New York, Feb 12, 2026, 11:28 ET — Regular session
- TMUS shares climbed in late-morning trading following T-Mobile’s boost to its long-term goals and announcement of accelerated buybacks.
- Investors are grappling with weaker-than-anticipated postpaid phone additions while juggling elevated cash flow targets.
- A euro-denominated bond offering is also being considered.
T-Mobile US (TMUS.O) shares climbed 4.3% to close at $218.60 on Thursday, recovering from an early drop to around $209. Verizon and AT&T also gained, though their increases were more modest.
This rally is significant since telecom investors often value consistent cash flow. When the long-term cash forecast rises, it can swiftly alter the buyback calculations. Buybacks, after all, have played a key role in the equity narrative throughout U.S. wireless.
This comes at a sensitive point for the industry. Discounts are still widespread, and Wall Street reacts sharply to any hint that subscriber growth is faltering or that carriers are pushing growth through aggressive spending.
On Wednesday, T-Mobile updated its multi-year outlook. It now projects 2027 service revenue between $80.5 billion and $81.5 billion, with adjusted free cash flow hitting $19.5 billion to $20.5 billion. The company also plans to nearly double first-quarter share buybacks, boosting them to as much as $5.0 billion. 1
T-Mobile’s latest quarter showed a mixed bag. They added 962,000 postpaid phone customers in Q4, pulling in $18.7 billion in service revenue. Net income hit $2.1 billion, or $1.88 a share, even after accounting for severance expenses linked to a workforce program. Postpaid phone churn ticked up to 1.02%, while adjusted free cash flow—a non-GAAP metric—came in at $4.2 billion. 2
T-Mobile is shifting its focus. The company told Reuters it will stop reporting postpaid phone subscriber additions starting this quarter, instead highlighting account growth and ARPA, or average revenue per account. CEO Srini Gopalan noted, “Our ARPA has grown by 13% since 2020.” But MoffettNathanson senior analyst Craig Moffett cautioned that investors usually want more details, saying “more is more.” CFO Peter Osvaldik added that new accounts are still signing up for premium plans at roughly a 60% rate. 3
On Thursday, T-Mobile USA announced a registered public offering of euro-denominated senior notes. The funds raised will go toward general corporate purposes, potentially covering share buybacks, dividends, and refinancing. 4
The competition is still clear-cut. T-Mobile, Verizon, and AT&T battle over switchers, where slight shifts in churn or promotional pushes can quickly change the game. That’s why investors focus on cash flow and pricing discipline, not just subscriber gains.
But things can go south in other ways. If churn keeps rising or competitors push deeper discounts, ARPA growth might hit a wall, making those higher cash targets seem optimistic. Plus, debt-market conditions could tighten, driving up the cost of funding as the company ramps up buybacks.
Next on the agenda, traders will be watching for details on the euro note sale and clues about whether T-Mobile is keeping pace with its accelerated buyback plan during the March quarter. Attention will also focus on the initial results released under the updated disclosure rules.
