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FinanceT-Mobile Q2 EPS beats, revenue slightly misses; shares fall 3.4% premarket
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T-Mobile reported Q2 2026 earnings of $2.85 per share, beating the $2.58 consensus, while revenue rose 8% YoY to $22.79 billion, slightly missing the $22.98 billion forecast. Shares fell about 3.4% in premarket trading as investors focused on the revenue shortfall and a 13% year-over-year decline in postpaid net account additions to 277,000. Service revenue grew 9% to $19.0 billion, and core adjusted EBITDA rose 12% to $9.5 billion. The company raised its full-year adjusted free cash flow guidance to $18.4-$18.8 billion and its operating cash flow forecast to $28.4-$28.8 billion, including UScellular merger costs. T-Mobile maintained its outlook for postpaid net account additions of 950,000 to 1.05 million and core adjusted EBITDA of $37.1-$37.5 billion for the full year.
Source report
Fiona Craig Thu, July 23, 2026 at 5:29 AM PDT 2 min read
TMUS +0.09%
T-Mobile (NASDAQ: TMUS) shares moved lower in premarket trading on Thursday after the wireless carrier reported second-quarter earnings above analysts' expectations but fell short of revenue forecasts, despite lifting its full-year free cash flow outlook.
While profitability and cash generation remained strong, investors focused on the slight revenue miss following another quarter of steady subscriber growth.
Earnings Surpass Expectations as Revenue Narrowly Misses
T-Mobile reported second-quarter earnings of $2.85 per share, comfortably ahead of Wall Street's estimate of $2.58.
Revenue increased approximately 8% from a year earlier to $22.79 billion, although the figure came in just below the consensus forecast of $22.98 billion.
Following the results, the company's shares fell around 3.4% in premarket trading.
Service Revenue and Profitability Continue to Improve
- Service revenue climbed 9% year over year to $19.0 billion, supported by a 13% increase in postpaid service revenue, which reached $15.9 billion.
- Core adjusted EBITDA rose 12% to $9.5 billion during the quarter.
- Adjusted free cash flow increased 4% to $4.8 billion, reflecting continued operational strength.
- Postpaid average revenue per account (ARPA) improved 2% from the prior year to $152.91.
However, postpaid net account additions declined 13% year over year to 277,000, indicating a slower pace of customer growth compared with the same period last year.
Full-Year Cash Flow Guidance Increased
T-Mobile raised its full-year outlook for cash generation:
- Net cash provided by operating activities (including net payments related to the UScellular merger) increased to a range of $28.4 billion to $28.8 billion (previous forecast: $28.1 billion to $28.7 billion).
- Adjusted free cash flow guidance (including merger-related costs) raised to $18.4 billion to $18.8 billion (previous outlook: $18.1 billion to $18.7 billion).
Management noted that the revised forecast does not include any material net cash inflows from securitisation.
Company Maintains Operating Guidance
Alongside the higher cash flow outlook, T-Mobile reaffirmed its expectations for:
- Postpaid net account additions: between 950,000 and 1.05 million for the full year.
- Core adjusted EBITDA: $37.1 billion to $37.5 billion.
- Cash purchases of property and equipment: approximately $10 billion.
Despite the improved cash flow outlook and stronger earnings, the modest revenue shortfall appeared to weigh on investor sentiment in early trading.
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T-Mobile shares fall despite Q2 earnings beat and higher cash flow forecast