T-Mobile US Inc. (TMUS) Rises 2.16% After Earnings, Profit Disappoints and Beats Revenue

2026-02-11 · Stocks · QuoteReporter

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T-Mobile US Inc. (TMUS) Rises 2.16% After Earnings, Profit Disappoints and Beats Revenue

T-Mobile US, Inc., founded in 1994 and headquartered in Bellevue, Washington, is a major provider of wireless communications services. Operating under the T-Mobile and MetroPCS brands, it offers a range of services including postpaid and prepaid voice, messaging, and data plans, as well as wholesale wireless solutions. The company is known for its robust mobile network and innovative wireless products.

T-Mobile recently reported its fourth-quarter earnings and other key business metrics, revealing mixed results that have impacted its stock performance. Despite beating Q4 earnings and revenue estimates, T-Mobile added fewer postpaid phone subscribers than expected, which raised concerns among investors. The company announced that it had fewer wireless subscribers amid intense competition, leading to a drop in its stock price after the earnings announcement.

However, T-Mobile also raised its multi-year growth outlook, citing a “widening and durable differentiation” across its network, value, and customer experiences, which could present significant growth opportunities moving forward. Additionally, T-Mobile reported a 10% EBITDA increase, suggesting potential profitability that might attract savvy investors.

These developments come amidst a broader context of T-Mobile enhancing its services and customer offerings, including extending its partnership with Amdocs and introducing new phone plans to retain customers. The mixed financial results, coupled with strategic initiatives to boost growth, suggest a complex yet potentially promising outlook for T-Mobile’s stock in the near term.

The current price of the stock is $205.00, showing a significant increase of 2.16% today. This recent uptick is close to the week’s high of $205.74, indicating a strong short-term upward movement. The stock has rebounded 8.96% from the week’s low of $188.15, suggesting robust weekly momentum.

Looking at longer time frames, the stock is 13.03% above its 52-week and year-to-date low of $181.36, yet it remains 24.95% below the high of $273.15 for the same periods. This indicates that while the stock has recovered from its lowest points this year, it still trades significantly below its peak levels.

The moving averages present a mixed signal; the stock is trading above the 20-day and 50-day moving averages by 6.53% and 3.96% respectively, which could suggest a short-term bullish trend. However, it is underperforming the 200-day moving average by 8.35%, highlighting a potential longer-term bearish trend.

The technical indicators further support this analysis. An RSI of 62.82 leans towards a more bullish outlook, suggesting some level of overbought conditions but not excessively so. The MACD at 1.36 confirms the current bullish momentum. Overall, the stock seems to be in a recovery phase with a positive short-term outlook but faces challenges in regaining its previous highs.

T-Mobile US, Inc. (TMUS) reported its Q4 2025 financial results on February 11, 2026, showcasing significant growth in service revenues alongside a downturn in net income due to specific costs. For Q4, total service revenues reached $18.7 billion, marking a 10% increase year-over-year, with full-year revenues at $71.3 billion, up 8% from 2024. Postpaid service revenues for Q4 stood at $15.4 billion, a 14% increase from the previous year.

However, net income for Q4 was $2.1 billion, down 22.5% from Q4 2024, impacted by severance and other costs, with a full-year net income of $11.0 billion, a decrease of 3.1%. Diluted EPS for Q4 was reported at $1.88, down 22% from the previous year, while the full-year EPS slightly increased by 0.6% to $9.72.

Operational metrics remained strong, with net cash provided by operating activities rising 20% to $6.7 billion in Q4 and adjusted free cash flow increasing by 2% to $4.2 billion. Customer growth was robust, with postpaid net customer additions of 2.4 million in Q4, up from 2.0 million in the same quarter the previous year.

Looking ahead, T-Mobile anticipates continued growth with core adjusted EBITDA forecasted between $37 billion and $37.5 billion and adjusted free cash flow expected to be between $18 billion and $18.7 billion. The company remains optimistic about its operational and financial trajectory for the upcoming periods.

Earnings Trend Table

The earnings per share (EPS) data over the specified quarters reveal a fluctuating yet generally positive trend in surpassing estimates, with a few notable exceptions. From the earliest reported quarter in 2023-10-25 to 2026-02-11, there is an observable increase in both the estimated and reported EPS values, indicating an upward trajectory in financial performance expectations and outcomes.

