Deutsche Telekom (DTE) Q2 2026 earnings summary

Executive summary

• Organic service revenue grew 3.9% and organic EBITDA rose 7.4% in H1 2026, with adjusted EPS up 10.3% year-over-year and free cash flow AL up 1.8%.

• Customer growth remains strong across all markets, with T-Mobile US leading in growth and network leadership, and significant expansion in fiber and 5G coverage.

• The group raised its free cash flow guidance to €20 billion for 2026, reflecting improved outlook from T-Mobile US.

• Announced an increase in the 2026 share buy-back program by up to €3 billion, raising the total potential buy-back to €5 billion, with total shareholder remuneration targeted up to €10 billion if fully utilized.

• Accelerated digital transformation through AI adoption, with 83% of employees using AI tools and multiple AI-driven initiatives launched.

Financial highlights

• Q2 2026 revenue rose 4.4% year-over-year to €29.9bn; H1 revenue up 2.4% to €59.8bn, with organic growth at 4.0%.

• Q2 adjusted EBITDA AL grew 7.5% to €11.8bn; H1 up 4.7% to €23.3bn, margin up to 39.0%.

• Adjusted EPS for H1 increased 10.3% to €1.12.

• Net debt increased by €5.9 billion to €138.4 billion, mainly due to share buy-backs and dividends.

• Free cash flow AL for H1 up 1.8% to €10.7bn.

Outlook and guidance

• 2026 guidance raised: Group adjusted EBITDA AL ~€47.5bn, FCF AL ~€20bn, adjusted EPS ~€2.20.

• TMUS 2026 FCF guidance increased to US$18.6bn midpoint.

• DT ex-US EBITDA guidance reiterated at €15.4 billion.

• German broadband revenue growth expected to accelerate in the second half of the year.

• Leverage expected to remain within comfort zone (≤2.75x net debt/adj. EBITDA).