T-Mobile US (TMUS) Stock Forecast & Price Target

T-Mobile US is well positioned by its industry-leading wireless network, strong 5G breadth, and expanding broadband platform, which together support share gains in mobility and fixed wireless while deepening customer relationships. Recent results reinforced this view, with total revenue of $23.150B, core adjusted EBITDA of $9.620B, and free cash flow of $5.071B, alongside 274K postpaid account net adds and 4.2% postpaid phone ARPA growth, signaling effective monetization and resilient demand. Its balance sheet flexibility, low leverage of 2.2x, ongoing buybacks, and disciplined capex around $10B provide optionality for growth, spectrum investment, and shareholder returns despite competitive and wholesale headwinds.

T-Mobile US is facing persistent pressure in prepaid and wholesale, with both revenue streams down 7.5% year over year and below guide and consensus, signaling weaker-than-expected service mix. Management attributed prepaid softness to customers shifting to postpaid and wholesale declines to a faster Boost Mobile wind down, but those headwinds appear likely to continue and could weigh more heavily on service revenue than previously expected into '27. Beyond near-term revenue erosion, execution risk remains elevated around Sprint integration and synergy realization, while its Challenger strategy may hurt service performance and margins in a highly competitive market with larger, more scalable rivals.