T-Mobile US (TMUS) Stock: Rises as Q3 Earnings Surge 34% and Revenue Growth Accelerates

TLDR

Table of Contents

T-Mobile US Stock Rises as Q3 EPS Jumps 34% and Revenue Growth Accelerates
TMUS Stock Gains After T-Mobile Reports $3.46 Billion in Quarterly Net Income
T-Mobile Raises 2026 Cash Flow Outlook as Q3 Earnings Growth Strengthens
T-Mobile US Shares Climb as Service Revenue Rises 6.2% in Third Quarter
TMUS Stock Advances After Strong Earnings and Higher Free Cash Flow Guidance

T-Mobile US (TMUS) shares climbed 0.85% to $148.08 at market close before advancing 0.88% to $149.39 after hours. The gains followed third-quarter 2026 results that showed stronger earnings, higher service revenue, and continued customer growth. Additionally, the wireless carrier raised its profitability and free cash flow guidance, reflecting stronger operating performance.

T-Mobile US, Inc., TMUS

T-Mobile US Stock Gains as Quarterly Earnings Deliver Strong Growth

T-Mobile reported third-quarter net income of $3.46 billion, up 27.3% from $2.71 billion a year earlier. Meanwhile, diluted earnings per share increased 33.6% to $3.22, compared with $2.41 in the same quarter. These results highlighted stronger profitability as the company expanded its wireless customer base and increased service revenue.

Total revenue reached $23.58 billion, representing a 7.4% year-over-year increase from $21.96 billion. Furthermore, total service revenue climbed 6.2% to $19.38 billion, while postpaid service revenue advanced 9.3% to $16.27 billion. The growth reflected stronger customer relationships and continued demand for the company’s wireless services.

Core adjusted EBITDA increased 10.8% to $9.62 billion, compared with $8.68 billion in the third quarter of 2025. However, operating cash flow declined 1.6% to $7.34 billion from $7.46 billion a year earlier. Adjusted free cash flow nevertheless rose 5.3% to $5.07 billion, supported partly by lower capital spending.

Customer Growth and Network Performance Strengthen T-Mobile’s Business

T-Mobile added 274,000 postpaid accounts during the third quarter, bringing its total postpaid account base to approximately 35 million. Although additions declined from 396,000 a year earlier, the company maintained positive growth across its core customer base. Total postpaid accounts increased 2.9% year-over-year, demonstrating continued demand for its wireless services.

Postpaid average revenue per account reached $155.73, up 4.2% from $149.44 in the prior-year quarter. This increase supported service revenue growth as the company generated more revenue from its postpaid customer relationships. However, postpaid account churn rose to 1.09%, compared with 0.97% a year earlier.

T-Mobile continued to strengthen its competitive position through network performance and customer experience. PCMag recognized the company across several categories, including mobile network speed, coverage, pricing, and customer satisfaction. Additionally, Opensignal recognized its 5G coverage, while Ookla ranked its fixed wireless access service highly for download and upload speeds.

T-Mobile Raises Financial Guidance Following Strong Third-Quarter Results

Following its quarterly performance, T-Mobile raised the midpoint of its full-year profitability and cash flow outlook. The company now expects core adjusted EBITDA between $37.35 billion and $37.45 billion for 2026. This represents a $100 million increase at the midpoint from its previous guidance range.

The company also increased its adjusted free cash flow outlook to between $18.7 billion and $18.8 billion. That range represents a $150 million increase at the midpoint, while operating cash flow guidance also improved. T-Mobile expects net cash from operating activities between $28.7 billion and $28.8 billion, including payments for UScellular merger-related costs.

Management expects approximately one million postpaid net account additions for the full year. T-Mobile also returned $3.5 billion to stockholders during the third quarter through $2.4 billion in share repurchases and $1.1 billion in dividends. The company maintained its capital expenditure outlook at approximately $10 billion, while its improved earnings and cash flow projections supported the positive after-hours share movement.

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