T-Mobile US Inc. (NASDAQ:TMUS) reported first-quarter results that exceeded analyst expectations, supported by solid growth in postpaid accounts and higher service revenues.
The company posted adjusted earnings per share of $2.27, beating the consensus estimate of $2.05 by $0.22. Revenue came in at $23.11 billion, ahead of expectations of $22.97 billion and up 11% compared with the same period last year. Postpaid net account additions reached 217,000, surpassing the Visible Alpha forecast of 193,000 and increasing 6% year over year.
Shares of T-Mobile rose 1.6% in premarket trading on Wednesday.
Service revenue increased 11% year over year to $18.8 billion, while postpaid service revenue grew 15% to $15.6 billion. Average revenue per postpaid account rose 3.9% to $151.93.
Net income declined 15% year over year to $2.5 billion, reflecting costs tied to the merger with UScellular, including accelerated depreciation totaling $476 million after tax. Core adjusted EBITDA rose 12% to $9.2 billion, while adjusted free cash flow increased 5% to $4.6 billion.
“We reported accelerating postpaid net account growth and strong postpaid ARPA growth, reflecting this team’s differentiated ability to not only attract new customer relationships but also deepen the engagement with our existing base,” said Srini Gopalan.
The company also raised its full-year 2026 guidance across several metrics. T-Mobile now expects postpaid net account additions of between 950,000 and 1.05 million, compared with prior guidance of 900,000 to 1.0 million. Core adjusted EBITDA is projected in a range of $37.1 billion to $37.5 billion, with the midpoint increased by $50 million from previous guidance.
Adjusted free cash flow is now expected between $18.1 billion and $18.7 billion, also reflecting a $50 million increase at the midpoint versus earlier forecasts.