenue in Germany grew 2.4% in the fourth quarter.

Why Did This Happen?

The company’s performance in the U.S. through T-Mobile also contributed to its earnings beat. Deutsche Telekom stated that T-Mobile expects to add 1 million contract bundles in 2026.

However, T-Mobile added fewer mobile subscribers in the fourth quarter than expected. The company attributed this to a weak dollar, which negatively impacted its adjusted EBITDA by €600 million in the last quarter.

How Did Markets React?

Despite the headwinds from the dollar, Deutsche Telekom’s fourth-quarter adjusted EBITDAAL rose 1.9% to €10.8 billion, slightly exceeding the €10.7 billion that analysts had forecast.

In Germany, the company’s broadband business has stabilized, with a net gain of 2,000 clients in the last quarter. Mobile service revenue in the country grew by 2.4% in the fourth quarter, driven by 282,000 new branded contract additions.

Rival Vodafone Group Plc reported slower growth in Germany, despite a wholesale deal with 1&1 AG that added about 12 million customers to its network.

What Are Analysts Watching Next?

Deutsche Telekom’s success in its U.S. operations contrasts with a more cautious outlook for T-Mobile. Analysts are watching how T-Mobile navigates increased competition in the U.S. market, especially as a new CEO at a major competitor appears to have a more aggressive strategy.

T-Mobile has historically gained market share during periods of high customer switching, suggesting that it may benefit from its strong value proposition. However, analysts are also monitoring how T-Mobile’s buyback activity impacts its financial flexibility.

Deutsche Telekom’s adjusted EBITDAAL metric is a key indicator for investors, as it provides a clearer view of operating costs for companies that rely heavily on leased assets, such as radio towers. This metric is widely used in the telecom industry to assess performance, and Deutsche Telekom’s strong results suggest continued momentum in its operations.

Deutsche Telekom’s guidance for 2026 reflects a stable and growing business, with its German and U.S. operations driving performance. The company’s ability to maintain profitability in a highly competitive market underscores the importance of strategic investments in fiber and mobile services.