T-Mobile (TMUS) Q3 2026 Earnings Call: Guidance Raised as Postpaid Revenue Grows 9%
Source Tradingkey
Key Takeaways
- T-Mobile US (NASDAQ: TMUS) reported 274,000 postpaid net account additions in Q3 2026, supported by what management described as industry-leading postpaid phone and 5G broadband net additions.
- Postpaid service revenue increased 9% year over year, total service revenue rose 6%, and core adjusted EBITDA grew 11%. Adjusted free cash flow margin reached 26%.
- Postpaid ARPA grew more than 4% year over year. Management raised its full-year postpaid ARPA growth outlook to approximately 3.5%, from 2.5%-3% previously.
- T-Mobile now expects 2026 service revenue of approximately $76.8 billion, core adjusted EBITDA of $37.35 billion-$37.45 billion, and adjusted free cash flow of $18.7 billion-$18.8 billion.
- Management said 5G broadband ARPU increased both sequentially and year over year. The company remains ahead of the pace needed to reach 15 million broadband customers by 2030.
- T-Mobile expects to direct more of its capital allocation capacity toward potential spectrum purchases in 2027 and 2028, subject to its valuation discipline.
Core Financial Data
| Metric | Q3 2026 result/change | Commentary |
|---|---|---|
| Postpaid net account additions | 274,000 | Supported by postpaid phone and 5G broadband additions |
| Postpaid service revenue | +9% YoY | Management cited continued postpaid outperformance |
| Total service revenue | +6% YoY | Growth partly offset by wholesale and prepaid pressures |
| Core adjusted EBITDA | +11% YoY | Management raised full-year guidance |
| Adjusted free cash flow margin | 26% | Described by management as a strong quarterly result |
| Postpaid ARPA | More than +4% YoY | Driven by premium plans, deeper customer relationships and rate-plan modernization |
| T-Life monthly active users | 32 million | Up from more than 30 million in June |
| Share repurchases | $10.3 billion through October 23 | Compared with $9.9 billion during all of 2025 |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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