T-Mobile Net Income Returns to Growth as Service Revenue Rises
The wireless carrier reported total service revenues of $19.0 billion, a 9% increase year-over-year.
T-Mobile US (TMUS) reported a return to year-over-year net income growth in the second quarter, reversing a decline seen earlier in the year.
The wireless carrier saw net income grow 1% year-over-year to $3.2 billion. This result followed a 15% year-over-year decrease in net income during the first quarter.
Total service revenues rose 9% year-over-year to $19.0 billion. This growth rate represented a deceleration from the 11% increase reported in the prior quarter. Postpaid service revenues grew 13% year-over-year to $15.9 billion, down from a 15% growth rate in the first quarter.
Growth in the postpaid segment slowed across several key metrics. Postpaid net account additions decreased 13% year-over-year to 277 thousand, a reversal from the 6% growth seen in the first quarter. Postpaid average revenue per account grew 2% year-over-year to $152.91, slowing from a 3.9% increase in the previous quarter.
Equipment revenues decreased 12% year-over-year due to lower device volume and a decrease in the mix of high-end phones. Despite the slowdown in additions, postpaid account churn improved to 0.99% from 1.04% in the first quarter.
Core Adjusted EBITDA grew 12% year-over-year to $9.5 billion, matching the growth rate of the first quarter. The company also reported a record wireless Net Promoter Score of 46.
T-Mobile disclosed $146 million in UScellular merger-related costs, including accelerated depreciation net of tax.
The company raised its 2026 guidance for net cash provided by operating activities to a range of $28.4 billion to $28.8 billion. Adjusted free cash flow guidance was also increased to a range of $18.4 billion to $18.8 billion.