The Deutsche Telekom share is under pressure even as the company delivers some of its best-ever operational numbers. On Friday, a decisive vote by the ver.di tariff commission on a wage package covering roughly 60,000 employees could remove a key source of uncertainty — but for now, macro headwinds are drowning out the good news.
Wage Accord in Sight
The proposed deal, which the commission has unanimously recommended for approval, runs for 33 months and forbids any operational redundancies for its duration. Full-time staff would see €150 added to their monthly pay from August 2026, followed by another €140 in July 2027. The regular pay tables then increase by 2.4%, yielding an overall wage lift of around 8.5%. Union members who joined by the end of May also receive a one-off bonus of €440, with a further €220 for loyal members later on. A “yes” vote would lock in stable personnel costs through to the end of 2028 and eliminate the risk of strikes this year, clearing the path for management to pursue its earnings targets.
Stellar Business, Stagnant Stock
The tariff talks come against a backdrop of strong operations. In the first quarter, Deutsche Telekom posted organic revenue of nearly €30 billion and adjusted EBIT of €11.5 billion, prompting the board to raise its full-year guidance. Over in the media division, MagentaTV attracted 36 million viewers in the first week of the World Cup — more than double the pay-TV subscriptions sold during the 2024 European Championship. TV chief Arnim Butzen called it the historically best opening week for the unit, with the France–Senegal match drawing a peak audience of 6.5 million.
Yet the share price tells a different story. At €26.92 (close to the €26.95 level quoted midweek), the stock has slipped roughly 4% in the past week and is down for the year. The 52-week high of €34.35 is now 21% away, while the 52-week low of €25.99 is just a 3.7% drop below. The 14-day relative strength index has fallen to 34.5–34.8, signalling oversold conditions.
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Macro Headwinds and Buyback Support
The main drag on the stock is external. The Federal Reserve has paused its rate-cutting cycle, and Fed governor Kevin Warsh warned this week about stubbornly high inflation. European telecoms as a whole are under selling pressure from profit-taking and growing competition from satellite internet — a space Deutsche Telekom has addressed by partnering with Starlink since March 2026 to fill coverage gaps across Europe.
Against this backdrop, the company’s share buyback programme is providing a floor. Last week alone, Deutsche Telekom repurchased over 1.6 million of its own shares.
What’s Next
With the union vote due tomorrow, a favourable outcome would remove domestic labour risks. The next major catalyst comes on 6 August, when the group reports second-quarter results. The market will be watching for confirmation that the record MagentaTV engagement is translating into profit, particularly in the Germany division. For the full year, management is targeting adjusted operating earnings of around €47.5 billion. If the stock can’t catch a bid once those tailwinds line up, the technical picture could become even more fraught.
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