T-Mobile Set to Report Q4 Results: Can Revenue Growth Lift Earnings?

T-Mobile, US, Inc. TMUS is set to report fourth-quarter 2025 results on Feb.11, before the opening bell. In the trailing four quarters, the company delivered an earnings surprise of 9.09%, while in the last reported quarter, it delivered an earnings surprise of 7.02%, beating estimates in all the previous quarters.The wireless service provider is expected to post year-over-year revenue growth, driven by continued postpaid subscriber additions, strong 5G adoption, and higher demand for premium wireless and broadband services. However, intense price competition, higher promotional and customer acquisition costs, rising network investments, and increased operating expenses are pressuring the bottom line.Factors at PlayT-Mobile, while maintaining its leadership in the 5G market, faces rising capital and operating costs from ongoing network expansion and upgrades, which could pressure its margins and constrain near-term financial performance despite improvements in nationwide connectivity and coverage.During the quarter, the launch of Edge Control and T-Platform strengthened T-Mobile’s enterprise offerings; however, the near-term revenue impact might have remained limited due to gradual adoption, elevated rollout costs, and intense competition that could pressure pricing and margins.T-Mobile expanded its partnership with the Formula 1 Las Vegas Grand Prix during the quarter, boosting its brand visibility, with an immediate revenue impact likely limited, as higher marketing and sponsorship costs might have offset immediate returns and offered mainly long-term branding benefits.In the quarter under review, the expansion of T-Satellite to power apps highlighted T-Mobile’s innovation; however, short-term revenue gains are expected to have been modest, as gradual adoption, small revenue contributions, and ongoing development costs might have pressured margins.T-Mobile operates in a highly competitive and mature U.S. wireless market, facing strong rivals, such as AT&T and Verizon. Intensifying competition within a largely saturated customer base is likely to have continued to pressure pricing and limit growth.Overall ExpectationsOur estimate for total service revenues is pegged at $18.6 billion, up from $16.9 billion recorded in the year-earlier quarter. The estimate for equipment revenues is pegged at $5 billion compared with $4.7 billion recorded in the year-earlier quarter. For the December quarter, the Zacks Consensus Estimate for total revenues is pegged at $23.6 billion, which indicates an improvement from the year-ago quarter’s reported figure of $21.9 billion. The consensus estimate for adjusted earnings per share is pegged at $2.11, indicating a decline from $2.57 reported a year ago.Earnings WhispersOur proven model does not conclusively predict an earnings beat for T-Mobile for the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -3.64%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: T-Mobile carries a Zacks Rank #4 (Sell). T-Mobile US, Inc. Price and EPS Surprise T-Mobile US, Inc. price-eps-surprise | T-Mobile US, Inc. QuoteStocks to ConsiderHere are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:Akamai Technologies, Inc. AKAM is set to release its fourth-quarter 2025 numbers on Feb. 19. It has an Earnings ESP of +1.97% and carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Earnings ESP for IPG Photonics Corporation IPGP is +15.08%, and it sports a Zacks Rank of 1 at present. The company is scheduled to report fourth-quarter 2025 numbers on Feb. 12.The Earnings ESP for Applied Materials, Inc. AMAT is +2.99%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report first-quarter fiscal 2026 numbers on Feb 12.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Akamai Technologies, Inc. (AKAM): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report T-Mobile US, Inc. (TMUS): Free Stock Analysis Report IPG Photonics Corporation (IPGP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks