T-Mobile US (NASDAQ:TMUS) Issues Quarterly Earnings Results, Beats Expectations By $0.40 EPS

T-Mobile US (NASDAQ:TMUS) announced its earnings results on Thursday. The Wireless communications provider reported $2.99 earnings per share for the quarter, topping the consensus estimate of $2.59 by $0.40, FiscalAI reports. T-Mobile US had a net margin of 11.45% and a return on equity of 20.16%. The firm had revenue of $22.79 billion for the quarter, compared to the consensus estimate of $22.95 billion. During the same period in the prior year, the firm earned $2.84 EPS. The firm’s revenue for the quarter 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 Price Performance

Shares of NASDAQ:TMUS opened at $180.09 on Friday. T-Mobile US has a 12 month low of $165.66 and a 12 month high of $261.56. The firm has a market capitalization of $194.89 billion, a P/E ratio of 18.86, a P/E/G ratio of 1.01 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 0.97. The company’s fifty day moving average price is $184.53 and its 200 day moving average price is $195.66.

T-Mobile US Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Friday, August 28th will be paid a dividend of $1.02 per share. This represents a $4.08 annualized dividend and a yield of 2.3%. The ex-dividend date is Friday, August 28th. T-Mobile US’s dividend payout ratio (DPR) is currently 42.72%.

Wall Street Analysts Forecast Growth

TMUS has been the topic of several analyst reports. Weiss Ratings cut T-Mobile US from a “hold (c+)” rating to a “hold (c)” rating in a research note on Monday, June 15th. DZ Bank reaffirmed a “buy” rating on shares of T-Mobile US in a research report on Wednesday, May 6th. Scotiabank lowered their price objective on T-Mobile US from $263.00 to $243.00 and set a “sector outperform” rating for the company in a research report on Wednesday, July 15th. Barclays reduced their target price on shares of T-Mobile US from $230.00 to $215.00 and set an “overweight” rating on the stock in a report on Friday. Finally, Bank of America upgraded shares of T-Mobile US from a “neutral” rating to a “buy” rating and set a $220.00 price target for the company in a report on Monday, July 6th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, T-Mobile US has an average rating of “Moderate Buy” and an average price target of $252.88.

T-Mobile US News Summary

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

• Positive Sentiment: T-Mobile beat second-quarter profit expectations, with adjusted EPS of $2.99, helped by strong service revenue and customers moving to higher-priced premium plans.
• Positive Sentiment: The company raised its full-year free cash flow outlook, which is a key bullish signal for investors because it supports dividends, buybacks, and financial flexibility.
• Positive Sentiment: T-Mobile continued its share repurchase program, including a multibillion-dollar buyback tranche, reinforcing management’s confidence in cash generation.
• Positive Sentiment: Several analysts remain constructive even after trimming price targets, with multiple firms still rating the stock Buy or Overweight.

Insiders Place Their Bets

In other news, COO Jon Freier sold 4,799 shares of the business’s stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $190.00, for a total value of $911,810.00. Following the completion of the sale, the chief operating officer directly owned 217,168 shares of the company’s stock, valued at approximately $41,261,920. The trade was a 2.16% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Andre Almeida bought 5,097 shares of the firm’s stock in a transaction that occurred on Friday, May 1st. The stock was purchased at an average cost of $196.18 per share, with a total value of $999,929.46. Following the completion of the transaction, the insider owned 44,850 shares in the company, valued at approximately $8,798,673. This trade represents a 12.82% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 0.32% of the company’s stock.

Hedge Funds Weigh In On T-Mobile US

A number of hedge funds have recently modified their holdings of TMUS. Visionary Wealth Advisors increased its stake in T-Mobile US by 12.7% in the fourth quarter. Visionary Wealth Advisors now owns 1,059 shares of the Wireless communications provider’s stock valued at $215,000 after purchasing an additional 119 shares during the period. Widmann Financial Services Inc. purchased a new position in shares of T-Mobile US during the fourth quarter worth about $214,000. Safeguard Investment Advisory Group LLC purchased a new position in shares of T-Mobile US during the fourth quarter worth about $207,000. ICONIQ Capital LLC increased its position in T-Mobile US by 8.1% in the 2nd quarter. ICONIQ Capital LLC now owns 870 shares of the Wireless communications provider’s stock valued at $207,000 after acquiring an additional 65 shares during the period. Finally, Prosperity Bancshares Inc acquired a new position in T-Mobile US in the 4th quarter valued at about $147,000. 42.49% of the stock is currently owned by hedge funds and other institutional investors.

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.