Core Insights - T-Mobile and AT&T are engaged in a competitive pricing dispute, with T-Mobile's incoming CEO Srini Gopalan suggesting AT&T's criticisms stem from pressure they are experiencing [1] - T-Mobile's Q3 revenue increased by 8.9% year-over-year to $21.96 billion, surpassing estimates, while adjusted earnings per share fell by 7.7% to $2.41, slightly exceeding expectations [2] - T-Mobile raised its full-year outlook for postpaid net customer additions to 7.2 million to 7.4 million, although this is below Wall Street's estimate of approximately 7.5 million [3] Financial Performance - The company reported 3.3 million postpaid phone additions and 130,000 fiber additions, both exceeding previous guidance but falling short of consensus estimates [4] - T-Mobile increased its core adjusted EBITDA guidance to $33.7 billion to $33.9 billion, which is still below the $34 billion expected by analysts [4] - Capital spending forecast was raised to $10 billion, which analysts believe could pressure cash flow [5] Market Position - T-Mobile's stock has remained flat year-to-date and declined by 3% on Thursday, reflecting investor concerns about rising costs and profit trends [2] - In contrast, AT&T's stock has risen by 8% in 2025, while the S&P 500 has gained 15% [5] - T-Mobile emphasized its role as an industry disruptor, focusing on transparency and customer satisfaction rather than engaging in rivalry [5] Customer Growth - T-Mobile achieved 1 million postpaid phone net customer additions in Q3, marking its best performance in over a decade [6] - AT&T reported a mixed Q3, missing earnings and revenue estimates but adding 405,000 new mobile phone customers [6]

Core Insights - T-Mobile US reported third-quarter earnings that slightly exceeded consensus estimates, with a revenue increase of 4% year-over-year to $21.95 billion, while adjusted earnings per share fell 7% to $2.41 due to an impairment expense [2][3]. Financial Performance - Adjusted earnings per share for Q3 were $2.41, down from the previous year, while revenue rose to $21.95 billion [2]. - Analysts had expected earnings of $2.40 per share on revenue of $21.91 billion, indicating a slight outperformance in revenue but a marginal miss in earnings [2]. Subscriber Growth - T-Mobile added over one million postpaid phone subscribers, surpassing estimates of 841,000, and outpacing AT&T, which added 405,000 [3]. - The company also gained 506,000 wireless high-speed internet subscribers, bringing its total 5G broadband customers to 7.955 million as of September 30 [3]. Stock Market Reaction - Following the earnings report, T-Mobile's stock decreased nearly 1% to around $225, despite a 3% increase in shares leading up to the report [4]. - Prior to the earnings announcement, T-Mobile shares had fallen to their lowest level since late January [4]. Capital Expenditure - Capital spending in Q3 increased by 35% to $2.6 billion, and the company raised its 2025 capital spending estimate to $10 billion from $9.5 billion [5]. Leadership Changes - T-Mobile announced that Chief Operating Officer Srini Gopalan will become the next CEO effective November 1, succeeding Mike Sievert [5]. Stock Ratings - T-Mobile's stock holds an Accumulation/Distribution Rating of D, indicating institutional selling over the past 13 weeks [6]. - The stock has an IBD Composite Rating of 57 out of a possible 99, reflecting a blend of key fundamental and technical metrics [6].

Core Insights - T-Mobile US, Inc. is enhancing its wireless connectivity through a partnership with SpaceX, focusing on satellite-to-cellular services to maintain industry leadership [1][2][3] Group 1: Strategic Initiatives - The partnership with SpaceX aims to eliminate dead zones and provide a competitive edge akin to T-Mobile's dominance in 5G [2] - Incoming CEO Srini Gopalan emphasized the innovative technology of satellite communication, positioning T-Mobile to be 2 to 3 years ahead of competitors as satellite technology evolves [3] Group 2: Financial Performance - T-Mobile reported record customer results, including the best-ever postpaid account growth and over 1 million postpaid phone net additions during a strong quarter [4] - The company raised its full-year guidance for postpaid net customer additions to between 7.2 million and 7.4 million, reflecting strong confidence in its growth trajectory [5] - Quarterly earnings were reported at $2.41 per share, surpassing analyst expectations, with revenue of $21.96 billion, also exceeding estimates [6] Group 3: Market Performance - Despite positive developments, T-Mobile's stock closed 3.26% lower at $219.99, with a year-to-date increase of 0.21% but a decline of 5.81% over the year [7]

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. T-Mobile US, Inc. (NASDAQ:TMUS) stock dropped slightly after it released its third-quarter results on Thursday. Earnings Detail T-Mobile reported quarterly earnings of $2.41 per share, which beat the analyst consensus estimate of $2.39. Quarterly revenue came in at $21.96 billion, which exceeded the Street estimate of $21.92 billion and is up from the revenue of $20.16 billion reported for the same period ...

