T-Mobile US Beats Profit Forecasts But Revenue Miss Sinks Deutsche Telekom
Published on 07/23/2026 at 21:02 | Redaktion boerse-global.de
The arithmetic of quarterly earnings can be cruel: beat on profit, miss on revenue, and watch the market punish the parent. That was the lesson for Deutsche Telekom on Thursday, as its majority-owned US subsidiary T-Mobile US posted a strong earnings beat that was overshadowed by a modest revenue shortfall, sending the Bonn-based group's shares sliding.
Deutsche Telekom stock fell 3.53 percent to €26.23 in Frankfurt trading, widening its distance from the 50-day moving average of €27.22 to 3.64 percent. The decline pushed the year-to-date loss to 5.25 percent and left the shares trading 23.64 percent below the 52-week high of €34.35 reached in late February. The stock now sits closer to its 52-week low of €23.54 from late June than to its peak — a chart pattern that suggests the uptrend has stalled.
A Quarter of Contradictions
T-Mobile US reported second-quarter results after Wednesday's close that presented a mixed picture. Earnings per share came in at $2.99, handily beating the analyst consensus of $2.59. Customer growth also exceeded expectations, with 277,000 new postpaid subscribers added versus the 259,000 to 272,300 analysts had forecast. Average revenue per account rose 2 percent to $152.91, service revenue climbed 9 percent, and adjusted core EBITDA jumped 12 percent.
Yet total revenue of $22.79 billion, while up 7.9 percent year-over-year, fell short of the $22.95 billion consensus estimate. Net income stagnated, weighed down by $146 million in depreciation charges tied to the UScellular acquisition and $46 million from a network restructuring. The reaction on Wall Street was swift: T-Mobile US shares dropped more than 5 percent in pre-market trading.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
The premium segment offered a bright spot. Sixty percent of new customers chose higher-tier plans, prompting management to raise its full-year adjusted free cash flow forecast to between $18.4 billion and $18.8 billion, up from the prior range of $18.1 billion to $18.7 billion. A dividend of $1.02 per share is scheduled for September payment.
Competitive Pressure Intensifies
The US mobile market is becoming increasingly contested at the premium end. AT&T reported second-quarter net additions of 432,000 mobile subscribers, well above the 338,500 expected, and adjusted earnings of 65 cents per share versus a 59-cent forecast. AT&T shares gained 4 percent on the news, highlighting the competitive dynamics T-Mobile US must navigate.
Analyst sentiment on Deutsche Telekom remains divided. Deutsche Bank Research lowered its price target from €42 to €40 on July 21, citing structural competition from satellite internet services like Starlink and large-scale AI infrastructure projects from rivals. Analyst Robert Grindle maintained a "Buy" rating despite the cut. Just days earlier, on July 15, Citigroup had raised its price target ahead of the earnings release.
Buyback Program Continues Unabated
Deutsche Telekom has been steadily repurchasing its own shares. Between July 13 and 17, the group bought back 1,351,740 shares on Xetra at weighted average prices ranging from €26.41 to €27.25 — levels just above the current trading price. Since the start of the year, the company has acquired more than 35 million shares for over €1 billion, completing the second tranche of its buyback program with the third now underway.
Deutsche Telekom at a turning point? This analysis reveals what investors need to know now.
A further vote of confidence came from board member Rodrigo Francisco Diehl, who purchased 2,999 Deutsche Telekom shares on July 1 at prices between €24.15 and €24.64, representing a transaction volume of roughly €73,430.
All Eyes on August 6
The next major catalyst for Deutsche Telekom shares comes on August 6, when the group publishes its own second-quarter and first-half results. Investors will scrutinize whether T-Mobile US's operational strength flows through to the consolidated figures and whether management maintains its full-year guidance. Until then, the stock remains vulnerable to further swings, particularly if US investor skepticism toward T-Mobile US persists.
Ad
Deutsche Telekom Stock: New Analysis - 23 July
Fresh Deutsche Telekom information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
