T-Mobile US shares fell 10.8% on the day of its second-quarter 2026 earnings release, bringing the year-to-date decline to about 14.6% and the one-year total shareholder return to a 29.9% loss. The company beat profit expectations but slightly missed revenue estimates, even as management raised full-year free cash flow guidance. The most widely followed analyst narrative now pegs fair value at $253.88 per share versus the current $170.42, implying the stock is 32.9% undervalued, with a consensus price target of $253.88 and a range from $170.00 to $300.00. However, the current price-to-earnings ratio of 17.5x sits above the estimated fair ratio of 16.5x and above peer and industry averages of 12.4x and 15.6x, suggesting less room for error if growth disappoints. Risks include potential handset tariffs raising device costs and rivals ramping up promotions.
T-Mobile US IncStock fell 10.8% after earnings beat profit but missed revenue; analyst narrative says 33% undervalued, but P/E above peers suggests risk.