T-Mobile US, Inc. (TMUS) Earnings

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Dec 2026upcoming

Next quarter

Expected to report Feb 10, 2027 — estimated from last year’s reporting date.

Consensus is $2.68 EPS for Dec 2026 across 7 estimates, ranging $2.23 to $2.89.

TMUS Sep 2026

Reported Oct 28, 2026 · after the close

: 12.59%
: -0.53%

: $2.86
: $3.22
: —
: $23.58B

Reported results

: $23.58B; from $21.96B
: $5.66B; from $4.53B
: 24.00%; from 20.63%
: $3.46B; from $2.71B
: $3.22; from $2.41

Highlights

EPS beat: Q3 diluted EPS was $3.22, 12.6% above the $2.86 consensus, versus $2.41 a year ago and $2.99 in Q2.
Revenue and earnings growth: Revenue of $23.58 billion rose 7.4% year over year and 3.5% sequentially; operating income increased 25% to $5.66 billion and net income rose 27% to $3.46 billion.
Postpaid monetisation: Postpaid service revenue grew 9% year over year to $16.27 billion, with postpaid ARPA up 4% to $155.73; T-Mobile added 274,000 postpaid accounts.
Cash generation: Adjusted free cash flow was $5.07 billion, up 5% year over year and 6% sequentially, as cash property-and-equipment purchases declined 14% year over year to $2.27 billion.
Higher 2026 outlook: The company raised its Core Adjusted EBITDA midpoint by $100 million to $37.4 billion and its Adjusted Free Cash Flow midpoint by $150 million to $18.75 billion; full-year postpaid net account additions remain approximately 1 million.
Churn and subscriber mix: Postpaid account churn was 1.04%, versus 0.97% a year earlier and unchanged from Q2. Management cited broadband-only accounts, rate-plan modernization and seasonal switching as contributors.
Capital returns: T-Mobile repurchased $2.4 billion of shares and paid $1.1 billion in dividends during Q3; it raised the declared quarterly dividend to $1.17 per share, 15% higher.

Analysis

T-Mobile delivered a broad-based growth quarter, with diluted EPS of $3.22 beating the $2.86 consensus by 12.6%. Revenue rose to $23.58 billion from $21.96 billion a year earlier and $22.79 billion in Q2. Net income increased to $3.46 billion from $2.71 billion year over year and $3.24 billion sequentially. The year-over-year comparison also benefited from the absence of the prior-year $278 million software impairment; Q3 2026 included $98 million of after-tax UScellular merger costs, versus $55 million a year ago.

The operating story was continued postpaid growth and higher customer monetisation: postpaid service revenue advanced 9% to $16.27 billion, while ARPA rose 4% to $155.73. The 274,000 net postpaid account additions were below Q3 2025’s 396,000, and churn was higher year over year at 1.04%, though unchanged from Q2. Adjusted free cash flow rose to $5.07 billion, helped by lower capital purchases. Management raised its full-year Core Adjusted EBITDA and free-cash-flow outlooks, while keeping the approximately 1 million postpaid account-addition target and approximately $10 billion cash CapEx plan. It also expects about 7% organic postpaid service revenue growth in Q4, while flagging holiday promotions and seasonal churn as near-term variables.

Postpaid growth and ARPA

Account additions: T-Mobile added 274,000 postpaid accounts, compared with 396,000 in Q3 2025 and 277,000 in Q2 2026. Total postpaid accounts reached 34.97 million, including the effects of acquisitions completed in 2025.
ARPA and service revenue: Postpaid ARPA increased 4% year over year and 2% sequentially to $155.73. Postpaid service revenue rose 9% year over year to $16.27 billion and 3% sequentially, reflecting higher average accounts and ARPA.
Churn: Postpaid account churn was 1.04%, up from 0.97% in Q3 2025 and level with Q2. The company attributed pressure to the larger base of higher-churn broadband-only accounts and the temporary impact of rate-plan modernization; management expects some residual modernization impact in Q4.
Drivers of monetisation: Management pointed to adoption of premium rate plans and tax-and-fee-exclusive plans, fee revenue, and deeper customer relationships, including broadband and business accounts. It raised its full-year postpaid ARPA growth expectation to approximately 3.5% from 2.5%–3%.

Earnings and margins

Revenue increased 7.4% year over year to $23.58 billion, while operating income rose 25% to $5.66 billion. Net income was $3.46 billion, up 27% from Q3 2025 and 7% from Q2. Diluted EPS increased to $3.22 from $2.41 a year ago and $2.99 sequentially, and exceeded the $2.86 consensus. The year-ago quarter included a $278 million software impairment ($208 million after tax, or $0.18 per share); Q3 2026 included $98 million of after-tax UScellular merger costs, compared with $55 million in Q3 2025. Core Adjusted EBITDA increased 11% year over year to $9.62 billion, with its margin at 49.7% of service revenue, versus 47.6% a year ago. Sequentially, Core Adjusted EBITDA rose slightly from $9.54 billion.

Cash flow and guidance

Free cash flow: Adjusted Free Cash Flow was $5.07 billion, up 5% year over year and 6% sequentially. Operating cash flow was $7.34 billion, down 2% year over year, while cash purchases of property and equipment fell 14% to $2.27 billion; management said the CapEx change primarily reflected planned timing.
Raised outlook: Full-year Core Adjusted EBITDA is now $37.35–$37.45 billion, a $100 million increase at the midpoint. Adjusted Free Cash Flow is $18.7–$18.8 billion and operating cash flow $28.7–$28.8 billion, each up $150 million at the midpoint.
Other outlook items: Management expects approximately $76.8 billion of 2026 service revenue, about 8% growth, and approximately 7% year-over-year organic postpaid service revenue growth in Q4. The approximately 1 million postpaid net account-addition target and approximately $10 billion cash CapEx outlook are unchanged; the effective tax-rate range was lowered to 24%–25% from 25%–26%.
Q4 context: The company noted the holiday period is typically more promotional and brings seasonally higher churn. It also cited the staggered iPhone launch, higher device prices and Q3 inventory constraints as sources of fourth-quarter variability.

Broadband and business

5G broadband: Management described fixed wireless momentum as strong, with net additions leading the industry, and said the business is tracking ahead of pace toward 15 million customers by 2030. Broadband ARPU grew both sequentially and year over year; the company did not disclose a quarterly FWA net-addition figure.
Fiber: The fiber business had approximately 20% 12-month penetration and accelerating customer growth, with a stated target of 3 million–4 million customers by 2030. Management said it would assess fiber opportunities on returns rather than chase homes passed.
Business wireless: T-Mobile for Business recorded its 17th consecutive quarter of positive port activity and double-digit year-over-year revenue growth, according to management.

Capital returns and leverage

Shareholder returns: Q3 repurchases were $2.4 billion, covering 13.6 million shares, and the company paid $1.1 billion in dividends. The Board declared a $1.17-per-share dividend for payment in December, up 15% from the prior quarterly rate.
Authorization and pace: The 2026 stockholder-return authorization is up to $18.2 billion. Through October 23, the company had repurchased a further $791 million of shares after quarter-end, bringing repurchases since the start of Q3 to $3.2 billion.
Debt and capital priorities: Net debt excluding tower obligations was $80.3 billion at quarter-end, and net debt to LTM Core Adjusted EBITDA was 2.2 times. Management said its capital-allocation sequence remains investment in the business and spectrum, then balanced buybacks and dividends; it expects to reserve more capital for potential 2027–2028 spectrum auctions.

T-Mobile US, Inc.

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