Deutsche Telekom Keeps Buying Back Stock While Bernstein Steps Back on Margin and Merger Worries
Published on 09/26/2026 at 19:50 | Editorial boerse-global.de
Deutsche Telekom's capital return machine keeps humming even as the broader investment case loses some of its shine on the analyst circuit. In its sixth interim update on the current buyback, the Bonn-based carrier confirmed Monday that it repurchased 2,945,800 of its own shares between September 14 and September 18 inclusive. All transactions ran through the Xetra electronic trading system, and the program — launched on August 10 — has now accumulated a running total north of 14 million shares.
The steady stream of purchases is designed to hand excess capital back to shareholders and lift earnings per share. On Friday, the stock closed 0.5% higher at EUR 27.09. That still leaves the shares 21% below their 52-week high, a gap that underscores how far sentiment has drifted from the highs of the year.
Bernstein Trims Its View
The cautious mood crystallized yesterday when Bernstein downgraded the stock from "Outperform" to "Market-Perform," cutting its price target sharply from EUR 37 to EUR 28.10. The analysts pointed to two main concerns: intensifying competition in Germany's fixed-line broadband business, which could weigh on margins, and uncertainty surrounding a possible transaction involving subsidiary T-Mobile US. That deal has not been agreed, and Bernstein's neutral stance on the US unit tempers expectations for what has long been Deutsche Telekom's growth engine.
Network Rollout Continues Unabated
None of that has slowed the company's infrastructure push at home. Four sites in Ostholstein — including Bad Schwartau, Eutin and Timmendorfer Strand — have been modernized, bringing 99% of the district's area under coverage and giving nearly every local household access to fast mobile service. A further upgraded mast in Peine is now improving coverage along the rail line between Lehrte and Braunschweig.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
Fixed-line progress is moving in parallel. Yesterday the carrier wrapped up its publicly funded fiber build-out in the Oder-Spree district, connecting roughly 12,000 households to speeds of up to 1 gigabit per second. In Trier, another 886 fiber connections across the KĂĽrenz, Euren and Trier-Ost districts are scheduled to go live in the first half of October. The logic behind the relentless rollout is straightforward: a dense network keeps customers anchored in the higher-margin fixed and mobile segments and provides a stable platform for services such as MagentaTV.
New Revenue Streams Beyond the Core
Deutsche Telekom is also testing territory outside its traditional business. The "T-Travel" platform sells mobile data packages via eSIM that holidaymakers and business travelers can book flexibly, independent of any existing mobile contract — aimed squarely at customers who need connectivity abroad. On the content side, HBO Max from Warner Bros. Discovery was integrated directly into MagentaTV on Tuesday, a move meant to deepen ties with TV subscribers.
Efficiency is getting attention too. Chief AI Officer Kartik Sheth said in media reports that conventional automated phone menus in customer service will be phased out in favor of artificial intelligence.
What Comes Next
The next hard data point arrives on November 5, when Deutsche Telekom publishes its results for the third quarter of 2026. Until then, the buyback provides a floor of sorts, the network build-out provides the growth story, and Bernstein's more muted stance serves as a reminder that in a largely saturated market, dependable expansion is hard to come by.
Ad
Deutsche Telekom Stock: New Analysis - 26 September
Fresh Deutsche Telekom information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
