Deutsche Telekom shares surged 5.9% to €28.95 on Thursday after Europe's largest telecommunications operator by revenue reported second-quarter results that exceeded key market expectations and announced an expansion of its 2026 share buyback program. The stock also moved further away from its 52-week low of €23.55, recorded earlier in the year, as the results reassured investors who had grown cautious on European telecom valuations amid a broadly flat sector.

Q2 Financial Performance

Deutsche Telekom posted second-quarter revenue of €29.9 billion, representing a 4.4% increase from the same period a year earlier. Adjusted EBITDA rose 6.8% to €13.4 billion, while adjusted EBITDA AL climbed 7.5% to €11.8 billion, coming in above market estimates.

Adjusted net profit increased 11.1% to €2.8 billion. Adjusted earnings per share rose 12.7% to €0.58, surpassing the consensus estimate of approximately €0.56. On a reported basis, however, net profit declined 6.3% to €2.4 billion and reported EPS fell 5% to €0.51. The gap between adjusted and reported figures reflects items such as depreciation, amortization of acquisition-related intangibles, and merger-related expenses that are excluded from the company's adjusted metrics—a pattern common among telecom groups with significant M&A histories.

Expanded Share Buyback

The company raised the total size of its 2026 share buyback program to as much as €5 billion, adding up to €3 billion to the existing plan. Further purchases are expected to continue through December 2026. The expanded program could reduce the number of outstanding shares and support earnings per share, while also demonstrating management's confidence in returning additional cash to shareholders without compromising its financial targets. Buybacks of this scale remain relatively uncommon among major European telecom operators, many of which have prioritized debt reduction and dividend commitments following years of heavy network and spectrum investment.

T-Mobile US Drives Group Growth

T-Mobile US, in which Deutsche Telekom holds a majority stake of approximately 51%, continued to serve as the most important growth engine for the group. Sustained customer additions and earnings progress at the U.S. carrier—now the largest mobile operator in the United States following its 2020 merger with Sprint—contributed significantly to Deutsche Telekom's overall operating performance during the quarter.

Thursday's stock advance was largely company-specific. European telecom peers Vodafone, Telefónica, and Orange had not released comparable updates, and the broader European market provided limited support during the trading session.

First-Half Results and Updated Guidance

For the first half of 2026, Deutsche Telekom reported revenue of €59.8 billion, up 2.4% year over year. Net profit fell 17.7% to €4.5 billion, with earnings per share declining 16.6% to €0.93.

The company maintained its full-year 2026 adjusted EBITDA AL target at €47.5 billion and its adjusted EPS guidance at €2.20. It also raised its free cash flow AL guidance from €19.8 billion to approximately €20 billion. The steady outlook helped offset concerns stemming from the weaker reported profit figures, with investor attention now turning to the pace of buyback execution and whether T-Mobile US subscriber growth can continue to offset softer trends in the group's European operations.