T-Mobile Raises Full-Year Cash and Ebitda Midpoints

The Tip Desk · October 30, 2026 · 3 min read

Net income was $3.5 billion in the third quarter, up 27% from a year earlier, as the company lifted full-year Core Adjusted EBITDA and cash-flow midpoints.

T-Mobile US, Inc. (TMUS) reported net income of $3.5 billion for the third quarter, up 27% from a year earlier, and diluted earnings of $3.22 a share, up 34%.

The wireless carrier said the profit rebound followed a much slower year-over-year increase in the second quarter, when net income rose 1% and diluted EPS rose 5%.

Service revenues were $19.4 billion, up 6% from a year earlier. Postpaid service revenues were $16.3 billion, up 9%. Total revenues were $23.6 billion.

Postpaid average revenue per account was $155.73, up 4% year-over-year. Postpaid net account additions were 274 thousand, and total postpaid accounts were 35.0 million, up 3% year-over-year. Postpaid account churn was 1.09%.

The company said postpaid net account and ARPA growth were both ahead of original expectations.

Core Adjusted EBITDA was $9.6 billion, up 11% year-over-year. Adjusted EBITDA was $9.6 billion.

Net cash provided by operating activities was $7.3 billion, down 2% year-over-year. Cash purchases of property and equipment, including capitalized interest, were $2.3 billion, down 14% year-over-year. Adjusted Free Cash Flow was $5.1 billion, up 5% year-over-year. Adjusted Free Cash Flow margin was 26.2%.

Stockholder returns in the quarter were $3.5 billion, including $2.4 billion of common stock repurchases and $1.1 billion of cash dividends, under a remaining authorization of up to $18.2 billion through December 31, 2026.

For the full year, the company now expects Core Adjusted EBITDA of $37.35 billion to $37.45 billion, an increase at the midpoint from prior guidance of $37.1 billion to $37.5 billion. Net cash provided by operating activities, including net payments for UScellular merger-related costs, is now expected to be $28.7 billion to $28.8 billion, an increase at the midpoint from $28.4 billion to $28.8 billion. Adjusted Free Cash Flow, including those merger-related costs, is now expected to be $18.7 billion to $18.8 billion, an increase at the midpoint from $18.4 billion to $18.8 billion. That Adjusted Free Cash Flow guidance does not assume any material net cash inflows from securitization.

Postpaid net account additions are expected to be approximately 1.0 million, at the midpoint of the previous guide of 950 thousand to 1.05 million. The effective tax rate is now expected to be between 24% and 25%, a decrease from prior guidance of between 25% and 26%. Cash purchases of property and equipment, including capitalized interest, are expected to be approximately $10.0 billion.

Chief Executive Srini Gopalan said the quarter was further proof that the company’s winning formula of the best network, best value, and best experiences drives durable and profitable growth, and that more families and businesses are choosing T-Mobile.

The company said PCMag awarded it Best Mobile Network (Major Carrier), Fastest Mobile Network, Best Mobile Network Coverage, Best Mobile Network Pricing (Major Carrier), and Highest Mobile Network Customer Satisfaction (Major Carrier). Opensignal recognized T-Mobile as the 5G Global Winner for 5G Coverage and for Time on 5G in large land-area markets. Ookla ranked it the fastest 5G FWA provider in download and upload speeds. P3 awarded it Mobile Network Test Champion for the second consecutive quarter in its Q3 2026 US Benchmark.