Deutsche Telekom (AO) | Buy | Q1 review: decent performance in Europe, though broadly anticipated

Research evidence excerpt

Deutsche Telekom (AO) | Buy | Q1 review: decent performance in Europe, though broadly anticipated

News comment

Release date: 13 May 2026

Florian Treisch

Equity Research Analyst

Buy +49 697 569 6132Deutsche Telekom ftreisch@keplercheuvreux.com

Germany | Telecom services Beta Profile: MCap: EUR133.6bn

Target Price: EUR35.00 Bloomberg: DTE GR Reuters: DTEGn.DE

Current Price: EUR27.62 Free float 72%

Up/downside: 26.7% Avg. daily volume (EURm) 476.3

YTD abs performance -0.1% Market data: 12 May 2026

52-week high/low (EUR) 34.31/26.31

Q1 review: decent performance in Europe, though broadly anticipated

Key points:

We believe today’s print is broadly in line with expectations, with solid trends in the European operations and a strong FCF, with

the increased FY-26 outlook reflecting the increased guidance from TMUS - non-US expectations remain unchanged.

KPIs in the German market have been spot on with respect to service growth and adj. EBITDA AL. The broadband business

continues to stabilise its broadband net adds results, while mobile postpaid net adds were slightly behind expectations, though

still at industry-leading levels.

Besides looking at the competitive dynamic in Germany (as usual), the focus of the upcoming conference call (scheduled for 2pm

CET today) should also be on recent press speculation about a tie-up scenario with TMUS, and more generally, capital allocation.

In recent weeks, Deutsche Telekom suffered from a cautious sentiment regarding the competitive environment in the US, and

recent tie-up speculation - Q1 results should add some confidence that underlying trends are still healthy and aligned to

expectations. We see continued support from a return to high-single-digit EPS growth in 2026, strong cash flow generation, and a