TD Cowen reduced its target for T-Mobile US (NASDAQ:TMUS) to $252.00 from $263.00 but kept a Buy rating on the stock. That revised target remains above the company's current share price of $209.54, and InvestingPro data notes the stock is trading below its Fair Value, indicating potential upside from current levels.
Results and near-term subscriber dynamics
The change in TD Cowen's target follows T-Mobile's fourth-quarter 2025 financial report, which showed slightly lower-than-expected phone subscriber additions. Management attributed the shortfall in part to higher customer churn rates. At the same time, the company delivered results that topped Wall Street expectations for the quarter: earnings per share of $2.14 versus a $2.04 forecast, and revenue of $24.33 billion compared with estimated revenue of $24.18 billion.
Valuation and market size
T-Mobile's market capitalization stands at $232 billion and the shares carry a price-to-earnings ratio of 17.7. Those metrics accompany analysts' continued interest in the stock and a range of price targets from other firms, which, according to InvestingPro, extend from $220 to $310.
Analyst perspective and strategic emphasis
TD Cowen analyst Greg Williams characterized the company's outlook as mixed for 2026, while noting management gave a more favorable updated outlook for 2027. Williams emphasized that T-Mobile is de-emphasizing convergence with other telecommunications services and instead is placing focus on a planned $30 billion capital return program spanning 2026 and 2027.
Williams also pointed out an industry shift: T-Mobile and other carriers are moving away from phone-focused key performance indicators as the sector matures. He described the broader telecommunications space as remaining in "decent shape despite the frenetic activity."
Market reaction and peer commentary
Even with an earnings beat, T-Mobile's stock fell in pre-market trading following the report. Separately, Scotiabank trimmed its price target on T-Mobile to $266 from $270.50 but maintained a Sector Outperform rating, citing the company's strong position driven by an advanced 5G network strategy and compelling customer value.
Analyst consensus and investor implications
Analyst coverage remains generally bullish despite variations in individual targets. InvestingPro aggregates these viewpoints and notes price targets in the $220 to $310 range, reflecting divergent assessments of the company's near-term subscriber momentum, longer-term growth trajectory, and capital allocation plans.
Bottom line
TD Cowen's adjustment to a $252 price target reflects a more cautious near-term view amid elevated churn and softer phone additions, balanced against solid quarterly results, a sizable capital return program, and an industry-wide shift away from handset KPIs.