Benchmark maintains Buy on T-Mobile after Capital Markets Day
Benchmark reiterated its Buy rating on T-Mobile US and kept its $295.00 price target following the carrier's Capital Markets Day presentation. Trading at $218.26, T-Mobile is viewed by InvestingPro Fair Value estimates as undervalued, with sell-side analyst targets noted in a range between $220 and $310 and an overall strong buy consensus among analysts.
The research firm said it found reason for optimism in T-Mobile's presentation despite an initial market pullback triggered by a small shortfall in quarterly mobile subscriber additions. T-Mobile reported 962,000 fourth-quarter 2025 postpaid mobile additions, slightly under consensus expectations of 982,000, a difference that produced an immediate negative market reaction.
Benchmark focused on comments from CEO Srini Gopalan emphasizing what the firm described as a structural network advantage. Central to that view is T-Mobile's mid-band 2.5GHz spectrum and a denser grid architecture that Benchmark says provides superior 5G capacity and a three-to-four-year architectural lead over competitors. The research note ties this network strength to the company's recent top-line momentum - citing 7.3% revenue growth over the last twelve months and total revenue of $85.85 billion.
On pricing and market positioning, Benchmark highlighted that T-Mobile maintains a pricing advantage in the range of 12-15% for existing customers and delivers 20-30% better value for new customers, according to the firm's assessment. The carrier is also described as underpenetrated in smaller markets, where penetration is currently 24%, and among corporate customers who place a high priority on network quality.
Looking ahead, Benchmark expects T-Mobile to sustain substantial growth even if the broader market experiences a network-related slowdown or an economic pullback. The firm argued that T-Mobile's superior switching share - the carrier's ability to attract subscribers from rivals - should offset slower industry unit growth, and it noted the company's strategic move to deemphasize device subsidization.
From a valuation and capital return perspective, InvestingPro data cited by the research note show a price-to-earnings ratio of 20.73 for T-Mobile and a dividend yield of 1.95%. The firm also pointed out that management has been aggressively repurchasing shares.
Recent quarterly results and diverging analyst responses
In related developments, T-Mobile reported fourth-quarter 2025 results that beat consensus on both the top and bottom lines. The carrier delivered earnings per share of $2.14 versus a $2.04 forecast, and generated $24.33 billion in revenue compared with an expected $24.18 billion.
Analyst reactions to the quarter varied. Wolfe Research raised its price target to $255 from $253 while maintaining an Outperform rating. TD Cowen trimmed its price target to $252 from $263, citing a mixed outlook driven by slightly lower-than-expected phone subscriber additions and higher customer churn. Scotiabank lowered its price target to $266 from $270.50 but kept a Sector Outperform rating, noting T-Mobile's strong position supported by its advanced 5G network. These adjustments reflect differing analyst interpretations of subscriber dynamics, churn and the strategic outlook.
What this means for markets
Benchmark's note frames T-Mobile's investment case around network capacity and structural advantages in mid-band spectrum, pricing levers for existing and new customers, and continued share gains through switching dynamics. While the company posted modest subscriber shortfalls and faces churn pressure cited by some firms, several analysts continue to view the carrier's underlying fundamentals positively, as reflected in maintained or adjusted price targets across the broker community.