T-Mobile US Posts Strong Q4, Subscriber Adds Beat Expectations: Analysts See Continued Momentum In 2025

Shares of T-Mobile US Inc (NASDAQ:TMUS) were climbing in early trading on Thursday, after the company reported upbeat fourth-quarter earnings.

The company reported its quarterly results amid a positive earnings season. Here are some key analyst takeaways.

Scotiabank On T-Mobile US

Analyst Maher Yaghi reiterated a Sector Perform rating, while raising the price target from $234 to $247.

T-Mobile US reported "a strong quarter yet again," with subscriber growth surpassing peers and double-digit growth in profitability, Yaghi said in a note. The company's service revenue grew by 5.5%, driven by postpaid phone net additions of 903,000 coming in higher than consensus of 860,000 and upbeat postpaid ARPA (average revenue per account) growth, he added.

The momentum in service revenue growth is likely to continue in 2025, the analyst stated. He raised the free cash flow generation estimate from $17 billion to $17.6 billion, citing expectations of "additional growth potential in suburban, rural and enterprise segments in mobile as well as a path towards additional market share gains in broadband."

Check out other analyst stock ratings.

RBC Capital Markets On T-Mobile US

Analyst Jonathan Atkin maintained a Sector Perform rating, while lifting the price target from $240 to $245.

T-Mobile US reported "solid" quarterly results, with total revenue of $21.9 billion beating consensus of $20.3 billion, driven by "higher postpaid, wholesale, and equipment revenues," Atkin said. The company's postpaid net add guidance range for 2025 has a midpoint of 5.8 million, higher than consensus of 5.4 million, he added.

Management raised their growth target for wireless service revenues to 5%, from their previous guidance of around 4% "on the back of a strong subscriber outlook and ARPA growth of 3%," the analyst stated. "We view that adding Starlink service could aid the company's wireless ARPU trajectory."

Benchmark On T-Mobile US

Analyst Matthew Harrigan reaffirmed a Buy rating, while raising the price target from $255 to $275.

T-Mobile US made "incremental market share gains" versus AT&T Inc (NYSE:T) and Verizon Communications Inc (NYSE:VZ), Harrigan said. The company's postpaid phone add result was the highest quarterly gain in its history and represented around 46% of the total growth among the three major US mobile network operators in the fourth quarter, he added.

"T-Mobile provided 2025 postpaid connection guidance for 5.5M to 6M connections this year, the highest it has ever provided embarking on a new year," the analyst wrote. The company should also benefit significantly from the expected acceleration in phone replacement cycles due to new AI capabilities, he further stated.

TMUS Price Action: Shares of T-Mobile US had risen by 1.33% to $238.27 at the time of publication on Thursday.

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