Shares of T-Mobile US, Inc. (TMUS) extended their upward trajectory on Friday, February 13, 2026, closing with a notable gain of 2.25% at $219.52. The stock maintained its position in after-hours trading, holding steady at $219.50, marking a third consecutive session of positive momentum. Investor focus has sharpened on the telecommunications provider's enhanced capital return strategy and its latest foray into European debt markets.
Revised Outlook and Accelerated Share Repurchases
Driving the recent share price appreciation, T-Mobile's management team provided an update to certain long-term financial projections for the 2026–2027 period. More significantly, the company announced a substantial increase in its share buyback program for the current quarter, effectively doubling its target to approximately $5.0 billion. This aggressive repurchase plan underscores a firm commitment to returning capital to shareholders. The company also reaffirmed its broader capital return authorization for the full 2026 calendar year and outlined a preliminary roadmap extending into 2027. A key metric guiding this strategy is adjusted free cash flow, a non-GAAP measure representing cash remaining after capital expenditures, which management emphasized as a central benchmark for performance.
Euro-Denominated Bond Offering
Concurrently, T-Mobile's financing arm, T-Mobile USA, moved to raise €2.5 billion through a sale of senior notes denominated in euros. The debt issuance is structured across three tranches with varying maturities: notes yielding 3.200% due in 2032, 3.625% due in 2035, and 3.900% due in 2038. Company filings indicate the proceeds are earmarked for general corporate purposes, which may include funding the accelerated stock repurchase program or refinancing existing debt. The offering is scheduled to settle on February 19, 2026, providing immediate liquidity.
Fourth-Quarter Financial and Operational Snapshot
The market activity follows the release of T-Mobile's fourth-quarter 2025 results. The company reported diluted earnings per share (EPS) of $1.88 for the period. On the customer front, T-Mobile added a robust 962,000 net new postpaid phone subscribers, demonstrating continued growth in its highly valuable customer segment. However, this growth was accompanied by an increase in postpaid phone churn, which rose to 1.02%, indicating a slightly higher rate of customer attrition compared to previous periods.
A Strategic Shift in Reporting
During the earnings conference call, management signaled a consequential shift in its reporting methodology, a move that had been anticipated by industry analysts. Executives stated the company would cease providing detailed subscriber-level metrics, pivoting instead to an account-based reporting framework. Future disclosures will emphasize postpaid account numbers and Average Revenue Per Account (ARPA). This change is intended to reflect the evolving nature of bundled service offerings but has drawn criticism from some market observers.
Analyst and Market Reaction
The reduction in granular data disclosure was met with concern by several analysts. Craig Moffett, a senior analyst at MoffettNathanson, commented to Reuters that "more is more when it comes to disclosure," highlighting the importance investors place on phone subscriber figures, especially during an ongoing competitive price war in the U.S. wireless sector involving rivals AT&T (T) and Verizon (VZ).
Following the earnings report, TD Cowen adjusted its price target for TMUS downward to $252 from $263 but maintained a Buy rating. Analyst Greg Williams noted that T-Mobile appears "more dismissive on convergence" strategies—referring to the bundling of wireless, broadband, and video services—choosing instead to prioritize its capital return program. Other commentary pointed to headwinds, including elevated expenses related to severance and corporate transformation initiatives noted by Barron's. Analysts also warned that aggressive promotional campaigns from AT&T and Verizon could continue to pressure subscriber growth and margin expansion for the entire industry.
Looking ahead, investors are monitoring the completion of the euro-bond sale and the subsequent pace of stock repurchases in the first quarter. The upcoming quarterly report will also serve as the inaugural presentation under T-Mobile's new account-based reporting model, a change that will reshape how the market evaluates its core performance drivers.
