TLDR
- T-Mobile US Posts 34% EPS Growth in Q3 While Stock Price Moves Higher
- Wireless Carrier Reports Third-Quarter Net Profit of $3.46 Billion, Up 27%
- TMUS Shares Advance as Company Elevates 2026 Free Cash Flow Forecast
- T-Mobile’s Service Revenue Expands 6.2% Year-Over-Year in Latest Quarter
- Carrier Boosts Profitability Outlook Following Strong Q3 Operating Results
Shares of T-Mobile US (TMUS) rose 0.85% during regular trading to close at $148.08, then gained an additional 0.88% in after-hours activity to reach $149.39. The upward movement came after the wireless provider unveiled its third-quarter 2026 financial performance, which demonstrated accelerated earnings momentum, expanded service revenue, and robust subscriber trends. The company also lifted its profitability and cash flow forecasts for the full year, signaling confidence in sustained operational strength.
Wireless Provider Posts Significant Profit and EPS Expansion in Third Quarter
T-Mobile announced third-quarter net profit of $3.46 billion, marking a 27.3% increase from the $2.71 billion recorded in the year-ago period. Diluted earnings per share climbed 33.6% to $3.22, up from $2.41 in the comparable quarter of the previous year. The results underscored improved bottom-line performance as the carrier expanded its wireless subscriber footprint and drove higher service-based revenue.
Overall revenue totaled $23.58 billion for the quarter, reflecting a 7.4% year-over-year advancement from $21.96 billion. Service revenue across all segments rose 6.2% to $19.38 billion, while postpaid service revenue specifically jumped 9.3% to $16.27 billion. The increases pointed to deepening customer engagement and sustained appetite for the carrier’s wireless offerings.
Core adjusted EBITDA grew 10.8% to $9.62 billion, versus $8.68 billion in the third quarter of 2025. Operating cash flow, however, edged down 1.6% to $7.34 billion from $7.46 billion in the prior-year period. Despite this, adjusted free cash flow improved 5.3% to $5.07 billion, aided in part by reduced capital investment levels.
Subscriber Base Expands While Revenue Per Account Shows Healthy Gains
The wireless provider brought on 274,000 new postpaid accounts during the three-month period, pushing its total postpaid account base to roughly 35 million. While this represented a slowdown from the 396,000 additions achieved a year earlier, the carrier still posted positive net growth across its principal customer segments. Year-over-year, total postpaid accounts expanded 2.9%, indicating ongoing demand for its service plans.
Postpaid average revenue per account reached $155.73, representing a 4.2% increase from $149.44 in the same quarter last year. This metric supported the overall expansion in service revenue as the company extracted greater value from existing customer relationships. Postpaid account churn, however, ticked up to 1.09% compared with 0.97% in the year-earlier quarter.
T-Mobile maintained its competitive edge through network quality and customer service excellence. PCMag awarded the carrier top honors in multiple categories, including mobile network speed, coverage, pricing, and customer satisfaction. Opensignal also highlighted its 5G network reach, while Ookla ranked the company’s fixed wireless access offering favorably for both download and upload performance.
Carrier Elevates Full-Year Financial Targets on Stronger Operating Momentum
In light of its quarterly results, T-Mobile increased the midpoint of its full-year profitability and cash generation forecasts. The carrier now projects core adjusted EBITDA in the range of $37.35 billion to $37.45 billion for 2026. This guidance reflects a $100 million upward revision at the midpoint from the prior forecast.
The company simultaneously boosted its adjusted free cash flow projection to a range of $18.7 billion to $18.8 billion. The new range marks a $150 million increase at the midpoint, while the operating cash flow outlook also received an upgrade. T-Mobile anticipates net cash from operating activities between $28.7 billion and $28.8 billion, incorporating payments tied to UScellular merger-related expenses.
Management forecasts roughly one million postpaid net account additions for the complete year. During the third quarter, T-Mobile delivered $3.5 billion to shareholders through a combination of $2.4 billion in stock buybacks and $1.1 billion in dividend payments. The carrier held its capital spending guidance steady at approximately $10 billion, while its enhanced earnings and cash flow outlook contributed to positive investor sentiment in extended trading.
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