Deutsche Telekom AG Non-GAAP EPS of €0.63, revenue of €31.1B; raises FY2026 outlook

Deutsche Telekom reported Q3 2023 revenue of €31.1B (+7.5% YoY) and net profit of €2.8B (+13.8% YoY), raising its 2026 adjusted EBITDA AL forecast to €47.6B. The U.S. segment (T-Mobile) contributed €20.5B (+9.1% YoY). CEO Tim Höttges discussed plans for U.S. spectrum investment, a joint European satellite-spectrum bid, and SpaceX's potential impact on terrestrial connectivity, estimating SpaceX would need €200B to compete.

Deutsche Telekom's CEO Tim Hoettges stated that investors are already factoring in lower long-term profitability due to SpaceX's potential entry into the U.S. mobile market. He acknowledged the threat to T-Mobile US, their main growth driver, and noted that sector valuations reflect expectations of reduced profitability. Despite this, the company reported Q3 earnings above expectations, raised its 2026 outlook, and announced a €2 billion share buyback for 2027.

Deutsche Telekom reported a 7.255 billion euro net profit for the first nine months, down 8% YoY. Adjusted profit rose 10.2% to 8.393 billion euros. Revenue increased 4.1% to 90.906 billion euros. The company raised its full-year EbitdaAL forecast to 47.600 billion euros and announced a 10% dividend increase to 1.10 euros per share, along with a 2 billion euro share buyback program for 2027.

Deutsche Telekom (DTE) stock fell 2.2% to €26.165 after Q3 2026 earnings beat expectations, but its €2B share buyback plan for 2027 disappointed analysts. The company raised 2026 profit and cash flow targets, with adjusted EBITDA AL at €12.2B and revenue at €31.1B. JPMorgan maintained an 'Overweight' rating with a €38 price target, citing strong service revenues and network hardware sales. The DAX 40 index rose 0.45%, while DTE underperformed.

Deutsche Telekom reported a 13.8% increase in Q3 profit to €2.762B ($3.1B), or €0.58 per share, up from €2.427B, or €0.50 per share, in the same period last year. Adjusted earnings rose to €3.008B, or €0.63 per share. Revenue increased 7.5% to €31.102B from €28.935B.

Deutsche Telekom reported Q3 revenue growth of 3.9% to EUR 6.6B, driven by mobile and fixed service revenue increases. EBITDA rose, while capex in Germany decreased. Consumer revenue grew 6.1% to EUR 3.5B, with broadband and TV businesses supporting growth.