Deutsche Telekom maintained solid financial momentum in the first quarter of 2026, supported by strong service revenue growth, expanding fiber adoption, resilient mobile subscriber additions, and continued gains at T-Mobile US and T-Systems. The telecom operator also raised its full-year financial guidance despite ongoing volatility in global markets and currency fluctuations.
Deutsche Telekom reported revenue growth of 4.7 percent to €29.9 billion during Q1 2026. Service revenue of Deutsche Telekom increased 4.6 percent to €25 billion. Adjusted EBITDA AL rose 7.5 percent organically to €11.5 billion, reflecting stronger operational efficiency and stable demand across its key business divisions.
The company’s net profit declined 28.2 percent to €2 billion mainly because the previous year included positive write-up effects on investments that did not recur in 2026.
CEO Tim Hottges said Deutsche Telekom’s business model remains resilient despite geopolitical and economic uncertainty. The improved guidance reflects stronger-than-expected momentum at T-Mobile US, which continues to drive subscriber and revenue expansion.
For full-year 2026, Deutsche Telekom now expects adjusted EBITDA AL of around €47.5 billion, slightly above previous guidance of €47.4 billion. Free cash flow AL is projected to exceed €19.8 billion, while adjusted earnings per share guidance remains unchanged at around €2.20.
Germany remained a strategic growth market for Deutsche Telekom’s broadband and fiber ambitions. The operator surpassed 13 million fiber-ready homes during the quarter, while active FTTH connections increased to 2.2 million. Fiber penetration improved from 15.5 percent to 17.1 percent over the past 12 months, highlighting increasing consumer migration toward high-speed broadband services.
However, legacy copper broadband continued to decline, resulting in a slight reduction of 3,000 broadband lines during the quarter amid a sluggish fixed-line market. Mobile operations in Germany remained stable, with branded contract customer additions reaching 200,000 during Q1 2026. Mobile service revenue in Germany grew 2.1 percent.
Revenue in Deutsche Telekom’s Germany operating segment increased 2.1 percent organically to €6.3 billion, while adjusted EBITDA AL rose 2.5 percent to €2.7 billion. The company’s broadband strategy continues to prioritize FTTH expansion, network modernization, and higher-value converged services.
The United States remained Deutsche Telekom’s largest growth engine through T-Mobile US. During Q1 2026, T-Mobile US shifted its reporting methodology from total customers to postpaid accounts, which bundle mobile, broadband, fiber, and connected devices under a single billing relationship.
T-Mobile US ended March 2026 with 34.4 million postpaid accounts, adding 217,000 accounts during the quarter and delivering 6 percent year-on-year growth. The company also raised its full-year postpaid account net additions forecast to between 950,000 and 1.05 million.
Service revenue at T-Mobile US surged 11.5 percent to $18.9 billion, while adjusted EBITDA AL increased 12.9 percent to $9.1 billion. The strong performance reflects continued demand for 5G connectivity, fixed wireless broadband, bundled services, and premium mobile offerings.
Across the Europe operating segment, Deutsche Telekom’s national businesses maintained subscriber growth momentum. The company added 127,000 mobile contract customers, 54,000 broadband customers, and 30,000 TV customers during the quarter.
Revenue from European operations increased 2.1 percent organically to €3.1 billion, while adjusted EBITDA AL rose 3.5 percent to €1.2 billion. The growth reflects stable demand for mobile and broadband services across Central and Eastern Europe, alongside disciplined Opex management and digital transformation initiatives.
T-Systems, Deutsche Telekom’s enterprise and digital solutions division, continued to benefit from rising enterprise demand for cloud, cybersecurity, AI, and digital transformation services. Order entry increased 3.6 percent organically to €994 million, while revenue rose 2.1 percent to €1 billion.
The Digital business remained the primary growth driver at T-Systems, helping adjusted EBITDA AL increase 4 percent to €84 million. Deutsche Telekom is increasingly positioning AI-enabled enterprise services, automation, and cloud modernization as long-term growth pillars within its B2B strategy.
Although Deutsche Telekom did not disclose specific Q1 2026 Capex and Opex figures in the update, the operator continues to invest heavily in fiber infrastructure, 5G expansion, cloud platforms, AI-enabled digital services, and network modernization across its global footprint. The company’s AI strategy is becoming increasingly integrated into customer operations, enterprise services, automation, and network optimization initiatives.
BABURAJAN KIZHAKEDATH
