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what it is
T-Mobile sells wireless service, phones, and related plans to 103.5 million subscribers across the U.S.
how it gets paid
Last year T-Mobile Us made $88.3B in revenue. Postpaid service was the main engine at $52.3B, or 59% of sales.
why it's growing
Revenue grew 8.5% last year. Revenue rose 11% vs. prior year to $24.33B.
what just happened
T-Mobile reported $2.14 EPS, well below the $2.64 estimate, even as revenue reached $24.33B.
At a glance
A balance sheet — strong enough to weather a downturn
75/100 earnings predictability — reasonably predictable
21.7x trailing p/e — priced about right
2.8% dividend yield — cash in your pocket every quarter
14.0% return on capital — nothing to write home about
xvary composite: 85/100 — above average
What they do
T-Mobile sells wireless service, phones, and related plans to 103.5 million subscribers across the U.S.
Your phone number is sticky, and T-Mobile knows it. Its network covers roughly 322 million people, so you get scale that smaller rivals cannot fake. Scale (lots of customers sharing one network) → lower cost per user → so what: T-Mobile can defend margins while serving 103.5 million subscribers.
How they make money
$88.3B
annual revenue · their business grew +8.5% last year
Postpaid service
$52.3B
+7.0%
Prepaid service
$10.4B
+4.0%
Wholesale and other service
$5.6B
+5.0%
Equipment sales
$18.7B
+14.0%
Other revenues
$1.3B
+0.0%
The products that matter
nationwide wireless service
Wireless Services
$88.3B revenue
it is the whole story in the source snapshot: $88.3B in annual revenue and +8.5% growth last year. This is a subscription-style utility dressed like a telecom stock.
core
premium postpaid brand
T-Mobile
brand-level split not shown
the snapshot names the brand but does not split out revenue or profit. That is thin, so the only honest read is that your thesis still lives at the consolidated company level: $242B of market value against one scaled wireless network.
data thin
value wireless brand
MetroPCS
brand-level split not shown
MetroPCS matters strategically because it broadens the customer base, but the snapshot provides no standalone numbers. When the data is this sparse, you should resist pretending there is a hidden segment thesis here.
no breakout
Key numbers
103.5M
subscribers
That customer base funds the whole machine. More lines mean more recurring monthly cash hitting the same network.
20.7%
operating margin
Operating margin → profit left after running the business → so what: T-Mobile keeps about $0.21 from each revenue dollar before interest and taxes.
$84.7B
long-term debt
Debt is manageable today, but it is still a very large fixed claim on the business if growth cools.
14.0%
return on capital
Return on capital → profit from money invested → so what: T-Mobile is earning better than many mature telecom peers on a huge asset base.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 1 — safer than 95% of stocks
- price stability 95 / 100
- long-term debt $84.7B (26% of capital)
- net profit margin 17.7% — keeps 18 cents of every dollar in revenue
- return on equity 20% — $0.20 profit for every $1 investors have put in
A with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in TMUS 3 years ago → it's now worth $15,720.
The index would have given you $13,880.
source: institutional data · total return
What just happened
missed estimates
T-Mobile reported $2.14 EPS, well below the $2.64 estimate, even as revenue reached $24.33B.
Revenue rose 11% vs. prior year to $24.33B, but still missed consensus by about $330M. Operating margin also fell 300 basis points to 32.4%, which is the quiet part analysts hate.
$24.33B
revenue
$2.14
eps
32.4%
operating margin
the number that mattered
The number that mattered was the 300-basis-point margin drop to 32.4%, because telecom stocks get punished when profit quality slips before subscriber growth does.
-
t-mobile’s fourth-quarter operating results were a mixed bag.the company reported december-period adjusted earnings of $2.14 a share, well below our estimate, but $0.10 above the consensus.
-
this marks the second-consecutive period, where earnings per share have been below the prior-year tally.
-
revenues of $24.33 billion increased 11% vs. prior year, but were below the consensus by about $330 million.
-
note, too, that the operating margin remains under pressure, declining 300 basis points vs. prior year to 32.4%.
-
this marked the third-consecutive period where the operating margin was down from the prior-year’s tally, and the secondconsecutive period where it has dropped sequentially.
source: company earnings report, 2026
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What could go wrong
the top threat is margin pressure in a business the market already treats like a premium telecom.
med
recent margins are softer than the full-year story
TMUS posted a 14.1% net margin for the full year, but the latest quarter came in at 12.4%. That gap matters because the stock's quality premium assumes efficiency stays intact.
If margins keep drifting toward 12% instead of recovering toward 14%, earnings growth will look a lot less sturdy.
med
revenue can still grow while the stock disappoints
Annual revenue grew 8.5% to $88.3B, and one quarter still produced a revenue miss of about $330M versus consensus. In a stock trading at 21.7x trailing earnings, small misses stop being small.
This is the quiet part: you do not need a collapse to break the thesis. You just need growth to cool while expectations stay high.
med
the debt load is manageable until execution slips
Long-term debt sits at $84.7B, or 26% of capital. The balance sheet grade is A, so this is not distress territory. It does mean mistakes are expensive in a capital-heavy business.
A company with this much debt can absorb pressure. It cannot ignore it for long.
$88.3B of revenue and an A balance sheet buy TMUS a lot of resilience, but the stock still needs margins to recover closer to 14.1% than 12.4%.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
the next margin print
the latest quarter came in at 12.4% net margin versus 14.1% for the full year. You want that gap closing, not widening.
metric
revenue growth on a huge base
TMUS grew revenue 8.5% on an $88.3B base. If that pace fades, the premium multiple gets harder to defend.
trend
estimate beats versus estimate misses
one quarter can be noise. A pattern of revenue misses and softer margins is a trend, and trends are what re-rate stocks.
risk
debt staying boring
$84.7B of long-term debt is fine when the business is stable. The whole point is to keep it boring.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak, they still like the setup despite the recent noise.
risk profile
safest 5%
stability score 1 — lower risk than almost any stock in the broader market. not a bunker, but close by equity standards.
chart momentum
bottom 5%
technical score 5 — the chart has been weak even while fundamentals remain decent. welcome to a stock the market is making re-prove itself.
earnings predictability
75 / 100
results are reasonably predictable, which matters because a premium multiple leaves less room for surprises.
source: institutional data
Institutional activity
620 buyers vs. 742 sellers in 4q2025. total institutional holdings: 0.5B shares.
source: institutional data
Price targets
3-5 year target range
$178
$319
$220
current price
$249
target midpoint · +13% from current · 3-5yr high: $500 (+125% · 24% ann'l return)
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