T-Mobile US 8-K

PositiveEarningsGuidance raised

UScellular and Metronet acquisitions and higher postpaid ARPA drove service revenue growth; FY2026 cash flow guidance raised.

Filed 2026-07-23 06:29 ET

Summary

Q2 2026 results with FY2026 cash flow guidance raised. Service revenue growth reflected higher postpaid account levels and ARPA, while postpaid net additions declined Y/Y. T-Mobile reported record wireless NPS of 46 and reiterated its postpaid net additions and Core Adjusted EBITDA outlook.

Key Figures

Metric Q2 2026 Q2 2025 Y/Y
Service revenues $19.0B $17.4B +9%
Postpaid service revenues $15.9B $14.1B +13%
Total revenues $22.8B $21.1B +8%
Operating income $5.49B $5.21B +5%
Net income $3.24B $3.22B +1%
Core Adjusted EBITDA, non-GAAP $9.54B $8.54B +12%
Diluted EPS $2.99 $2.84 +5%
Net cash provided by operating activities $7.5B $6.99B +7%
Adjusted Free Cash Flow, non-GAAP $4.80B $4.60B +4%
Postpaid net account additions 277k 318k -13%
  • Postpaid ARPA was $152.91, up 2%; higher average postpaid accounts, including from the UScellular and Metronet acquisitions, and higher ARPA supported service revenue growth. Higher costs partly offset revenue growth in Core Adjusted EBITDA.
  • Net income included $146M of after-tax UScellular merger-related costs, including accelerated depreciation ($0.14 per diluted share). Cash purchases of property and equipment rose 13% Y/Y to $2.7B, partly reflecting planned purchase timing and incremental spending following the UScellular acquisition.
  • Stockholder returns totaled $3.3B, including $2.2B to repurchase 11.4M shares and $1.1B in dividends; Q2 2025 repurchases were 10.1M shares for $2.5B. Quarter-end cash was $2.8B; total debt excluding tower obligations was $86.9B and net debt excluding tower obligations was $84.1B.

Guidance

Metric Period Guidance Prior Direction
Postpaid net account additions FY2026 950k–1.05M 950k–1.05M reaffirmed
Effective tax rate FY2026 25%–26% 25%–26% reaffirmed
Core Adjusted EBITDA, non-GAAP FY2026 $37.1B–$37.5B $37.1B–$37.5B reaffirmed
Net cash provided by operating activities, including net payments for UScellular merger-related costs FY2026 $28.4B–$28.8B $28.1B–$28.7B raised
Capital expenditures FY2026 ≈$10.0B ≈$10.0B reaffirmed
Adjusted Free Cash Flow, non-GAAP, including net payments for UScellular merger-related costs FY2026 $18.4B–$18.8B $18.1B–$18.7B raised

Adjusted Free Cash Flow guidance assumes no material net cash inflows from securitization. T-Mobile said it cannot forecast GAAP net income without unreasonable effort.

Investor Takeaways

  • Track postpaid net additions and churn against the reiterated FY2026 additions range; the company cited higher deactivations as the main Y/Y pressure on additions.
  • Watch delivery against the raised FY2026 operating cash flow and Adjusted Free Cash Flow ranges.

The summary is written by an AI model reading the filing.

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