T-MOBILE US (TMUS)

Sunday

8:03 AM

Thesis: T-Mobile's strong 5G expansion and improved customer retention metrics are driving a more optimistic outlook among investors.

Revenue Outlook

Metric	FY2025	FY2026E	FY2027E
Revenue	$88.3B	$94.6B	$98.9B
Rev. Growth	+8.5%	+7.2%	+4.5%
EPS	$9.75	$10.42	$13.57
EPS Growth	+0.5%	+6.9%	+30.2%
P/E (fwd)	18.7×	17.5×	13.5×

★ Analysts see FY2026 revenue reaching $94.6B — +7.2% growth in a single year.

The Bull Case for Growth

1T-Mobile's recent 5G network expansion has reached 350 million people, positioning it as a leader in nationwide coverage.
2The company is expected to launch new family plan offerings that could increase ARPU by 5% over the next year.
3T-Mobile's churn rate has improved to 0.9%, indicating stronger customer retention amid competitive pressures.
4Potential regulatory changes could allow T-Mobile to acquire additional spectrum, enhancing its competitive position.
55G infrastructure expansion
6Increased demand for mobile data services
7Subscriber growth metrics, particularly postpaid net additions
85G network expansion and coverage milestones

FY2025 Snapshot

Revenue: $88.3B
Rev. Growth: +8.5%
Gross Margin: 47.6%
Op. Margin: 21.2%
Net Margin: 12.4%
Net Income: $11.0B
NI Growth: -3.1%
EPS: $9.75
1Y Return: -19.4%

My Notes

"Management emphasized, 'Our commitment to expanding our 5G network is paying off with record subscriber growth and lower churn.'"
Moat: T-Mobile's competitive advantage lies in its extensive 5G network and customer-centric pricing strategies…
growth - due to its strong subscriber growth potential and 5G expansion strategy.
T-Mobile's capital expenditures are sensitive to interest rates as rising rates can increase financing costs for infrastructure investments…
Watch on earnings: Postpaid net additions, Average Revenue Per User (ARPU), Churn rate.

One Sentence Summary:

The bull case is simple: analysts see revenue climbing from $94.6B to $98.9B as t-mobile's recent 5g network expansion has reached 350 million people, positioning it as a leader in nationwide coverage.

Auto-composed from Stock Alarm intelligence, financial statements, and analyst estimates. Not investment advice.

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