T-Mobile US Plunges 5.4% Despite Earnings Beat

On April 25, 2025, T-Mobile US experienced a 5.4% drop in pre-market trading.

T-Mobile US recently introduced a series of new plans, pledging to maintain prices for five years. This move aims to provide consumers with better value amidst economic uncertainty. The company's consumer business president, Jon Freier, highlighted the increasing sensitivity of consumers to pricing, stating that the new plans offer relief to customers facing budget pressures.

T-Mobile US reported postpaid phone net additions of 495,000 in the first quarter, falling short of Wall Street's expectations of 506,557. Despite this miss, the company's robust earnings helped buoy investor confidence. The company reported quarterly earnings of $2.58 per share, surpassing the analyst consensus estimate of $2.44. Quarterly revenue came in at $20.89 billion.

In response to potential tariff increases on mobile devices, T-Mobile US and other telecom operators have implemented various incentives to mitigate the impact on consumers. These measures include maintaining mobile plan prices and offering phone upgrade discounts. T-Mobile US's strategy reflects a broader industry trend of providing value and predictability to customers in the face of economic challenges.