T Mobile US (TMUS) AI Stock Analysis

• Market Cap: $243.58B
• Dividend Yield: 1.6%
• Average Volume (3M): 4.49M
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.43
• Revenue Growth: 7.30%
• EPS Growth: 17.67%
• Country: US
• Employees: 70,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 2.41
• Shares Outstanding: 1,125,419,100
• 10 Day Avg. Volume: 5,006,833
• 30 Day Avg. Volume: 4,489,664
• PEG Ratio: 0.60
• Price to Book (P/B): 4.18
• Price to Sales (P/S): 3.17
• P/FCF Ratio: 25.85
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: 4.50
• Enterprise Value/Gross Profit: 7.56
• Enterprise Value/Ebitda: 12.11
• 1Y Price Target: $274.76
• Price Target Upside: 24.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 73 Outperform
• Price Target: $243.00 ▲(10.11% Upside)

T-Mobile US's overall score is driven by strong financial performance and positive earnings call guidance, indicating robust growth and profitability. However, technical analysis suggests bearish momentum, which tempers the overall score. Valuation is fair, providing moderate attractiveness.

Positive Factors

Customer Growth

T-Mobile's ability to achieve record-breaking customer growth indicates strong market demand and effective customer acquisition strategies, which are critical for sustaining long-term revenue growth and competitive positioning.

Cash Flow Generation

Strong cash flow generation underscores T-Mobile's operational efficiency and financial health, providing the company with the flexibility to invest in growth opportunities and manage debt effectively over the long term.

5G and Broadband Expansion

The significant expansion in 5G and broadband services positions T-Mobile as a leader in next-generation connectivity, enhancing its competitive edge and potential for future revenue streams in a rapidly evolving telecommunications landscape.

Negative Factors

High Leverage

High leverage can pose financial risks, especially in volatile market conditions, potentially limiting T-Mobile's ability to invest in growth initiatives or respond to competitive pressures without incurring additional financial strain.

Increased Costs Due to Mergers

The increased costs associated with mergers could impact T-Mobile's profitability and cash flow in the short to medium term, requiring effective cost management to ensure these expenses do not detract from overall financial performance.

Network Transformation Expenses

Additional network transformation expenses could pressure margins and require careful management to ensure these investments translate into long-term operational efficiencies and enhanced service capabilities.

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 its subscription-based services, which include postpaid and prepaid wireless plans. The majority of its earnings come from postpaid customers who pay a monthly fee for voice and data services. Additionally, T-Mobile earns revenue from selling mobile devices and accessories, as well as from mobile broadband services. The company also benefits from partnerships with manufacturers and technology firms, which enable it to offer bundled services and devices. Key revenue streams include customer fees, device sales, and service contracts, with a focus on expanding its customer base and enhancing service offerings to drive growth.

T Mobile US Financial Statement Overview

Summary

T-Mobile US exhibits strong financial health with consistent revenue growth, robust profitability, and effective cash flow management. The company maintains a solid equity base, but high leverage requires careful management to mitigate potential risks.

Income Statement

T-Mobile US shows strong financial performance with consistent revenue growth, evidenced by a 2.14% increase in TTM revenue. The company maintains healthy profitability metrics, with a gross profit margin of 59.59% and a net profit margin of 13.83% in TTM. EBIT and EBITDA margins are robust at 22.16% and 37.19%, respectively, indicating efficient operations. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a solid equity base with a debt-to-equity ratio of 1.91, which is manageable but indicates significant leverage. Return on equity is strong at 19.42%, showcasing effective use of equity to generate profits. The equity ratio stands at 27.84%, suggesting a balanced capital structure, though the high debt level poses a risk in volatile market conditions.

