T-Mobile Seen Adding Millions Of New Customers Each Year Despite Sluggish Economy

T-Mobile US TMUS will see COO Srini Gopalan take over as CEO on November 1, signaling leadership continuity while driving network and broadband growth.

The company continues to expand its 5G edge, broadband footprint, and customer base, positioning itself for steady growth in a competitive U.S. market.

Benchmark analyst Matthew Harrigan maintained T-Mobile US with an Overweight and a price forecast of $275.

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Harrigan reaffirmed T-Mobile as a “Best Idea” after the company named COO Srini Gopalan as its next CEO, succeeding Mike Sievert on November 1.

The analyst emphasized that this leadership shift represents continuity rather than disruption.

Sievert will remain Vice Chairman for at least a year, and most of T-Mobile’s key executives recently renewed contracts.

He noted that Gopalan brings deep experience, having served as CEO of T-Mobile Germany and, most recently, as group COO.

Harrigan noted that Gopalan’s knowledge of fiber and broadband dynamics supports T-Mobile’s strategy of pursuing equity partnerships with existing fiber operators alongside private equity firms KKR & Co. KKR and EQT Corp. EQT.

The analyst said that T-Mobile’s network leadership continues to drive its marketing edge, with roughly a 35% performance lead on Apple’s AAPL iPhone 17 due to its standalone 5G core and advanced transition. He added that device innovation and AI integration should accelerate customer switching.

Harrigan revised its models to reflect the pending UScellular close and updated switching trends. The analyst expects no change in the “uncarrier” ethos under Gopalan, highlighting switching as a central focus.

T-Mobile now serves more than 130 million customers, up from 30 million when Sievert took over in 2020, and its T-Life platform deepens customer engagement. He said that early iPhone 17 sales have shown double-digit gains in pre-orders and activations.

Harrigan also pointed to a disciplined spectrum strategy, with contiguous spectrum enhancing T-Mobile’s advantaged 600MHz and mid-band assets.

The analyst noted that T-Mobile Home Internet has grown to 7.3 million users, with data usage climbing more than 25%.

Gopalan has argued that mobile broadband advances faster than DOCSIS, giving T-Mobile momentum as the nation’s fastest-growing broadband provider.

He said partnerships like Starlink help close rural gaps while fiber partnerships minimize capital intensity.

Harrigan’s analysis shows that T-Mobile’s postpaid phone growth hinges on maintaining a substantial switching share. The analyst said T-Mobile captured 68% of net postpaid phone additions in the second quarter of 2025, up from a year earlier, and added 3.1 million postpaid phone customers in 2024.

He believes steady annual growth of 2.5 to 3 million phone additions remains realistic, even in a sluggish economy, so long as T-Mobile continues expanding in non-top 100 markets and corporate accounts while preserving its urban stronghold.

Harrigan concluded that T-Mobile’s superior 5G network, marketing strength, and disciplined capital strategy leave it well-positioned to sustain growth, pricing power, and leadership in the U.S. wireless market.

Harrigan projected fiscal 2025 revenue of $87.4 billion and EPS of $9.79.

Price Action: T-Mobile US stock is trading lower by 0.13% to $237.14 at last check Tuesday. 

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