Goldman Sachs Raises Target on T-Mobile US, Citing Strong Momentum

T Mobile US US8725902030

Market sentiment toward T-Mobile US received a significant boost today as Goldman Sachs issued a substantial upgrade to its price target for the telecommunications giant. The firm's analysts increased their target to $254 from $233, reinforcing a "Buy" rating on the shares. This move follows a recent stock rally fueled by an improved long-term outlook and aggressive new capital return initiatives, coming just a day after Wells Fargo raised its own target to $235.

The positive analyst actions are grounded in the company's recently reported fourth-quarter performance. T-Mobile US posted quarterly revenue of $24.33 billion, marking an 11.3% year-over-year increase. A key highlight was the adjusted earnings per share (EPS) of $2.14, which surpassed market expectations. Investors were particularly encouraged by robust growth in postpaid subscribers and an optimistic forecast for the coming years.

Strategic financial management is proceeding in parallel with these operational successes. The company's U.S. subsidiary successfully placed euro-denominated bonds totaling 2.5 billion euros, with maturities extending to 2038 and coupon rates ranging from 3.2% to 3.9%. This fresh capital is earmarked to support shareholder returns, including dividends and an accelerated stock repurchase program.

• Q4 Revenue: $24.33 billion (+11.3%)
• Adjusted EPS: $2.14 (beat expectations)
• Next Dividend: $1.02 (Ex-Date: February 27)
• Q1 2026 Buyback Plan: Up to $5.0 billion in volume

Accelerated Capital Return Strategy Unveiled

A major focus for the market is management's plan to significantly ramp up share repurchases. Reports indicate the company intends to nearly double the volume of buybacks in the first quarter of 2026, targeting up to $5.0 billion. This commitment to returning capital to shareholders is a central pillar of the current bullish thesis.

The upcoming ex-dividend date of February 27 is now a key date on the investor calendar. With Goldman Sachs's elevated price objective providing additional confidence, the overall market view on T-Mobile US shares remains positive as the company seeks to balance maintaining its high growth trajectory with substantially rewarding its shareholders.