T-Mobile is slated to report its fourth-quarter 2025 results on February 11, with analysts projecting year-over-year revenue growth of approximately 7.5%. Key drivers include a 15% increase in 5G service subscriptions and a record 1.9 million postpaid net additions, buoyed by strong demand for unlimited data plans. Average revenue per user (ARPU) for premium service tiers is expected to rise by 4%, reflecting consumer willingness to pay for higher-speed connectivity. Capital expenditures rose 12% last quarter as the company accelerated its nationwide 5G network rollout, putting pressure on margins but positioning T-Mobile for continued service expansion.

On Wednesday, Verizon Wireless filed a lawsuit accusing T-Mobile of false advertising, claiming that promotional materials promise consumers more than $1,000 in annual savings for switching carriers. Verizon alleges these savings estimates disregard device financing and billing fees, resulting in consumer confusion and market distortion. The lawsuit seeks injunctive relief to halt T-Mobile’s marketing campaigns and unspecified damages for reputational harm. T-Mobile has not yet officially responded, but legal experts note that a protracted court battle could distract management and increase legal expenses.

T-Mobile’s management has signaled intentions to deploy excess cash flows for share repurchases, targeting up to $5 billion over the next twelve months. This buyback program follows three consecutive quarters of positive free cash flow, driven by operating margins above 32%. The company argues that repurchases offer a defensive shield against market volatility, particularly while interest rates remain elevated and Treasury yields fluctuate. Investors will be watching for buyback authorization details and potential shifts in dividend policy when the earnings release provides updated capital allocation guidance.