Wolfe Research increased its price target on T-Mobile US to $255 from $253 and kept an Outperform rating on the wireless carrier's stock. At the time cited in reports, T-Mobile shares were trading at $218.26, with a market capitalization of $241.65 billion, and InvestingPro Fair Value estimates indicated the stock was slightly undervalued.
The research firm's modest upward revision followed T-Mobile's fourth-quarter 2025 results. Wolfe described the quarter as showing weaker key performance indicators while delivering strong financials. That characterization is consistent with InvestingPro data showing the company remained profitable over the last twelve months with a trailing price-to-earnings ratio of 20.73.
One notable change highlighted by Wolfe Research is T-Mobile's shift in reported metrics. The carrier moved from presenting subscribers multiplied by average revenue per user (ARPU) to reporting accounts multiplied by average revenue per account (ARPA). Wolfe called this change "a promising step towards stabilizing industry SAC," an assessment that frames the metric change as potentially meaningful for acquisition-cost dynamics.
Wolfe also pointed to corporate actions that may support a recovery in the stock price: T-Mobile has accelerated its first-quarter share buyback program, and Deutsche Telekom has paused its sales of T-Mobile shares. Taken together, those items contributed to Wolfe's decision to raise the target slightly while maintaining its Outperform stance.
In the same earnings release period, T-Mobile posted fourth-quarter 2025 results that beat Wall Street expectations on both the top and bottom lines. The company reported earnings per share of $2.14 versus a consensus of $2.04, and revenue of $24.33 billion compared with expected revenue of $24.18 billion. Despite the beat, T-Mobile's stock experienced a pre-market decline following the report.
Other brokerages have taken differing views in recent sessions. TD Cowen trimmed its price target to $252 from $263 while maintaining a Buy rating, citing mixed outlooks tied to slightly lower-than-expected phone subscriber additions. Scotiabank lowered its target to $266 from $270.50 but retained a Sector Outperform rating, pointing to T-Mobile's robust 5G network strategy and customer value proposition.
The combination of a Q4 earnings beat, weaker operating indicators, a change in reported revenue metrics, and varied analyst target adjustments has produced a mixed landscape of sentiment toward T-Mobile's near-term trajectory. Wolfe Research's move to raise the price target by a small amount reflects those cross-currents: solid financial performance balanced against softer KPIs and analyst caution.
Key takeaways
- Wolfe Research raised its T-Mobile price target to $255 from $253 and kept an Outperform rating.
- T-Mobile delivered stronger-than-expected Q4 2025 financial results while reporting weaker operating metrics; the company also switched from subscribers/ARPU to accounts/ARPA reporting.
- Other analysts reduced price targets amid mixed outlooks; corporate actions such as an accelerated buyback and paused sales by Deutsche Telekom were cited as supportive factors.
Risks and uncertainties
- Weaker key performance indicators in Q4 2025 could signal pressure on subscriber growth dynamics and unit economics - an issue relevant to the telecom and consumer wireless sectors.
- Mixed analyst reactions and reduced price targets reflect uncertainty about near-term operational trends, which may affect investor sentiment in the broader communications services sector.
- Slightly lower-than-expected phone subscriber additions noted by some firms underscore execution risks around customer acquisition and retention, potentially impacting revenue and margin profiles.
Note: This article reports the developments and analyst actions as described in company and research releases, without introducing additional facts beyond those provided.