T‑Mobile US, Inc. reported first‑quarter 2026 results that beat both revenue and earnings expectations. Total revenue reached $23.11 billion, up 11% from $21.12 billion a year earlier, while adjusted earnings per share climbed to $2.27 from $2.06, a $0.21 beat that reflects disciplined cost management and a favorable mix of high‑margin postpaid services.
Postpaid growth was the engine behind the top‑line gain. Net account additions rose 6% to 217,000, and average revenue per account increased 3.9% to $151.93. The company’s CEO, Srini Gopalan, said, "We reported accelerating postpaid net account growth and strong postpaid ARPA growth, reflecting this team's differentiated ability to not only attract new customer relationships but also deepen the engagement with our existing base." The growth in postpaid accounts and ARPA offsets the 15% year‑over‑year decline in net income, largely driven by UScellular merger‑related charges, including accelerated depreciation of $476 million after tax.
Operating cash flow and adjusted free cash flow both grew 5% to $7.2 billion and $4.6 billion, respectively. The company’s ability to generate cash while absorbing merger costs demonstrates effective operational leverage. Management noted that the merger integration has not yet eroded cash‑flow generation, and the company remains on track to meet its $30 billion shareholder return program through 2027.
T‑Mobile raised its full‑year 2026 guidance, projecting service revenue of approximately $77 billion—an 8% increase from the prior outlook of $71 billion—and adjusted core EBITDA of $37.1 billion to $37.5 billion, up from the previous range of $36.5 billion to $36.9 billion. The upward revision signals confidence in sustained demand for its differentiated network and value‑focused plans, as well as the continued benefits of the UScellular integration.
The company’s leadership emphasized its strategic focus. CEO Srini Gopalan said, "Q1 marked a strong start to the year as we continue to execute against our ambitious 2026 and 2027 targets, representing yet another proof point of our winning formula and unique differentiation." CFO Peter Osvaldik added, "We continue to see strong momentum in the business and cannot be more excited for the future."
Market reaction was positive, with analysts highlighting the strong earnings beat, revenue growth, and the raised guidance as evidence of robust execution and confidence in the company’s growth trajectory.
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