Deutsche Telekom’s Wage Verdict and Buyback Blitz: Can the Combination Revive a Stalled Stock?

A pivotal moment is approaching for Deutsche Telekom investors. On June 19, union members will vote on a new wage deal covering roughly 60,000 employees, a pact that promises both cost clarity and operational stability after weeks of strikes. The agreement, negotiated with ver.di, runs for 33 months and delivers total pay increases of 8.5% in three stages: a €150 monthly rise from August 2026, another €140 from July 2027, and a 2.4% increase in table salaries from June 2028. Crucially, the company has ruled out compulsory redundancies until the end of 2028. For the market, the appeal lies less in the wage bill itself and more in the removal of disruption risk — a factor that could help the stock find its footing after a prolonged slide.

Yet even as the labor front edges toward resolution, the share price remains under pressure. The stock traded at €27.69 in the primary article — a drop of 2.71% on that day — while a more recent reading in the secondary article puts it at €28.46, just below its 50-day moving average. Over the past twelve months, the shares have lost about 14% of their value, a stark contrast to the operational momentum the group is reporting. In the first quarter, revenue rose to €29.9 billion, adjusted operating profit reached €11.5 billion, and management upgraded its full-year guidance. The US arm T-Mobile continues to be the engine room, delivering double-digit service revenue growth.

Against this disconnect, the company has deployed its most potent market lever: a €2 billion share buyback programme for 2025. The pace has been brisk. In the first week of June alone, the group spent roughly €45 million to repurchase nearly 1.6 million shares at an average price of €28.49. Since the programme started in April, more than 13.6 million shares have been cancelled. The current €550 million tranche runs until the end of this month, and the next batch of second-quarter results, due on August 6, will serve as a fresh catalyst.

Should investors sell immediately? Or is it worth buying Deutsche Telekom?

Analysts see considerable upside relative to the current price. Their average fair-value estimate stands at around €38, implying a potential gain of more than a third from recent levels. The gap between operational strength and market valuation has widened, and with no new earnings release for another two months, the buyback remains the most tangible near-term support.

The fundamental picture, meanwhile, continues to brighten. For 2026, management is targeting an operating result of approximately €47.5 billion, underpinned by the US business and a solid European performance. If the union vote on June 19 delivers a “yes,” Deutsche Telekom will gain not only labour peace but also a degree of cost transparency that could help reduce the discount the stock currently carries. Whether that is enough to break the technical stalemate remains the central question for investors watching a company that is doing everything right — except catching a bid.