T-Mobile US Inc (NASDAQ:TMUS) reported a standout second quarter, surpassing Wall Street’s forecasts for both earnings and revenue while raising its outlook for the full year. This strong performance pushed the stock up over 5% in premarket trading Thursday.
The Bellevue-based telecom giant posted adjusted earnings per share of $2.84, outpacing the consensus estimate of $2.68. Revenue climbed 6.9% year-over-year to $21.13 billion, fueled by solid service growth and a surge in postpaid customer additions.
During the quarter, T-Mobile added a record 1.7 million postpaid customers, marking its strongest Q2 ever. This included 830,000 net additions of postpaid phone subscribers, also an all-time high. Its 5G broadband segment grew rapidly, gaining 454,000 new customers—a 12% increase compared to last year.
“T-Mobile crushed our own growth records with the best-ever total postpaid and postpaid phone nets in a Q2 in our history,” CEO Mike Sievert said. “When you combine that with the incredible value that we have always been famous for, it should surprise no one that customers are switching to the Un-carrier at a record pace.”
Service revenue increased 6% to $17.4 billion, while postpaid service revenue jumped 9% to $14.1 billion, both leading the industry. Net income rose 10% year-over-year to $3.2 billion, marking the company’s highest quarterly profit to date.
Buoyed by these results, T-Mobile raised its 2025 forecast, expecting to add between 6.1 million and 6.4 million postpaid customers, up from the previous range of 5.5 million to 6.0 million. The company also anticipates core Adjusted EBITDA to reach up to $33.7 billion, slightly above earlier estimates.
Despite the positive results, KeyBanc Capital Markets maintained its Underweight rating on T-Mobile shares.
“In our view, TMUS remains at a competitive disadvantage structurally given its lack of fiber. In addition, while postpaid phone net adds were strong, TMUS ceded ground in terms of SOGA vs. peers, which is likely peaking given converging pricing and creates a cyclical challenge,” they wrote.
T-Mobile returned $3.5 billion to shareholders in the quarter, including $2.5 billion in stock buybacks and nearly $1 billion in dividends. Since launching its repurchase program in 2022, the company has returned $38.3 billion to investors.
Sievert highlighted the company’s network and value proposition as key strengths. “T-Mobile is now America’s Best Network,” he stated. “These durable advantages enabled us to once again translate customer growth into financial growth, with the industry’s best service revenue growth by a wide mile and record Q2 Adjusted Free Cash Flow.”
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