T-Mobile Earnings Rise on Postpaid Growth
T-Mobile earnings highlighted rising postpaid ARPA and net additions that boosted service revenue and narrowed profit guidance, drawing trader interest.
KEY TAKEAWAYS
- Adjusted EPS beat estimates at $3.22 per share, up from $2.59 a year earlier.
- Postpaid net additions were 274,000, lifting total postpaid accounts to 35.0 million.
- Postpaid ARPA rose 4.0% to $155.73 and service revenue increased 6.0% to $19.4 billion.
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T-Mobile US (TMUS) reported third-quarter earnings on October 28, 2026, showing growth in postpaid accounts, higher average revenue per account (ARPA), and increased service revenue. These results led the company to narrow its full-year profit outlook while raising the lower bound of its free-cash-flow forecast.
Postpaid Growth Supports Revenue and Earnings
For the quarter ended September 30, 2026, T-Mobile posted adjusted earnings of $3.22 per diluted share, exceeding the $2.86 consensus estimate and up from $2.59 a year earlier. The company added 274,000 postpaid net accounts, bringing the total to 35.0 million, a 3.0% increase year over year. Postpaid ARPA rose 4.0% to $155.73, while service revenue increased 6.0% to $19.4 billion [source:6].
The company attributed its revenue and earnings growth to expanding postpaid subscriber counts combined with higher revenue per account. Management said account growth and deeper customer relationships supported service revenue, profitability, and earnings per share gains [source:6]. This pattern reflects T-Mobile’s strategy of building a larger base of higher-value postpaid customers, which drives both top-line service growth and earnings leverage.
Company Narrows Profit Outlook While Raising Cash-Flow Forecast
Following the quarter’s results, T-Mobile raised the lower end of its full-year adjusted free-cash-flow forecast and narrowed its profit guidance. The company set full-year postpaid net additions at the midpoint of its prior range. Executives linked this outlook to the rising share of higher-value postpaid plans, which are boosting service revenue and cash generation.
Together, the subscriber growth, higher ARPA, and stronger service revenue allowed management to emphasize the durability of cash flow even as it tightened the profit range. The company framed these changes as a step toward more stable, plan-driven revenue streams and more predictable free-cash-flow generation.
