Deutsche Telekom raises 2026 guidance on T-Mobile gains

May 13 (Reuters) - Deutsche Telekom DTEGn.DE raised its full-year outlook on Wednesday, echoing the stronger guidance given by its U.S. subsidiary T-Mobile TMUS.O in April.

The German operator is in the early stages of exploring a potential merger with T-Mobile, in which it already owns a 53% stake, to create a transatlantic telecoms giant, two people familiar with the matter said last month.

During a post-earnings press conference, Telekom's management declined to comment on the talks that could lead to the biggest-ever public merger.

A merger could create a company with a market capitalisation of nearly $300 billion, making it the world's most valuable telecoms group with more than 200 million mobile subscribers.

However, the transaction would face major regulatory and geopolitical hurdles, were it to happen while tensions between the U.S. and Germany remain high, fuelled by new tariff threats and divergences over the U.S. war with Iran.

Asked about regulatory issues with the U.S. administration, Chief Financial Officer Christian Illek said the company had a "very constructive relationship" with the U.S. Federal Communications Commission, which would review any such deal and whose head, Brendan Carr, was nominated by President Donald Trump.

FOCUS ON PARTNERSHIPS

Elsewhere, Telekom is looking to further expand its collaboration with German defence group Rheinmetall RHMG.DE, with which it will develop a defence shield against drones and acts of sabotage to protect cities and critical infrastructure across Germany, CEO Timotheus Hoettges told reporters.

The company is also considering expanding its artificial intelligence cloud data centre in Munich, which started operations a few months ago, in partnership with Nvidia NVDA.O.

The Bonn-based telecoms operator expects its adjusted earnings before interest, taxes, depreciation and amortization after leases (EBITDAaL) to be around 47.5 billion euros ($55.7 billion) in 2026, up from the previously guided 47.4 billion euros.

Its shares were up 3% at 1045 GMT.

($1 = 0.8523 euros)