TMUS Set to Report Q3 Results: Will Higher Revenue Drive Earnings?

T-Mobile, US, Inc. TMUS is set to report third-quarter 2025 results on Oct. 23, before the opening bell. In the trailing four quarters, the company delivered an earnings surprise of 9.86%, while in the last reported quarter, it delivered an earnings surprise of 5.58%.

The wireless service provider is expected to have witnessed a revenue expansion year over year, backed by healthy traction for its postpaid services. Solid customer wins and growing demand for its industry-leading 5G portfolio are positive. However, stiff competition and macro headwinds remain a concern.

Factors at Play

T-Mobile continues to boast a leadership position in the 5G market. The company continues to boost its network infrastructure to deliver best-in-class connectivity and coverage nationwide.

During the quarter, T-Mobile completed a $2 billion, multi-year network expansion across Florida, delivering significantly faster 5G speeds, broader coverage and stronger emergency communications infrastructure throughout the state. The investment reinforces the company’s commitment to both innovation and accessibility, reaching 22 million residents in urban and rural communities alike.

In the to be reported quarter, Charter and Comcast inked a multi-year agreement with TMUS to leverage its 5G network to deliver consistent mobile services. T-Mobile is also selected as the official telecommunication service provider by the Los Angeles Organizing Committee for the upcoming Olympic and Paralympic Games. Southwest Airlines has joined forces with T-Mobile to deliver seamless in-flight WiFi. Such customer wins are expected to have a favourable impact on TMUS’ third-quarter results.

In the quarter under review, T-Mobile completed the acquisition of UScellular’s wireless operations. The purchase, valued at $4.3 billion, will boost its home broadband offerings and fixed wireless portfolio.

However, T-Mobile operates in a highly competitive and saturated U.S. wireless market. It competes with industry giants like AT&T and Verizon. Intensifying competition with a relatively fixed pool of customers is putting pressure on pricing.

Overall Expectations From TMUS in Q3

Our estimate for total service revenues is pegged at $17.6 billion, implying 5.3% year-over-year growth. The estimate for equipment revenues is pegged at $3.55 billion, indicating a 10.9% increase year over year.

For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $21.73 billion, which indicates an improvement from the year-ago quarter’s reported figure of $20.16 billion. The consensus estimate for adjusted earnings per share is pegged at $2.42, indicating a decline from $2.61 reported a year ago.

Earnings Whispers for TMUS Stock

Our proven model does not conclusively predict an earnings beat for T-Mobile this time around. 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.

TMUS’ Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -1.29%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

T-Mobile US, Inc. Price and EPS Surprise

T-Mobile US, Inc. price-eps-surprise | T-Mobile US, Inc. Quote

TMUS’ Zacks Rank: T-Mobile currently has a Zacks Rank #4 (Sell).

Stocks to Consider

Here 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:

The Earnings ESP for AT&T, Inc. T is +0.92% and it carries a Zacks Rank of 3 at present. The company is scheduled to report its quarterly numbers on Oct. 22. You can see the complete list of today’s Zacks #1 Rank stocks here.

Honeywell International HON is scheduled to report quarterly numbers on Oct. 23. The Earnings ESP for the company is +0.65% and it carries a Zacks Rank of 3 at present.

The Earnings ESP for Qualcomm Incorporated QCOM is +1.43% and it carries a Zacks Rank of 3 at present. The company is scheduled to report its quarterly numbers on Nov. 5.

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This article originally published on Zacks Investment Research (zacks.com).

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