Q2 earnings and buybacks put T-Mobile US (TMUS) under the spotlight

T-Mobile US (TMUS) has drawn investor attention after reporting second quarter 2026 results alongside an update on its ongoing share repurchase program, combining fresh earnings data with a clearer view of capital returns.

For the quarter ended June 30, 2026, the company reported revenue of US$22,791 million compared with US$21,132 million a year earlier, while net income was US$3,239 million versus US$3,222 million in the prior year period.

Basic and diluted earnings per share from continuing operations came in at US$2.99, compared with US$2.84 a year ago, giving investors updated per share profitability data to weigh against the recent share price performance.

Across the first half of 2026, revenue was US$45,898 million compared with US$42,018 million a year earlier, with net income of US$5,743 million versus US$6,175 million over the same six month stretch in 2025.

For the six month period, basic earnings per share from continuing operations were US$5.26 compared with US$5.43 a year ago, while diluted earnings per share from continuing operations were US$5.26 compared with US$5.42.

Alongside the earnings release, T-Mobile US reported progress on its previously announced share buyback, giving investors additional context on how the company is using cash to return value to shareholders.

At a share price of US$180.09, T-Mobile US has seen a 1-day share price return of 5.67%, while the year-to-date share price return is down 9.77% and the 1-year total shareholder return is down 22.97%. This indicates recent momentum has softened, even though the 3-year total shareholder return of 36.69% and 5-year total shareholder return of 29.96% show a stronger longer-term picture.

If the mix of earnings, buybacks and telecom demand has your attention, it can be useful to look beyond T-Mobile US and scan other opportunities using our 35 power grid technology and infrastructure stocks

T-Mobile US is trading at US$180.09 after a sharp 1-day move, while longer term returns have been weaker. The valuation question is whether to treat this bounce as an entry point or wait for a cheaper setup.

Most Popular Narrative: 29.1% Undervalued

Against the last close of $180.09, the most followed narrative for T-Mobile US points to a fair value of $253.88, framing a sizeable valuation gap for investors to unpack.

The launch and expansion of T-Fiber following the acquisition of Lumos, along with further expansion plans via Metronet, could lead to incremental service revenue growth and enhance long-term profitability.

Innovations such as the rollout of 5G Advanced and T-Satellite, alongside enhancements in digital platforms like T-Life, signal operational improvements that could drive margin expansion and future earnings growth.

This narrative leans on steady revenue growth, higher margins and a different earnings multiple several years out. Curious which specific assumptions have the biggest impact on that $253.88 figure?

Result: Fair Value of $253.88 (UNDERVALUED)

However, the T-Mobile US narrative can still be knocked off course if Starlink intensifies wireless competition, or if heavier fiber investment weighs on margins longer than expected.

Another view on T-Mobile US valuation

The narrative around T-Mobile US leans heavily on a fair value of US$253.88, yet the picture looks different when only the current P/E is used. The stock trades on a P/E of 18.3x versus a fair ratio of 16.7x, the peer average of 9.8x and the global wireless telecom average of 15.3x, which points to a richer valuation that could matter if expectations reset.

For a closer look at what these P/E gaps might mean in practice, including where the fair ratio suggests the market could drift over time, See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

With mixed signals around T-Mobile US, including both risks that investors are watching closely and rewards they are hopeful about, it makes sense to review the underlying data now and decide where you stand based on the full picture of 3 key rewards and 1 important warning sign

Looking for more investment ideas beyond T-Mobile US?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.