T-Mobile Earnings Per Share Jump 34% To $3.22 As Bills Rise, But New Account Growth Cools
Net income rose 27% to $3.5 billion, while postpaid account churn climbed to 1.09% and the 2026 cash flow outlook moved up at the midpoint.
T-Mobile, the wireless and broadband carrier, earned $3.22 per diluted share in the third quarter, up 34% from a year earlier, on net income of $3.5 billion, up 27%, the company said Wednesday in an 8-K filing. Customers are paying more per account, but fewer new accounts are arriving and more are leaving.
Higher bills drive the profit
Service revenues rose 6% to $19.4 billion, and postpaid service revenues, from customers who pay after receiving service, rose 9% to $16.3 billion. Core Adjusted EBITDA, a profit measure before interest, taxes and certain costs, climbed 11% to $9.6 billion.
Average monthly postpaid revenue per account reached $155.73, up 4% from a year earlier. The company credits higher fee revenue, including from tax-and-fee-exclusive plans, and its rate plan modernization, along with more customers per account.
Net cash from operations slipped 2% to $7.3 billion, but capital spending fell 14% to $2.3 billion, so Adjusted Free Cash Flow rose 5% to $5.1 billion. The company said the capital spending drop reflected planned timing.
CEO Srini Gopalan said the quarter was "further proof that our winning formula of the best network, best value, and best experiences drives durable and profitable growth."
Account growth cools, churn rises
Postpaid net account additions were 274 thousand, down from 396 thousand in the third quarter of 2025 and 277 thousand in the second quarter. Total postpaid accounts reached 35.0 million, up 3% from a year earlier.
Postpaid account churn, the rate at which accounts are deactivated, rose to 1.09% from 0.97% a year earlier and 0.99% in the second quarter. The company blames more broadband-only accounts, which churn more, and the temporary effect of the rate plan modernization.
T-Mobile said account and revenue-per-account growth both came in ahead of its original expectations.
Outlook edges up, buybacks continue
T-Mobile now expects 2026 Core Adjusted EBITDA of $37.35 billion to $37.45 billion, against a prior $37.1 billion to $37.5 billion, and Adjusted Free Cash Flow of $18.7 billion to $18.8 billion, against $18.4 billion to $18.8 billion. Both midpoints rise, though the ranges are narrower. The effective tax rate forecast drops to 24% to 25% from 25% to 26%, and postpaid net account additions are still expected at about 1.0 million.
The company repurchased 13.6 million shares for $2.4 billion in the quarter, at an average $177.31, compared with $242.01 a year earlier. Through October 23 it bought another $791 million. The next quarterly dividend of $1.17 per share, up 15%, is payable December 10 to holders of record on November 25.
T-Mobile, whose customers include consumers and businesses under the T-Mobile, Metro by T-Mobile and Mint Mobile brands, holds its earnings call at 4:30 p.m. Eastern Wednesday.
Total stock repurchased since the start of the third quarter now stands at $3.2 billion, within a 2026 stockholder return authorization of up to $18.2 billion.
Sources
- 8-K Filing — T-Mobile US, Inc. (TMUS) — SEC EDGAR
- Exhibit tmus09302026ex991.htm — T-Mobile US, Inc. 8-K exhibit — SEC EDGAR
- Exhibit tmus09302026ex992.htm — T-Mobile US, Inc. 8-K exhibit — SEC EDGAR
- Can Healthy Revenue Growth Boost T-Mobile's Q3 Earnings? — Yahoo Finance
- T-Mobile Delivers Strong Account and ARPA Growth, Translating into Industry-Leading Service Revenue, Profitability and EPS Growth — businesswire.com
