T-Mobile (TMUS) announced on Friday that the U.S. wireless carrier plans to repurchase up to $14 billion worth of stock by the end of 2025. This is part of its broader initiative to return up to $50 billion to its shareholders over the next three years.
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TMUS Is Expanding its Stock Buyback Program
The company’s latest stock buyback program is in addition to its $19 billion shareholder buyback plan announced last year, which will run through the end of this year. Furthermore, the telecom major reiterated that it intends to allocate up to $80 billion in investments and capital returns through 2027. This includes up to $50 billion in stock buybacks and cash dividends, up to $20 billion in discretionary activities including reducing its debt, and another $10 billion to complete pending deals.
Looking ahead, T-Mobile expects its adjusted free cash flow to reach between $18 billion and $19 billion by 2027.
Is TMUS a Good Stock to Buy Now?
Analysts remain bullish about TMUS stock, with a Strong Buy consensus rating based on 16 Buys and two Holds. Over the past year, TMUS has surged by more than 40%, and the average TMUS price target of $242.33 implies an upside potential of 3.9% from current levels.
