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

T-Mobile US has demonstrated robust financial growth, highlighted by a 6.4% year-over-year increase in core EBITDA, reaching $8.3 billion, exceeding consensus estimates. The company also reported a significant 7.3% year-over-year increase in net sales revenue, rising from $80.01 billion to $85.85 billion, with expectations for further growth to 7.98% in the near term. Additionally, T-Mobile’s economic profit surged by 27.86% year-over-year, from $1.17 billion to $1.49 billion, indicating strong operational efficiency and profitability amid expanding service offerings in broadband and postpaid services.

T-Mobile US operates in a highly competitive environment, currently trading at an FY26E EV/EBITDA multiple of 9.9x, marking its lowest valuation in over a year. Significant risks to the company's financial outlook include potential revenue and cash flow shortfalls driven by economic factors, competitive pressures, or operational challenges, which could further impact investor sentiment. Additionally, the downside scenario suggests that a continuation of issues such as churn pressure, limited gross additions, declining average revenue per user (ARPU), and margin contraction could lead to an EBITDA multiple falling to around 5x, historically reflective of trough conditions.