10-Q · July 23, 2026
T-Mobile delivered 8% year-over-year revenue growth to $22.791 billion and 12% Core Adjusted EBITDA growth to $9.537 billion, while diluted EPS rose to $2.99. Sequential revenue was down 1.4%, but gross and operating…
Earnings analysis · 10-Q
TMUS earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
T-Mobile delivered a strong third quarter, with revenue up 7% to $23.584 billion, diluted EPS up 34% year over year to $3.22, and Adjusted EBITDA up 11% to $9.620 billion. Postpaid growth, higher ARPA, lower capital…
Read full summary
T-Mobile delivered a strong third quarter, with revenue up 7% to $23.584 billion, diluted EPS up 34% year over year to $3.22, and Adjusted EBITDA up 11% to $9.620 billion. Postpaid growth, higher ARPA, lower capital spending and continued cost efficiencies supported earnings and Adjusted Free Cash Flow of $5.071 billion, although operating cash flow declined 2% and postpaid additions and churn trends weakened. The principal offsets are elevated UScellular integration costs, ongoing network restructuring, higher leverage-related interest expense and expanded cybersecurity exposure.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.22
- Segment
- Wireless: total revenue $23.584 billion, up 7% year over year; postpaid revenue $16.269 billion, up 9%; prepaid revenue $2.427 billion, down 8%; wholesale and other service revenue $679 million, down 7%; equipment revenue $3.929 billion, up 13%.
What stood out
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Revenue and EPS beat expectations
Total revenue rose to $23.584 billion from $21.957 billion, up 7% year over year and approximately 3.5% sequentially from $22.79 billion in Q2 2026. Diluted EPS increased to $3.22 from $2.41 year over year and $2.99 sequentially, exceeding the $2.90 consensus estimate.
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Operating profitability improved
Operating income increased 25% year over year to $5.661 billion from $4.530 billion. Operating margin was approximately 24.0%, versus 20.6% in the prior-year quarter, while the derived gross margin was approximately 64.2%, versus 64.8%.
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Postpaid revenue and ARPA grew
Postpaid revenue increased 9% to $16.269 billion, supported by higher average postpaid accounts and ARPA. Postpaid ARPA rose 4% to $155.73, while ending postpaid accounts increased 3% to 34.974 million.
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EBITDA and free cash flow expanded
Adjusted EBITDA increased 11% to $9.620 billion from $8.684 billion, and Adjusted Free Cash Flow increased 5% to $5.071 billion from $4.818 billion. The filing attributes the free-cash-flow improvement primarily to lower capital purchases during the quarter.
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Strong cash generation and liquidity
Operating cash flow was $7.341 billion, down 2% year over year, while capital expenditures were $2.270 billion, down from $2.639 billion. Cash and cash equivalents were $5.620 billion at September 30, 2026, essentially unchanged from $5.598 billion at December 31, 2025.
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Debt reduction alongside shareholder returns
Total debt declined to $83.666 billion from $86.282 billion at year-end 2025 after $9.175 billion of repayments and redemptions, partially offset by $6.891 billion of new debt issuance. The company also returned $12.9 billion through $9.6 billion of share repurchases and $3.3 billion of dividends during the first nine months.
What to watch
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Slower postpaid account growth
Postpaid net account additions declined 31% year over year to 274,000 from 396,000, while postpaid account churn increased to 1.09% from 0.97%. Management cited higher churn among broadband-only accounts, rate-plan modernization and higher industry switching.
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Integration costs remain elevated
UScellular merger-related costs reached $129 million in the quarter and $959 million year to date, while management expects approximately $2.6 billion of total costs to achieve the integration. Management expects substantially all restructuring and integration costs and payments to occur by the end of fiscal 2027.
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Expanded cybersecurity and AI threat exposure
The company’s updated cyber-risk factor highlights persistent attacks, third-party exposure and increasingly sophisticated AI-enabled threats. T-Mobile previously identified approximately 37 million customer accounts affected by the January 2023 cyberattack and recorded an approximately $400 million pre-tax charge related to the August 2021 cyberattack and related settlements.
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Leverage and spectrum-related cash obligations
Total debt was $83.666 billion at September 30, 2026, and quarterly interest expense increased 12% year over year to $1.031 billion. Management also expects approximately $850 million of cash income taxes, primarily through December 31, 2027, related to the 800 MHz spectrum transaction.
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Prepaid and wholesale headwinds
Prepaid revenue declined 8% to $2.427 billion and wholesale and other service revenue declined 7% to $679 million. Management attributed the declines to lower average prepaid customers, promotional and plan-mix dilution, and lower MVNO revenue, including DISH and TracFone.
Management's outlook
No new numeric revenue or EPS guidance was provided in the 10-Q; the filing directs investors to the company’s earnings communications for operating outlook. Management expects $1.2 billion of annual run-rate UScellular cost synergies, with approximately $2.6 billion of total costs to achieve, and expects Network Restructuring Initiative costs of $500 million to $800 million. Management expects 2026 capital expenditures to remain comparable to 2025 and expects approximately $2.0 billion of investment in the GoNetspeed/Greenlight fiber joint venture in the first half of 2027.
Earlier filings 4
10-Q · April 28, 2026
T‑Mobile reported March 31, 2026 quarter revenue of $23,107 million, an 11% increase versus $20,886 million a year ago, driven by postpaid revenue which rose 15% to $15,629 million. Operating income fell to $4,497…
10-K · February 11, 2026
T-Mobile positions itself as the “Un‑carrier” with a customer-first, AI-enabled strategy and a stated goal to be “Famous for Network,” leveraging a dense multi‑layer 5G spectrum portfolio. Operationally 2025 showed…
10-Q · April 24, 2025
T‑Mobile reported Q1 2025 revenue of $20,886 million, up $1,292 million (+6.6%) versus Q1 2024, driven by higher postpaid service and equipment revenue. Operating income rose to $4,800 million (operating margin ~23.0%)…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.