Starting in Q4 2023, the company consistently beat EPS estimates until Q1 2024, where a significant underperformance occurred with a -12.12% surprise. This deviation was followed by a strong recovery in subsequent quarters, where reported EPS not only rebounded but also exceeded expectations by margins ranging between 7.16% and 12.24% through Q4 2025. This pattern suggests effective management strategies and possibly favorable market conditions that allowed the company to surpass analyst expectations.

However, the most recent data from Q1 2026 shows a reversal of this positive trend, with a -7.39% surprise, indicating that the company did not meet the analysts’ expectations. This could be indicative of emerging challenges or a correction after a period of overperformance.

Overall, the company exhibits a strong ability to exceed EPS estimates, with occasional setbacks, which are normal in dynamic business environments. The general positive surprise percentages indicate robust operational performance, although the recent downturn could warrant closer scrutiny to discern if it’s a one-time issue or part of a broader trend.

Dividend Payments Table

The dividend data over the period from February 2024 to November 2025 indicates a clear trend of increasing dividend payments. In 2024, dividends were consistently paid at $0.65 per share across all quarters. This level suggests a stable payout during this period, reflecting a consistent dividend policy or performance metric that the company maintained.

However, starting in August 2024, there was a noticeable increase to $0.88 per share, which persisted through three subsequent quarters until November 2025. This increment marks a significant shift in the dividend distribution strategy, potentially indicating improved financial health or a strategic decision to return more capital to shareholders.

The most notable increase occurred in the latest recorded data of November 2025, where dividends rose to $1.02 per share. This further increase could suggest continued positive performance and possibly a confident outlook by the company’s management regarding future earnings and cash flow stability. Overall, the trend over these periods shows a progressive increase in dividend payments, reflecting a potentially positive business trajectory.

On December 2, 2025, KeyBanc Capital Markets upgraded their rating on Outer from “Underweight” to “Sector Weight.” This adjustment suggests a neutral view on the stock, indicating that KeyBanc now perceives Outer’s performance to potentially align more closely with the broader industry sector, without providing a specific target price.

Previously, on November 21, 2025, Oppenheimer downgraded Outer from “Outperform” to “Perform.” This change implies that Oppenheimer’s analysts no longer expect the stock to outperform the market or its sector peers, aligning their outlook to a more neutral expectation without specifying a target price.

On October 24, 2025, HSBC Securities upgraded their recommendation for Outer from “Hold” to “Buy,” setting a target price of $285. This significant endorsement suggests that HSBC Securities forecasts a strong upside potential for Outer, indicating a bullish outlook on the stock’s future market performance.

Earlier, on October 16, 2025, Wells Fargo issued an upgrade on Outer from “Equal Weight” to “Overweight” with a target price of $260. This upgrade indicates that Wells Fargo views Outer as likely to outperform the average returns of the stocks within its sector, reflecting a positive reassessment of the company’s valuation and expected performance.

The current price of the stock is $205.00. Recent analyst ratings show a mixed but generally positive outlook, with upgrades outweighing downgrades. HSBC Securities upgraded the stock from “Hold” to “Buy,” setting a target price of $285, which suggests a significant potential upside of about 39% from the current price. Similarly, Wells Fargo upgraded the stock from “Equal Weight” to “Overweight” with a target price of $260, indicating a potential increase of approximately 27%. Conversely, Oppenheimer downgraded the stock from “Outperform” to “Perform,” not specifying a target price, which might suggest a view that the stock will perform in line with the market. KeyBanc Capital Markets changed its rating from “Underweight” to “Sector Weight,” also without a specific target price, implying an adjustment to a neutral stance. Overall, the average target price from the upgrades suggests a bullish sentiment, with significant expected growth compared to the current market price.

Disclaimer: The information provided here is for educational and informational purposes only and should not be interpreted as financial advice, investment recommendations, or trading guidance. Markets involve risk, and past performance is not indicative of future results. You should always conduct your own research and consult with a qualified financial advisor before making any investment decisions. By acting, you accept full responsibility for your choices.