T-Mobile beats estimates on strong postpaid growth
Investing.com -- T-Mobile US Inc (NASDAQ: TMUS) reported first quarter results that exceeded analyst expectations, driven by stronger-than-expected postpaid account growth and service revenue gains.
The wireless carrier posted adjusted earnings per share of $2.27, beating the analyst consensus of $2.05 by $0.22. Revenue reached $23.11 billion, surpassing estimates of $22.97 billion and marking an 11% increase from the prior year. Postpaid net account additions totaled 217,000, exceeding the Visible Alpha estimate of 193,000 additions and growing 6% YoY.
Service revenues climbed 11% YoY to $18.8 billion, while postpaid service revenues increased 15% YoY to $15.6 billion. Postpaid average revenue per account grew 3.9% YoY to $151.93. The stock rose 0.3% in after-hours trading Tuesday.
Net income declined 15% YoY to $2.5 billion, impacted by UScellular merger-related costs, including accelerated depreciation of $476 million net of tax. Core adjusted EBITDA increased 12% YoY to $9.2 billion, while adjusted free cash flow grew 5% YoY to $4.6 billion.
"We reported accelerating postpaid net account growth and strong postpaid ARPA growth, reflecting this team's differentiated ability to not only attract new customer relationships but also deepen the engagement with our existing base," said Srini Gopalan, CEO of T-Mobile.
The company raised its full-year 2026 guidance across multiple metrics. T-Mobile now expects postpaid net account additions between 950,000 and 1.05 million, up from prior guidance of 900,000 to 1.0 million. Core adjusted EBITDA guidance increased to a range of $37.1 billion to $37.5 billion, with the midpoint rising $50 million from previous guidance of $37.0 billion to $37.5 billion.
Adjusted free cash flow is now expected between $18.1 billion and $18.7 billion, representing a $50 million increase at the midpoint from prior guidance.
