T-Mobile stands out among telecom peers for growth, strong fundamentals, and dividend potential, despite a recent double-digit price pullback. TMUS reported robust Q3 results with double-digit EPS growth, raised guidance, and continued outperformance in postpaid and broadband net additions versus competitors. The company's 16% dividend increase is well covered by strong free cash flow and share buybacks, supporting future double-digit dividend growth.
T-Mobile US Inc NASDAQ: TMUS is in a rare position among mega-cap stocks, many of which are currently near all-time highs. It's been beaten into a downtrend over the past few months, but as we head into the final few weeks of the year, the scene is set for a massive rebound.
The United States' Big Three telecom stocks delivered sharply different third-quarter results, highlighting the growing divide between premium growth names and value-oriented incumbents. Subscriber trends, revenue performance, and strategic direction all played a role in shaping market reaction.
T-Mobile (TMUS) is undervalued at a 20x P/E, despite strong fundamentals and future growth potential from AI-driven connectivity demand. TMUS leads the US telecom market post-Sprint merger, with reliable revenue and a robust 5G network, positioning it for future expansion. AI proliferation will drive exponential growth in connected devices, making telecoms like TMUS key beneficiaries as demand for connectivity surges.
T-Mobile continues to deliver strong customer metrics and raised full-year guidance, reinforcing positive business momentum. TMUS reported solid revenue growth and net customer additions, with robust performance in both postpaid and broadband segments. Expense control is a concern, particularly rising SG&A costs, which pressured profitability and led to a year-over-year EPS decline.
T-Mobile beat on EPS and Revenue but stock still sliding on lower than expected guidance.
T-Mobile US, Inc. (NASDAQ:TMUS ) Q3 2025 Earnings Call October 23, 2025 8:00 AM EDT Company Participants Quan Yao - Senior Vice President of Investor Relations G. Sievert - President, CEO & Director André Almeida - President of Growth & Emerging Businesses John Saw - President of Technology & CTO Srinivasan Gopalan - Chief Operating Officer Peter Osvaldik - Executive VP & CFO Michael Katz - President of Marketing, Strategy & Products Conference Call Participants Benjamin Swinburne - Morgan Stanley, Research Division John Hodulik - UBS Investment Bank, Research Division Samuel McHugh - BNP Paribas Exane, Research Division David Barden - New Street Research LLP Michael Rollins - Citigroup Inc. Exchange Research Craig Moffett - MoffettNathanson LLC Eric Luebchow - Wells Fargo Securities, LLC, Research Division Kannan Venkateshwar - Barclays Bank PLC, Research Division Presentation Operator Good morning.
Although the revenue and EPS for T-Mobile (TMUS) give a sense of how its business performed in the quarter ended September 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
T-Mobile earnings missed Q3 estimates while wireless subscriber adds beat.
T-Mobile US logged higher revenue in its latest quarter as it continued to add postpaid wireless phone subscribers at a fast clip.
The wireless carrier missed analysts' expectations on profit, but its subscription numbers looked strong.
T-Mobile expands its Advanced Network Solutions with Edge Control and T-Platform, empowering enterprises with faster, more secure, real-time connectivity.