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T Mobile US
(NASDAQ:TMUS)
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Rating:74Outperform
Price Target:
$203.00
▲(11.78% Upside)
Action:Reiterated
Date:09/06/26
Overall score is driven primarily by strong financial execution (profitability and cash generation) and a constructive earnings-call outlook with reaffirmed growth targets and higher free-cash-flow guidance. These positives are tempered by balance-sheet leverage risk and a mixed technical backdrop with the stock still below longer-term moving averages.
Positive Factors
Service revenue growth
Strong service-revenue growth indicates continued customer demand and improving monetization across the recurring connectivity base. The quantified 2026 outlook gives visibility into near-term expansion, while recurring wireless subscriptions can support durable revenue and cash generation.
Negative Factors
Elevated balance-sheet leverage
High leverage and declining equity reduce financial flexibility relative to a less-indebted balance sheet. They can increase sensitivity to interest rates and constrain the funds available for network investment, spectrum purchases, buybacks, or other strategic actions if operating conditions weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Service revenue growth
Strong service-revenue growth indicates continued customer demand and improving monetization across the recurring connectivity base. The quantified 2026 outlook gives visibility into near-term expansion, while recurring wireless subscriptions can support durable revenue and cash generation.
Read all positive factors
T Mobile US Key Performance Indicators (KPIs)
Any
Customers by Type
Categorizes customers into segments such as postpaid, prepaid, and wholesale, providing insight into customer base diversity and growth opportunities.
Categorizes customers into segments such as postpaid, prepaid, and wholesale, providing insight into customer base diversity and growth opportunities.
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The Fly
The FlyT Mobile US (TMUS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$194.71B
Dividend Yield2.25%
Average Volume (3M)4.42M
Price to Earnings (P/E)19.0
Beta (1Y)0.43
Revenue Growth9.68%
EPS Growth-10.02%
CountryUS
Employees75,000
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)9.58
Shares Outstanding1,072,671,600
10 Day Avg. Volume3,817,900
30 Day Avg. Volume4,415,448
Financial Highlights & Ratios
PEG Ratio40.40
Price to Book (P/B)3.87
Price to Sales (P/S)2.59
P/FCF Ratio12.73
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$237.73Price Target Upside30.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)10.9
Revenue Forecast (FY)$94.41B
T Mobile US Business Overview & Revenue Model
Company Description
T-Mobile US, Inc., alongside its subsidiaries, offers mobile telecommunications services across the United States, Puerto Rico, and the U.S. Virgin Islands. Catering to approximately 108.7 million subscribers, the company delivers essential voice,...
How the Company Makes Money
T-Mobile US primarily makes money by selling wireless connectivity and related services, with additional revenue from device sales and other service offerings.
1) Service revenue (core earnings driver): The largest portion of T-Mobile’s revenue c...
T Mobile US Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call emphasized broad, multi-dimensional strength — network leadership (record NPS and third-party awards), robust customer additions (postpaid net adds and fixed wireless growth), solid revenue and profitability gains (postpaid service revenue +13%, total service revenue +9%, core EBITDA +12%), and strong cash generation with increased free cash flow guidance. Management acknowledged near-term operational headwinds including a planned rate-plan modernization causing temporary elevated churn in Q3, some prepaid declines, device price pressure, and the need to preserve capital for upcoming spectrum auctions. On balance, the positives (clear and quantified growth, industry-leading metrics, and enhanced guidance) materially outweigh the manageable and largely anticipated challenges.Positive Updates
Record High Customer Satisfaction (NPS)
Net Promoter Score reached a record 46 in Q2 — the highest NPS in wireless across the big 3 carriers, cited as a key driver of customer acquisition and share gain.
Negative Updates
Temporary Elevated Account Churn from Rate Plan Modernization
Company expects a temporary elevated postpaid account churn profile in Q3 tied to planned rate plan modernization (Q3 net postpaid account additions expected ~250,000); impact concentrated in accounts with fewer lines.
Read all updates
Q2-2026 Updates
Positive
Negative
Record High Customer Satisfaction (NPS)
Net Promoter Score reached a record 46 in Q2 — the highest NPS in wireless across the big 3 carriers, cited as a key driver of customer acquisition and share gain.
