T-Mobile expects significant revenue growth in Q2 earnings announcement

In the U.S. telecom market, T-Mobile US is set to announce its earnings on Wednesday, July 23, 2025. The company anticipates reporting a revenue increase of approximately 6% year-over-year, translating to a projected $21 billion. This growth is expected to be driven by postpaid phone additions along with the expansion of their high-speed wireless broadband business, leveraging their extensive 5G network, which currently serves over 330 million people in the country. Despite these positive forecasts, T-Mobile has faced slowing growth in recent quarters. In the first quarter of this year, the company reported 495,000 new postpaid phone net additions, a decline of 37,000 from the same period last year. This situation has been exacerbated by intensified competition from rivals AT&T and Verizon, which have ramped up promotions to retain existing customers and attract new ones. As the U.S. telecom market approaches saturation, carriers like T-Mobile are increasingly relying on aggressive pricing strategies and value-added services to improve customer acquisition. Additionally, the churn rate, defined as the percentage of customers who discontinue service, rose by 5 basis points this past quarter to 0.91%, indicating a growing challenge for the company to maintain its customer base. Financially, T-Mobile presents a robust profile with a current market capitalization of $259 billion. For the past twelve months, the company generated $83 billion in revenue, achieving $19 billion in operating profits, which contributed to a net income of $12 billion. Stakeholders are keenly aware that the results of the upcoming earnings announcement will significantly impact trading strategies, with historical trends indicating that positive returns have occurred about 65% of the time in one-day post-earnings returns over the last five years, although this figure decreases to 58% over the last three years.