T-Mobile US (NASDAQ: TMUS) delivered a thunderous clear-the-decks report for its fourth quarter of 2025, shattering analyst expectations and aggressively raising its multi-year guidance. The “Un-carrier” has officially transitioned from a pure-play wireless disruptor into a converged connectivity giant, announcing a massive acceleration in shareholder returns and a new, ambitious broadband roadmap.
Financial Snapshot: Q4 2025 & Full Year
T-Mobile ended 2025 with momentum that defied the broader telecom slowdown, driven by its “more-for-more” premium rate plan strategy and the rapid integration of its fiber acquisitions.
Revenue & Earnings
Total revenue: $24.33 billion in Q4 2025, up 11% year-over-year and ahead of consensus expectations.
Service revenues: $18.7 billion, up 10% YoY, driven by strong demand for postpaid plans.
Net income: $2.1 billion for the quarter.
Diluted EPS: $1.88 (GAAP) with an adjusted EPS of $2.14, beating analyst forecasts.
Core adjusted EBITDA: $8.4 billion, up 7% YoY.
Adjusted Free Cash Flow: $4.2 billion in Q4 and $18.0 billion for full year 2025
Conference Call Highlights: The Convergence Pivot
CEO Srini Gopalan and the executive team used the call to outline a “widening moat” fueled by AI efficiency and physical infrastructure.
The “Fiber + 5G” Powerhouse
The headline surprise was the revised broadband target. T-Mobile now expects to serve 18–19 million broadband customers by 2030, split between:
15 Million Fixed Wireless Access (5G Home Internet) customers.
3 to 4 Million Fiber customers via the integrated Metronet and Lumos JVs.
Management Commentary
Srini Gopalan, CEO said, “We entered 2026 not just defending a lead, but rewriting the rules of the game. With $18 billion in expected free cash flow this year, we have the firepower to invest in 6G and Fiber while returning historic amounts of cash to our owners.”
CFO Peter Osvaldik highlighted a startling metric: calls to customer care have dropped by 50% since 2021. This reduction is largely attributed to the company’s “T-Life” AI agent, which now handles end-to-end transactions for upgrades and add-a-lines, significantly boosting margins.
T-Satellite & Starlink
The “Direct to Cell” partnership with SpaceX is now commercial. Management confirmed that T-Satellite text messaging is live nationwide, with data services (beta) rolling out to premium “Next” plan subscribers in late Q1 2026. This effectively eliminates dead zones for T-Mobile users, a key differentiator in rural marketing.
Capital Markets Update
Shareholder Returns: The $5 Billion Quarter
T-Mobile announced it will double its share repurchases in Q1 2026 to $5.0 billion.
Total 2026 Authorization: Up to $14.6 billion earmarked for buybacks and dividends.
Dividend Hike: The Board declared a $1.02 per share dividend (payable March 12, 2026), representing a confident double-digit increase from the previous year.
Analyst Sentiment
Analysts see the “capital-light” fiber strategy, using JVs like Lumos/EQT rather than 100% on-balance-sheet builds as a masterstroke that preserves Free Cash Flow while hedging against cable competitors.
Concerns remain regarding the saturation of the 5G Fixed Wireless network in urban corridors, though the pivot to fiber addresses this capacity ceiling.
The Bottom Line
T-Mobile has successfully graduated from its “growth at all costs” phase to a “profitable compounding” phase. By locking in a 19-million subscriber broadband target and unleashing a $5 billion buyback blitz, TMUS is signaling that it intends to be the dominant cash-flow engine of the US telecom sector for the remainder of the decade.