T Mobile US (TMUS)
NASDAQ:TMUS
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T Mobile US
(NASDAQ:TMUS)
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Rating:72Outperform
Price Target:
$207.00
▲(4.72% Upside)
Action:Reiterated
Date:04/29/26
TMUS scores well on fundamentals and outlook: strong cash generation, improved earnings power, and raised 2026 guidance with larger planned shareholder returns drive the rating. The score is held back by high leverage and clearly bearish technicals (price below major moving averages with negative MACD), while valuation is moderate with only partial support from the dividend yield.
Positive Factors
Cash generation / FCF
Materially improved free cash flow and strong operating cash flow provide durable internal funding for capex, debt service and shareholder returns. With adjusted FCF guidance of $18.1–$18.7B and industry-leading FCF margins (~24%), the company can sustain investments and distributions over the medium term.
Negative Factors
High leverage
Elevated leverage (debt-to-equity >2.0) reduces financial flexibility and increases sensitivity to interest rates and refinancing cycles. This structural funding risk constrains balance-sheet optionality for M&A, JV funding or opportunistic buybacks and makes sustained capital returns contingent on continued strong cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation / FCF
Materially improved free cash flow and strong operating cash flow provide durable internal funding for capex, debt service and shareholder returns. With adjusted FCF guidance of $18.1–$18.7B and industry-leading FCF margins (~24%), the company can sustain investments and distributions over the medium term.
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.
Data provided by:
The Fly
The FlyT Mobile US (TMUS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$206.32B
Dividend Yield1.75%
Average Volume (3M)6.00M
Price to Earnings (P/E)23.1
Beta (1Y)0.36
Revenue Growth9.48%
EPS Growth-8.46%
CountryUS
Employees70,000
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)9.43
Shares Outstanding1,082,204,700
10 Day Avg. Volume4,772,019
30 Day Avg. Volume5,999,788
Financial Highlights & Ratios
PEG Ratio40.42
Price to Book (P/B)3.87
Price to Sales (P/S)2.59
P/FCF Ratio12.73
Enterprise Value/Market Cap1.57
Enterprise Value/Revenue3.57
Enterprise Value/Gross Profit6.58
Enterprise Value/Ebitda11.50
Forecast
1Y Price Target
$255.11Price Target Upside29.06% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering20
EPS Forecast (FY)10.43
Revenue Forecast (FY)$94.64B
T Mobile US Business Overview & Revenue Model
Company Description
T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands. The company offers voice, messaging, and data services to 108.7 million customers i...
How the Company Makes Money
T-Mobile US primarily makes money by selling wireless connectivity subscriptions and related services. Its largest revenue stream is service revenue from recurring monthly charges paid by customers on postpaid (contract-like monthly billing) and p...
T Mobile US Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call presented numerous strong operational and financial achievements: leadership in NPS, robust postpaid net additions (+6% YoY), solid ARPA growth (+3.9% Q1) and market-leading revenue and EBITDA growth (postpaid service revenue +15% YoY; core adjusted EBITDA +12% YoY), alongside accelerating broadband momentum and expanded shareholder returns. Management raised guidance and described disciplined, returns-focused fiber JV activity, while emphasizing network innovation (5G Advanced, edge/AI initiatives). The primary negatives were higher postpaid account churn (driven by mix effects), increased equipment-related losses (several hundred million YoY), and execution/visibility risks around multi-JV fiber rollout and early-stage edge AI monetization. Overall, highlights substantially outweigh the lowlights, signaling strong momentum and confidence but with some execution and margin pressures to monitor.Positive Updates
Industry-Leading Customer Satisfaction (NPS)
Net Promoter Score of 45, more than 20% higher than the next closest competitor, indicating widening differentiation on network, value and experience.
Negative Updates
Higher Postpaid Account Churn vs. Line Churn
Postpaid phone churn was stable (up ~3 basis points), but postpaid account churn is higher than line churn due to mix effects (greater weighting of newer customers and broadband-only accounts); management emphasized this is a structural math effect but it raises short-term account churn levels.
Read all updates
Q1-2026 Updates
Positive
Negative
Industry-Leading Customer Satisfaction (NPS)
Net Promoter Score of 45, more than 20% higher than the next closest competitor, indicating widening differentiation on network, value and experience.
