TLDR
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T-Mobile grew postpaid service revenue 13% during the second quarter.
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TMUS raised 2026 operating cash flow and free cash flow guidance.
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Core Adjusted EBITDA climbed 12% as earnings remained resilient.
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T-Mobile secured top network awards across major industry benchmarks.
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TMUS stock dropped 6.13% despite strong quarterly financial results.
T-Mobile US reported second-quarter 2026 results with stronger service revenue, higher profitability, and improved cash generation. The company also raised selected cash flow guidance while reaffirming its customer growth outlook. Meanwhile, TMUS shares fell 6.13% to $179.24 despite the quarterly performance.
Postpaid growth supports higher revenue and profitability
T-Mobile expanded its postpaid business through steady account growth and stronger customer spending. The company added 277,000 postpaid net accounts during the second quarter. However, that figure declined from 318,000 additions recorded one year earlier.
Postpaid average revenue per account reached $152.91 during the quarter. That result increased 2% from the previous year. In addition, total postpaid accounts ended the quarter at 34.7 million after routine base adjustments.
Service revenue also maintained strong momentum across the business. Total service revenue increased 9% year over year to $19.0 billion. Furthermore, postpaid service revenue climbed 13% to $15.9 billion, reflecting continued customer expansion and higher account value.
Net income reached $3.2 billion during the quarter despite merger-related expenses linked to UScellular. Diluted earnings per share increased 5% to $2.99. Core Adjusted EBITDA rose 12% year over year to $9.5 billion.
Operating cash flow also improved during the reporting period. Net cash provided by operating activities increased 7% to $7.5 billion. At the same time, Adjusted Free Cash Flow advanced 4% to $4.8 billion despite higher capital spending.
Capital expenditures increased 13% to $2.7 billion as network investment continued. The company returned $3.3 billion to shareholders through dividends and stock repurchases. It also repurchased another $392 million in shares during the third quarter through July 17.
Network leadership and customer performance remain central
T-Mobile continued strengthening its competitive position through network performance and customer experience. The company reported a record wireless Net Promoter Score of 46 during the second quarter. That result represented its highest score among the three largest U.S. wireless carriers.
Independent testing organizations also recognized T-Mobile’s network performance across several categories. Ookla named the company the Best Mobile Network for the third consecutive report. In addition, Opensignal awarded T-Mobile across quality, network performance, and 5G experience categories.
P3 also named T-Mobile its Test Champion during the second quarter benchmark. The company secured all 13 available award categories, including AI Services Champion. These recognitions supported management’s focus on expanding wireless and broadband services.
T-Mobile also highlighted continued investment in network infrastructure and technology development. The company stated those investments support long-term growth across consumer, broadband, and emerging business segments. Management also pointed to improving customer relationships through stronger service quality.
The company maintained postpaid net account guidance between 950,000 and 1.05 million for 2026. It also reaffirmed Core Adjusted EBITDA guidance between $37.1 billion and $37.5 billion. These projections matched previously announced expectations.
Higher cash flow guidance reflects continued operating strength
T-Mobile increased several financial guidance targets following its second-quarter performance. The company now expects operating cash flow between $28.4 billion and $28.8 billion. That range increased by $200 million from previous guidance.
Adjusted Free Cash Flow guidance also increased by $200 million. The updated range now stands between $18.4 billion and $18.8 billion. Planned capital expenditures remain approximately $10.0 billion for the full year.
The company kept its effective tax rate outlook between 25% and 26%. It also maintained its profitability expectations despite ongoing integration costs from the UScellular transaction. Those costs affected reported earnings but did not change broader operating targets.
T-Mobile’s second-quarter performance reflected continued expansion in higher-value customer accounts and service revenue. Strong operating cash generation also supported increased shareholder returns and updated financial guidance. Even so, the market reacted negatively, sending TMUS shares lower after the earnings release.
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