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

T-Mobile US (NASDAQ:TMUS) released its earnings results on Thursday. The Wireless communications provider reported $2.99 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.59 by $0.40, FiscalAI reports. T-Mobile US had a return on equity of 19.47% and a net margin of 11.65%.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 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

T-Mobile US stock traded down $10.64 during mid-day trading on Thursday, reaching $180.30. The company had a trading volume of 929,049 shares, compared to its average volume of 5,825,377. The stock’s 50-day simple moving average is $184.99 and its 200-day simple moving average is $195.97. The company has a market capitalization of $195.12 billion, a P/E ratio of 19.12, a P/E/G ratio of 1.13 and a beta of 0.33. T-Mobile US has a 1 year low of $165.66 and a 1 year high of $261.56. The company has a debt-to-equity ratio of 1.58, a current ratio of 1.09 and a quick ratio of 0.97.

T-Mobile US Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Friday, August 28th will be issued a $1.02 dividend. The ex-dividend date of this dividend is Friday, August 28th. This represents a $4.08 dividend on an annualized basis and a yield of 2.3%. T-Mobile US’s dividend payout ratio (DPR) is 43.40%.

Wall Street Analyst Weigh In

A number of research firms have issued reports on TMUS. Arete Research raised their price target on shares of T-Mobile US from $295.00 to $300.00 and gave the stock a “buy” rating in a research report on Tuesday, May 5th. Wells Fargo & Company initiated coverage on T-Mobile US in a research note on Wednesday, July 8th. They issued an “equal weight” rating and a $170.00 price target on the stock. Morgan Stanley cut their price target on T-Mobile US from $260.00 to $230.00 and set an “overweight” rating for the company in a report on Tuesday, July 7th. Freedom Capital upgraded T-Mobile US from a “hold” rating to a “strong-buy” rating in a research report on Friday, April 17th. Finally, TD Cowen upped their price objective on shares of T-Mobile US from $252.00 to $261.00 and gave the stock a “buy” rating in a report on Wednesday, April 29th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $254.56.

Insider Activity at T-Mobile US

In related news, COO Jon Freier sold 4,799 shares of T-Mobile US 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 sale, the chief operating officer owned 217,168 shares in the company, valued at approximately $41,261,920. This trade represents a 2.16% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael J. Katz sold 5,000 shares of the company’s stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $195.81, for a total transaction of $979,050.00. Following the transaction, the insider directly owned 181,930 shares in the company, valued at $35,623,713.30. The trade was a 2.67% decrease in their position. The SEC filing for this sale provides additional information. 0.32% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On T-Mobile US

Institutional investors have recently bought and sold shares of the stock. Price T Rowe Associates Inc. MD raised its stake in T-Mobile US by 30.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 27,795,065 shares of the Wireless communications provider’s stock worth $5,643,511,000 after purchasing an additional 6,516,968 shares during the period. State Street Corp increased its holdings in shares of T-Mobile US by 4.7% during the 3rd quarter. State Street Corp now owns 24,234,085 shares of the Wireless communications provider’s stock worth $5,801,155,000 after buying an additional 1,092,769 shares during the last quarter. Dodge & Cox raised its position in shares of T-Mobile US by 65.2% in the 4th quarter. Dodge & Cox now owns 6,185,972 shares of the Wireless communications provider’s stock worth $1,256,000,000 after buying an additional 2,442,450 shares during the period. Northern Trust Corp raised its position in shares of T-Mobile US by 0.6% in the 3rd quarter. Northern Trust Corp now owns 4,925,209 shares of the Wireless communications provider’s stock worth $1,178,997,000 after buying an additional 28,823 shares during the period. Finally, Amundi boosted its holdings in T-Mobile US by 44.6% in the third quarter. Amundi now owns 4,109,084 shares of the Wireless communications provider’s stock valued at $924,380,000 after acquiring an additional 1,266,808 shares during the last quarter. 42.49% of the stock is currently owned by hedge funds and other institutional investors.

Key T-Mobile US News

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

• Positive Sentiment: T-Mobile beat second-quarter earnings estimates, reporting $3.13 per share versus the $2.49 consensus, while profit also improved from a year ago. T-Mobile (TMUS) Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: The company raised its full-year adjusted free cash flow forecast, helped by customers migrating to higher-priced premium plans, which supports the outlook for stronger cash generation. T-Mobile raises free cash flow forecast as customers migrate to premium plans
• Positive Sentiment: Management highlighted continued strong account growth and industry-leading 9% service revenue growth, suggesting healthy demand and improving customer monetization. T-Mobile Delivers Continued Strong Account Growth, Translating into Industry-Leading Service Revenue Growth Driven by Widening Differentiation
• Neutral Sentiment: T-Mobile also announced that Samsung’s new Galaxy foldables and wearables will launch on its network, a modest near-term catalyst tied to device sales and customer promotions. Get More from Samsung’s New Galaxy Foldables at T-Mobile
• Negative Sentiment: Investors were disappointed by softer-than-expected revenue of $22.79 billion versus the $22.95 billion estimate, which appears to be weighing on the shares despite the earnings beat. T-Mobile Stock Falls. What’s Overshadowing Earnings Beat.

About T-Mobile US

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.