T-Mobile US Set to Report Strong Earnings Growth for Q1 2025

Bellevue, Washington-based T-Mobile US, Inc. (TMUS) provides mobile communications services and carries a market capitalization of $295.3 billion. The company, a leading telecommunications operator, will announce its fiscal first-quarter earnings for 2025 after the market closes on Thursday, April 24.

Analysts Anticipate Significant Profit Increase

Ahead of this earnings release, analysts predict that TMUS will report a profit of $2.47 per share on a diluted basis. This figure marks a 23.5% increase from earnings of $2 per share in the same quarter last year. Notably, T-Mobile has a strong track record, having exceeded Wall Street’s EPS estimates in its last four quarterly reports.

Full Year Projections and Future Growth

For the full fiscal year, analysts expect TMUS to report earnings per share (EPS) of $10.42, representing a 7.9% increase from $9.66 in fiscal 2024. Furthermore, the forecast suggests an impressive year-over-year growth to $12.44 in fiscal 2026, which is a 19.4% increase.

Strong Stock Performance Compared to Market Benchmarks

T-Mobile’s stock (TMUS) has significantly outperformed the S&P 500’s ($SPX) 3.2% gains over the last 52 weeks, rising 61% during this period. Additionally, it has outshined the Communication Services Select Sector SPDR ETF’s (XLC) 10.4% increase in the same timeframe.

Factors Driving Customer Growth and Financial Success

T-Mobile’s remarkable customer growth is primarily driven by its leadership in 5G technology, burgeoning subscriber base, cost synergies from the Sprint merger, and healthy financial results. Over 60% of recent customers have opted for premium plans, helping to elevate average revenues per account to a seven-year high among valuable postpaid users. Consequently, T-Mobile currently boasts a record 129.5 million total customers.

On January 29, TMUS shares surged over 6% following the announcement of its Q4 results, where it reported EPS of $2.57, surpassing Wall Street’s expectations of $2.17. The company’s revenue also exceeded projections at $21.9 billion, compared to the expected $21.2 billion.

Analyst Ratings and Price Targets

The consensus rating on TMUS stock leans towards bullish, with an overall “Moderate Buy” status. Among the 27 analysts covering the stock, 15 recommend a “Strong Buy,” two suggest a “Moderate Buy,” nine advocate for a “Hold,” and one analyst recommends a “Strong Sell.” The average analyst price target is $265.93, indicating a potential upside of 2.8% from current levels.

On the date of publication, Neha Panjwani did not hold positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

More news from Barchart.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.