T Mobile US (TMUS) AI Stock Analysis

• Market Cap: $214.78B
• Dividend Yield: 1.75%
• Average Volume (3M): 4.69M
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.46
• 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: 1,118,506,600
• 10 Day Avg. Volume: 4,000,575
• 30 Day Avg. Volume: 4,690,802
• 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: 1.80
• Enterprise Value/Revenue: 4.50
• Enterprise Value/Gross Profit: 7.56
• Enterprise Value/Ebitda: 12.11
• 1Y Price Target: $264.31
• Price Target Upside: 38.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): 11.42
• Revenue Forecast (FY): $94.46B

• Rating: 77 Outperform
• Price Target: $225.00 ▲(18.01% Upside)

The score is driven primarily by strong financial performance and an upbeat earnings call with raised guidance (customer growth, EBITDA, and free cash flow outlook). These positives are partly tempered by weaker technical momentum and balance-sheet leverage, while valuation is broadly reasonable with a modest dividend.

Positive Factors

Cash flow generation

Sustained FCF growth and healthy OCF-to-net-income conversion indicate durable cash generation that funds network buildout, debt service, and shareholder returns. Strong cash convertibility supports strategic initiatives and reduces reliance on external financing over the medium term.

Profitability & margins

High gross and EBITDA margins reflect efficient service economics and scale advantages in wireless operations. Margin strength underpins durable earnings power, enabling reinvestment in 5G/broadband and absorbing competitive pricing pressure while preserving operating leverage.

Improved financial flexibility

A larger, extended unsecured revolver improves liquidity and lender relationships, providing long-term flexibility for network investment, M&A or capital returns. Quarterly leverage testing formalizes covenants but secures committed funding across multi-year planning horizons.

Negative Factors

Elevated leverage

Meaningful leverage limits financial flexibility and raises refinancing and interest-rate sensitivities. In a higher-cost or slower-growth environment, leverage can constrain capital allocation, increase covenant risk and reduce the firm's ability to pursue opportunistic investments over the medium term.

Merger and network costs

Material one-time and transformation costs from mergers and cell-site work pressure near-term margins and cash flow. Repeated integration or network-transformation expenses can delay synergies and temper free cash flow sustainability until efficiencies are fully realized.

Modest revenue growth rate

Low TTM top-line growth relative to scale suggests limited organic expansion absent ARPA gains or broadband traction. Slower revenue growth increases reliance on ARPA improvements, upsell and fiber expansion to drive longer-term profit growth and justify ongoing capex commitments.

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

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: 190.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 190.66 is below the 20-day moving average (MA) of 198.22, below the 50-day MA of 202.94, and below the 200-day MA of 229.21, indicating a bearish trend. The MACD of -2.96 indicates Positive momentum. The RSI at 35.54 is Neutral, neither overbought nor oversold. The STOCH value of 18.04 is Positive, 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	81 Outperform	$167.94B	8.49	19.70%	6.60%	2.42%	102.17%
TMUS	77 Outperform	$214.78B	18.46	19.03%	1.75%	7.30%	17.67%
CMCSA	77 Outperform	$103.56B	4.72	24.73%	4.42%	0.20%	61.54%
T	71 Outperform	$167.38B	7.67	20.88%	4.56%	1.98%	150.68%
CHTR	69 Neutral	$29.32B	5.37	34.79%	―	0.42%	13.46%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
AMX	60 Neutral	$63.25B	16.59	17.70%	2.69%	1.14%	83.48%

T Mobile US Corporate Events

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.