5G And T-Fiber Expansion Will Unlock New Opportunities

T-Mobile US saw its analyst fair value target rise to approximately $274.85 from $272.30. Analysts cite the company's sustained network advantages and improved revenue growth forecasts as reasons supporting the upward revision.

Analyst Commentary

Analysts continue to update their outlook and price targets for T-Mobile US, reflecting the company's operating progress and both near- and long-term market dynamics. Their assessments highlight a range of factors influencing the company's share performance and industry positioning.

• Bullish analysts cite T-Mobile's sustained network advantages as a key factor reinforcing its marketing edge, enabling the company to differentiate from competitors even in a slower economic environment.
• Consensus forecasts call for T-Mobile to maintain superior KPI performance, with expectations of continued outperformance on metrics such as subscriber growth and free cash flow per share.
• Recent upward revisions in price targets reflect growing confidence in revenue growth prospects and the ability to deliver on improved earnings guidance through 2025 and beyond.
• The company's cash tax benefits from recent reforms and disciplined execution are seen as drivers of robust long-term free cash flow growth, further supporting higher valuations.

• Bearish analysts are attentive to the risk that a slowing overall economy could dampen postpaid additions across the top carriers, which could impact T-Mobile's momentum.
• Competitive pressures remain heightened, particularly as new market entrants and established rivals pursue direct-to-device opportunities and strategic partnerships outside the T-Mobile ecosystem.
• There are concerns that, despite strong current performance, incremental sector growth could moderate if customer acquisition costs or technology investments escalate more than forecast.

What's in the News

• T-Mobile announced a major expansion of its T-Satellite service with Starlink, enabling satellite-powered data connectivity for popular apps like WhatsApp, Google Maps, and more in areas without traditional coverage. (Company Announcement)
• The Board of Directors appointed Srini Gopalan as the next CEO of T-Mobile US, effective November 1, 2025, as part of a long-term succession plan. Mike Sievert will become Vice Chairman. (Company Announcement)
• T-Mobile introduced SuperMobile, a business plan with intelligent 5G performance, built-in security, and seamless satellite coverage. This offering is now available for business customers of all sizes, including Delta Air Lines and Axis Energy Services. (Company Announcement)
• T-Mobile US declared a cash dividend of $1.02 per share, marking a 16% increase from the prior quarter. The dividend is payable on December 11, 2025. (Company Announcement)
• Charter and Comcast entered a multi-year agreement to use T-Mobile's network for delivering mobile services to business customers. Launch is expected in 2026. (Company Announcement)

Valuation Changes

• Consensus Analyst Price Target has risen slightly, increasing from $272.30 to approximately $274.85 per share.
• Discount Rate remains unchanged at 6.78%.
• Revenue Growth forecasts have increased. The projected annual growth has risen from 5.35% to 6.14%.
• Net Profit Margin projections have declined marginally, moving from 17.56% to 17.45%.
• Future P/E ratio estimates have decreased slightly, from 19.71x to 19.58x.