T Mobile US (TMUS) AI Stock Analysis

• Market Cap: $242.09B
• Dividend Yield: 1.75%
• Average Volume (3M): 6.79M
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.42
• Revenue Growth: 7.30%
• EPS Growth: 17.67%
• Country: US
• Employees: 70,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 1.88
• Shares Outstanding: 1,101,862,800
• 10 Day Avg. Volume: 5,944,458
• 30 Day Avg. Volume: 6,785,709
• PEG Ratio: 40.42
• Price to Book (P/B): 3.87
• Price to Sales (P/S): 2.59
• P/FCF Ratio: 12.73
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: 4.11
• Enterprise Value/Gross Profit: 7.51
• Enterprise Value/Ebitda: 11.46
• 1Y Price Target: $256.18
• Price Target Upside: 16.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 10.45
• Revenue Forecast (FY): $94.63B

• Rating: 76 Outperform
• Price Target: $243.00 ▲(10.18% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

TMUS scores well primarily on improving financial performance (stronger profitability and much stronger operating/free cash flow), supported by a positive guidance and shareholder-return outlook from the latest earnings call. The score is held back by elevated leverage and a valuation that is not especially cheap, while technicals are generally favorable but still below the 200-day moving average.

Positive Factors

Free Cash Flow Generation

Material improvement in operating and free cash flow is durable: it funds capex, strategic fiber/FWA buildouts, and large buybacks without relying solely on new equity. Strong cash conversion supports reinvestment, debt servicing, and sustained shareholder returns over the next 2–6 months.

Network Leadership

A sustained network performance lead establishes a structural competitive advantage: faster speeds and wider midband coverage support higher ARPA, lower churn, and easier customer acquisition. Network differentiation underpins pricing power and broadband expansion for several years.

Broadband Growth Opportunity

Rapid FWA scale and explicit 2030 broadband targets diversify revenue beyond wireless subs, leveraging spectrum and distribution. Broadband scale can drive higher lifetime value, offset wireless saturation, and create cross-sell economics that materially boost long-term service revenue and margin resilience.

Negative Factors

Elevated Leverage

High absolute debt and leverage constrain financial flexibility and increase interest obligations even with strong cash flow. This limits room for organic investment or opportunistic M&A, raises refinancing risk if markets tighten, and makes deleveraging progress reliant on sustained FCF outperformance.

Guidance Reliant on M&A

Embedding material M&A in near-term guidance raises execution risk: acquisition synergies, integration costs, and timing uncertainty can impair target delivery. Reliance on deals reduces visibility into organic performance and increases sensitivity to integration setbacks over the medium term.

Promotional Intensity & Churn

Persistent promotional activity that raises churn can erode ARPA and margins over time. If competitive device subsidies and promotions continue, customer economics weaken, acquisition costs rise, and margin recovery may be delayed, pressuring sustainable profitability despite network advantages.

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 in the postpaid, prepaid, and wholesale markets. It also provides wireless devices, including smartphones, wearables, and tablets and other mobile communication devices, as well as wireless devices and accessories. In addition, the company offers services, devices, and accessories under the T-Mobile and Metro by T-Mobile brands through its owned and operated retail stores, T-Mobile app and customer care channels, and its websites. It also sells its devices to dealers and other third-party distributors for resale through independent third-party retail outlets and various third-party websites. As of December 31, 2021, it operated approximately 102,000 macro cell and 41,000 small cell/distributed antenna system sites. The company was founded in 1994 and is headquartered in Bellevue, Washington.

How the Company Makes Money

T-Mobile US generates revenue primarily through subscription-based services, including postpaid and prepaid wireless plans. The bulk of its revenue comes from monthly service fees paid by customers for voice, text, and data services. Additionally, the company earns income from device sales, which include smartphones and accessories sold outright or through installment plans. T-Mobile also has partnerships with various content providers and technology companies, which can yield revenue through bundled offers and promotions. The company's strategic acquisitions, such as the merger with Sprint, have further expanded its customer base and market reach, contributing significantly to its overall earnings.

T Mobile US Financial Statement Overview

Summary

Fundamentals are improving: profitability and ROE rose materially in 2024–2025, operating cash flow expanded sharply, and free cash flow has been solidly positive since 2023. The main offset is consistently high leverage (debt-to-equity ~1.6–2.0 with debt still rising), plus some income-statement data inconsistencies that reduce clarity on margins.

