T-Mobile Set to Report Q4 Results: Can Revenue Growth Lift Earnings?

Core Viewpoint - T-Mobile is expected to report fourth-quarter 2025 results on February 11, with a history of earnings surprises indicating strong performance in previous quarters [1][9] Revenue Expectations - Year-over-year revenue growth is anticipated, driven by postpaid subscriber additions, strong 5G adoption, and increased demand for premium wireless and broadband services [2][12] - Total service revenues are estimated at $18.6 billion, up from $16.9 billion in the same quarter last year, while equipment revenues are projected at $5 billion compared to $4.7 billion a year ago [8][12] - The Zacks Consensus Estimate for total revenues is pegged at $23.6 billion, an increase from $21.9 billion reported in the previous year [9][12] Competitive Landscape - T-Mobile operates in a highly competitive U.S. wireless market, facing strong rivals like AT&T and Verizon, which may pressure pricing and limit growth [7] - The company maintains its leadership in the 5G market but faces rising capital and operating costs from network expansion and upgrades, potentially impacting margins [3] Innovations and Partnerships - The launch of Edge Control and T-Platform has strengthened T-Mobile's enterprise offerings, although the near-term revenue impact may be limited due to gradual adoption and high rollout costs [4] - T-Mobile's partnership with the Formula 1 Las Vegas Grand Prix has enhanced brand visibility, but immediate revenue impact is likely limited due to increased marketing and sponsorship costs [5] - The expansion of T-Satellite to power apps highlights T-Mobile's innovation, but short-term revenue gains are expected to be modest [6] Earnings Outlook - The adjusted earnings per share estimate is $2.11, indicating a decline from $2.57 reported a year ago [9] - The Earnings ESP for T-Mobile is -3.64%, suggesting that the model does not predict an earnings beat for the fourth quarter [10][11]