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T-Mobile shares slide on Q2 revenue miss; free cash flow outlook raised

July 23, 2026 7:22 AM

Investing.com -- T-Mobile reported second-quarter earnings that topped Wall Street estimates on Thursday and raised its full-year cash flow guidance, but the company’s shares fell as quarterly revenue missed analyst forecasts.


The company posted second-quarter earnings per share of $2.85, beating the analyst estimate of $2.58. Revenue rose roughly 8% year-over-year to $22.79 billion, but was slightly below the $22.98 billion consensus.


The company’s shares slipped 3.4% in premarket trading Thursday by 06:49 ET (10:49 GMT).



Service revenues rose 9% year-over-year to $19.0 billion, with postpaid service revenues up 13% to $15.9 billion.


Core adjusted EBITDA during the quarter grew 12% year-over-year to $9.5 billion, while adjusted free cash flow (FCF) rose 4% to $4.8 billion.


Postpaid average revenue per account (ARPA) rose 2% year-over-year to $152.91, while postpaid net account additions fell 13% year-over-year to 277,000.


T-Mobile raised its full-year cash flow guidance, with net cash provided by operating activities, including net payments for UScellular merger-related costs, now expected between $28.4 billion and $28.8 billion, up from $28.1-28.7 billion previously.


Adjusted FCF guidance, including those merger-related costs, was raised to $18.4-18.8 billion, from $18.1-18.7 billion, with the company noting this does not assume any material net cash inflows from securitization.


The company reiterated its guidance for postpaid net account additions of 950,000 to 1.05 million, core adjusted EBITDA of $37.1-$37.5 billion, and cash purchases of property and equipment of approximately $10 billion.

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