T-Mobile US, Inc.

(NASDAQ Global Select)
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Somewhat Bullish +50

T-Mobile (TMUS) Beats Q4 Earnings and Revenue Estimates

AI-generated analysis

📈 T-Mobile reported Q4 earnings of $2.14 per share, beating the consensus estimate of $2.03 per share.

💰 This represents a +5.29% earnings surprise compared to analyst expectations for the quarter.

📊 Revenue reached $24.33 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.94%.

🚀 T-Mobile has topped consensus EPS and revenue estimates four times over the last four quarters.

📉 Despite strong results, T-Mobile shares lost about 1.8% year-to-date versus the S&P 500's gain of 1.4%.

⚖️ The current Zacks Rank for T-Mobile is #3 (Hold) due to mixed estimate revisions ahead of earnings.

🔮 Investors are focusing on management commentary regarding future earnings expectations and sustainability.

💼 Consensus estimates for the coming quarter stand at $2.56 EPS on $22.54 billion in revenue.

📅 Current fiscal year consensus is set at $11.22 EPS on $93.36 billion in revenues.

🌐 T-Mobile belongs to the Wireless National industry, which is currently ranked in the bottom 34% of Zacks industries.

⏳ Competitor Optimum Communications (OPTU) will release its Q4 results on February 12.

📉 OPTU is expected to post a quarterly loss of $0.01 per share, representing a +91.7% year-over-year change.

💵 Optimum's revenue is forecasted at $2.15 billion, down 3.9% from the year-ago quarter.

🔍 Research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1.

💬 The article concludes with free stock analysis reports available for T-Mobile and Optimum on zacks.com.

Bullish Signals
  • T-Mobile posted quarterly earnings of $2.14 per share, beating the Zacks Consensus Estimate of $2.03 per share.
  • The company achieved a positive earnings surprise of +5.29%, following a prior quarter's surprise of +7.02% when it earned $2.59 against an expectation of $2.42.
  • Over the last four quarters, T-Mobile has surpassed consensus EPS estimates four times in a row.
  • Quarterly revenues reached $24.33 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.94%.
  • The company topped revenue consensus estimates for all four of the last quarters.
  • Year-over-year earnings grew from $2.57 per share to $2.14 per share (adjusted) and revenues increased from $21.87 billion to $24.33 billion over the year.
Risk Factors
  • T-Mobile shares have lost about 1.8% since the beginning of the year versus the S&P 500's gain of 1.4%, indicating underperformance relative to the broader market. The Zacks Rank #3 (Hold) rating suggests shares are expected to perform in line with the market rather than outperform. T-Mobile operates in the bottom 34% of 250 plus Zacks industries for Wireless National, whereas research shows the top 50% of industries outperform the bottom 50% by a factor of more than 2 to 1.
  • The industry outlook can have a material negative impact on T-Mobile's stock performance. Competitor Optimum Communications Inc. (OPTU) is expected to post a quarterly loss of $0.01 per share with revenues down 3.9% year-over-year, highlighting competitive revenue pressures in the sector.
Full Analysis
T-Mobile (TMUS) reported fourth-quarter earnings of $2.14 per share, exceeding the Zacks Consensus Estimate of $2.03 and surpassing adjusted year-ago results of $2.57. The company posted revenues of $24.33 billion for the quarter ended December 2025, which beat the consensus estimate by 2.94% compared to $21.87 billion a year ago. This marks the fourth consecutive quarter where T-Mobile has topped consensus EPS and revenue estimates, recording earnings surprises of +5.29% and +7.02% respectively over the last two quarters. Despite these strong quarterly figures, T-Mobile shares have underperformed the broader market this year, declining approximately 1.8% while the S&P 500 has gained 1.4%. Analysts suggest that the stock's immediate price movement will largely depend on management's commentary during the earnings call and future earnings expectations. Current near-term consensus estimates project earnings of $2.56 per share on $22.54 billion in revenues for the upcoming quarter, with full fiscal year projections standing at $11.22 per share on $93.36 billion in revenues. Based on mixed estimate revisions ahead of the report, T-Mobile currently holds a Zacks Rank #3 (Hold), indicating expected performance that is in line with the market. The outlook for the Wireless National industry is a factor, as it ranks in the bottom 34% of over 250 Zacks industries, with research showing top-ranked industries outperforming those ranked below them by a factor exceeding 2 to 1. Other industry peers, such as Optimum Communications, Inc. (OPTU), have yet to release their fourth-quarter results, which are expected on February 12 with an estimated loss of $0.01 per share and revenues projected at $2.15 billion.