Deutsche Telekom Q4 2025 expectations exceeded but market remains critical

Deutsche Telekom Q4 2025 - expectations exceeded, but market remains critical

$DTE (+0,78 %) 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 (+0,78 %) once again underscored its operational stability in the challenging telecoms environment with these figures.

In addition, the $DTE (+0,78 %) 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 (+0,78 %) 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 (+0,78 %) 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?

https://de.investing.com/news/company-news/deutsche-telekom-geschaftsjahr-2025-prognosen-ubertroffen-10--gewinnwachstum-je-aktie-angestrebt-93CH-3363778

~ No investment advice ~

NichtRelevant@NichtRelevant

The good old T-Share. I've been invested since the IPO in 1996. What can I say - I'm invested in the stock for the long term. 😂

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DividendenPapa@DividendenPapa

@NichtRelevant You can actually call this a long-term investment 👍🏼

TheRealRichi@Badehose

I am invested and, like you, convinced of $DTE as a long-term and defensive investment. In addition to the aforementioned growth drivers, the cloud and participation in the construction of AI data centers could become more established, at least in Europe.

@Badehose You're definitely right. The positioning of $DTE in the cloud business and also the AI data centers is certainly positive and promises further growth potential. Overall, I like the broader positioning in the various business areas.

Dividendenopi👴@Dividendenopi

I have only recently invested, having filled the position in three tranches since the end of last year, as I considered the entry to be favorable. This has been confirmed so far and the share price gains so far have given me a decent buffer to my equity. I see moderate growth and an increase in the dividend, so that the share can achieve my minimum return expectation and remain a fixed component of the portfolio.

@Dividendenopi I also used the recent setback to build up an initial position. I have been invested since the beginning of November. In terms of timing, I couldn't have picked a better time. What is your current minimum return expectation for $DTE, if I may ask.

@DividendenPapa has actually almost been reached by the dividend increase. I have a lower limit of at least 5% gross dividend. The tax-free distribution and my buy-in of 27.32 mean that the minimum net cash flow is running. Yes, I am aware that the taxes are only deferred, which is why the share price growth to date is also pleasing in the overall result

@Dividendenopi Thank you for sharing your minimum return expectation. The recent share price performance actually increases the attractiveness of the investment. My buy-in is currently at 26.75 euros. However, I still have the share in a small savings plan as I still see potential for the future.