T-Mobile USMEX:TMUS +2.50%81 Gross Margin % is 61.80% as of Mar. 2026, which is 6% above its 10-year median of 58.15. GuruFocus rates MEX:TMUS with a GF Score™ of 81/100 and a GF Value™ of MXN3,946.00 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 344 Telecommunication Services companies, T-Mobile US ranks better than 68.9% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. T-Mobile US's Gross Profit for the
three
months ended in Mar. 2026 was MXN257,507 Mil. T-Mobile US's Revenue for the
three
months ended in Mar. 2026 was MXN416,682 Mil. Therefore, T-Mobile US's Gross Margin % for the quarter that ended in Mar. 2026 was 61.80%.
The historical rank and industry rank for T-Mobile US's Gross Margin % or its related term are showing as below:
MEX:TMUS'
s Gross Margin % Range Over the Past 10 Years
Min: 54.31 Med: 58.15 Max: 63.57
Current: 62.22
During the past 13 years, the highestGross Margin % of T-Mobile US was 63.57%. The lowest was 54.31%. And the median was 58.15%.
MEX:TMUS's Gross Margin % is ranked better than 68.9% of 344
companies
in the Telecommunication Services industry
Industry Median: 51.415
vs MEX:TMUS: 62.22
T-Mobile US had a gross margin of 61.80% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for T-Mobile US was 2.70% per year.
T-Mobile US (MEX:TMUS) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
T-Mobile US had a gross margin of 61.80% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
T-Mobile US Gross Margin % Related Terms
T-Mobile US Gross Margin % Historical Data
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The historical data trend for T-Mobile US's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:TMUS vs VZ, T, CMCSA: Gross Margin % Comparison
For the Telecom Services subindustry, T-Mobile US's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
T-Mobile US Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, T-Mobile US's Gross Margin % distribution charts can be found below:
* The bar in red indicates where T-Mobile US's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
T-Mobile US (MEX:TMUS) has a Gross Margin % of 61.80% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on T-Mobile US and its competitors. This is near median its historical median of 58.15. Over the past decade, T-Mobile US's Gross Margin % has ranged from 54.31 to 63.57. According to the industry distribution chart, T-Mobile US ranks #107 out of 344 companies in the Telecommunication Services industry, placing it in the top 31.1%.
Is T-Mobile US's Gross Margin % too high?
T-Mobile US's current Gross Margin % of 61.80% is near median its 10-year median of 58.15. Over the past 10 years, this metric has ranged from a low of 54.31 to a high of 63.57. The Telecommunication Services industry median Gross Margin % is 51.42. T-Mobile US's value of 61.80% is 20.2% above this industry median. Based on the distribution chart, T-Mobile US ranks #107 out of 344 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, T-Mobile US has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does T-Mobile US's Gross Margin % compare to VZ and T?
According to the Telecommunication Services industry distribution chart, T-Mobile US ranks #107 out of 344 companies for Gross Margin %. This puts T-Mobile US in the upper half of its industry. The industry median Gross Margin % is 51.42. T-Mobile US's value of 61.80% is 20.2% above this benchmark. Historically, T-Mobile US's own Gross Margin % has ranged from 54.31 to 63.57 over the past decade. While the company's 10-year median is 58.15 vs. the industry median of 51.42, T-Mobile US has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.42, based on 344 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. T-Mobile US's current Gross Margin % of 61.80% is 20.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on T-Mobile US and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. T-Mobile US's current Gross Margin % is 61.80%, which is near median its own 10-year median of 58.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is T-Mobile US stock overvalued right now?
Based on GuruFocus' analysis, T-Mobile US (MEX:TMUS) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN3,946.00, compared to a current price of MXN3,187.88 — trading 19.2% below its estimated fair value. The current Gross Margin % is 61.80%, which is near median its 10-year median of 58.15 and 20.2% above the Telecommunication Services industry median of 51.42. T-Mobile US's overall GF Score™ is 81/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For T-Mobile US (MEX:TMUS), the current Gross Margin % is 61.80% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is T-Mobile US (MEX:TMUS) Overvalued in 2026?
Based on GuruFocus' analysis, T-Mobile US stock appears to be undervalued.
The current stock price of MXN3,187.88 is trading 19.2% below its estimated GF Value™ of MXN3,946.00.
GuruFocus considers T-Mobile US to be Modestly Undervalued.
Key valuation signals for MEX:TMUS:
Gross Margin %: 61.80% (near median its 10-year median of 58.15)
GF Value™: MXN3,946.00 vs. price of MXN3,187.88 (19.2% below fair value)
Industry Position: 20.2% above the Telecommunication Services median (#107 of 344)
No single metric tells the full story. See the MEX:TMUS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Deutsche Telekom merged its T-Mobile USA unit with prepaid specialist MetroPCS in 2013, and that firm merged with Sprint in 2020, creating the second-largest wireless carrier in the US. T-Mobile now serves about 86 million postpaid and 26 million prepaid phone customers, equal to around 30% of the US retail wireless market. The firm entered the fixed-wireless broadband market aggressively in 2021 and now serves 8 million residential and business customers with its wireless network. It also serves 1 million fiber broadband customers through joint ventures with fiber network owners. T-Mobile owns a stake in these firms, which provide wholesale access to their networks. In addition, T-Mobile provides wholesale services to wireless resellers.
81GF Score
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