T-Mobile US (NASDAQ:TMUS) saw its stock surge over 8% intra-day today after reporting stronger-than-expected subscriber growth for the fourth quarter and providing a bullish outlook for 2025. The telecom giant’s ability to attract customers with affordable high-speed 5G plans and bundled streaming services, such as Netflix, continued to fuel its expansion.
During the quarter, T-Mobile added 903,000 postpaid phone subscribers, surpassing Bloomberg’s consensus estimate of 864,539. CEO Mike Sievert emphasized that the company was delivering its “strongest start-of-year” guidance for bill-paying net customer additions in its history. For 2025, postpaid net subscribers are projected to rise between 5.5 million and 6 million, exceeding analyst expectations of 5.23 million. In 2024, the company reported 6.1 million postpaid additions, outpacing its own upgraded forecasts.
Revenue for the quarter climbed 6.8% year-over-year to $21.87 billion, ahead of estimates of $21.35 billion. Earnings per share came in at $2.57, reinforcing the company’s profitability.
T-Mobile also delivered robust free cash flow, a key metric for determining dividend distributions. The company generated $4.1 billion in adjusted free cash flow for the quarter and $17 billion for the full year. In 2025, free cash flow is expected to range between $17.3 billion and $18 billion, exceeding Street estimates at the midpoint.
Previously, T-Mobile projected its free cash flow would reach between $18 billion and $19 billion by 2027, signaling continued financial strength and shareholder returns in the years ahead.