United Internet (XTRA:UTDI) Confirms Guidance On Stronger Earnings, Is The Stock Still Cheap?
Key earnings figures and what they mean for United Internet shareholders
United Internet (XTRA:UTDI) has just put fresh numbers on the table, with second quarter 2026 results and confirmed full-year sales guidance giving investors more concrete data to assess the stock.
For the second quarter, the company reported sales of €1,539 million compared with €1,483.9 million a year earlier. Net income for the period was €65.6 million compared with €49.6 million in the prior-year quarter.
Basic earnings per share from continuing operations came in at €0.38 compared with €0.23 a year ago. Diluted earnings per share from continuing operations were €0.39 compared with €0.23, signalling a similar pattern on a fully diluted basis.
Including all operations, basic earnings per share for the quarter were €0.38 compared with €0.29 a year earlier. Diluted earnings per share were €0.38 compared with €0.28, which keeps the gap between basic and diluted figures relatively small.
Looking at the first half of 2026, United Internet reported sales of €3,090.92 million compared with €3,003.93 million in the same period of the previous year. Net income over the six months was €126.51 million compared with €103.24 million a year ago.
For the six-month period, basic earnings per share were €0.73 compared with €0.60 a year earlier. Diluted earnings per share were €0.73 compared with €0.59, showing limited dilution impact from outstanding instruments.
Alongside these figures, management confirmed earnings guidance for 2026. United Internet continues to expect sales of around €6.25 billion for the year compared with €6.104 billion in 2025, which gives shareholders a clearer reference point for the rest of the year.
See our latest analysis for United Internet.
United Internet shares have reacted positively to the latest earnings and confirmed guidance, with a 1-day share price return of 2.25% and a 7-day share price return of 2.68%. However, the 90-day share price return is down 8.09% and the year-to-date share price return is down 13.04%. The 3-year total shareholder return of 71.84% contrasts with a 5-year total shareholder return that is down 20.06%, suggesting momentum has cooled recently compared with the medium term.
If these earnings leave you curious about where else growth stories might emerge in related areas, it could be worth scanning 55 AI infrastructure stocks
Bulls point to United Internet’s higher earnings and a recent share price uptick. Bears highlight weaker long term returns and past share price declines. Which side does the current valuation support next?
Most Popular Narrative: 20.9% Undervalued
The most followed narrative currently places United Internet’s fair value at €31.02, which sits above the latest close of €24.54 and frames the recent earnings in a longer term context.
The ongoing large-scale rollout and upgrade of United Internet's own fiber-optic and mobile (Open RAN/5G) infrastructure is expected to meaningfully reduce dependency on third-party networks, lower wholesale access costs, and drive improved net margins and long-term earnings as wholesale payments to former providers (like Deutsche Telekom) end and own-network migration advances.
Want to see what sits behind that valuation gap? The narrative leans heavily on future earnings power, steadier margins, and a different profit mix. The key question is how those moving parts add up over time.
Result: Fair Value of €31.02 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, there are still clear risks to that story, especially if high capital spending keeps pressuring free cash flow or if competition in the German market limits United Internet’s pricing power.
Find out about the key risks to this United Internet narrative.
Next Steps
With both risks and rewards in play for United Internet, momentum can shift quickly and views can change just as fast. If you want to weigh the trade off yourself, start with the 5 key rewards and 2 important warning signs
Looking for more investment ideas beyond United Internet?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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