TMUS Stock Heads For Worst Week In Six Years, But Why Does Goldman Sachs Still See 35% Upside?

• T-Mobile stock dropped more than 10% on Thursday on concerns about slow subscriber growth.
• Goldman Sachs said strong customer growth and rising revenue per account outweigh near-term concerns over slower Q3 subscriber additions.
• CFO warned of Q3 churn and slower subscriber growth as customers transition to newer pricing plans.  

T-Mobile US Inc. (TMUS) stock is headed toward its worst week in six years after mixed fiscal second-quarter (Q2) results, yet Goldman Sachs reiterated its ‘Buy’ rating, citing improving cash flow and 35% upside potential. 

T-Mobile stock fell over 10% on Thursday as investors looked past better-than-expected Q2 earnings and a higher full-year cash flow forecast, instead worrying that higher-priced plans could slow subscriber growth in the coming months. 

Why Goldman Sachs Remains Bullish On T-Mobile 

Goldman Sachs increased its price target for T-Mobile to $230 from $224 while citing continued operational strength and growth opportunities, implying a 35% upside to the stock’s last price. 

T-Mobile added 277,000 postpaid accounts during Q2, reflecting healthy demand across both mobile phone and broadband services. Goldman Sachs said the company continues to show solid customer momentum, though it expects account additions to moderate to roughly 250,000 in Q3 as some customers react to recent pricing changes.

Goldman Sachs said investors may be concerned about T-Mobile’s unchanged 2026 forecast and weaker Q3 expectations, but the firm remains positive on the company’s future growth prospects, citing higher revenue per customer and greater room to add subscribers. 

TMUS CFO Says Pricing Changes Will Lift Churn Before Growth Recovers 

Speaking during the Q2 earnings call, T-Mobile US CFO Peter Osvaldik reassured investors that it still expects healthy customer growth for the full year, even as he acknowledged that changes to its pricing strategy will likely weigh on subscriber additions during Q3. 

“As part of our full year plan and guidance, we anticipated our Q3 rate plan modernization would result in a temporary elevated account churn profile and expect Q3 net postpaid account additions to be approximately 250,000.” 

Osvaldik said that the expected increase in churn should have a smaller effect on postpaid phone customers because the pricing changes are primarily concentrated among accounts with fewer wireless lines. That distinction suggests the company expects its larger customer relationships to remain relatively stable throughout the transition.

He added that the company continues to expect postpaid net account additions of between 950,000 and 1.05 million for 2026. Management said the forecast reflects confidence in the underlying strength of the business despite near-term headwinds tied to its pricing changes.

TMUS Stock: Retail Calls The Selloff An Overreaction

On Stocktwits, retail sentiment around the stock jumped to ‘bullish’ from ‘bearish’ territory the previous day, with a 450% increase in message volume over the past week. 

A user said, “Huge overreaction. Drop to 180 was probably enough.”

Another user said, “You can be right and still wrong. best service around. now might be the time to enter.”

TMUS stock has declined 16% year-to-date. 

Also See: DECK Stock Falls Overnight As Q2 Sales Growth Slows — Retail Calls The Drop 'Absurd'

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