Income Statement

Revenue growth re-accelerated in the most recent year (2025: +2.9% vs. 2024: +3.6% and slightly negative in 2022–2023), showing a steadier top-line after a soft patch. Profitability strengthened materially versus earlier years, with net margin improving from ~3–4% (2020–2021) to ~12–14% (2024–2025), and return on equity rising to ~18–19% (2024–2025). A key watch-out is margin volatility and data quality inconsistencies (e.g., 2025 gross profit and EBIT margin reported as 0), which makes year-to-year margin comparisons less clean.

Balance Sheet

The balance sheet is asset-heavy and stable, but leverage is meaningfully elevated: debt-to-equity remains high around ~1.6–2.0, and total debt has continued to edge up (about $107B in 2020 to $117B in 2025). Equity has been relatively stable to modestly lower since 2022, which limits deleveraging progress. Offsetting this, profitability improved materially (return on equity moving from ~4% in 2020–2021 to ~18–19% in 2024–2025), helping support the capital structure, but leverage remains the primary risk factor.

Cash Flow

Cash generation has improved substantially: operating cash flow rose from $8.6B (2020) to $28.0B (2025), and free cash flow swung from negative in 2020–2022 to solidly positive in 2023–2025 ($18.0B in 2025). Cash flow strength is also improving relative to earnings, with operating cash flow covering net income above 1.0 in 2024–2025. The main weakness is that free cash flow still trails net income in recent years (free cash flow running at ~45–64% of net income in 2024–2025), implying heavier reinvestment/capex needs versus the level of accounting profits.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	88.31B	81.40B	78.56B	79.57B	80.12B
Gross Profit	42.07B	51.75B	48.37B	43.37B	43.51B
EBITDA	32.25B	31.04B	27.15B	20.16B	23.08B
Net Income	10.99B	11.34B	8.32B	2.59B	3.02B
Balance Sheet
Total Assets	219.24B	208.03B	207.68B	211.34B	206.56B
Cash, Cash Equivalents and Short-Term Investments	5.60B	5.41B	5.13B	4.51B	6.63B
Total Debt	122.27B	114.40B	113.83B	111.79B	108.82B
Total Liabilities	160.03B	146.29B	142.97B	141.68B	137.46B
Stockholders Equity	59.20B	61.74B	64.72B	69.66B	69.10B
Cash Flow
Free Cash Flow	18.00B	9.98B	7.75B	-520.00M	-7.78B
Operating Cash Flow	27.95B	22.29B	18.56B	16.78B	13.92B
Investing Cash Flow	-17.61B	-9.07B	-5.83B	-12.36B	-19.39B
Financing Cash Flow	-10.08B	-12.81B	-12.10B	-6.45B	1.71B

T Mobile US Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 220.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TMUS, the sentiment is Positive. The current price of 220.54 is above the 20-day moving average (MA) of 212.71, above the 50-day MA of 201.18, and below the 200-day MA of 220.89, indicating a neutral trend. The MACD of 5.68 indicates Negative momentum. The RSI at 64.30 is Neutral, neither overbought nor oversold. The STOCH value of 59.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TMUS.

T Mobile US Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMCSA	78 Outperform	$111.57B	5.14	21.92%	4.42%	0.20%	61.54%
TMUS	76 Outperform	$242.09B	20.84	18.18%	1.75%	7.30%	17.67%
VZ	72 Outperform	$215.95B	10.02	16.86%	6.60%	2.42%	102.17%
T	67 Neutral	$202.88B	8.14	20.43%	4.56%	1.98%	150.68%
AMX	62 Neutral	$76.56B	14.48	22.81%	2.69%	1.14%	83.48%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CHTR	57 Neutral	$32.97B	5.66	31.52%	―	0.42%	13.46%

T Mobile US Corporate Events

T-Mobile US Completes €2.5 Billion Euro Bond Offering

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 notes due 2035 and €1.0 billion of 3.900% senior notes due 2038. The notes, which T-Mobile USA plans to list on the Nasdaq Bond Exchange and which are guaranteed on a senior unsecured basis by the parent and certain subsidiaries, will provide funding for general corporate purposes including potential share repurchases, dividends and ongoing debt refinancing, underscoring the company’s continued use of European capital markets to support its capital return and balance sheet strategies.

The most recent analyst rating on (TMUS) stock is a Hold with a $245.00 price target. To see the full list of analyst forecasts on T Mobile US stock, see the TMUS Stock Forecast page.

