$DTE (+2.26%) presented its quarterly figures for Q4 2025 today and, by and large, exceeded market expectations:
- Revenue (expected): 31.27 billion euros
- Turnover (reported): 31.72 billion euros
- EPS (expected): 0.44 euros
- EPS (reported): 0.44 euros
Despite the solid results, the reaction on the market was restrained, as the performance already seemed to be priced in. Nevertheless, the $DTE (+2.26%) once again underscored its operational stability in the challenging telecoms environment with these figures.
In addition, the $DTE (+2.26%) will propose a dividend of € 1.00 per share for the 2025 financial year. This corresponds to an increase of around 11% compared to 2024 and is already the third increase in a row. In addition, the management has announced a new share buyback program of around € 2 billion for 2026. Both are clear signals to me that the company wants to actively strengthen its shareholder return.
In my opinion, the growth drivers remain clearly recognizable. The further expansion of the fibre-optic network, rising customer numbers, particularly in the USA, and the increasing monetization of data services and digital offerings. The strong US subsidiary in particular remains a key earnings driver and is providing significant support for the Group's development. This certainly creates opportunities. The stable operating performance, combined with continuous dividend growth and share buybacks, makes the $DTE (+2.26%) a defensive anchor in my portfolio.
At the same time, however, the risks should not be ignored. The telecommunications sector is capital-intensive and highly regulated. High investments in network infrastructure can put pressure on free cash flow in the short term. Competition, particularly in the German broadband market, also remains intense. Added to this are possible regulatory interventions or geopolitical uncertainties that could affect individual markets.
In summary, the $DTE (+2.26%) solid figures with a slight beat in sales and EPS, rising dividends and a new buyback program. The company shows operational stability, but remains active in a challenging regulatory and investment-intensive environment.
How do you see it? Do you still see Deutsche Telekom as a stable dividend stock with structural value, or has a lot of upside already been priced in after the recent rally?
~ No investment advice ~