Core Insights - The company has been a growth leader for 13 years and achieved its highest number of new customers in the latest quarter [2] - Service revenue reached $18.24 billion, reflecting a 9% growth, exceeding Bloomberg Consensus estimates of $18.16 billion [4] - The company reported a 6% EBITDA growth and a cash conversion rate of 26%, the highest in the industry [3][10] Financial Performance - Total revenue was $21.96 billion, slightly below the expected $21.98 billion, indicating minor concerns despite overall strong performance [5] - Average revenue per user (ARPU) increased by 1.8% this year, with a 2% guidance increase for future ARPU [7][8] Customer Acquisition and Competition - The company added 1 million postpaid phone customers while maintaining a 6% earnings growth, showcasing effective customer acquisition strategies [6] - The industry has seen a 50% growth in free cash flow over the last three years, indicating a competitive landscape that still delivers value to customers [7] Market Positioning - The company positions itself as the value leader, attracting new customers without diluting revenue from existing ones [8] - The launch of new devices, such as the iPhone, creates a favorable switching moment for customers, enhancing the company's competitive edge [11][12]

Core Insights - T-Mobile US, Inc. reported strong customer growth, adding over 1 million new phone subscribers, significantly exceeding Wall Street's forecast of around 828,000 [1][5] - Despite the strong subscriber growth, T-Mobile's earnings guidance has raised concerns among investors, as it did not meet expectations for a more substantial financial forecast [1][3] Subscriber Growth - The company added over 1 million postpaid phone subscribers, outperforming the expected addition of approximately 828,000 [5] - This strong performance in subscriber growth is contrasted by a core adjusted EBITDA of $8.68 billion, which only met consensus expectations [5] Financial Guidance - T-Mobile raised its guidance for postpaid net customer additions significantly, but the revision for core adjusted EBITDA was only slight, leading to disappointment among investors [5][6] - The disconnect between strong subscriber momentum and modest earnings outlook is a primary reason for anticipated negative stock reactions [6] Market Reaction - Following the third-quarter report, T-Mobile's shares fell by 4.16%, trading at $217.84 at the time of publication [6] - Analyst Michael Ng from Goldman Sachs maintained a Buy rating with a price forecast of $286, but anticipates that the stock will trade lower due to the earnings results and guidance update [2][3]

T-Mobile beat on EPS and Revenue but stock still sliding on lower than expected guidance. ...

Core Insights - T-Mobile US, Inc. (TMUS) reported strong third-quarter 2025 results, exceeding both revenue and earnings estimates, driven by significant postpaid customer growth [1][10] Financial Performance - Net income for Q3 was $2.71 billion or $2.41 per share, a decrease from $3.05 billion or $2.61 per share in the same quarter last year, reflecting an 11.3% year-over-year decline due to increased operating and interest expenses [2] - Total revenues reached $21.95 billion, up from $20.16 billion year-over-year, surpassing the consensus estimate of $21.78 billion [3] - Total service revenues increased to $18.3 billion from $16.7 billion in the prior year, with a 9.1% year-over-year growth primarily driven by postpaid services [4] Customer Growth and Churn - T-Mobile added 2.3 million postpaid net customers and 396,000 postpaid net accounts during the quarter, with a postpaid phone churn rate of 0.89% [5] - Postpaid average revenues per account rose to $149.44 from $145.60 year-over-year [5] Segment Performance - Net sales from prepaid services were $2.62 billion, down from $2.71 billion in the previous year, with a prepaid net customer addition of 43,000 and a churn rate of 2.77% [6] - Equipment revenues increased to $3.46 billion from $3.2 billion year-over-year, attributed to a higher average revenue per device sold [7] Operating Expenses and EBITDA - Total operating expenses rose to $17.42 billion from $15.36 billion in the prior year, leading to a decline in operating income to $4.5 billion from $4.7 billion [8] - Core adjusted EBITDA was $8.68 billion, up from $8.24 billion a year ago, supported by strong service revenue growth [8] Cash Flow and Liquidity - T-Mobile generated $7.45 billion in cash from operating activities, compared to $6.13 billion in the prior year, while adjusted free cash flow was $4.81 billion, down from $5.16 billion [11] - As of September 30, 2025, the company had $3.31 billion in cash and cash equivalents and $76.36 billion in long-term debt [11] Future Outlook - T-Mobile has raised its 2025 guidance, now expecting postpaid net customer additions between 7.2 million and 7.4 million, and core adjusted EBITDA in the range of $33.7 billion to $33.9 billion [12]