Cash Flow

T-Mobile US demonstrates strong cash flow generation with a 23.08% growth in free cash flow, highlighting improved operational efficiency. The operating cash flow to net income ratio of 1.10 indicates healthy cash conversion. The free cash flow to net income ratio of 0.61 suggests a solid ability to generate cash relative to earnings, though the company should continue to monitor cash flow sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.85B	81.40B	78.56B	79.57B	80.12B	68.40B
Gross Profit	51.15B	51.75B	48.37B	43.37B	43.51B	40.13B
EBITDA	31.93B	31.04B	27.15B	20.16B	23.08B	20.38B
Net Income	11.87B	11.34B	8.32B	2.59B	3.02B	3.06B
Balance Sheet
Total Assets	217.18B	208.03B	207.68B	211.34B	206.56B	200.16B
Cash, Cash Equivalents and Short-Term Investments	3.58B	5.41B	5.13B	4.51B	6.63B	10.38B
Total Debt	120.44B	114.40B	113.83B	111.79B	108.82B	107.25B
Total Liabilities	156.70B	146.29B	142.97B	141.68B	137.46B	134.82B
Stockholders Equity	60.48B	61.74B	64.72B	69.66B	69.10B	65.34B
Cash Flow
Free Cash Flow	16.31B	9.98B	7.75B	-520.00M	-7.78B	-3.73B
Operating Cash Flow	26.84B	22.29B	18.56B	16.78B	13.92B	8.64B
Investing Cash Flow	-17.41B	-9.07B	-5.83B	-12.36B	-19.39B	-12.71B
Financing Cash Flow	-15.77B	-12.81B	-12.10B	-6.45B	1.71B	13.01B

T Mobile US Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 220.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 220.68 is below the 20-day moving average (MA) of 227.46, below the 50-day MA of 238.51, and below the 200-day MA of 241.99, indicating a bearish trend. The MACD of -4.27 indicates Positive momentum. The RSI at 35.53 is Neutral, neither overbought nor oversold. The STOCH value of 25.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TMUS.

T Mobile US Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VZ	―	$163.68B	9.02	18.26%	6.94%	2.05%	61.39%
CMCSA	―	$108.11B	4.84	25.44%	4.42%	2.54%	60.53%
AMX	―	$69.34B	18.31	17.70%	2.29%	1.14%	83.48%
TMUS	―	$243.58B	20.94	19.03%	1.60%	7.30%	17.67%
CHTR	―	$37.23B	6.64	36.19%	―	1.03%	17.05%
T	―	$179.76B	8.17	20.88%	4.35%	1.98%	150.68%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

T Mobile US Corporate Events

T-Mobile US Faces Financial Risks Amid Potential Trade Policy Changes

T-Mobile US faces significant business risks due to potential changes in trade policies, which could lead to operational delays and increased costs. The company relies heavily on international suppliers for network equipment and mobile devices, making it vulnerable to higher tariffs and trade restrictions. These changes may disrupt the supply chain, increase procurement costs, and introduce new compliance challenges, potentially forcing T-Mobile to raise prices. Such price increases could deter new customers and increase churn, adversely affecting the company’s financial performance.

T-Mobile Reports Record Growth and Raises Guidance

T-Mobile US, Inc., a leading telecommunications company, is renowned for its award-winning 5G network and innovative services, operating under the flagship brands T-Mobile, Metro by T-Mobile, and Mint Mobile. The company recently reported a record-breaking third quarter in 2025, showcasing significant customer growth and strong financial performance. T-Mobile added over 1 million postpaid phone customers, marking its best third quarter in over a decade, and achieved industry-leading postpaid net account additions and total postpaid net customer additions.

T-Mobile US Earnings Call Highlights Record Growth

T-Mobile US recently held its earnings call, revealing a robust quarter characterized by record-breaking customer growth, industry-leading financial performance, and significant strides in broadband. Despite increased costs associated with mergers and network expenses, the company remains optimistic about its growth trajectory, as evidenced by its raised guidance for 2025.

T-Mobile US Completes $2.8 Billion Senior Notes Offering

On October 9, 2025, T-Mobile USA, a subsidiary of T-Mobile US, Inc., completed a public offering of senior notes totaling $2.8 billion, with varying maturity dates in 2033, 2035, and 2056. The proceeds from this offering are intended for refinancing existing debt and general corporate purposes, potentially strengthening T-Mobile’s financial position and operational flexibility.

