Key Highlights

  • Diluted EPS of USD 3.22 rose from USD 2.41 and topped the USD 2.89 consensus estimate.
  • Total revenue of USD 23.58 billion grew 7% and beat the USD 23.15 billion consensus estimate.
  • Core adjusted EBITDA increased 11% to USD 9.62 billion, while adjusted free cash flow grew 5% to USD 5.07 billion.
  • Postpaid net account additions totaled 274,000, down from 396,000, with postpaid ARPA growing more than 4%.

T-Mobile US, Inc. (NASDAQ:TMUS) reported third-quarter 2026 diluted earnings per share of USD 3.22, up from USD 2.41 a year earlier and above a consensus estimate of USD 2.89. Total revenues rose 7% to USD 23,584 million from USD 21,957 million, ahead of a consensus estimate of USD 23.15 billion. Net income increased 27% to USD 3,455 million, and operating income rose 25% to USD 5,661 million.

Service revenues grew 6% to USD 19,375 million, led by postpaid revenue growth of 9% as prepaid revenue fell 8% and wholesale and other revenue slipped 7%. Equipment revenue rose 13% to USD 3,929 million on a richer mix of high-end phones and higher manufacturer pricing. The prior-year quarter also carried a USD 278 million software impairment that did not recur.

Account Growth, Costs and Cash Flow

Postpaid net account additions were 274,000 against 396,000 a year earlier. The filing attributes the decline to higher deactivations from broadband-only accounts, the temporary effect of rate plan modernization and a larger base following the UScellular and Metronet deals. CEO Srini Gopalan said the company led the industry in postpaid phone and 5G broadband net additions and pointed to its pricing structure, in which existing customers pay less on average than new ones.

Core adjusted EBITDA reached USD 9,620 million, a 50% margin on service revenue. Interest expense rose 12% to USD 1,031 million, and net income included USD 98 million of UScellular merger costs net of tax. Operating cash flow slipped 2% to USD 7,341 million, while adjusted free cash flow rose to USD 5,071 million, a 26% margin. The effective tax rate was 23.9%.

Updated Full-Year Guidance

The company now guides to full-year service revenues of about USD 76.8 billion, or 8% growth, and roughly 1 million postpaid account net additions. Postpaid ARPA growth is projected at about 3.5%, up from 2.5% to 3%. Core adjusted EBITDA is guided to USD 37.35 billion to USD 37.45 billion, up USD 100 million at the midpoint, and adjusted free cash flow to USD 18.7 billion to USD 18.8 billion, up USD 150 million at the midpoint. Cash capital expenditures stay near USD 10 billion.

The chief financial officer said fourth-quarter postpaid organic service revenue growth is projected near 7%. Management noted that fourth-quarter competition carries more variability this year because of a staggered iPhone launch and higher device prices. The company has repurchased USD 10.3 billion of stock through October 23, versus USD 9.9 billion in all of 2025, and a CFO succession is under way.

Variables to Monitor

Four items frame the next report. Account additions are first, with a full-year target of about 1 million after 768,000 in the first nine months. Postpaid ARPA is second, as growth above 4% in the quarter compares with the 3.5% full-year figure. Cash flow is third: nine-month adjusted free cash flow of USD 14.47 billion sits against the USD 18.7 billion to USD 18.8 billion guide, with merger-related payments of USD 532 million in the period. The fourth is the T-Mix plan portfolio launched this week and the 2027 and 2028 spectrum auctions that management said may absorb more of its capital allocation.