Deutsche Telekom: T-Mobile US: The learnings from last week’s US Telco reporting season

Research evidence excerpt

Deutsche Telekom: T-Mobile US: The learnings from last week’s US Telco reporting season

J P M O R G A N Europe Equity Research

27 July 2026

Deutsche Telekom Overweight

DTEGn.DE, DTE GR

T-Mobile US: The learnings from last week’s US Telco Price (24 Jul 26):€26.44

reporting season ▼Price Target (Dec-27):€38.00 Prior (Dec-27):€40.00

Last week was an intense week for US Telco, with all the major operators reporting

over just 3 days. Share price moves were material, with Charter faring worst -8%, European Telecommunication

Servicesfollowed by TMUS -7%, Comcast -6%, Verizon +4%, and AT&T +10%. At its core,

the week raised a number of debates around the TMUS (and hence DT) equity story: Akhil Dattani AC

(1) Q2 did not deliver the steady “beat-and-raise” momentum investors are (44-20) 7134-4725

akhil.dattani@jpmorgan.com

accustomed to. The Q3 guide also screened a little soft. Combined, this has prompted J.P. Morgan Securities plc

us to tweak down US estimates, (2) Management repeatedly referenced upcoming

Ankur Baheti, CFA

2027-28 spectrum auctions. We can’t help but feel this was directed at those that have (91-86) 5796-8820

yet to reflect associated spend within estimates, and who in turn are overly optimistic ankur.baheti@jpmchase.com

around future buybacks. The focus on “6G leadership” also mirrored comments from J.P. Morgan India Private Limited

DT’s CFO at our May TMT conference, where he argued 6G is inherently AI-native, US Telecommunication Services

and larger global operators can drive meaningful associated scale benefits. Balancing Sebastiano C Petti

this, we note Verizon’s CEO aggressively rebuffed satellite-related fears noting “It is (1-212) 622-8529

very difficult for satellite providers to provide a service even close to what we sebastiano.c.petti@jpmorgan.com