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

Key Points

• T-Mobile US beat earnings expectations for the quarter, reporting $2.99 EPS versus the $2.59 estimate. Revenue came in at $22.79 billion, slightly below forecasts, though quarterly revenue still rose 7.9% year over year.
• On the conference call, management said Q2 was another strong quarter with record-high NPS, 277,000 postpaid net account additions, and industry-leading free cash flow margin. The company also raised full-year adjusted free cash flow guidance to $18.4 billion-$18.8 billion.
• Despite the earnings beat, shares fell 5.6% as investors focused on softer-than-expected revenue and a near-term slowdown in Q3 postpaid net additions. T-Mobile reaffirmed full-year postpaid account growth targets and highlighted continued momentum in 5G broadband/FWA.

T-Mobile US (NASDAQ:TMUS - Get Free Report) released its quarterly earnings results on Thursday. The Wireless communications provider reported $2.99 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.59 by $0.40, FiscalAI reports. The business had revenue of $22.79 billion during the quarter, compared to the consensus estimate of $22.95 billion. T-Mobile US had a return on equity of 19.47% and a net margin of 11.65%.The business's quarterly revenue was up 7.9% compared to the same quarter last year. During the same period in the previous year, the company posted $2.84 EPS.

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 5.6%

Shares of T-Mobile US stock traded down $10.64 during trading on Thursday, hitting $180.30. 929,049 shares of the stock traded hands, compared to its average volume of 5,825,377. The company has a current ratio of 1.09, a quick ratio of 0.97 and a debt-to-equity ratio of 1.58. The stock's fifty day simple moving average is $184.99 and its 200 day simple moving average is $195.97. The firm has a market cap of $195.12 billion, a P/E ratio of 19.12, a price-to-earnings-growth ratio of 1.13 and a beta of 0.33. T-Mobile US has a 52-week low of $165.66 and a 52-week high of $261.56.

T-Mobile US Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Friday, August 28th will be paid a dividend of $1.02 per share. The ex-dividend date is Friday, August 28th. This represents a $4.08 annualized dividend and a dividend yield of 2.3%. T-Mobile US's dividend payout ratio (DPR) is currently 43.40%.

T-Mobile US News Roundup

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.

Insider Buying and Selling

In other T-Mobile US 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 owned 44,850 shares of the company's stock, valued at approximately $8,798,673. This trade represents a 12.82% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Jon Freier sold 4,799 shares of the stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $190.00, for a total transaction of $911,810.00. Following the transaction, the chief operating officer owned 217,168 shares in the company, valued at approximately $41,261,920. This represents a 2.16% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.32% of the stock is owned by insiders.

Institutional Trading of T-Mobile US

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

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the stock. Wells Fargo & Company initiated coverage on shares of T-Mobile US in a report on Wednesday, July 8th. They set an "equal weight" rating and a $170.00 price target on the stock. Oppenheimer raised T-Mobile US from a "market perform" rating to an "outperform" rating and set a $260.00 price objective for the company in a research note on Wednesday, April 29th. Morgan Stanley cut their price objective on T-Mobile US from $260.00 to $230.00 and set an "overweight" rating for the company in a research report on Tuesday, July 7th. UBS Group decreased their price target on shares of T-Mobile US from $300.00 to $255.00 and set a "buy" rating on the stock in a research note on Monday, June 22nd. Finally, The Goldman Sachs Group restated a "buy" rating on shares of T-Mobile US in a research report on Wednesday, April 29th. One 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 currently has an average rating of "Moderate Buy" and a consensus price target of $254.56.

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.

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