T-Mobile stock surges as Q4 earnings exceed expectations, signaling strong 2025 growth

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Inc. (NASDAQ: TMUS) saw its stock surge 6.3% in premarket trading following the release of its fourth-quarter 2024 earnings, which surpassed Wall Street expectations. The strong financial performance was fueled by record-breaking postpaid customer growth, robust service revenue, and continued leadership in performance.

With higher-than-expected earnings per share (EPS) of $2.57, exceeding analyst estimates of $2.29, and total revenue of $21.87 billion, reinforced its dominance in the wireless market. The company’s ability to sustain strong postpaid customer growth—adding 1.9 million postpaid customers in Q4 and 6.1 million for the full year—demonstrates its competitive edge in an increasingly saturated telecom industry.

How Did T-Mobile Achieve Industry-Leading Customer Growth?

T-Mobile has consistently outperformed competitors by leveraging a combination of aggressive customer acquisition, superior network infrastructure, and competitive pricing strategies. The company’s postpaid customer growth was a key driver of its record-breaking year, marking its third consecutive year of over 3 million postpaid phone net additions.

Postpaid phone churn—a critical metric in the telecom industry—was 0.92% in Q4, tying for the lowest fourth-quarter churn in company history. For the full year, churn dropped to 0.86%, signaling strong customer retention amid competitive pressures.

T-Mobile’s high-speed internet services also saw remarkable growth, with 428,000 net customer additions in Q4 and 1.7 million for the full year. By the end of 2024, T-Mobile had 6.4 million high-speed internet customers, further strengthening its position as a key player in home broadband services.

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What Role Does 5G Network Leadership Play in T-Mobile’s Success?

T-Mobile’s success is heavily tied to its 5G network leadership, which has been repeatedly validated by independent third-party reports. In the latest evaluations from Opensignal and Ookla, T-Mobile ranked first across multiple categories, including:

  • Fastest 5G network speeds
  • Most consistent 5G coverage
  • Best mobile video streaming experience
  • Top ranking in gaming and reliability

The company’s network superiority has allowed it to win high-profile contracts, such as a significant deal with the City of New York to provide wireless services for its public safety network, which operates under some of the strictest performance and reliability standards in the country.

With ongoing 5G infrastructure investments, T-Mobile continues to enhance its network capabilities, ensuring it remains the preferred choice for consumers and businesses seeking high-performance connectivity.

How Did T-Mobile Translate Customer Growth Into Financial Gains?

T-Mobile’s financial strength in Q4 2024 was evident across multiple key metrics:

  • Service revenue rose to $16.9 billion, up 6% year-over-year
  • Postpaid service revenue reached $13.5 billion, reflecting 8% year-over-year growth
  • Net income climbed to $3.0 billion, a 48% increase from Q4 2023
  • Diluted EPS increased 54% year-over-year, reaching $2.57 per share
  • Core Adjusted EBITDA grew to $7.9 billion, up 10% year-over-year
  • Adjusted Free Cash Flow totaled $4.1 billion in Q4 and $17.0 billion for the full year
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These numbers reflect T-Mobile’s ability to generate strong cash flow, enabling aggressive shareholder returns. The company returned $14.4 billion to shareholders in 2024, including $11.1 billion in stock buybacks and $3.3 billion in dividends.

What Can Investors Expect from T-Mobile in 2025?

T-Mobile’s guidance for 2025 suggests continued industry-leading growth, with the company forecasting:

  • Postpaid net customer additions between 5.5 million and 6.0 million, setting a record for its highest-ever initial guidance
  • Core Adjusted EBITDA between $33.1 billion and $33.6 billion
  • Net cash provided by operating activities between $26.8 billion and $27.5 billion
  • Adjusted Free Cash Flow ranging from $17.3 billion to $18.0 billion

These projections underscore T-Mobile’s confidence in sustaining its growth trajectory, backed by expanding customer adoption, strong 5G network leadership, and consistent financial discipline.

How Is T-Mobile Investing in Digital Inclusion?

Beyond its financial performance, T-Mobile continues to prioritize digital equity and inclusion through its flagship initiative, Project 10Million (P10M). Launched in 2020, P10M aims to bridge the by providing free connectivity and mobile hotspots to underserved students.

In 2024, T-Mobile expanded the program by doubling data allowances to 200GB per year for five years and introducing a discounted data pass extension for low-income families. The company has connected over 6.3 million students nationwide, investing more than $7.3 billion in digital access initiatives.

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By partnering with Boys & Girls Clubs of America, T-Mobile has expanded connectivity to underserved youth, addressing local disparities in digital access. The company also provided emergency connectivity support in response to California wildfires, waiving eligibility requirements and offering free hotspots to affected students.

What’s Next for T-Mobile?

As 2025 unfolds, T-Mobile is expected to maintain its competitive momentum, with a focus on:

  • Expanding its postpaid customer base
  • Strengthening its leadership in 5G network coverage
  • Enhancing high-speed internet services
  • Driving shareholder value through continued stock buybacks and dividends

With record-breaking customer additions, industry-best financial growth, and a dominant position in the 5G space, T-Mobile remains a key player in the evolving telecommunications landscape.

A Strong Future for T-Mobile Investors

T-Mobile’s record Q4 earnings, industry-leading postpaid customer growth, and strong 2025 outlook solidify its status as a powerhouse in the wireless industry. With a commitment to network expansion, digital equity, and financial discipline, the company is well-positioned for sustained growth and continued success in the coming year.


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