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T-Mobile US Posts Mixed Second-Quarter Results as Postpaid Account Additions Decline

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T-Mobile US Posts Mixed Second-Quarter Results as Postpaid Account Additions Decline

T-Mobile US (TMUS) second-quarter earnings unexpectedly increased year over year, but revenue fell short of market estimates as the wireless network operator's postpaid net account additions declined annually.

Per-share earnings came in at $2.99 for the June quarter, up from $2.84 the year before, defying the FactSet-polled consensus for a decline to $2.59. Overall revenue rose 7.9% to $22.79 billion, but trailed the Street's view for $22.95 billion.

T-Mobile's postpaid net account additions totaled 277,000, down from 318,000 in the prior-year quarter. In the previous three-month period, the firm added 217,000 postpaid net accounts. Postpaid account churn, which measures the percentage of customers who stopped using the company's services, rose to 0.99% from 0.92%.

Shares of the wireless company were down 4.2% in the most recent premarket activity.

Total service revenue climbed 8.9% to $18.98 billion in the second quarter, including postpaid growth of nearly 13% to $15.85 billion.

"(The second quarter) marked another strong quarter of execution as we continued making meaningful progress toward our ambitious 2026 and 2027 objectives," Chief Executive Srini Gopalan said in a statement. "As we continue to invest in our network and our technology, we see a tremendous runway for growth across both wireless and broadband, as well as new businesses."

For 2026, T-Mobile continues to project postpaid net account additions to come in between 950,000 and 1.05 million. For the third quarter, the firm expects net postpaid account additions of about 250,000, Chief Financial Officer Peter Osvaldik said during an earnings call, according to a FactSet transcript.

Earlier this month, BofA Securities said T-Mobile US's limited exposure to competition from low-Earth-orbit service providers and pricing flexibility position it to weather broader telecom sector headwinds. The brokerage at the time raised the stock's rating to buy from neutral and maintained a $220 price target.

Telecom giant AT&T (T) on Wednesday reported better-than-expected second-quarter earnings amid stronger-than-expected growth in wireless subscribers, while revenue missed Wall Street's projections.

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