T-Mobile US, Inc.
TMUS · Nasdaq
TMUS · Nasdaq
Expected to report Oct 22, 2026 — estimated from last year’s reporting date.
Consensus is $2.80 EPS for Sep 2026 across 8 estimates, ranging $2.33 to $3.04.
T-Mobile's June 2026 quarter was a strong earnings and cash-flow print, with supplied reported EPS of $3.13 versus $2.49 consensus, a 25.7% beat. The filing reports GAAP diluted EPS of $2.99, up from $2.84 in the year-ago quarter and $2.27 in Q1 2026. Revenue of $22.79 billion was 7.9% above Q2 2025 but 1.4% below Q1, while operating income increased 5.3% year over year to $5.49 billion and rose 22.1% sequentially. Net income was broadly stable year over year at $3.24 billion but increased from $2.50 billion in Q1.
The core of the print was continued service-revenue growth and improving operating leverage. Service revenue rose 8.9% to $18.98 billion, led by a 13% increase in postpaid service revenue, while postpaid accounts grew by 277,000 and ARPA reached $152.91. Core Adjusted EBITDA increased 12% to $9.54 billion, lifting margin to 50.2%. Cash generation also improved, with operating cash flow up 7% to $7.50 billion and Adjusted Free Cash Flow up 4% to $4.80 billion. T-Mobile raised both cash-flow outlooks by $200 million at the midpoint, although UScellular integration costs, higher bad debt and greater churn remain offsets to the underlying growth story.
The UScellular acquisition continued to expand the postpaid base and service revenue but remained a material cost and execution item. T-Mobile recorded $146 million of after-tax merger-related costs in Q2, including accelerated depreciation, compared with $25 million in Q2 2025 and $476 million in Q1 2026. Merger-related cash payments were $181 million in Q2, up from $153 million in Q1 and $92 million a year earlier. The company also identified higher wholesale network access costs, Metronet and Lumos installation-fee amortization, and merger-related costs as drivers of the 10% year-over-year increase in cost of services.
Bad debt remained a watch item as the enlarged account base and device-financing portfolio generated higher credit costs. Bad debt expense and losses from receivable sales totaled $415 million in Q2, or 1.8% of revenue, compared with $284 million and 1.3% a year earlier. The allowance for credit losses and imputed discount on accounts receivable and EIP receivables rose to $1.17 billion at June 30 from $948 million a year earlier. SG&A increased 8% year over year to $5.83 billion, reflecting UScellular costs, higher bad debt, retail-transformation costs and the absence of a $151 million spectrum-sale gain recorded in Q2 2025.
