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T-Mobile's Q1 Earnings Beat Overshadowed by Subscriber Growth Miss

Despite strong financial results and raised profit guidance, T-Mobile's slower phone subscriber growth led to a sharp stock decline and strategic pricing adjustments.

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Overview

  • T-Mobile reported Q1 2025 earnings of $2.58 per share and $20.88 billion in revenue, surpassing analyst expectations.
  • The company added 495,000 postpaid phone subscribers, falling short of the forecasted 505,000, contributing to a 7% drop in its stock price.
  • T-Mobile raised its full-year profit forecast by $100 million, now expecting $33.2 billion to $33.7 billion in core adjusted EBITDA.
  • To address competitive pressures, T-Mobile introduced new value-focused plans, including five-year price locks and $25/month lines.
  • CEO Mike Sievert cautioned that potential cellphone tariffs could increase customer costs, as the company would pass these expenses on to consumers.