Robust fiber uptake and industrial AI push anchor Deutsche Telekom’s outlook
In sum – what to know:
Report fiber beneficial properties – In Germany, Deutsche Telekom added 155,000 FTTH clients in Q3 — its strongest pure-fiber quarter ever — with the community now reaching 11.8M properties.
AI as core pillar – DT detailed plans for a Munich-based industrial AI cloud constructed with Nvidia and Brookfield, calling AI transformative throughout “all areas” of the enterprise.
Steering raised – Regardless of headwind, robust U.S. efficiency and disciplined execution led DT to spice up its 2025 EBITDA AL and free-cash-flow outlook.
Deutsche Telekom delivered a strong Q3 2025 efficiency, underscored by stable progress and a assured outlook regardless of forex and market headwinds. Natural web income rose by 3.3% to €28.9 billion, whereas service revenues elevated 3.6% on an natural foundation. The corporate reported adjusted EBITDA AL of €11.1 billion, marking a 2.9% enhance on an natural foundation; reported progress was held again by a weaker U.S. greenback.
In the USA, the group’s U.S. enterprise led the best way with additional postpaid buyer additions. The U.S. unit’s service income grew ~9%, and adjusted EBITDA AL rose ~5.5%.
CEO Tim Höttges emphasised the corporate’s execution self-discipline: “We’re delivering, and we’re performing, and that’s the most vital factor: to be dependable, fixated on progress. We’re preserving our phrase.”
Germany: FTTH momentum accelerates
Whereas income within the German home market declined barely by about 1.8%, adjusted EBITDA AL inched up 0.1% to roughly €2.7 billion. On the identical time, Deutsche Telekom continued to scale its fiber footprint aggressively.
The corporate’s fiber-to-the-home community now passes 11.8 million households, and it recorded 155,000 web FTTH additions in Q3 — its strongest quarter on file for pure-fiber subscriber progress. The beneficial properties underscore rising demand for higher-capacity entry and Telekom’s ongoing funding in next-generation mounted infrastructure.
AI: From inside transformation to Europe’s first industrial AI cloud
Höttges framed AI as a company-wide catalyst, saying, “There isn’t any space, no course of that isn’t modified by AI.”
As Deutsche Telekom sees it, fiber enlargement and AI infrastructure improvement are two halves of the identical technique — constructing the high-capacity, low-latency basis required for industrial AI workloads
This summer season, Deutsche Telekom introduced plans to start development in 2026 on a large-scale AI information middle developed with Nvidia and Brookfield — envisioned because the world’s first industrial AI cloud for European producers.
On the investor name, Höttges expanded on the idea: “Our new AI industrial cloud is being constructed within the coronary heart of Munich, deep underground. Extremely-modern, state-of-the-art expertise and open for startups, SMEs, business, analysis, and the scientific group, powered by 100% inexperienced electrical energy with the mixed computing energy of two.3 million computer systems.”
He added that Deutsche Telekom is utilizing AI “in all areas” of the corporate: “In customer support, in inside information administration, in gross sales, in expertise.”
Outlook and strategic lens
Deutsche Telekom raised its full-year 2025 steering: adjusted EBITDA AL is now anticipated at ~€45.3 billion, and free money movement after leases at round €20.1 billion. Höttges additionally harassed that fiber deployment is a protracted recreation: “Fiber build-out is a marathon and never a dash.”
Deutsche Telekom’s Q3 outcomes underline the energy of its U.S. operations and the mounting potential of its fiber build-out in Germany. The regular earnings amidst forex headwinds mirror operational self-discipline. The voice of administration comes by clear and assured: from committing to ship, to acknowledging the AI-driven transformation throughout all processes. On the identical time, the home German market nonetheless faces structural headwinds — modest progress, income decline and intense aggressive strain.
“We make investments sooner or later, in fiber, in AI, in our individuals, and we’re not ready for others to behave. We act,” mentioned Höttges.
