T-Mobile US Inc
Q1 2026 Earnings
Includes UScellular merger-related costs, including accelerated depreciation, net of tax, of $476 million ($0.43 per share); severance and related costs associated with the 2025-2026 workforce transformation, net of tax, of $105 million ($0.10 per share); and network restructuring initiative costs, including accelerated depreciation, net of tax, of $103 million ($0.09 per share)
Market Reaction
S&P 500 over the same 30 days: +6.60%.
Did TMUS Beat Earnings? Q1 2026 Results
T-Mobile US delivered a strong first quarter of fiscal 2026 under new CEO Srini Gopalan, with GAAP diluted EPS of $2.27 beating the $1.97 consensus by 15.28%, even as the reported figure absorbed significant one-time charges tied to the UScellular integration, workforce restructuring, and network initiatives. Those items, totaling $0.62 per share net of tax, included $476 million in UScellular merger-related costs, $105 million in severance charges from the 2025-2026 workforce transformation, and $103 million in network restructuring costs. Revenue climbed 10.6% year over year to $23.11 billion, edging past the $23.02 billion consensus, powered by postpaid account growth and expanding ARPA of $151.93. Core Adjusted EBITDA reached $9.24 billion, up 12% year over year, while the company deployed $6.02 billion in shareholder returns during the quarter alone. Management raised full-year guidance, lifting postpaid net account additions to 950,000 to 1.05 million and increasing the 2026 stockholder return authorization to $18.20 billion, signaling confidence in sustained momentum through the integration period.
- Postpaid net account additions grew 6% year-over-year to 217,000
- Postpaid ARPA grew 3.9% year-over-year to $151.93
- Higher average postpaid accounts including from UScellular, Metronet and Lumos acquisitions
- Rate plan optimizations and higher fee revenue from tax and fee exclusive plans
- Growth in customers per account from 5G broadband adoption and T-Mobile for Business
- Higher average revenue per device sold driven by increase in high-end phone mix
- Service revenues grew 11% year-over-year to $18.8 billion
“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.”
T-Mobile US CEO, on the earnings call
Forward Guidance & Outlook
T-Mobile raised its 2026 guidance: postpaid net account additions expected between 950,000 and 1.05 million (up from 900,000 to 1.0 million); Core Adjusted EBITDA expected between $37.1 billion and $37.5 billion (midpoint up $50 million); net cash provided by operating activities expected between $28.1 billion and $28.7 billion (midpoint up $50 million); capital expenditures approximately $10.0 billion (unchanged); Adjusted Free Cash Flow expected between $18.1 billion and $18.7 billion (midpoint up $50 million). Effective tax rate expected at 25% to 26%. The Board increased the 2026 stockholder return authorization to up to $18.2 billion, an increase of up to $3.6 billion from the prior authorization.
TMUS YoY Financials
TMUS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.