T-Mobile US Inc. (NASDAQ: TMUS) is facing revised price targets from multiple analysts despite announcing a new shareholder return program, creating a mixed outlook for the telecommunications giant. The adjustments reflect concerns about future growth and sector performance, even as the company continues to deliver strong financial results.
T-Mobile Price Targets Adjusted
As of December 15, 2025, T-Mobile stock is trading at $195.16, a slight decrease of $0.17 (-0.00%) from the previous close. The recent analyst revisions and shareholder program announcement have contributed to market uncertainty surrounding the stock.
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Wolfe Research lowered its price target on T-Mobile to $253 from $290, maintaining an “Outperform” rating. This change is part of a broader sector outlook where Wolfe downgraded the telecom and cable group to “Market Weight,” citing continued deterioration in key performance indicators observed in the second half of 2025. Goldman Sachs also reduced its price target from $287 to $251, while reiterating a “Buy” rating. According to Goldman Sachs, the new shareholder return program was in line with prior expectations; however, projected repurchase levels have been revised lower due to limited signs that the remaining $20 billion of flexible capital will drive outsized 2026 buybacks. Morgan Stanley also decreased its price target for T-Mobile from $280 to $260 on December 10, 2025, while maintaining an “Overweight” rating.
T-Mobile’s Board of Directors authorized a new shareholder return program of up to $14.6 billion, running through December 31, 2026. The program will consist of share repurchases and cash dividends. The company noted that “The amount available under the 2026 Shareholder Return Program for share repurchases will be reduced by the amount of any cash dividends declared and paid by the Company, including the Company’s Q1 2026 cash dividend announced on December 4, 2025 of $1.02 per share of Company common stock payable on March 12, 2026 to stockholders of record as of the close of business on February 27, 2026.”
In its Q3 2025 earnings report, T-Mobile reported record customer growth and raised its full-year 2025 guidance. The company reported total postpaid net customer additions of 2.3 million. Service revenues increased by 9% year-over-year to $18.2 billion, with postpaid service revenues growing by 12% to $14.9 billion. Net income stood at $2.7 billion, and diluted earnings per share were $2.41. In addition, T-Mobile completed the acquisition of UScellular on August 1, 2025, and subsequently increased its synergy expectations to approximately $1.2 billion in total annual run rate cost synergies.
On September 18, 2025, T-Mobile announced a 16% increase in its quarterly cash dividend, raising it to $1.02 per share.
TMUS Analyst Summary
Bull Case
- Strong Q3 2025 results with record customer growth.
- $14.6 billion shareholder return program authorized.
- Increased synergy expectations from UScellular acquisition.
Bear Case
- Wolfe Research downgraded telecom sector to “Market Weight.”
- Goldman Sachs lowered repurchase projections for 2026.
- Multiple analysts have revised price targets downward.
The recent analyst adjustments suggest some caution regarding T-Mobile’s future performance in a competitive telecommunications landscape. While the shareholder return program and strong Q3 results provide a degree of confidence, the revised price targets reflect concerns about the sustainability of growth and the impact of sector-wide challenges.
