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

T-Mobile US has demonstrated robust financial performance, with a notable increase in Return on Capital (ROC) from 6.40% to 6.91% over the last twelve months (LTM). The company's Net Sales Revenue rose 7.30% year-over-year, reaching $85.85 billion, further projected to increase by 7.98% in the near term, underscoring strong growth momentum. Additionally, T-Mobile's Economic Profit surged 27.86% year-over-year, along with significant contributions from postpaid services and broadband, including a 34% increase in broadband net additions.

T-Mobile US faces notable challenges that contribute to a negative outlook on its stock. The company is experiencing weakness in prepaid and wholesale revenue, alongside pressure on its EBITDA and concerns about merger-related expenses impacting 2026 earnings per share and free cash flow guidance. Furthermore, T-Mobile's competitive position is undermined by its limited fiber investments in a converging market, leading to expectations of decelerating postpaid phone net additions in the coming years.