T-Mobile US, Inc. (TMUS) is a leading Washington-based telecom provider offering wireless voice, messaging, and data services. Known for its customer-focused “Un-carrier” strategy, the company emphasizes simple pricing and innovative features. Following its 2020 merger with Sprint, T-Mobile expanded its 5G network and subscriber base, solidifying its competitive position and its market cap currently stands at $270.9 billion.
Shares of TMUS have significantly outpaced the broader market over the past year. The stock has gained 49.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.6%. In 2025, TMUS stock is up 9.8%, compared to SPX’s 3.1% returns on a YTD basis.
TMUS has also easily outshined the Communication Services Select Sector SPDR ETF Fund (XLC). The exchange-traded fund has gained about 30.4% over the past year and is up 5.9% in 2025, lagging behind TMUS’ robust returns.
Over the past year, T-Mobile has outpaced the broader market due to its 5G leadership, strong subscriber growth, cost synergies from the 2020-Sprint merger, resilient business model, and solid financial performance, including revenue growth and share buybacks.
On Jan. 29, T-Mobile shares jumped 6.3% following the release of its fiscal 2024 fourth-quarter earnings. The company reported EPS of $2.57, surpassing analyst expectations of $2.29 and marking a 54% year-over-year increase. Quarterly revenue reached $21.9 billion, beating the forecasted $21.3 billion. T-Mobile's strong performance was highlighted by 1.9 million postpaid net customer additions, reflecting solid operational execution and sustained customer growth.
For the current fiscal year, ending in December 2025, analysts expect T-Mobile’s EPS to grow 7.4% to $10.37 on a diluted basis. Moreover, it beat the consensus estimate in each of the last four quarters.
Among the 27 analysts covering TMUS stock, the consensus rating is a “Moderate Buy.” That’s based on 16 “Strong Buy” ratings, two “Moderate Buys,” eight “Holds,” and one “Strong Sell.”
This configuration is less bullish than two months ago when the stock had 18 “Strong Buy” ratings.
On Feb. 3, Barclays PLC (BCS) analyst Kannan Venkateshwar raised T-Mobile's price target to $250 from $230, maintaining an “Overweight” rating. The analyst highlighted that T-Mobile's performance in the quarter reinforces a preference for telecom stocks over cable stocks.
The mean price target of $255.20 represents a 3.5% premium to TMUS’ current price levels. The Street-high price target of $280 suggests an upside potential of 15.5%.
