T-Mobile Q1 2026 Earnings Lift Outlook
T-Mobile Q1 2026 earnings show faster postpaid additions and higher ARPA, prompting raised subscriber and EBITDA guidance and supporting buybacks.
KEY TAKEAWAYS
- Postpaid net account additions totaled 217,000, supporting higher ARPA and subscriber momentum.
- Core Adjusted EBITDA was $9.2 billion, up 12.0% year-over-year.
- Management raised FY guidance to 950,000-1.05 million postpaid additions and $37.1-37.5 billion Core Adjusted EBITDA.
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T-Mobile US, Inc. (TMUS) reported Q1 2026 earnings on April 28, showing accelerating postpaid account gains and higher average revenue per account (ARPA). These results prompted management to raise its full-year outlook for subscriber additions, Core Adjusted EBITDA, and cash generation.
Strong Subscriber Growth and Financial Results
The company’s 10-Q filing for the quarter ended March 31, 2026, showed total revenues of $23.1 billion, up from $20.9 billion a year earlier. The filing also reported total debt of $86.0 billion and capital expenditures of $2.6 billion. It detailed ongoing integration of recent acquisitions including the UScellular wireless business, Ka’ena, Vistar, and Blis.
An 8-K summary reported Core Adjusted EBITDA of $9.2 billion, a 12.0% increase year-over-year. Net income declined 15.0% to $2.5 billion, reflecting $476 million in merger-related costs, net of tax, including accelerated depreciation. GAAP diluted earnings per share were $2.27.
The company’s April 27 press release reported service revenues of $18.8 billion, up 11.0% year-over-year, with postpaid service revenues rising 15.0% to $15.6 billion. Postpaid net account additions reached 217,000, a 6.0% increase, while postpaid ARPA rose 3.9% to $151.93. Postpaid churn was 1.0%. The release stated, "T-Mobile US, Inc. (NASDAQ: TMUS) reported first quarter 2026 results today, delivering accelerating postpaid net account growth and strong postpaid ARPA growth."
Raised Guidance and Capital Returns
Management raised full-year 2026 guidance for postpaid net account additions to a range of 950,000 to 1.05 million and for Core Adjusted EBITDA to $37.1 billion–$37.5 billion. It also increased guidance for net cash provided by operating activities to $28.1 billion–$28.7 billion and for Adjusted Free Cash Flow to $18.1 billion–$18.7 billion, while maintaining projected capital expenditures at about $10.0 billion.
The company returned $6.0 billion to shareholders in the quarter, including $4.9 billion in share repurchases and $1.1 billion in dividends. Cumulative returns since the third quarter of 2022 reached $51.4 billion. The stockholder-returns authorization for 2026 was increased to up to $18.2 billion, aligning the company’s subscriber and ARPA momentum with a larger capital return program.