Read all positive updates
Company Guidance
T‑Mobile reiterated strong full‑year guidance: 950k–1,050k postpaid net account additions (≈250k expected in Q3 after rate‑plan modernization, with almost 500k delivered in H1), roughly $77.0B of full‑year service revenue (~8% growth) with Q3 service revenue ≈$19.3B (up ~6% YoY), and postpaid ARPA growth targeted at 2.5%–3% for 2026 (Q2 postpaid ARPA +2% YoY; ex‑M&A +3.7%). Core adjusted EBITDA is guided to $37.1B–$37.5B (about 10% YoY growth at the midpoint) with Q3 core adjusted EBITDA ≈$9.4B (up ~8% YoY), full‑year cash CapEx remains ≈$10B, and adjusted free cash flow was raised to $18.4B–$18.8B (a $200M midpoint increase, driven by lower cash taxes). Management also noted repurchasing an incremental $2.5B in Q2 (through July 17), 253M shares bought since late‑2022 (shares outstanding ≈1.07B), and that capital allocation will remain disciplined to preserve flexibility for 2027–2028 spectrum opportunities (C‑band 2.0 and 2.7 GHz).T Mobile US Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
58
Neutral
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 92.19B | 88.31B | 81.40B | 78.56B | 79.57B | 80.12B |
| Gross Profit | 50.20B | 42.07B | 51.75B | 48.37B | 43.37B | 43.51B |
| EBITDA | 28.32B | 31.31B | 31.04B | 27.15B | 20.16B | 23.08B |
| Net Income | 10.56B | 10.99B | 11.34B | 8.32B | 2.59B | 3.02B |
Balance Sheet | ||||||
| Total Assets | 213.55B | 219.24B | 208.03B | 207.68B | 211.34B | 206.56B |
| Cash, Cash Equivalents and Short-Term Investments | 2.83B | 5.60B | 5.41B | 5.13B | 4.51B | 6.63B |
| Total Debt | 116.00B | 122.27B | 114.40B | 113.83B | 111.79B | 108.82B |
| Total Liabilities | 157.29B | 160.03B | 146.29B | 142.97B | 141.68B | 137.46B |
| Stockholders Equity | 56.27B | 59.20B | 61.74B | 64.72B | 69.66B | 69.10B |
Cash Flow | ||||||
| Free Cash Flow | 15.35B | 18.00B | 9.98B | 7.75B | -520.00M | -7.78B |
| Operating Cash Flow | 28.83B | 27.95B | 22.29B | 18.56B | 16.78B | 13.92B |
| Investing Cash Flow | -18.54B | -17.61B | -9.07B | -5.83B | -12.36B | -19.39B |
| Financing Cash Flow | -17.39B | -10.08B | -12.81B | -12.10B | -6.45B | 1.71B |
T Mobile US Technical Analysis
Negative
181.61
Price Trends
180.59
Negative
183.52
Negative
192.16
Negative
Market Momentum
0.48
Positive
44.95
Neutral
29.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TMUS, the sentiment is Negative. The current price of 181.61 is above the 20-day moving average (MA) of 181.08, above the 50-day MA of 180.59, and below the 200-day MA of 192.16, indicating a bearish trend. The MACD of 0.48 indicates Positive momentum. The RSI at 44.95 is Neutral, neither overbought nor oversold. The STOCH value of 29.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TMUS.
T Mobile US Risk Analysis
T Mobile US disclosed 27 risk factors in its most recent earnings report. T Mobile US reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
T Mobile US Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $208.32B | 13.13 | 15.52% | 5.54% | 1.38% | -10.78% | |
76 Outperform | $175.97B | 8.45 | 19.48% | 4.34% | 2.63% | 72.35% | |
74 Outperform | $194.71B | 18.97 | 18.22% | 2.25% | 9.68% | -10.02% | |
72 Outperform | $94.00B | 8.55 | 12.04% | 5.01% | 0.58% | -48.94% | |
67 Neutral | $70.36B | 12.98 | 21.99% | 2.58% | 13.40% | 75.68% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $26.62B | 3.74 | 30.43% | ― | -1.50% | 4.45% |
* Communication Services Sector Average
TMUS
T Mobile US
181.69
-53.72
-22.82%
AMX
America Movil
23.00
3.74
19.40%
T
AT&T
25.60
-2.29
-8.20%
CHTR
Charter Communications
145.74
-117.26
-44.59%
CMCSA
Comcast
26.33
-3.59
-11.98%
VZ
Verizon
50.41
9.70
23.83%
T Mobile US Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
T-Mobile US Announces CFO Succession and Leadership Transition
Positive
Sep 3, 2026
T-Mobile US announced on September 3, 2026 that longtime Chief Financial Officer Peter Osvaldik will retire in February 2027, then serve as a strategic advisor until his planned July 1, 2027 retirement date, as part of a staged leadership successi...
Business Operations and StrategyExecutive/Board Changes
T-Mobile US Announces Strategic Executive Leadership Realignment
Positive
Jul 7, 2026
On July 7, 2026, T-Mobile announced a major realignment of its executive team to support its next phase of strategic growth and innovation. Wireless industry veteran Chris Sambar was appointed Chief Enterprise Officer, effective no later than Octo...
Executive/Board ChangesShareholder Meetings
T-Mobile Shareholders Back Board, Auditor and Executive Pay
Positive
Jun 18, 2026
On June 16, 2026, T-Mobile US held its Annual Meeting of Stockholders, where shareholders elected 13 directors to its board, each to serve until the 2027 annual meeting or until a successor is chosen. The vote results showed strong, though not una...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.