Markets

T-Mobile Stock Soars 8%, Adding $12 Billion, After Raised Cash Flow Outlook

The carrier lifted its cash flow guidance at the midpoint on Wednesday, and its shares rallied in Friday trading.

T-Mobile US shares climbed 7.72% to $158.66 in Friday trading as of 12:41 p.m. ET, adding about $12 billion in market value, two days after the carrier raised its profit and cash flow guidance with third-quarter results.

A rebound built on Wednesday's guidance raise

The results came out Wednesday, so they were public before Friday's session. The company's earnings release showed net income of $3.5 billion, up 27% from a year earlier, and diluted earnings per share of $3.22, up 34%.

It raised guidance at the midpoint. Core adjusted EBITDA is now expected at $37.35 billion to $37.45 billion, against a prior range of $37.1 billion to $37.5 billion. Adjusted free cash flow is now expected at $18.7 billion to $18.8 billion, up at the midpoint from $18.4 billion to $18.8 billion.

The company also trimmed its expected effective tax rate to between 24% and 25%, from 25% to 26%, and kept postpaid net account additions at about 1.0 million.

The stock was on pace for its biggest one-day gain in at least 275 trading sessions, since Sept. 26, 2025.

Accounts up, ARPA up

T-Mobile, which sells wireless phone and broadband service under brands including T-Mobile, Metro by T-Mobile and Mint Mobile, reported revenue up 7.4% to $23.6 billion. It added 274 thousand postpaid net accounts, and total postpaid accounts reached 35.0 million, up 3%.

Postpaid average revenue per account was $155.73, up 4%. Service revenues of $19.4 billion rose 6%, and postpaid service revenues of $16.3 billion rose 9%. Core adjusted EBITDA of $9.6 billion rose 11%, and adjusted free cash flow of $5.1 billion rose 5%. Net cash from operating activities of $7.3 billion fell 2%.

"We have a tremendous growth runway ahead across core wireless, broadband, and smart adjacencies, and we're just getting started," CEO Srini Gopalan said.

Still down 28% this year

Even after Friday's jump, the shares carry a deep hole. At Thursday's close they were down about 28% for the year, against a gain of about 13% for the S&P 500, and 34% below their highest close of the past year, set Feb. 24.

Deutsche Telekom's stake has risen to 55.9% through the company's buybacks.

At $158.66 in Friday trading, T-Mobile carried a market value of $168.1 billion.