T-Mobile Stock Slips To More Than Two-Year Low — JPMorgan Cuts Target Ahead Of Q3 Citing Softer Service Revenue Outlook

• The firm maintained its third-quarter postpaid account net-add forecast at 260,000.
• JPMorgan trimmed its Q3 wireless service revenue estimate by 0.2% to $19.3 billion.
• Earlier this month, T-Mobile reaffirmed its previously stated 2026 financial guidance, capital return program, and long-term financial framework. 

T-Mobile US Inc. (TMUS) shares slipped as much as 3% on Monday, to their lowest level in more than two years. 

JPMorgan analyst Sebastiano Petti lowered the firm’s price target on T-Mobile to $260 from $275 while maintaining an ‘Overweight’ rating, according to TheFly. The firm updated its model ahead of T-Mobile’s third-quarter results to account for recent conference commentary and industry trends.

According to TheFly, JPMorgan kept its forecast for 260,000 postpaid account net additions but reduced its fiscal third quarter (Q3) wireless service revenue estimate by 0.2% to $19.3 billion, citing a lower outlook for postpaid service revenue growth.

T-Mobile Q2 Earnings Growth But Softer Customer Trends

T-Mobile’s second quarter (Q2) results showed financial growth but softer customer momentum. Service revenue rose 9% year over year to $19.0 billion, and postpaid service revenue increased 13% to $15.9 billion. However, postpaid net account additions fell 13% year over year to 277,000, while account churn was 0.99%.

The company also raised its adjusted free cash flow guidance to $18.4 billion to $18.8 billion while keeping its full-year postpaid account and profitability outlook unchanged.

T-Mobile Keeps 2026 Guidance Intact

T-Mobile has not lowered its full-year outlook. Earlier this month, the company reaffirmed its previously stated 2026 financial guidance, capital return program, and long-term financial framework. 

Its Q2 outlook called for 950,000 to 1.05 million postpaid net account additions and core adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $37.1 billion to $37.5 billion.

The guidance reaffirmation came alongside a planned CFO transition. Jessica Uhl joined T-Mobile as CFO Designate in September and will succeed Peter Osvaldik in February 2027.

T-Mobile is scheduled to report its third-quarter results on Oct. 28, putting postpaid additions and service revenue growth back in focus.

Retail Sentiment Around TMUS Stock

Retail investor sentiment surrounding TMUS stock turned ‘bullish’ on Stocktwits.

So far this year, T-Mobile shares have fallen more than 16%. In comparison, the 

State Street Communication Services Select Sector SPDR ETF (XLC), which holds the stock, has fallen over 2% over the same period.

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