T-Mobile US (NASDAQ:TMUS – Get Free Report) announced its quarterly earnings data on Thursday. The Wireless communications provider reported $2.99 earnings per share for the quarter, topping analysts’ consensus estimates of $2.59 by $0.40, FiscalAI reports. T-Mobile US had a net margin of 11.65% and a return on equity of 19.47%. The firm had revenue of $22.79 billion during the quarter, compared to analyst estimates of $22.95 billion. During the same period in the previous year, the business posted $2.84 EPS. The business’s quarterly revenue was up 7.9% on a year-over-year basis.
Here are the key takeaways from T-Mobile US’s conference call:
- T-Mobile said Q2 was another strong quarter, with record-high NPS of 46, 277,000 postpaid net account additions, 2% postpaid ARPA growth, and industry-leading free cash flow margin of 25%.
- Management raised full-year adjusted free cash flow guidance to $18.4 billion-$18.8 billion, while keeping 2026 CapEx guidance unchanged at about $10 billion.
- The company said it expects Q3 postpaid net additions to slow temporarily to about 250,000 because of rate plan modernization, but still reaffirmed full-year postpaid account additions of 950,000-1,050,000.
- T-Mobile highlighted continued momentum in 5G broadband/FWA, saying it remains the fastest-growing ISP in the country and that its fallow-capacity model still leaves room for expansion, including toward a long-term target of 15 million customers.
- Management reiterated plans to maintain disciplined capital allocation, with share repurchases continuing but balanced against upcoming spectrum opportunities in 2027 and 2028, including C-band 2.0 and 2.7 GHz.
T-Mobile US Stock Down 10.7%
Shares of NASDAQ:TMUS opened at $170.42 on Friday. The stock has a fifty day simple moving average of $184.63 and a two-hundred day simple moving average of $195.77. The stock has a market capitalization of $184.43 billion, a price-to-earnings ratio of 18.13, a PEG ratio of 1.13 and a beta of 0.33. T-Mobile US has a 12-month low of $165.66 and a 12-month high of $261.56. The company has a current ratio of 1.09, a quick ratio of 0.97 and a debt-to-equity ratio of 1.58.
T-Mobile US Dividend Announcement
Analyst Upgrades and Downgrades
A number of brokerages recently commented on TMUS. Benchmark decreased their target price on shares of T-Mobile US from $295.00 to $280.00 and set a “buy” rating on the stock in a research report on Friday. KeyCorp decreased their price objective on T-Mobile US from $260.00 to $250.00 and set an “overweight” rating on the stock in a report on Friday. TD Cowen raised their price target on T-Mobile US from $252.00 to $261.00 and gave the stock a “buy” rating in a research report on Wednesday, April 29th. Morgan Stanley decreased their target price on shares of T-Mobile US from $260.00 to $230.00 and set an “overweight” rating on the stock in a research note on Tuesday, July 7th. Finally, Royal Bank Of Canada lowered their price target on T-Mobile US from $240.00 to $230.00 and set an “outperform” rating for the company in a research report on Monday. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat, T-Mobile US presently has a consensus rating of “Moderate Buy” and a consensus price target of $253.56.
Read Our Latest Research Report on TMUS
Key Stories Impacting T-Mobile US
Here are the key news stories impacting T-Mobile US this week:
- Positive Sentiment: T-Mobile beat second-quarter profit expectations, with adjusted EPS above estimates, and raised its full-year adjusted free cash flow forecast as more customers migrated to premium plans. Reuters article
- Positive Sentiment: Service revenue and postpaid growth remained strong, with the company highlighting continued account growth, higher postpaid ARPA, and industry-leading service revenue growth. Business Wire article
- Positive Sentiment: Several analysts reiterated a favorable view, with average coverage now pointing to a “Moderate Buy” rating for T-Mobile US. Analyst rating article
- Neutral Sentiment: The company’s revenue came in slightly below Wall Street expectations, and that modest miss appears to be overshadowing the otherwise strong earnings report. Barron’s article
- Negative Sentiment: Stock declines were tied to investor concern that subscriber gains are slowing, which could signal tougher growth ahead despite the improved guidance. Bloomberg article
Insider Transactions at T-Mobile US
In related news, insider Andre Almeida purchased 5,097 shares of the stock in a transaction dated Friday, May 1st. The stock was purchased at an average price of $196.18 per share, with a total value of $999,929.46. Following the transaction, the insider directly owned 44,850 shares in the company, valued at $8,798,673. This trade represents a 12.82% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Jon Freier sold 4,799 shares of the company’s stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $190.00, for a total transaction of $911,810.00. Following the completion of the transaction, the chief operating officer owned 217,168 shares in the company, valued at approximately $41,261,920. The trade was a 2.16% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.32% of the company’s stock.
Institutional Inflows and Outflows
Several hedge funds and other institutional investors have recently made changes to their positions in the company. CYBER HORNET ETFs LLC grew its position in T-Mobile US by 3.8% during the third quarter. CYBER HORNET ETFs LLC now owns 1,319 shares of the Wireless communications provider’s stock valued at $316,000 after buying an additional 48 shares during the period. Meeder Asset Management Inc. increased its holdings in T-Mobile US by 16.2% during the fourth quarter. Meeder Asset Management Inc. now owns 351 shares of the Wireless communications provider’s stock valued at $71,000 after buying an additional 49 shares during the last quarter. Wellspring Financial Advisors LLC raised its position in T-Mobile US by 4.3% in the fourth quarter. Wellspring Financial Advisors LLC now owns 1,273 shares of the Wireless communications provider’s stock worth $259,000 after acquiring an additional 52 shares during the period. Tcfg Wealth Management LLC raised its position in T-Mobile US by 5.6% in the third quarter. Tcfg Wealth Management LLC now owns 999 shares of the Wireless communications provider’s stock worth $239,000 after acquiring an additional 53 shares during the period. Finally, Investor s Fiduciary Advisor Network LLC boosted its stake in shares of T-Mobile US by 6.5% during the 4th quarter. Investor s Fiduciary Advisor Network LLC now owns 1,011 shares of the Wireless communications provider’s stock worth $205,000 after acquiring an additional 62 shares during the last quarter. Institutional investors own 42.49% of the company’s stock.
T-Mobile US Company Profile
T-Mobile US is a national wireless carrier that provides mobile voice, messaging and data services to consumers, businesses and wholesale customers across the United States, Puerto Rico and the U.S. Virgin Islands. The company operates a nationwide mobile network and offers device sales, equipment financing and support services through retail stores, online channels and distribution partners. T-Mobile positions its products around bundled service plans, device offerings and value-added features for both individual and enterprise customers.
Product offerings include postpaid and prepaid wireless plans under the T-Mobile and Metro by T-Mobile brands, as well as connectivity solutions for small and large businesses.
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