Deutsche Telekom's Network Test Win and Digital Euro Role Sit Alongside a Trimmed Valuation
Published on 11/08/2026 at 12:01 | Editorial boerse-global.de
Deutsche Telekom's mobile network has once again come out on top in Germany. In the Computer BILD network test, the Bonn-based carrier secured first place for the 15th time in a row, earning an overall grade of "sehr gut (1,2)." According to the company, it led the field on both 5G speed and 5G coverage.
That hardware triumph forms one strand of a busy week for Europe's largest telecoms group, which also delivered fresh infrastructure wins, a quarterly update and a mixed reception from analysts and investors.
Digital euro contract and AI data centres
On the infrastructure front, the European Central Bank said on 30 October that it had picked Nexi Payments and Deutsche Telekom Business Solutions as joint network service providers. The top-ranked provider's contract covers the pilot phase initially and took effect on 28 September, meaning the selection applies to network services for that trial stage.
Separately, T-Systems is teaming up with Sparxity on energy-efficient AI computing infrastructure. The two firms signed a letter of intent at the Digital Summit on Tuesday, with plans to integrate Sparxity technology into T-Systems data centres. The rollout of the next chip generation across Telekom's data centres is scheduled for 2028.
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Analysts split on fair value
The valuation picture drew contrasting calls. DZ Bank lowered its fair value for the Deutsche Telekom share from EUR 35 to EUR 33 on Thursday, citing a lower valuation of subsidiary T-Mobile US, while keeping its "Kaufen" (buy) recommendation.
JPMorgan took a more bullish line after the quarterly figures, reaffirming its "Overweight" rating and EUR 38 price target. Analyst Akhil Dattani pointed to revenue ahead of expectations and rising service revenues.
The US unit also sits at the heart of thinking on the group's structure. Handelsblatt reported on 28 October, citing Bloomberg sources, that Telekom had shelved a possible merger with T-Mobile US for the time being, opting against a formal offer.
Guidance lifted after third-quarter beat
Underpinning the week's news flow were Thursday's third-quarter 2026 results. Revenue came in at EUR 31.1 billion, with organic growth of 5.5%. Adjusted EBITDA AL reached EUR 12.2 billion, and adjusted net profit stood at EUR 3.0 billion.
Telekom raised its full-year 2026 guidance to around EUR 47.6 billion in adjusted EBITDA AL, with free cash flow AL expected at roughly EUR 20.1 billion. Management also intends to propose a dividend of EUR 1.10 per share and is planning share buybacks of up to EUR 2 billion for 2027.
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The announced buyback volume fell short of market expectations, according to dpa-AFX, while the only modestly raised annual guidance and the planned dividend were likewise seen as less generous than hoped.
Investors will get their next look at the numbers on 25 February 2027, when Telekom publishes its fourth-quarter and full-year 2026 results.
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