T-Mobile Beats Q1 Expectations on Strong Subscriber Growth
T-Mobile US Inc. (NASDAQ:TMUS) reported first-quarter results that exceeded analyst expectations, supported by robust postpaid subscriber growth and higher service revenues.
The company delivered adjusted earnings per share of $2.27, beating the consensus estimate of $2.05. Total revenue came in at $23.11 billion, slightly above forecasts of $22.97 billion and marking an 11% increase year-over-year.
Postpaid Growth Drives Performance
T-Mobile recorded 217,000 postpaid net account additions, surpassing estimates of 193,000 and growing 6% compared to the same period last year.
Service revenue rose 11% year-over-year to $18.8 billion, while postpaid service revenue jumped 15% to $15.6 billion. In addition, average revenue per postpaid account (ARPA) increased 3.9% to $151.93, highlighting strong customer monetization.
Stock Reaction and Profit Trends
Shares of T-Mobile edged 0.3% higher in after-hours trading following the earnings release.
However, net income declined 15% year-over-year to $2.5 billion, largely due to costs associated with the UScellular merger. These included accelerated depreciation expenses of approximately $476 million after tax.
EBITDA and Cash Flow Remain Strong
Despite the decline in net income, T-Mobile reported solid underlying performance. Core adjusted EBITDA rose 12% to $9.2 billion, while adjusted free cash flow increased 5% to $4.6 billion.
CEO Srini Gopalan emphasized that the company’s growth reflects its ability to both attract new customers and deepen relationships with existing users.
T-Mobile Raises Full-Year 2026 Outlook
T-Mobile increased its full-year 2026 guidance across several key metrics.
The company now expects postpaid net account additions between 950,000 and 1.05 million, up from its previous outlook of 900,000 to 1.0 million.
Core adjusted EBITDA guidance was also lifted to a range of $37.1 billion to $37.5 billion, while adjusted free cash flow is projected between $18.1 billion and $18.7 billion, reflecting a modest increase at the midpoint.
