T-Mobile CFO Says Spectrum Will Take A Bigger Slice Of Capital In 2027 And 2028
Peter Osvaldik pointed to upcoming auctions after a question on faster buybacks, citing $10.3 billion repurchased so far this year.
T-Mobile US, the wireless and broadband provider, expects spectrum to claim more of its capital in 2027 and 2028, CFO Peter Osvaldik said on the company's third-quarter earnings call Wednesday, raising its full-year core adjusted EBITDA outlook to $37.35 billion to $37.45 billion. A Morgan Stanley analyst had asked whether the company could step up buybacks.
Auctions Over Faster Buybacks
Osvaldik did not commit to a faster buyback pace. He said that with the auctions ahead, "probably more and more of our capital allocation envelope being devoted to spectrum" in 2027 and 2028.
He noted that buybacks reached $10.3 billion through October 23, against $9.9 billion in all of 2025, and that the dividend per share rose 15%. His priority order: leverage first, then core investment, spectrum and accretive acquisitions, then shareholder returns split between buybacks and dividends.
Osvaldik is handing the CFO job to Jessica Yule over the next few months, in what he called a long-planned succession.
No Uneconomic Price For Spectrum
CEO Srini Gopalan told another analyst that T-Mobile walked away from EchoStar spectrum because it "didn't make economic sense." He said the company welcomes more spectrum but will not "pay an uneconomic price" for it.
He described two tests: whether network leadership justifies the spectrum, and an analytical comparison of densifying the existing network against buying new bands. Chief Technology Officer John Saw welcomed the FCC's plan to put the C-band 2.0 and 2.7 gigahertz bands into the auction pipeline, saying their TDD spectrum would let operators devote more capacity to uplink.
Raised Outlook For 2026
Osvaldik raised guidance on several lines. Adjusted free cash flow is now seen at $18.7 billion to $18.8 billion, up $150 million at the midpoint, and core adjusted EBITDA is up $100 million at the midpoint. Full-year service revenue is expected at about $76.8 billion, and postpaid ARPA growth at about 3.5%, up from 2.5% to 3%. Cash capital spending remains about $10 billion.
In the quarter, postpaid net account additions were 274,000, and core adjusted EBITDA grew 11%, according to Gopalan. T-Mobile serves consumers and businesses on postpaid and prepaid plans under brands including T-Mobile, Metro by T-Mobile and Mint Mobile.
Both the C-band and 2.7 gigahertz auctions are on the FCC's pipeline, and Gopalan said T-Mobile will approach them the way it handled EchoStar's spectrum: on price.
Sources
- T-Mobile 3Q Profit, Revenue Rise on Postpaid Growth — MarketWatch
- T-Mobile delivers top- and bottom-line beat but sees prepaid revenue decline (TMUS:NASDAQ) | Seeking Alpha — seekingalpha.com
- T-Mobile expects $76.8B in 2026 service revenues as it raises adjusted free cash flow outlook to $18.7B-$18.8B (NASDAQ:TMUS) | Seeking Alpha — seekingalpha.com
- T-Mobile (TMUS) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates — Yahoo Finance
- T-Mobile Delivers Strong Account and ARPA Growth, Translating into Industry-Leading Service Revenue, Profitability and EPS Growth – Company Announcement - FT.com — Financial Times
