Shares in Deutsche Telekom edged higher on Friday, offering a tentative sign of relief after a punishing sell-off. The stock has shed over 18% since its recent high of €34.26, a decline that pushed it below a key long-term technical indicator. This recent weakness stands in stark contrast to the strategic moves the company is making, combining aggressive financial engineering with a bold operational partnership.
On the financial front, a multi-billion euro share buyback program is providing direct support. The company is in the second phase of its repurchase plan, authorized to spend up to €2 billion this year. Between April 2 and 10, a mandated bank purchased approximately 1.32 million Telekom shares on the exchange at an average price of €30.94. The fact that this average sits well above the stock’s current trading level underscores the severity of the recent drop. Management aims to spend up to €550 million on buybacks by the end of June, with the majority of repurchased shares to be retired, thereby reducing the float and boosting earnings per share.
Operationally, the Bonn-based group is accelerating its push into satellite connectivity. It has launched a new service, “Satellite Internet Access,” in partnership with SpaceX’s Starlink, targeting business customers and public authorities in areas lacking sufficient fiber or mobile coverage. The hardware promises download speeds of up to 400 megabits per second, with a monthly base fee of €16 per terminal plus data packages starting around €55. Looking further ahead, the collaboration is set to deepen by 2028 with plans for a direct-to-cell satellite service aimed at eliminating coverage gaps across ten European nations.
These initiatives unfold as analysts maintain a generally constructive, if slightly cautious, view. Barclays reaffirmed its ‘Overweight’ rating with a €39.50 price target, with analyst Mathieu Robilliard making only minor adjustments ahead of upcoming quarterly reports. JPMorgan also retains its ‘Overweight’ stance but trimmed its target from €41.50 to €40.00, citing potential risks in the crucial US market. At current levels, the stock trades nearly 30% below JPMorgan’s revised objective.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
The performance of the US subsidiary, T-Mobile US, which contributes more than half of group revenue, remains a paramount focus. It will provide the first concrete data point when it reports quarterly figures on April 28. The full consolidated results for Q1 2026 follow in mid-May, offering a comprehensive view of the group’s health across its German, European, and US operations.
CEO Tim Höttges has reiterated the group’s ambitious 2026 targets, which call for adjusted EBITDA AL to reach approximately €47.4 billion and free cash flow AL to hit around €19.8 billion. Adjusted earnings per share are projected at roughly €2.20. The upcoming reports will be scrutinized for evidence that this guidance rests on a solid foundation.
From a chart perspective, the long-term upward trendline dating back to March 2020, currently situated near €28.45, represents a critical technical support level. This line has held on a monthly closing basis so far; a decisive break below it would significantly darken the technical picture. For now, the company is betting that its strategic double play of shareholder returns and satellite expansion can help navigate through the current market uncertainty.
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