T-Mobile’s Stock Recovers After 11% Decline On Mixed Results, Outlook

Shares of T-Mobile US Inc (NASDAQ: TMUS ) rallied in early trading on Friday, after the company Thursday reported its second-quarter results.

Here are some key analyst takeaways: KeyBanc Capital Markets analyst Brandon Nispel maintained an Overweight rating, while cutting the price target from $260 to $250.

Benchmark analyst Matthew Harrigan reiterated a Buy rating, while cutting the price target from $295 to $280.

Check out other analyst stock ratings.

KeyBanc Capital Markets: T-Mobile’s service revenue growth was "a mixed bag," Nispel said in a note.

Management’s 2026 service revenue guidance remains at $77 billion, representing 8% year-on-year growth, the analyst stated.

Prepaid trends will likely remain intact but Wholesale will be flat.

The midpoint of the company’s Service revenue guidance seems to indicate Postpaid revenue of around $64.3 billion, which represents 11% year-on-year growth.

Management guided to average revenue per account (ARPA) at the upper end of the 2.5%-3.0% range and organic growth of 3.7%, Nispel said.

T-Mobile needs to achieve ARPA growth higher than 3.5% in 2026 with an exit rate of around 5% to maintain its overall service revenue guidance, he added.

Benchmark: The selloff of around 11% in the stock, following T-Mobile’s strong earnings release, seems "unwarranted," Harrigan says.

The stock was already trading "at a significantly discounted valuation," and management announced stable or slightly higher full-year guidance.

T-Mobile cautioned that revisions to legacy wireless plans may temporarily increase churn and reduce account additions in the third quarter.

It also reiterated its 2026 guidance of 950K-1,050K account additions.

T-Mobile is migrating customers from its legacy plans to newer products with unlimited data, streaming benefits and easier device upgrades, which are at higher price points. "We remain optimistic on pricing power, with average monthly 2Q26 ARPA up 2% to $152.91 and ~60% of new account customers opting for the most premium plans with especially high lifetime value," Harrigan wrote.

TMUS Price Action: Shares of T-Mobile US had risen by 4.98% to $178.91 at the time of publication on Friday.

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