TMUS
T-Mobile US, Inc.
Communication Services · Telecom Services · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The dividend factor scored well, supported by rapid dividend-per-share growth from $0.65 to $3.80 and a sustainable 37.5% payout ratio, which was a key positive contributor to the composite [dividend.dps_trend, dividend.payout_ratio].
- Growth and momentum scores were held back by declining net income, near-flat EPS, and a downward drift in quarterly profitability metrics, preventing a higher composite score [growth.net_income.yoy, growth.eps_diluted.yoy, momentum.net_income_quarterly].
- The absence of any macro theme assignment meant no thematic tailwind contributed to the score, which is a neutral structural characteristic of the current model classification [theme.none].
Why Not Higher
- Net income declined 3.1% in FY2025 and quarterly profitability metrics trended downward across the trailing four quarters, which the model penalized in both the growth and momentum factors [growth.net_income.yoy, momentum.net_income_quarterly, momentum.operating_income_quarterly].
- T-Mobile is not assigned to any of the 24 tracked macro themes, so no thematic tailwind boosted the composite score [theme.none].
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from $81.4 billion in FY2024 to $88.309 billion in FY2025, a gain of 8.5%, while net income declined from $11.339 billion in FY2024 to $10.992 billion in FY2025, a drop of 3.1%. Diluted EPS edged up only 0.6%, from $9.66 in FY2024 to $9.72 in FY2025.
The model rewarded meaningful top-line expansion but penalized the contraction in net income and near-flat EPS, resulting in a below-midpoint score that reflects mixed growth quality.
In FY2025, T-Mobile posted an operating margin of 20.7%, a net margin of 12.4%, and a return on assets of 5.0%.
The model recognized solid operating and net margins as indicators of healthy earnings conversion, while the relatively modest return on assets tempered the score, reflecting the capital-intensive nature of the business.
Filing evidence currently available does not support a more specific explanation for this factor.
Quarterly revenue rose from $21.132 billion in 2025Q2 to a peak of $24.334 billion in 2025Q4 before pulling back to $23.107 billion in 2026Q1. Net income and operating income followed a similar pattern, with net income declining from $3.222 billion in 2025Q2 to $2.103 billion in 2025Q4 and partially recovering to $2.504 billion in 2026Q1, while operating income fell from $5.213 billion in 2025Q2 to $3.736 billion in 2025Q4 before recovering to $4.497 billion in 2026Q1.
The model appears to have penalized the overall downward drift in profitability metrics across the trailing four quarters, even though revenue remained elevated, resulting in a below-midpoint momentum score.
Dividends per share grew from $0.65 in FY2023 to $3.71 in FY2024 and $3.80 in FY2025, and the dividend payout ratio stood at 37.5% of net income in FY2025.
The model rewarded the rapid dividend growth trajectory and a payout ratio that signals meaningful income return to shareholders while leaving sufficient earnings retained, supporting a high sub-score.
T-Mobile is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a theme assignment means no thematic tailwind contributed to the score; this is a neutral characteristic of the current model classification and does not reflect negatively on the company's business.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
T-Mobile US delivered solid top-line growth of 8.5% in FY2025, with revenue rising from $81.4 billion to $88.309 billion, but net income declined 3.1% and diluted EPS grew only 0.6%, reflecting mixed growth quality [growth.revenue.yoy, growth.net_income.yoy, growth.eps_diluted.yoy]. The company maintains healthy operating and net margins of 20.7% and 12.4% respectively, though a return on assets of 5.0% underscores the capital-intensive nature of the business [profitability.operating_margin_pct, profitability.net_margin_pct, profitability.roa_pct]. A standout dividend trajectory — growing from $0.65 per share in FY2023 to $3.80 in FY2025 at a sustainable 37.5% payout ratio — provides a meaningful income signal, while recent quarterly profitability trends show a downward drift that tempers near-term momentum [dividend.dps_trend, dividend.payout_ratio, momentum.net_income_quarterly]. The composite score of 54.2/100 and a Medium risk rating result in a 'Research Further' label, reflecting a business with genuine strengths but enough mixed signals to warrant deeper due diligence.
Plain English
T-Mobile is growing its sales nicely and pays a rapidly rising dividend, but its profits have been slipping recently and its earnings growth is nearly flat, so the model says it's worth looking into more before drawing conclusions [growth.revenue.yoy, growth.net_income.yoy, dividend.dps_trend, momentum.net_income_quarterly].
Bull Case vs. Bear Case
Bull Case
- Revenue grew 8.5% year-over-year to $88.309 billion in FY2025, demonstrating meaningful top-line expansion in a competitive industry [growth.revenue.yoy].
- Dividends per share surged from $0.65 in FY2023 to $3.80 in FY2025, with a payout ratio of only 37.5%, signaling strong and sustainable income return to shareholders [dividend.dps_trend, dividend.payout_ratio].
- Operating margins of 20.7% and net margins of 12.4% in FY2025 indicate the company converts a healthy share of revenue into earnings [profitability.operating_margin_pct, profitability.net_margin_pct].
Bear Case
- Net income fell 3.1% in FY2025 even as revenue grew, and diluted EPS rose only 0.6%, suggesting cost pressures or other headwinds are eroding the benefit of top-line gains [growth.net_income.yoy, growth.eps_diluted.yoy].
- Quarterly net income declined from $3.222 billion in 2025Q2 to $2.103 billion in 2025Q4, and operating income followed a similar downward trend, pointing to a deteriorating profitability trajectory over recent quarters [momentum.net_income_quarterly, momentum.operating_income_quarterly].
- A return on assets of only 5.0% reflects the heavy asset base required to run the business, limiting how efficiently the company generates profit from its $219.237 billion in total assets [profitability.roa_pct, financial_health.total_assets].
What Could Change the Picture
Bullish Triggers
- A sustained recovery in quarterly net income and operating income back toward 2025Q2 levels would signal that the recent profitability drift has reversed [momentum.net_income_quarterly, momentum.operating_income_quarterly].
- Continued dividend growth beyond $3.80 per share while maintaining a conservative payout ratio would reinforce confidence in the company's earnings durability and capital allocation discipline [dividend.dps_trend, dividend.payout_ratio].
Bearish Triggers
- If net income continues to decline on an annual basis despite revenue growth, it would suggest structural margin compression that could threaten the dividend trajectory [growth.net_income.yoy, dividend.dps_trend].
- A meaningful increase in the debt-to-equity ratio beyond its current level of 1.46 could raise concerns about financial flexibility in a capital-intensive business [financial_health.debt_to_equity].
Risk Profile
Medium RiskT-Mobile carries a debt-to-equity ratio of 1.46 against a total asset base of $219.237 billion, reflecting the leverage typical of capital-intensive telecom operations [financial_health.debt_to_equity, financial_health.total_assets]. Recent quarterly momentum shows net income and operating income declining from their 2025Q2 peaks, introducing uncertainty about near-term earnings stability even as revenue remains elevated [momentum.net_income_quarterly, momentum.operating_income_quarterly].
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.