Deutsche Telekom Gains as T-Mobile US Exceeds Subscriber Expectations

Deutsche Telekom shares received a boost Thursday following the release of strong third-quarter results from its U.S. subsidiary, T-Mobile US, as the latter exceeded analyst expectations for subscriber growth. T-Mobile US added 274,000 net new contract customers in Q3, a 3% increase year-over-year, surpassing analyst predictions of a slight decline. This positive performance extends a trend of customer acquisition, with T-Mobile US consistently adding more new customers in recent quarters.

The strong subscriber growth translated into financial gains for T-Mobile US. Third-quarter revenue increased 7% year-over-year to $23.6 billion, and adjusted EBITDA rose 11% to $9.6 billion, both exceeding average analyst expectations. Management continues to project around one million new customers for the full year, and has raised its outlook for operating profit and cash flow. The news initially spurred a roughly 3% increase in T-Mobile US’s pre-market stock price, which had previously been under pressure due to increased competition from SpaceX's entry into the mobile market.

Interestingly, reports indicate that plans for a full merger between Deutsche Telekom and T-Mobile US have been put on hold. This development provided some relief to investors who had previously expressed skepticism regarding such a fusion. While uncertainties surrounding a potential merger remain a factor impacting the stock, the pause addresses concerns about a complex and potentially disruptive consolidation. The Deutsche Telekom share price rose approximately 2% to €25.65 following the news.

Currently, Deutsche Telekom’s stake in T-Mobile US is valued at around €75 billion, representing roughly 60% of the German company’s overall market capitalization—a decrease of approximately 20 percentage points from a year and a half ago. The positive performance of T-Mobile US, demonstrated by the Q3 results, reinforces its significant contribution to Deutsche Telekom’s overall valuation. The stock has been under pressure in recent months, losing almost half its value since its peak in March 2025.