T-Mobile USWBO:TMUS +1.45%83 Operating Margin % is 19.46% as of Mar. 2026, which is 64% above its 10-year median of 11.86. GuruFocus rates WBO:TMUS with a GF Score™ of 83/100 and a GF Value™ of €195.65 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 367 Telecommunication Services companies, T-Mobile US ranks better than 74.66% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. T-Mobile US's Operating Income for the
three
months ended in Mar. 2026 was €3,890 Mil. T-Mobile US's Revenue for the
three
months ended in Mar. 2026 was €19,988 Mil. Therefore, T-Mobile US's Operating Margin % for the quarter that ended in Mar. 2026 was 19.46%.
Good Sign:
T-Mobile US Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for T-Mobile US's Operating Margin % or its related term are showing as below:
WBO:TMUS'
s Operating Margin % Range Over the Past 10 Years
Min: 8.6 Med: 11.86 Max: 22.13
Current: 20.16
WBO:TMUS's Operating Margin % is ranked better than 74.66% of 367
companies
in the Telecommunication Services industry
Industry Median: 9.73
vs WBO:TMUS: 20.16
T-Mobile US's 5-Year Average Operating Margin % Growth Rate was 22.00% per year.
T-Mobile US's Operating Income for the
three
months ended in Mar. 2026 was €3,890 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €15,697 Mil.
T-Mobile US (WBO:TMUS) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
T-Mobile US Operating Margin % Related Terms
T-Mobile US Operating Margin % Historical Data
* Premium members only.
The historical data trend for T-Mobile US's Operating 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.
WBO:TMUS vs VZ, T, CMCSA: Operating Margin % Comparison
For the Telecom Services subindustry, T-Mobile US's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, T-Mobile US's Operating Margin % distribution charts can be found below:
* The bar in red indicates where T-Mobile US's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
T-Mobile US's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
T-Mobile US (WBO:TMUS) has a Operating Margin % of 19.46% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on T-Mobile US and its competitors. This is 64% above median its historical median of 11.86. Over the past decade, T-Mobile US's Operating Margin % has ranged from 8.60 to 22.13. According to the industry distribution chart, T-Mobile US ranks #93 out of 367 companies in the Telecommunication Services industry, placing it in the top 25.3%.
Is T-Mobile US's Operating Margin % too high?
T-Mobile US's current Operating Margin % of 19.46% is 64% above median its 10-year median of 11.86. Over the past 10 years, this metric has ranged from a low of 8.60 to a high of 22.13. The Telecommunication Services industry median Operating Margin % is 9.73. T-Mobile US's value of 19.46% is 100% above this industry median. Based on the distribution chart, T-Mobile US ranks #93 out of 367 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, T-Mobile US has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does T-Mobile US's Operating Margin % compare to VZ and T?
According to the Telecommunication Services industry distribution chart, T-Mobile US ranks #93 out of 367 companies for Operating Margin %. This puts T-Mobile US in the upper half of its industry. The industry median Operating Margin % is 9.73. T-Mobile US's value of 19.46% is 100% above this benchmark. Historically, T-Mobile US's own Operating Margin % has ranged from 8.60 to 22.13 over the past decade. While the company's 10-year median is 11.86 vs. the industry median of 9.73, 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 Operating Margin % for a Telecommunication Services company?
The median Operating Margin % among Telecommunication Services companies is 9.73, based on 367 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. T-Mobile US's current Operating Margin % of 19.46% is 100% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on T-Mobile US and its competitors. For the Telecommunication Services industry, the median Operating Margin % is 9.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. T-Mobile US's current Operating Margin % is 19.46%, which is 64% above median its own 10-year median of 11.86. 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 (WBO:TMUS) is currently considered Modestly Undervalued. The stock's GF Value™ is €195.65, compared to a current price of €160.74 — trading 17.8% below its estimated fair value. The current Operating Margin % is 19.46%, which is 64% above median its 10-year median of 11.86 and 100% above the Telecommunication Services industry median of 9.73. T-Mobile US's overall GF Score™ is 83/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For T-Mobile US (WBO:TMUS), the current Operating Margin % is 19.46% 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 (WBO:TMUS) Overvalued in 2026?
Based on GuruFocus' analysis, T-Mobile US stock appears to be undervalued.
The current stock price of €160.74 is trading 17.8% below its estimated GF Value™ of €195.65.
GuruFocus considers T-Mobile US to be Modestly Undervalued.
Key valuation signals for WBO:TMUS:
Operating Margin %: 19.46% (64% above median its 10-year median of 11.86)
GF Value™: €195.65 vs. price of €160.74 (17.8% below fair value)
Industry Position: 100% above the Telecommunication Services median (#93 of 367)
No single metric tells the full story. See the WBO: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.
83GF Score
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