T-Mobile US (TMUS) is one of the best-performing S&P 500 stocks Wednesday after the wireless provider beat top- and bottom-line expectations for its fourth quarter and issued a strong outlook for the full fiscal year.
In the three months ending December 31, T-Mobile's revenue increased 6.8% year over year to $21.9 billion, boosted by 1.9 million postpaid net customer additions. Its earnings per share (EPS) surged 53.9% from the year-ago period to $2.57.
"By putting customers first, T-Mobile delivered another monster Q4 that punctuated an amazing growth year with best-in-class results across wireless and broadband," said CEO Mike Sievert in a statement. "In 2024, more new postpaid customers chose the Un-carrier than ever before, and we had our lowest ever full-year postpaid phone churn, leading to our third year of more than 3 million postpaid phone net additions."
The results were mixed compared with analysts' expectations. Wall Street was anticipating revenue of $21.3 billion and earnings of $2.29 per share, according to MarketWatch.
For all of 2025, T-Mobile said it expects postpaid net customer additions in the range of 5.5 million to 6 million, its "highest-ever guidance range" to start a year.
"Building on this incredible momentum, 2025 is poised to be even more exciting, and because of this, we're issuing the strongest start-of-year postpaid net additions guide in our history," Sievert said. "We've already hit the ground running on our ambitious plans to give customers the kind of new, transformative experiences no one else can, and we're just getting started."
Is T-Mobile stock a buy, sell or hold?
T-Mobile has performed well on the price charts, generating a 48% total return (price change plus dividends) over the past 12 months. This compares to the S&P 500's 26% gain. And Wall Street sees even more upside for the large-cap stock.
According to S&P Global Market Intelligence, the average analyst target price for TMUS stock is $244.76, representing implied upside of over 11% to its January 28 close. Additionally, the consensus recommendation is Buy.
Financial services firm Bernstein is one of the more bullish outfits on TMUS stock with an Outperform rating (equivalent to a Buy) and a $265 price target.
"T-Mobile has transformed itself from a distant laggard in wireless to a Champion over the past decade, and its growth story is still unfolding," wrote Bernstein analyst Laurent Yoon in a December 9 note. "T-Mobile has captured a lion's share of the industry's net adds, outpacing the market by two times in subscriber growth over the past four years."
Yoon added that the company "continues to hold its position as a 'value' provider within an oligopoly of equals, and we expect it to sustain its lead in subscriber growth."
