Deutsche Telekom Lifts Guidance After Strong Q2: What’s Next?
Deutsche Telekom just had a solid quarter. In Q2 2025, the company posted stronger-than-expected results. Revenue went up, profits improved, and customer numbers kept growing, especially in the U.S.
That’s not all. The telecom giant also raised its full-year guidance. This means the company now expects to do even better in the rest of 2025.
So, what’s driving this growth? And more importantly, what should we expect next?
Let’s break it all down: how Deutsche Telekom got here, what’s pushing its performance, and the challenges it might face ahead.
Q2 2025 Financial Highlights
Deutsche Telekom reported solid growth in Q2 2025. Revenue reached about €28.7 billion, up 1% on a reported basis and 4% organically. Service revenue also gained 4% organically, landing near €24.4 billion.
Adjusted EBITDA after leases rose to €11.0 billion, beating analyst expectations; that marks a 1.7% reported gain and 5% organic growth. Net profit climbed sharply over 25% year-on-year to around €2.6 billion, while adjusted net was €2.5 billion.
Raised Guidance for 2025
Deutsche Telekom raised its full-year expectations again. It now expects adjusted EBITDA AL to exceed €45 billion and free cash flow after leases to top €20 billion. This marks the second upward revision this year after the first in Q1, reflecting continued strength across its key markets.
Strategic Growth Drivers
Growth continues on both sides of the Atlantic. In the US, T‑Mobile added 1.7 million postpaid customers, its best quarter yet, and expanded 5G to 7.3 million connections.
T‑Mobile’s service revenue rose 6%, and Core Adjusted EBITDA climbed 6%, lifting its own guidance for customer additions and EBITDA.
In Europe, organic EBITDA growth hit its 30th straight quarter, with Poland showing strong mobile and broadband customer gains.
Back home in Germany, performance was mixed. Service revenues rose 1.9%, and FTTH coverage grew by 137,000 new connections. Still, we lost 20,000 broadband lines and saw a 1.3% revenue drop.
Their Systems Solutions unit did well too, with order entry up 20.5%, led by digital business and road‑charging projects. That includes a cloud‑AI partnership with Nvidia and plans for an AI gigafactory.
Key Challenges Ahead
They always face pressure at home. Competition in Germany is fueling service losses. That hurt domestic revenue, even as mobile still grew.
The company also must manage the cost of extending FTTH networks. Capex remains high. Foreign exchange adds uncertainty, too, as the dollar weakens, reported Euro‑based income shifts. It needs to keep pushing digital innovation while guarding against regulatory and cybersecurity risks.
Market & Investor Response
Investors had mixed reactions. Shares slipped down around 4% early in Frankfurt trade despite the solid numbers.
Some analysts noted that strong Q2 data may already be priced in, and the German market weakness continues to weigh on sentiment.
What’s Next for Deutsche Telekom?
Deutsche Telekom plans to lean into digital tools and AI. Projects like the Nvidia AI Cloud and the upcoming AI data center highlight its focus on technology.
In the U.S., the company’s increased stake in T-Mobile (now about 52%) supports future growth and stronger returns.
In Germany and across Europe, Deutsche Telekom continues to invest in fiber networks and B2B services to maintain its competitive edge.
The company expects mergers and ongoing innovation to drive long-term growth, especially as AI and digital tools play a bigger role.
From solid financial results to raised guidance, Deutsche Telekom is performing well. Challenges remain in its domestic market, but steady progress in Europe and the U.S. offers a strong path forward.
Final Words
DT had a strong Q2. Revenue, profit, and customer numbers all went up. Because of this, the company raised its full-year forecast for the second time in 2025.
T-Mobile in the U.S. continues to lead the way. Europe also showed steady growth. But the German market still has challenges, like losing broadband customers and facing tough competition. The company is investing in AI, 5G, and fiber to keep growing. Its focus on digital and global expansion gives it an edge in the fast-changing telecom world.
Looking ahead, we expect more innovation and strong cash flow. But Deutsche Telekom must still manage costs, currency risks, and rising competition. In short, the future looks promising if the company keeps making smart moves.
Frequently Asked Questions (FAQs)
We expect EBITDA AL to beat €45 billion and free cash flow to exceed €20 billion. Meyka’s AI also forecasts DTE.DE to reach about €37.64 in three months, a rise of 20%.
Most Wall Street analysts rate it a “Strong Buy.” TipRanks data shows price targets near €38.60, with highs of €43.50 (about 23% upside).
The German government holds the biggest share. It owns roughly 13.8% directly and an additional ~14% via KfW. The total comes to around 27-28.
Disclaimer:
This is for information only, not financial advice. Always do your research.