T-mobile's Stock Climbs After Its Q4 Earnings Beat and a Robust Outlook

T-Mobile US Inc. saw its stock jump 6.3% in premarket trading on Wednesday after the wireless carrier reported fourth-quarter earnings and revenue that exceeded Wall Street expectations. The company’s strong performance was driven by a significant increase in net customer additions, and it also issued an optimistic forecast for 2025.

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T-Mobile posted earnings of $2.57 per share for the fourth quarter, surpassing the FactSet consensus estimate of $2.29 per share. The company’s total revenue came in at $21.872 billion, exceeding analysts’ expectations of $21.333 billion.

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One of the key drivers of T-Mobile’s strong results was robust growth in its postpaid customer base. The company reported 1.9 million postpaid net customer additions during the quarter, surpassing the FactSet consensus of 1.742 million. Additionally, postpaid net account additions totaled 263,000, while postpaid phone net customer additions reached 903,000.

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T-Mobile’s ability to retain customers was evident in its postpaid phone churn rate, a critical metric in the wireless industry. The company reported a churn rate of 0.92% for the fourth quarter, matching its lowest-ever churn for a fourth quarter. This suggests that T-Mobile continues to hold onto its customers at a strong rate, reflecting the effectiveness of its network and service offerings.

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Record-High 2025 Guidance

Alongside its solid fourth-quarter results, T-Mobile provided a bullish outlook for 2025. The company expects postpaid net customer additions to be between 5.5 million and 6 million, representing the highest initial guidance range it has ever issued at the start of a year. This projection also exceeds the FactSet consensus of 5.44 million postpaid net customer additions.

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In addition to customer growth, T-Mobile forecasted core adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) between $33.1 billion and $33.6 billion for 2025. This represents a 5% increase from the prior year at the midpoint of the range.

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T-Mobile’s stock has gained 37.2% over the past 12 months, significantly outperforming the broader S&P 500 index, which has risen 23.2% during the same period. The company’s strong earnings performance and optimistic outlook suggest that its momentum could continue, particularly as it continues to expand its customer base and improve profitability.

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As T-Mobile moves into 2025, investors will be watching closely to see if the company can sustain its strong growth trajectory and deliver on its ambitious guidance.

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