T-Mobile has announced an optimistic forecast for its financial future, predicting adjusted free cash flow between $18 billion and $19 billion by 2027. This projection was unveiled during the company’s Capital Markets Day event in San Francisco, where T-Mobile laid out its comprehensive three-year growth plan.
The telecom giant attributes this expected growth to a surge in customer acquisitions and strategic partnerships with technology firms such as Nvidia and OpenAI. T-Mobile, which ranks among the top three carriers in the United States, has seen a notable increase in the uptake of its premium plans that bundle streaming services with unlimited offerings.
In July, T-Mobile reported the addition of 777,000 postpaid phone customers, marking the highest growth in the industry for the second quarter. The company also plans to return up to $50 billion to shareholders through a combination of share buybacks and dividends by 2027.
Analysts had anticipated T-Mobile to report adjusted free cash flow of approximately $18.9 billion for 2027, according to Visible Alpha. In addition, the company forecasts core adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to reach between $38 billion and $39 billion in the same year.
Looking ahead, T-Mobile aims to attract 12 million 5G broadband customers by 2028, as detailed by CEO Mike Sievert. The company is also set to collaborate with OpenAI to develop a new AI-driven decision-making platform called IntentCX, which aims to enhance customer service through personalized solutions.
In partnership with Nvidia, Ericsson, and Nokia, T-Mobile plans to leverage AI technology to design next-generation mobile networks. Sievert stated, “The investments we make in all of our future network capabilities fit within the $9 to $10 billion capex envelope that we’re outlining.”
Despite T-Mobile’s strong performance this year, with shares gaining over 20%, the stock closed down 2.97% at $196.68 following the announcement.
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