Read all positive updates
Company Guidance
T‑Mobile raised its 2026 outlook, now targeting 950,000–1,050,000 total postpaid net account additions; roughly $77.0 billion in full‑year service revenue (≈8% growth) with Q2 service revenue ≈$19 billion (≈+9% YoY); postpaid ARPA growth of 2.5%–3.0% for the full year; a higher core adjusted EBITDA range of $37.1–$37.5 billion (up $0.1 billion at the low end) and Q2 core adjusted EBITDA of ≈$9.4 billion (≈+10% YoY); unchanged cash CapEx of ≈$10 billion; adjusted free cash flow raised to $18.1–$18.7 billion (up $0.1 billion at the low end); and an increased 2026 shareholder return authorization by up to $3.6 billion to a total of up to $18.2 billion (the company also returned $6 billion to shareholders in Q1).T Mobile US Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
62
Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 90.53B | 88.31B | 81.40B | 78.56B | 79.57B | 80.12B |
| Gross Profit | 49.20B | 42.07B | 51.75B | 48.37B | 43.37B | 43.51B |
| EBITDA | 28.13B | 32.25B | 31.04B | 27.15B | 20.16B | 23.08B |
| Net Income | 10.54B | 10.99B | 11.34B | 8.32B | 2.59B | 3.02B |
Balance Sheet | ||||||
| Total Assets | 214.67B | 219.24B | 208.03B | 207.68B | 211.34B | 206.56B |
| Cash, Cash Equivalents and Short-Term Investments | 3.52B | 5.60B | 5.41B | 5.13B | 4.51B | 6.63B |
| Total Debt | 117.73B | 122.27B | 114.40B | 113.83B | 111.79B | 108.82B |
| Total Liabilities | 158.80B | 160.03B | 146.29B | 142.97B | 141.68B | 137.46B |
| Stockholders Equity | 55.88B | 59.20B | 61.74B | 64.72B | 69.66B | 69.10B |
Cash Flow | ||||||
| Free Cash Flow | 18.20B | 18.00B | 9.98B | 7.75B | -520.00M | -7.78B |
| Operating Cash Flow | 28.32B | 27.95B | 22.29B | 18.56B | 16.78B | 13.92B |
| Investing Cash Flow | -17.05B | -17.61B | -9.07B | -5.83B | -12.36B | -19.39B |
| Financing Cash Flow | -19.41B | -10.08B | -12.81B | -12.10B | -6.45B | 1.71B |
T Mobile US Technical Analysis
Neutral
197.67
Price Trends
199.64
Negative
200.89
Negative
212.58
Negative
Market Momentum
-2.26
Negative
49.43
Neutral
41.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TMUS, the sentiment is Neutral. The current price of 197.67 is above the 20-day moving average (MA) of 191.68, below the 50-day MA of 199.64, and below the 200-day MA of 212.58, indicating a neutral trend. The MACD of -2.26 indicates Negative momentum. The RSI at 49.43 is Neutral, neither overbought nor oversold. The STOCH value of 41.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $89.06B | 11.94 | 19.63% | 4.42% | 1.39% | 24.78% | |
72 Outperform | $206.32B | 23.07 | 17.82% | 1.75% | 9.48% | -8.46% | |
71 Outperform | $81.59B | 14.75 | 20.61% | 2.69% | 9.51% | 187.55% | |
67 Neutral | $195.25B | 10.46 | 16.68% | 6.60% | 2.85% | -2.51% | |
66 Neutral | $169.75B | 13.24 | 19.59% | 4.56% | 2.92% | 83.12% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
51 Neutral | $19.56B | 5.82 | 30.84% | ― | -0.92% | 3.13% |
* Communication Services Sector Average
TMUS
T Mobile US
193.42
-43.74
-18.44%
AMX
America Movil
26.73
9.63
56.32%
T
AT&T
24.98
-1.64
-6.16%
CHTR
Charter Communications
142.50
-280.99
-66.35%
CMCSA
Comcast
24.80
-7.14
-22.36%
VZ
Verizon
47.74
6.31
15.23%
T Mobile US Corporate Events
Business Operations and StrategyStock BuybackDividends
T-Mobile Expands 2026 Shareholder Capital Return Program
Positive
Apr 23, 2026
On April 23, 2026, T-Mobile US announced that its board had raised the size of its 2026 shareholder return program by up to $3.6 billion, lifting the total potential capital return from as much as $14.6 billion to up to $18.2 billion through Decem...
Business Operations and StrategyPrivate Placements and Financing
T-Mobile US Streamlines Debt Guarantees and Capital Structure
Positive
Apr 1, 2026
On March 31, 2026, T-Mobile USA, Inc. restructured its debt guarantee framework by releasing guarantees of certain subsidiaries under its $10 billion revolving credit agreement, after previously repaying legacy indebtedness. This action triggered ...
Executive/Board Changes
T-Mobile US Announces Upcoming Board Member Resignation
Neutral
Mar 27, 2026
On March 26, 2026, T-Mobile US disclosed that Abdurazak Mudesir had informed the Board of Directors of his decision to resign from the Board and from the Nominating, Corporate Governance and Compliance Committee, effective March 31, 2026. The comp...
Business Operations and StrategyPrivate Placements and Financing
T-Mobile US Completes €2.5 Billion Euro Bond Offering
Positive
Feb 19, 2026
On February 19, 2026, T-Mobile USA, a wholly owned subsidiary of T-Mobile US, closed a euro-denominated bond offering totaling €2.5 billion, issuing €750 million of 3.200% senior notes due 2032, €750 million of 3.625% senior note...
Business Operations and StrategyStock BuybackFinancial Disclosures
T-Mobile Raises Multi-Year Growth Outlook, Boosts Buybacks
Positive
Feb 11, 2026
On February 11, 2026, T-Mobile used its fourth quarter 2025 earnings call and Capital Markets Day Update in New York to raise its multi-year growth outlook, citing strong progress since its September 2024 plan, including 2023–2025 compound a...
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.