T-Mobile Raises Multi-Year Growth Outlook, Boosts Buybacks

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 annual growth rates of 6% for service revenues, 8% for Core Adjusted EBITDA, and 15% for adjusted free cash flow. Management detailed widening competitive differentiation via top network quality rankings, improved customer experience and NPS, and rapid digital and AI transformation, underpinning new 2030 targets of 18–19 million total broadband customers and expectations for outsized growth in wireless, business, and adjacent services such as advertising and financial offerings.

The company issued upgraded financial targets, projecting 2026 service revenues of about $77 billion and 2027 service revenues of $80.5–$81.5 billion, alongside Core Adjusted EBITDA of $37.0–$37.5 billion in 2026 and $40.0–$41.0 billion in 2027, with adjusted free cash flow seen rising to as much as $20.5 billion by 2027. T-Mobile also reaffirmed a balanced capital allocation strategy around a 2.5x leverage target, highlighting more than $20 billion already returned to shareholders since 2024, roughly $12 billion deployed on M&A, over $50 billion of remaining capital through 2027, and plans to increase first-quarter 2026 share repurchases to up to $5 billion, signaling confidence in its growth trajectory and cash-generation capacity.

The most recent analyst rating on (TMUS) stock is a Buy with a $263.00 price target. To see the full list of analyst forecasts on T Mobile US stock, see the TMUS Stock Forecast page.

T-Mobile US Completes $2 Billion Senior Notes Offering

On January 12, 2026, T-Mobile USA, Inc., a wholly owned subsidiary of T-Mobile US, Inc., completed an underwritten public offering of $2 billion of senior unsecured notes, comprising $1.15 billion of 5.000% notes due 2036 and $850 million of 5.850% notes due 2056, issued under its existing indenture structure and guaranteed on a senior unsecured basis by the parent and certain subsidiaries. The transaction, launched following a January 7, 2026 announcement of the planned offering, provides T-Mobile with additional long-term funding that it expects to use primarily to refinance existing indebtedness and for other general corporate purposes, reinforcing the telecom group’s liability management efforts and supporting balance sheet flexibility as it continues to access the investment-grade bond market.

The most recent analyst rating on (TMUS) stock is a Hold with a $265.00 price target. To see the full list of analyst forecasts on T Mobile US stock, see the TMUS Stock Forecast page.

T-Mobile US expands and extends revolving credit facility

On January 5, 2026, T-Mobile USA entered into a Second Amended and Restated Credit Agreement that replaces its October 17, 2022 facility, increasing the size of its revolving credit facility from $7.5 billion to $10.0 billion and extending the maturity of the commitments to January 5, 2031. The new unsecured facility, arranged with JPMorgan Chase as administrative agent and a syndicate of lenders, includes a $1.5 billion letter of credit sub-facility and a $500 million swingline loan sub-facility, features interest based on multiple benchmark rates plus a margin tied to T-Mobile USA’s debt rating, and imposes customary covenants and a quarterly-tested maximum leverage ratio of 4.50 to 1.00, enhancing the company’s financial flexibility while formalizing standard lender protections and reinforcing relationships with major financial institutions.

The most recent analyst rating on (TMUS) stock is a Hold with a $265.00 price target. To see the full list of analyst forecasts on T Mobile US stock, see the TMUS Stock Forecast page.

T-Mobile US Unveils $14.6 Billion Shareholder Return Plan

On December 11, 2025, T-Mobile US announced a new shareholder return program of up to $14.6 billion, running through December 31, 2026. This program, which includes share repurchases and cash dividends, follows a previous $14.0 billion program and aims to enhance shareholder value. The execution of this program will depend on market conditions and company performance, with flexibility in its implementation.

The most recent analyst rating on (TMUS) stock is a Buy with a $300.00 price target. To see the full list of analyst forecasts on T Mobile US stock, see the TMUS Stock Forecast page.

T-Mobile US Appoints Jonathan Freier as COO

On December 5, 2025, T-Mobile US appointed Jonathan A. Freier as the Chief Operating Officer, effective immediately. Freier, who has been with the company since 1994, brings extensive experience in telecommunications and has been instrumental in leading various operational functions. In connection with his appointment, a compensation agreement was established, outlining his salary and incentive structure, which includes a significant annual base salary and long-term incentive awards. Additionally, T-Mobile announced a new retirement program effective January 1, 2026, for its officers, providing retirement benefits contingent on meeting specific criteria, which aims to enhance the company’s executive retention and succession planning strategies.

The most recent analyst rating on (TMUS) stock is a Buy with a $245.00 price target. To see the full list of analyst forecasts on T Mobile US stock, see the TMUS Stock Forecast page.