T-Mobile Stock Under 19x, Forecasts $77B Service Revenue; Verizon's 5G Gains Surge
Q4 earnings per share fell short due to severance charges, but T-Mobile delivered robust revenue growth and added broadband subscribers, underpinning management’s bullish 2026–2027 outlook. Shares trade below 19x forward earnings with a 2026 service revenue target of $77B, while Verizon outpaces T-Mobile in 5G price gains and valuation metrics.
1. Q4 Performance
T-Mobile reported an EPS shortfall in Q4 due to severance charges but achieved robust revenue growth and added broadband subscribers, reinforcing management’s confidence in the consumer segment.
2. Valuation and Dividend Outlook
Shares trade below 19x forward earnings, presenting an attractively valued entry for long-term dividend growth investors targeting double-digit yield underpinned by forecast subscriber expansion.
3. 2026 Financial Guidance and 5G Competition
Management projects service revenue to reach $77B in 2026, while Verizon has outpaced T-Mobile with stronger price gains, rising estimates and a lower valuation, highlighting intensifying 5G market competition.