T-Mobile Q4 2025 Earnings: Revenue Up, Profit Down

T-Mobile US (TMUS) reported Q4 and full-year 2025 results on Feb. 11, 2026. The company posted service revenue gains and industry-leading customer growth despite a decline in net income driven by a workforce-severance charge. It also set 2026 targets for Core Adjusted EBITDA and postpaid net account additions.

Quarterly Results and 2026 Guidance

T-Mobile reported total service revenues of $18.7 billion in Q4 2025, up 10.0% year over year, and $71.3 billion for the full year, up 8.0%. Postpaid service revenues rose 14.0% to $15.4 billion in the quarter and 11.0% to $57.9 billion for the year. Core Adjusted EBITDA, a proxy for operating profit, increased 6.8% to $8.4 billion in Q4 and $33.9 billion for the year.

Net income declined 29.5% year over year to $2.1 billion in Q4 and 3.1% to $11.0 billion for the full year. These results included a $293 million net-of-tax severance charge related to workforce transformation and a $208 million impairment. Diluted earnings per share were $1.88 for the quarter, including a $0.26-per-share severance impact, and $9.72 for the year.

Cash flow remained strong, with net cash from operating activities of $6.7 billion in Q4 and $28.0 billion for the year. Adjusted Free Cash Flow was $4.2 billion in the quarter and $18.0 billion for the year. Capital spending totaled $2.5 billion in Q4 and $10.0 billion for 2025.

For 2026, T-Mobile set Core Adjusted EBITDA guidance between $37.0 billion and $37.5 billion and expects postpaid net account additions of 900,000 to 1.0 million. It projects net cash from operations of $28.0 billion to $28.7 billion, including estimated costs from the UScellular merger. Capital expenditures are expected near $10.0 billion, with Adjusted Free Cash Flow forecasted between $18.0 billion and $18.7 billion. The company plans to update multi-year targets through 2027 at an upcoming Capital Markets Day.

Customer Growth, Network Recognition, and Capital Allocation

T-Mobile added 2.4 million total net customers in Q4 2025 and 8.0 million for the year, ending with 142.4 million customers. Postpaid phone net additions reached 962,000 in Q4—the highest fourth-quarter total since the Sprint merger—and 3.3 million for the year. Postpaid net accounts grew by 261,000 in the quarter and 1.2 million for the year. Total broadband net additions were 558,000 in Q4 and 2.0 million for the year. Postpaid phone churn was 1.0% in Q4 and 0.9% for the year.

Shareholder returns through Dec. 31, 2025, totaled $45.4 billion, including $37.2 billion in share repurchases and $8.2 billion in dividends. In Q4, the company repurchased $2.5 billion of stock, or 11.9 million shares, and $9.9 billion for the full year, or 42.4 million shares. Remaining repurchase authorization runs through Dec. 31, 2026, at $14.6 billion.

T-Mobile cited top rankings in five of six regions in the J.D. Power 2026 U.S. Wireless Network Quality Study, leading results across five Opensignal categories, and Ookla Speedtest’s best mobile network award for the second half of 2025 as competitive advantages supporting customer retention.

CEO Srini Gopalan said, "Q4 was a great proof point of our winning formula – and we see significant runway ahead to widen our margin of differentiation, including through maintaining our tremendous momentum in network perception gains and in our digital transformation and simplification."

The Capital Markets Day will provide an update on multi-year targets, allowing investors to assess the balance between strong customer momentum and cash flow against near-term profit impacts from workforce changes.