T-Mobile US, Inc.

(NASDAQ Global Select)
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Somewhat Bullish +35

What Could T-Mobile Stock Be Worth In Three Years?

Company update Customer growth AI-generated analysis

πŸ“‰ T-Mobile US stock has lost 30.1% over the year to October 15, 2026, while the S&P 500 gained 17.9%, leaving shares trading at a forward P/E of 16.2x versus a historical average of 21.9x.

πŸ“ˆ Revenue growth has accelerated significantly to 9.7% over the twelve months to June 2026, surpassing the 6.3% growth seen in the prior year period.

πŸ‘₯ The company added 277,000 postpaid accounts in fiscal Q2 2026, contributing to a total of 950,000 to 1,050,000 net additions targeted for all of fiscal 2026.

πŸ’° Management expects revenue per postpaid account to grow between 2.5% and 3% in fiscal 2026 as part of its rate plan modernization strategy.

πŸ“‰ Net margins have compressed to 11.5% over the twelve months to June 2026, down from a high of 14.5% recorded at the twelve months to June 2025.

⚠️ Management warns that rate plan modernization is expected to temporarily increase account churn in the near term.

🎯 A valuation scenario projects T-Mobile shares reaching $226.72 in three years, driven by continued volume growth and a multiple recovery toward historical levels.

Bullish Signals
  • Revenue growth has accelerated to 9.7% over the twelve months to June 2026, significantly outpacing the 6.3% growth rate from the previous year.
  • The company successfully added 277,000 postpaid accounts in fiscal Q2 2026, demonstrating strong customer acquisition momentum.
  • Management guidance for fiscal 2026 targets net postpaid account additions of 950,000 to 1,050,000, indicating a robust growth strategy.
Risk Factors
  • Net margins have declined to 11.5% over the twelve months to June 2026, falling from a peak of 14.5% at the twelve months to June 2025.
Full Analysis
T-Mobile US (TMUS) shares have declined 30.1% year-to-date through October 15, 2026, trading at a forward P/E of 16.2x compared to a historical average of 21.9x. Despite the stock price drop, the company is demonstrating resilient operational performance with revenue growing 9.7% over the twelve months ending June 2026, accelerating from 0.7% growth in the prior year period. The article outlines a valuation scenario projecting T-Mobile shares to reach $226.72 within three years, representing a 44.4% gain before dividends. This projected upside is driven primarily by continued sales volume growth and a partial recovery of the P/E multiple toward historical baselines. The analysis highlights that achieving this target requires the company to maintain its current trajectory of adding postpaid accounts and increasing revenue per user. Management guidance for fiscal 2026 targets net postpaid account additions between 950,000 and 1,050,000, alongside expected revenue per postpaid account growth of 2.5% to 3%. Recent data shows the company added 277,000 postpaid accounts in fiscal Q2 2026. However, net margins have compressed to 11.5% over the twelve months to June 2026 from a peak of 14.5%, and management notes that rate plan modernization is expected to temporarily lift account churn.