Selloff Overdone; Still the Best Signal in Telecom

研报英文原文证据摘录

Selloff Overdone; Still the Best Signal in Telecom

Communications | Cable, Satellite & Telecom Services

July 24, 2026

T-Mobile US, Inc. Kutgun Maral, CFA Amir Razban 212-497-0804 212-812-2923

TMUS | $170.42 kutgun.maral@evercoreisi.com amir.razban@evercoreisi.com

Outperform | Target Price/Base Case: $235.00 (from Erica Nie

$270.00) 212-812-2906

Earnings Report erica.nie@evercoreisi.com

Selloff Overdone; Still the Best Signal in

Company Statistics

Telecom Market Capitalization (B) $193

Enterprise Value (B) $269 TMUS shares sold off 11% after 2Q26 results marked a departure from the

52-Week Range $165.66 - $261.56 typical “beat-and-raise” cadence investors have grown accustomed to. The

quarter itself was generally solid – postpaid subscriber metrics and service

revenue came largely in line, while adj. EBITDA and FCF both beat.

However, full-year guidance was reiterated (save for a slight tick up in FCF

1 Year Price History

on lower cash taxes) against what we believe were expectations for a raise,

and the 3Q outlook for postpaid account net adds, service revenue, and

EBITDA all landed below Street estimates. Further, investor enthusiasm for

fixed wireless – a category TMUS helped establish and scale – has also

waned with the emergence of satellite broadband offerings, while softer

prepaid and wholesale/other trends are likely to weigh on total service

revenue growth more than the Street previously anticipated.

Buybacks were also somewhat light ($2.2bn vs. consensus of $2.9bn), with

management noting its capital envelope will be “considerate of upcoming

spectrum opportunities” in both 2027 and 2028. TMUS stands out among

the Big Five US telecom/cable names for its healthy balance sheet, EBITDA

growth running at multiples of peers, and substantial FCF generation. Still,