Market Overview - U.S. equities showed signs of recovery on October 23, 2025, with major indexes bouncing back from a volatile session the previous day, driven by corporate earnings, U.S.-China trade relations, and a surge in oil prices [1][2] - The Dow Jones Industrial Average (DJIA) rose by approximately 0.1% or 25 points, while the S&P 500 (SPX) advanced by about 0.3%, and the Nasdaq Composite (IXIC) led gains with a rise of around 0.6% [2] Sector Performance - The Energy Select Sector SPDR (XLE) surged by 1.62%, significantly contributing to market gains, fueled by a nearly 6% increase in West Texas Intermediate crude oil futures, which reached $61.90 per barrel due to new U.S. sanctions on Russian oil companies [3] - The Technology Select Sector SPDR (XLK) experienced a slight decline of 0.34%, while Consumer Discretionary (XLY) and Health Care (XLV) sectors also finished lower [3] Upcoming Events - Investors are awaiting the Consumer Price Index (CPI) report scheduled for October 24, which is expected to provide insights into inflation trends and influence Federal Reserve policy decisions, with a 96.7% probability of a Fed rate cut in October [4] Corporate Earnings - Major companies are set to report quarterly results, including Apple (AAPL) on October 30, Microsoft (MSFT) on October 29, and Alphabet (GOOGL, GOOG) also on October 29, with expectations of strong revenue growth [5] - Intel (INTC), Ford (F), Honeywell (HON), T-Mobile US (TMUS), and American Airlines (AAL) are also expected to release their results [5] Geopolitical Factors - The White House is considering new curbs on software exports to China, which previously affected tech stocks, indicating ongoing geopolitical tensions that could lead to market volatility [6] Major Stock News - Tesla (TSLA) reported a 12% revenue increase but a 37% narrowing of net income for Q3 2025, leading to initial stock declines despite record vehicle deliveries of 497,099 units [7] - Google (GOOGL, GOOG) announced a corporate agreement for a gas-fired power plant with carbon capture technology and a significant quantum computing breakthrough, with shares climbing 0.82% [9] - Nvidia (NVDA) continued strong momentum with shares near all-time highs, driven by major AI partnerships and a $5 billion investment in Intel for a 4% stake [10] - Apple (AAPL) faced a legal setback in the UK regarding its App Store commission, but remains financially robust ahead of its earnings release [11] - Microsoft (MSFT) is expected to exceed revenue expectations, driven by strong growth in its Azure cloud business [12] - IBM (IBM) saw its stock drop despite better-than-expected profit and revenue, indicating challenges in its enterprise business [13]

Core Insights - The company has reported an exceptional quarter, driven by significant customer growth and differentiation in the market, particularly through its uncarrier strategy [2][4] - T-Mobile has achieved record new customer additions, with a notable increase in post-paid subscribers, surpassing estimates [7] - The partnership with SpaceX is expected to enhance customer acquisition and service offerings, particularly in addressing mobile connectivity challenges [8][9] Customer Growth and Market Differentiation - T-Mobile's differentiation strategy is yielding strong financial results, with compelling reasons for customers to choose their services over competitors [2][4] - The company has seen a record quarter for iPhone sales, with T-Mobile's network providing superior speed compared to competitors, which has attracted new customers [6] Financial Performance - T-Mobile added 2.3 million post-paid subscribers, exceeding the estimated 1.5 million, and has raised its guidance for future subscriber growth [7] - The company has also reported a significant increase in phone subscribers, with an additional 275,000 expected [7] Technological Innovations - T-Mobile's collaboration with SpaceX aims to eliminate dead zones and improve mobile connectivity through innovative satellite technology [8] - Recent enhancements to the satellite service allow users to access data services in remote areas, marking a significant innovation in the industry [10] Industry Impact - The company has not observed a significant impact from changes in immigration policies on its subscriber base, indicating resilience in its business model [12]