T-Mobile reports Q2 2026 results: 9% service revenue growth, raises cash flow guidance

T-Mobile disclosed its second quarter 2026 financial and operating results through a press release and accompanying investor factbook. The 8-K body itself does not contain the actual financial figures—those are in the attached exhibits (99.1 and 99.2), which were not provided in this filing excerpt.

T-Mobile delivered strong Q2 2026 results with service revenues up 9% to $19.0 billion and postpaid service revenues up 13% to $15.9 billion. Net income of $3.2 billion grew 1% despite $146 million in after-tax UScellular merger costs. Core Adjusted EBITDA rose 12% to $9.5 billion and Adjusted Free Cash Flow increased 4% to $4.8 billion, both described as industry-leading growth rates.

T-Mobile raised its full-year 2026 guidance for operating cash flow to $28.4-$28.8 billion (from $28.1-$28.7 billion) and Adjusted Free Cash Flow to $18.4-$18.8 billion (from $18.1-$18.7 billion), representing a $200 million increase at the midpoint for both metrics. The company reiterated guidance for postpaid net account additions (950k-1.05M) and Core Adjusted EBITDA ($37.1-$37.5 billion).

T-Mobile reported a record Net Promoter Score of 46, the highest ever for a major U.S. carrier, and swept multiple third-party network quality awards from Ookla, Opensignal, and P3. These results support management's claim that network leadership and customer experience differentiation are driving durable growth.

T-Mobile added 277,000 postpaid net accounts in Q2 2026, up from 217,000 in Q1 2026 but down from 318,000 in Q2 2025. The year-over-year decline reflects higher account deactivations driven by a growing account base (including UScellular acquisition) and higher average broadband-only accounts, partially offset by higher gross account additions including fiber accounts from Metronet. Sequentially, the increase was driven by lower deactivations due to seasonally lower switching activity.

Service revenues reached $19.0 billion in Q2 2026, up 9% year-over-year from $17.4 billion in Q2 2025, driven by higher postpaid service revenues following the UScellular and Metronet acquisitions and higher postpaid ARPA. Sequentially, service revenues increased slightly from $18.8 billion in Q1 2026, reflecting higher average postpaid accounts and higher postpaid ARPA.

Core Adjusted EBITDA was $9.5 billion in Q2 2026, up 12% year-over-year from $8.5 billion in Q2 2025, driven by higher service revenues partially offset by higher costs. The Core Adjusted EBITDA margin improved to 50.2% from 49.0% in Q2 2025. Sequentially, Core Adjusted EBITDA increased 3% from $9.2 billion in Q1 2026, reflecting lower cost of equipment sales, higher service revenues, and lower SG&A expenses.

Net income was $3.2 billion in Q2 2026, flat year-over-year, with diluted EPS of $2.99 versus $2.84 in Q2 2025. Results included $146 million net of tax ($0.14 per share) in UScellular merger-related costs and $46 million net of tax ($0.04 per share) in network restructuring costs. Sequentially, net income increased from $2.5 billion and EPS from $2.27 in Q1 2026, which had included $476 million in UScellular merger costs and $105 million in workforce transformation severance costs.

T-Mobile raised its 2026 guidance for net cash provided by operating activities by $200 million at the midpoint to $28.4–$28.8 billion (from $28.1–$28.7 billion) and for Adjusted Free Cash Flow by $200 million at the midpoint to $18.4–$18.8 billion (from $18.1–$18.7 billion). Guidance for postpaid net account additions (950K–1.05M), Core Adjusted EBITDA ($37.1–$37.5B), and capital expenditures (~$10.0B) remained unchanged.