T-Mobile slips 3% to multi-year low as JPMorgan cuts target

T-Mobile US shares fell as much as 3% on Monday, hitting their lowest level in more than two years. The stock has dropped more than 16% so far this year, compared with a decline of over 2% for the State Street Communication Services Select Sector SPDR ETF.

JPMorgan analyst Sebastiano Petti trimmed the bank's price target on T-Mobile to $260 from $275 while maintaining an Overweight rating, according to TheFly. The bank adjusted its model ahead of third-quarter results scheduled for Oct. 28, reducing its wireless service revenue forecast by 0.2% to $19.3 billion on softer postpaid growth expectations while keeping its forecast of 260,000 postpaid account net additions.

In the second quarter, T-Mobile posted service revenue of $19.0 billion, up 9% year over year, with postpaid service revenue rising 13% to $15.9 billion. However, postpaid net account additions fell 13% year over year to 277,000, and account churn stood at 0.99%.

Earlier this month, T-Mobile reaffirmed its 2026 financial guidance, capital return plan, and long-term targets. For the full year, the company expects 950,000 to 1.05 million postpaid net account additions, core adjusted EBITDA of $37.1 billion to $37.5 billion, and adjusted free cash flow between $18.4 billion and $18.8 billion. Jessica Uhl joined the company as CFO Designate in September and will succeed Peter Osvaldik in February 2027.