Weekly Recap: Deutsche Telekom–T-Mobile US, Inc. talks stall and Uhl CFO

Verizon (VZ) surged 29% YTD, outperforming AT&T (T) and T-Mobile (TMUS). Verizon beat EPS estimates and raised guidance, while AT&T accelerated buybacks. T-Mobile's revenue grew 7.9%, but its stock fell 9%. Verizon's fiber expansion and dividend yield drove its performance, while T-Mobile faced subscriber growth challenges. The Communication Services ETF (XLC) is down 5% YTD.

In 2026, Verizon (VZ) outperformed peers with a 29% YTD gain, driven by strong Q2 earnings, subscriber growth, and strategic acquisitions. AT&T (T) rose 7%, while T-Mobile (TMUS) fell 9%. Verizon's EPS beat estimates, and it raised guidance and buyback plans. AT&T showed steady gains with fiber expansion. T-Mobile reported revenue growth but faced stock declines due to competition and activist investor pressure.

T-Mobile US (TMUS) announced CFO Peter Osvaldik will retire in February 2027. Jessica Uhl, former CFO of Shell, will succeed him, joining as CFO Designate in mid-September 2026. Uhl's compensation includes a $975,000 base salary and potential bonuses. The transition is part of T-Mobile's strategy to maintain financial stability.

T-Mobile US CEO Srini Gopalan focused on home internet and AI growth amid a 25% stock decline since his appointment. Q2 revenue missed estimates, and subscriber growth fell 13% year-over-year. Elliott Investment Management opposes a merger with Deutsche Telekom, favoring buybacks. Deutsche Telekom owns 53% of T-Mobile US, with the German government and KfW holding about 14% each. T-Mobile generates $18B in adjusted free cash flow annually and pays over $2B in dividends.

T-Mobile announced that CFO Peter Osvaldik will step down in February 2027, with Jessica Uhl, former CFO of Shell, succeeding him. Uhl will join as CFO-designate in mid-September. Osvaldik will transition to a strategic adviser role before retiring in July. Deutsche Telekom, which owns 54% of T-Mobile, has been considering a merger with T-Mobile, but faces pressure from activist investor Elliott Investment Management to abandon the plan.

Elliott Investment Management acquired a stake in Deutsche Telekom (DT) and urged it to abandon a $300 billion merger with T-Mobile US, favoring share buybacks instead. DT, which owns 54% of T-Mobile US, aims to fully combine the companies. Shares of both companies rose on the news, suggesting investor preference for the deal's cancellation. Elliott's activism follows internal resistance and regulatory concerns about the merger.