The most recent analyst rating on (TMUS) stock is a Hold with a $268.00 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 Abdurazak Mudesir to Board

On September 19, 2025, Abdurazak Mudesir was appointed to the Board of Directors of T-Mobile US, Inc. as a representative of Deutsche Telekom AG. This appointment is part of an agreement involving Deutsche Telekom and SoftBank Group Corp., reflecting the strategic partnerships influencing T-Mobile’s governance and potentially impacting its future operations.

The most recent analyst rating on (TMUS) stock is a Buy with a $250.00 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 New CEO Amid Leadership Transition

On September 19, 2025, T-Mobile US announced the appointment of Srinivasan Gopalan as the new President and CEO, effective November 1, 2025. This leadership transition, part of a comprehensive succession plan, aims to continue T-Mobile’s growth strategy and digital transformation. Gopalan, who has served as COO since March 2025, brings extensive experience in technology and telecommunications, and will succeed Mike Sievert, who will transition to the role of Vice Chairman. Under Sievert’s leadership, T-Mobile achieved significant growth and market capitalization, becoming a leader in U.S. wireless and broadband sectors.

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 Updates Guidance Post-UScellular Acquisition

On September 4, 2025, T-Mobile US announced updated guidance following its acquisition of UScellular, which closed on August 1. The company expects the transaction to yield $1.2 billion in annual cost synergies, a 20% increase from the original estimate, and plans to complete integration in two years instead of the previously anticipated three to four years. T-Mobile also shared updates on its business transformation initiatives, including an accelerated move to a more dynamic billing technology stack, incurring approximately $350 million in non-cash costs. These strategic moves are part of T-Mobile’s efforts to enhance consumer choice and competition in the wireless industry.

The most recent analyst rating on (TMUS) stock is a Buy with a $295.00 price target. To see the full list of analyst forecasts on T Mobile US stock, see the TMUS Stock Forecast page.

T-Mobile US Announces Leadership Changes for Strategic Growth

T-Mobile US has announced changes to its senior leadership team to enhance its strategic direction and succession planning. André Almeida has been appointed as President of Growth and Emerging Businesses, effective September 1, 2025, while John Saw will take on the role of President of Technology. These changes are aimed at strengthening the company’s operations and achieving long-term business objectives. Additionally, Callie Field will step down from her role as President, Business Group, on September 30, 2025, but will remain as a strategic advisor until March 31, 2026.

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 Completes Asset Acquisition from Array Digital

On August 5, 2025, T-Mobile US, Inc. and its subsidiary T-Mobile USA, Inc. completed the settlement of exchange offers and consent solicitations related to their acquisition of assets from Array Digital Infrastructure, Inc. This involved issuing new senior notes to replace outstanding debt securities from Array, with the new notes set to mature between 2033 and 2070. The transaction, which closed on August 1, 2025, is part of T-Mobile’s strategic efforts to enhance its financial structure and market position, potentially impacting stakeholders by increasing the company’s long-term debt obligations.

The most recent analyst rating on (TMUS) stock is a Buy with a $220.00 price target. To see the full list of analyst forecasts on T Mobile US stock, see the TMUS Stock Forecast page.

T-Mobile US Faces Supply Chain Challenges Amid Potential Trade Policy Shifts

T-Mobile US faces significant business risks due to potential changes in trade policies that could lead to higher tariffs and economic disincentives, impacting their supply chain and operational costs. These changes may cause disruptions in sourcing critical equipment and increase procurement costs, which could result in higher prices for customers and potentially lower demand for their products and services. The company may struggle to mitigate these challenges through alternative sourcing or price adjustments, risking increased customer churn and pressure on their financial performance. If T-Mobile US cannot effectively manage these cost increases, their business operations and financial condition could be adversely affected.