T-Mobile US (NASDAQ:TMUS) Announces Quarterly Earnings Results, Beats Expectations By $0.33 EPS

T-Mobile US (NASDAQ:TMUS) released its quarterly earnings data on Wednesday. The Wireless communications provider reported $3.22 earnings per share for the quarter, beating the consensus estimate of $2.89 by $0.33, FiscalAI reports. The firm had revenue of $23.58 billion during the quarter, compared to analysts’ expectations of $23.15 billion. T-Mobile US had a net margin of 12.05% and a return on equity of 21.39%. The firm’s quarterly revenue was up 7.4% on a year-over-year basis. During the same period in the previous year, the company earned $2.41 earnings per share.

Here are the key takeaways from T-Mobile US’s conference call:

• Strong Q3 execution: T-Mobile led the industry in postpaid phone and 5G broadband additions, added 274,000 postpaid accounts, grew postpaid ARPA more than 4% year over year, and increased postpaid service revenue 9%.
• Management raised its 2026 outlook, including approximately 1 million postpaid account additions, 3.5% postpaid ARPA growth, $37.35–$37.45 billion in core adjusted EBITDA, and $18.7–$18.8 billion in adjusted free cash flow.
• Broadband momentum remains strong: 5G broadband additions are tracking ahead of the pace needed to reach 15 million customers by 2030, with ARPU rising sequentially and year over year; the fiber business is also accelerating toward its 3–4 million customer target.
• T-Mobile is investing in AI-driven network optimization, 5G Advanced, and its AWS partnership on “Kinetic Edge” for physical AI applications, but management characterized the commercial opportunity as being in its early stages.
• Q4 will include greater promotional and seasonal pressure, residual churn from rate-plan changes, and continued declines in prepaid and wholesale revenue as Boost and TracFone volumes roll off; management also expects to reserve more capital for potential 2027–2028 spectrum auctions, which could moderate future buyback capacity.

T-Mobile US Stock Up 3.3%

T-Mobile US stock opened at $152.13 on Friday. The stock’s 50 day moving average price is $167.62 and its 200 day moving average price is $187.12. The company has a market cap of $163.19 billion, a PE ratio of 14.66, a price-to-earnings-growth ratio of 0.94 and a beta of 0.33. The company has a debt-to-equity ratio of 1.48, a current ratio of 0.92 and a quick ratio of 0.83. T-Mobile US has a 1-year low of $143.75 and a 1-year high of $224.75.

T-Mobile US Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Wednesday, November 25th will be issued a $1.17 dividend. The ex-dividend date of this dividend is Wednesday, November 25th. This represents a $4.68 annualized dividend and a dividend yield of 3.1%. This is an increase from T-Mobile US’s previous quarterly dividend of $1.02. T-Mobile US’s payout ratio is 45.17%.

Key T-Mobile US News

Here are the key news stories impacting T-Mobile US this week:

• Positive Sentiment: Q3 results exceeded expectations. T-Mobile reported adjusted EPS of $3.22 versus the $2.89 consensus and revenue of $23.58 billion versus $23.15 billion, with revenue up 7.4% year over year. Net income increased 27% to approximately $3.5 billion. T-Mobile US earnings report
• Positive Sentiment: Management raised its outlook. Strong service revenue, premium-plan adoption and higher average revenue per account led T-Mobile to increase its 2026 service-revenue forecast to about $76.8 billion and raise full-year EBITDA and free-cash-flow expectations. Postpaid account revenue growth guidance rose to 3.5%. T-Mobile raises free cash flow forecast
• Positive Sentiment: Several analysts still see substantial upside. Scotiabank raised its target to $214, while JPMorgan, KeyCorp and TD Cowen maintained bullish ratings despite lowering their targets. A new customizable “T-Mix” plan structure and initiatives involving AI at the network edge could support longer-term differentiation. T-Mobile pushes physical AI to the edge
• Neutral Sentiment: Valuation is attracting debate. Commentary argues TMUS may still trade below fair value following its selloff, with valuation around 6.5 times revenue in some analyses. However, Deutsche Bank cut its target to $200 and Citigroup reduced its target to $165 while adopting a neutral rating. T-Mobile stock fair value analysis
• Negative Sentiment: Execution and competitive risks remain. Account churn rose to 1.09% from 0.97%, while free-cash-flow growth benefited partly from $369 million less capital spending; fourth-quarter capital expenditures are expected to increase to about $2.4 billion. T-Mobile’s refusal to pursue an MVNO partnership with SpaceX also leaves open the risk of future satellite or terrestrial competition, while reports that Deutsche Telekom paused merger discussions remove a potential catalyst. T-Mobile CEO quashes SpaceX MVNO talk

Insider Buying and Selling

In other T-Mobile US news, CAO Daniel James Drobac sold 772 shares of the firm’s stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $178.33, for a total value of $137,670.76. Following the completion of the sale, the chief accounting officer owned 35,118 shares of the company’s stock, valued at approximately $6,262,592.94. This trade represents a 2.15% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 0.32% of the company’s stock.

Wall Street Analyst Weigh In

Several analysts recently weighed in on the company. TD Cowen decreased their price target on T-Mobile US from $260.00 to $258.00 and set a “buy” rating on the stock in a report on Thursday. UBS Group cut their target price on shares of T-Mobile US from $255.00 to $235.00 and set a “buy” rating for the company in a report on Friday, July 24th. KeyCorp decreased their price objective on T-Mobile US from $250.00 to $240.00 and set an “overweight” rating on the stock in a report on Thursday. Wells Fargo & Company dropped their price target on shares of T-Mobile US from $170.00 to $169.00 and set an “equal weight” rating for the company in a research note on Friday, July 24th. Finally, Citigroup decreased their price objective on shares of T-Mobile US from $225.00 to $165.00 and set a “neutral” rating on the stock in a report on Thursday. One research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $238.25.

About T-Mobile US

T-Mobile US, Inc (NASDAQ: TMUS) is a wireless communications company that provides mobile voice, messaging and data services to consumers, businesses and government customers in the United States, Puerto Rico and the U.S. Virgin Islands. Its offerings include postpaid and prepaid wireless plans, connected devices, broadband internet and other communications services.

The company operates a nationwide wireless network, including 5G services, and sells smartphones, tablets, connected devices and related accessories through retail stores, online channels and third-party distributors.