JPMorgan reiterates Overweight rating on T-Mobile stock after strong Q3

Investing.com - JPMorgan has reiterated an Overweight rating and $300.00 price target on T-Mobile US (NASDAQ:TMUS) following the company’s strong third-quarter 2025 results. With the stock currently trading at $219.99, InvestingPro analysis suggests the company is slightly undervalued, supporting JPMorgan’s bullish stance.

T-Mobile reported record postpaid net additions in the quarter, alongside improved core EBITDA of $32.07 billion, prompting the company to raise its 2025 guidance for net additions, EBITDA, and free cash flow. The company maintains strong financial health with an InvestingPro Overall Score of GOOD, supported by robust profitability metrics and steady growth.

JPMorgan has increased its 2025 forecast for T-Mobile’s total postpaid net additions to 7.35 million, compared to company guidance of 7.2-7.4 million, citing the carrier’s "differentiated value proposition" of network leadership and digital transformation that continues to drive market share gains.

The financial institution now projects T-Mobile’s 2025 service revenue at $71.4 billion, representing 8.0% year-over-year growth, with core adjusted EBITDA of $33.8 billion, a 6.7% increase from the previous year, compared to company guidance of $33.7-33.9 billion.

JPMorgan maintains T-Mobile as its favorite stock and a top pick on its U.S. Equity Analyst Focus List, pointing to the company’s industry-leading EBITDA and free cash flow per share growth, continued postpaid phone share gains, and robust capital return program of up to $50 billion through 2027. InvestingPro data reveals the stock trades with notably low volatility (Beta: 0.58) and attractive valuation metrics, with additional insights available in the comprehensive Pro Research Report.

In other recent news, T-Mobile US Inc. reported its third-quarter earnings for 2025, slightly surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of 2.41 USD, compared to the forecasted 2.4 USD. Additionally, T-Mobile’s revenue reached 21.96 billion USD, exceeding the anticipated 21.88 billion USD. These results highlight the company’s stable growth in the third quarter. Despite the positive earnings and revenue figures, the stock experienced a decline in premarket trading. Analysts from various firms have been closely monitoring these developments. The earnings and revenue results are crucial for investors assessing T-Mobile’s financial performance. These recent developments provide insight into the company’s current financial standing.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.