Deutsche Telekom AG: 1Q26 - Solid and clean quarter, guidance raised driven by US

Research evidence excerpt

Deutsche Telekom AG: 1Q26 - Solid and clean quarter, guidance raised driven by US

Equity Research

European Telecom Services

13 May 2026

Deutsche Telekom AG

1Q26 - Solid and clean quarter,

guidance raised driven by US First Look

Group revenues/EBITDA came ahead and 2026 guidance is DTEGn.DE/DTE GY OVERWEIGHT

raised thanks to the US, whilst the rest of the business was in European Telecom Services NEUTRAL

line with expectations. FCFaL is materially above due to Price Target EUR 39.50

Price (12-May-26) EUR 27.62

phasing with guidance unchanged. A positive reaction is Potential Upside/Downside +43.0%

warranted after the weak recent stock performance. Source: Bloomberg, Barclays Research

European Telecom ServicesDTE delivered organic service revenue growth of 4.6% yoy, an acceleration from 4Q25 (+4.1%)

Mathieu Robilliard

and EBITDAaL adj. +7.5% yoy (vs +5.6% yoy in 4Q25). Group revenues came +0.6%/+1.1% ahead

+44 (0)20 3134 3288

of company consensus/Barclays driven by the US who had already reported. EBITDAaL adj. mathieu.robilliard@barclays.com

came +1.6%/+1.9% respectively also driven by the US. Group FCFaL was materially ahead of BBI, Paris

estimates thanks to lower capex but the company flagged that this was due to capex phasing

Maurice Patrick

that will normalise throughout the year. Net Debt was slightly lower than expected as a result.

+44 (0)20 3134 3622

Adj EPS came also materially above. 2026 group guidance is raised due to the US but ex- US is maurice.patrick@barclays.com

unchanged. Barclays, UK

Maxime Delaugerre

+44 (0)20 3555 5672

In Germany trends evidence continued recovery from the low point of 3Q25 with +1.1% yoy maxime.delaugerre@barclays.com

growth of service revenues and +2.5% growth in EBITDAaL adj. in line with consensus (absolute Barclays, UK