Deutsche Telekom reports that it maintains its course in volatile times for the markets and even raises its financial targets for the full year. In the first three months of 2026, net revenue increased by 4.7 percent year-on-year in organic terms – i.e., excluding the effects of changes in exchange rates and the composition of the Group – to 29.9 billion euros. Service revenues grew by 4.6 percent in organic terms to 25 billion euros. At the same time, adjusted EBITDA AL increased by 7.5 percent in organic terms to 11.5 billion euros. Free cash flow AL was up by 0.7 percent to 5.7 billion euros. The reported growth rates were lower on paper, at 0.4 percent for revenue, 0.8 percent for service revenues, and 2.0 percent for adjusted EBITDA AL, owing to the year-on-year decline in the U.S. dollar.

“Deutsche Telekom shows resilience in turbulent times,” says Tim Höttges, CEO of the Group. “Our business operations remain stable, largely unaffected by events around the globe. In fact, we have slightly raised our guidance.”

The increase in Deutsche Telekom’s full-year expectations reflects the raised guidance recently announced by its subsidiary, T-Mobile US. The Group now expects adjusted EBITDA AL for 2026 of around 47.5 billion euros and free cash flow AL of more than 19.8 billion euros. This is up from the previous levels of around 47.4 billion euros and around 19.8 billion euros, respectively. The guidance for adjusted earnings per share remains unchanged at around 2.20 euros.

Adjusted net profit increased by 6.5 percent in the reporting period to 2.6 billion euros. This corresponds to adjusted earnings per share of 54 eurocents. On an unadjusted basis, net profit was down by 28.2 percent to 2.0 billion euros, mainly owing to the positive effects of write-ups of the carrying amounts of investments in the prior year, for which there was no corresponding effect in the current year.

Germany: Fibre use steadily rising

More than 13 million homes can directly connect to Deutsche Telekom’s fibre-optic network – a milestone the Company hit in the first quarter of this year. The number of homes making use of this option on an FTTH contract has now reached 2.2 million, and the penetration rate continues to grow steadily, climbing from 15.5 percent to 17.1 percent over the last 12 months.

While the use of FTTH is continuously growing, the number of lines running on copper-based infrastructure continues to decline. In a sluggish overall market, the number of Deutsche Telekom’s broadband lines fell by 3,000 in the first quarter.

Mobile service revenues grew 2.1 percent in the first quarter. Deutsche Telekom’s branded contract customer additions in Germany amounted to 200,000.

Total revenue in the Germany operating segment increased in organic terms by 2.1 percent year-on-year to 6.3 billion euros in the first quarter of 2026. Adjusted EBITDA AL rose by 2.5 percent in organic terms to 2.7 million euros.

United States: Number of accounts increasing

In the first quarter of 2026, T-Mobile US transitioned from reporting the total number of postpaid and prepaid customers to reporting the total number of postpaid accounts. A postpaid account is defined as a billing account which is used to bundle multiple contracted services, such as mobile communications, 5G internet, and fibre-optic lines, as well as various connected devices including smartphones, tablets, hotspots, and wearables. The number of postpaid accounts amounted to 34.4 million at the end of March 2026, 217,000 more than three months earlier and 6 percent more than in the same period of last year. For the 2026 full year, T-Mobile US expects postpaid net account additions of between 950,000 and 1,050,000, up from the 900,000 to 1,000,000 anticipated at the start of the year.

The positive trend in the financial performance indicators likewise continues. Service revenues rose by 11.5 percent to 18.9 billion U.S. dollars in the first quarter of 2026 compared with the same period in the prior year. At the same time, adjusted EBITDA AL increased by 12.9 percent to 9.1 billion U.S. dollars.

Europe: Customer base growth continues

The national companies in the footprint of the Europe operating segment reported solid customer growth between January and March 2026. Altogether, the companies added 127,000 new mobile contract customers, 54,000 new broadband customers, and 30,000 new TV customers.

Total revenue grew in organic terms by 2.1 percent year-on-year to 3.1 billion euros in the first quarter. Adjusted EBITDA AL increased in the same period by 3.5 percent in organic terms to 1.2 billion euros.

Systems Solutions: Positive trend continues

T-Systems maintained momentum from a successful 2025 with continued growth in the first quarter of 2026. Order entry was up in organic terms by 3.6 percent year-on-year to 994 million euros.

Revenue at T-Systems likewise grew in the first quarter, increasing by 2.1 percent in organic terms to 1.0 billion euros. The key growth driver was once again the Digital business. Adjusted EBITDA AL grew by 4.0 percent in organic terms to 84 million euros in the reporting period.

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Categories: Press Releases

Tags: Deutsche Telekom, T-Mobile