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

T-Mobile US has demonstrated a strong upward trajectory in financial performance, as evidenced by a 7.30% year-over-year increase in net sales revenue, projected to rise further to 7.98% in the near term. The company's economic profit surged 27.86% year-over-year, reflecting robust operational efficiency and heightened market competitiveness. Additionally, the firm has posted a best-in-industry 12% increase in postpaid services revenue, alongside a significant 34% year-over-year growth in broadband net additions, underscoring its expanding footprint in both wireless and broadband markets.

T-Mobile US is currently trading at an FY26E EV/EBITDA multiple of 9.9x, the lowest it has experienced in over a year, alongside indications of weakening prepaid and wholesale revenue. Concerns surrounding potential shortfalls in revenue and cash flow generation stem from competitive pressures and operational risks, compounded by merger-related expenses and rising cash taxes, which could negatively affect the 2026 EPS and free cash flow guidance. Additionally, T-Mobile faces structural challenges in competing effectively in a converged market, particularly due to its lagging fiber investments compared to competitors, which could lead to continued churn and lower average revenue per user (ARPU).