The shares of T-Mobile US (TMUS), the wireless communication services provider, fell on Friday afternoon after Wall Street analysts stuck to or trimmed their price targets on its stock despite the solid third-quarter 2025 results it reported on Thursday. One analyst said he was worried about “competitive intensity.”
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In the results, T-Mobile, which competes with rivals such as AT&T (T) and Verizon (VZ), saw its revenue jump by 9% to $21.96 billion, topping Wall Street’s projected revenue by about $500 million. The company also reported an earnings per share of $2.41, beating analysts’ expectation of $2.40 per share.
T-Mobile Returns Solid Results in Q3
In terms of key details, T-Mobile onboarded 2.3 million customers into its postpaid network service, minus those who quit the network during the period. Breaking it down further, it recorded 1 million net customer additions to its phone-only postpaid service.
It described both performances as “best in industry,” further noting that the postpaid phone record was its best third-quarter performance in over a decade. Furthermore, T-Mobile recorded significant customer growth in its broadband (including 5G) and fiber network services.
Banking on these, T-Mobile now looks to earn between $33.7 billion and $33.9 billion — that is before factoring in earnings from interest, tax, depreciation, and amortization (EBITDA) as well as income from leases — at the end of its current fiscal year. It raised the range from an earlier core adjusted EBITDA range between $33.3 billion and $33.7 billion.
Similarly, the wireless telecom company expects to onboard between 7.2 and 7.4 million new customers to its postpaid service — minus quitters — by the end of the current fiscal year.
Should T-Mobile Investors be Worried about Competition?
Reacting to the latest quarterly release, several Wall Street analysts either maintained or cut their price target of TMUS stock, including those from TD Cowen (TD), Barclays (BCS), and Mizuho Securities (MFG).
It is important to note, however, that several maintained their Buy ratings, even as the new price targets still offer significant upsides from the current trading level.
Barclays analyst Kannan Venkateshwar, who lowered his price target from $250 to $240, argued that while the company’s Q3 earnings were solid, they could “magnify industry wide concerns about competitive intensity.” Chipping in, Bank of America Securities analyst Michael Funk, who stuck to both his Hold rating and $270 price target, believes that the earnings are already priced into TMUS stock.
This is even as Funk expects upcoming conference calls to address questions about competitive challenges and the progress of ongoing integration efforts. The analyst believes these could impact the stock’s future performance.
Is TMUS a Good Stock to Buy Now?
Meanwhile, across the larger Wall Street, T-Mobile’s shares currently hold a Moderate Buy consensus recommendation, TipRanks data shows. This is based on 13 Buys, four Holds, and one Sell recommendation issued by 18 Wall Street analysts over the past three months.
Moreover, the average TMUS price target of $272.73 indicates a 26% growth potential from the current level.
