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

T-Mobile US has demonstrated strong financial growth and operational efficiency, highlighted by an increase in Return on Capital (ROC) from 6.40% to 6.91% over the last twelve months (LTM). The company reported a net sales revenue growth of 7.30% year-over-year, rising from $80.01 billion to $85.85 billion, with expectations of further growth at 7.98% for the next twelve months (NTM). Additionally, key service revenues showed impressive performance, with postpaid services increasing by 12% year-over-year to $14.9 billion, and net operating profit after tax (NOPAT) rising 9.21% to $15.96 billion, underscoring T-Mobile's robust position in the competitive wireless market.

T-Mobile US is experiencing weaknesses in its prepaid and wholesale revenue relative to expectations, which negatively impacts overall sentiment and EBITDA. The company faces significant risks to its 2026 earnings per share and free cash flow guidance due to merger-related expenses and increased cash taxes, compounded by structural challenges regarding its lack of fiber infrastructure and pricing pressures as it attempts to compete in a converged market. Additionally, there are concerns regarding a deceleration in postpaid phone net customer additions in 2026 and 2027, alongside a potential shift in its net additions mix that could skew below historically observed averages.