T-Mobile Q3 EPS Jumps 34% to $3.22, Full-Year EBITDA and Free Cash Flow Guidance Raised
TMUS is trading near its 52-week low of $143.75 (4.0% above the low).
Summary
T-Mobile reported Q3 2026 diluted EPS of $3.22 (up 34%) on service revenue of $19.4 billion (up 6%) and raised full-year Core Adjusted EBITDA and free cash flow guidance at the midpoint. Postpaid net account additions slowed to 274 thousand from 396 thousand a year earlier.
Key Events · Earnings and Guidance · TMUS
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Q3 EPS and Net Income Surge
Diluted EPS rose 34% year-over-year to $3.22 and net income rose 27% to $3.5 billion, on total service revenues of $19.4 billion (up 6%) and postpaid service revenues of $16.3 billion (up 9%).
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Full-Year Guidance Raised at Midpoint
Core Adjusted EBITDA guidance moved to $37.35-$37.45 billion (up $100 million at the midpoint) and Adjusted Free Cash Flow to $18.7-$18.8 billion (up $150 million), with the effective tax rate cut to 24%-25% from 25%-26%.
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Subscriber Growth Decelerates
Postpaid net account additions were 274 thousand versus 396 thousand in Q3 2025, and postpaid account churn rose to 1.09% from 0.97%, attributed to rate plan modernization and higher-churn broadband-only accounts.
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Dividend Raised 15%, Buybacks Continue
The board declared a $1.17 per share quarterly dividend, up $0.15 or 15%, payable December 10, 2026 to holders of record November 25, 2026; Q3 stockholder returns totaled $3.5 billion, including $2.4 billion of repurchases.
Analysis · TMUS · Technology
T-Mobile beat its own trajectory on the metrics that matter: postpaid service revenue up 9% to $16.3 billion, net income up 27% to $3.5 billion, and diluted EPS up 34% to $3.22. Management then raised the midpoint of full-year Core Adjusted EBITDA guidance by $100 million to $37.35-$37.45 billion and Adjusted Free Cash Flow by $150 million to $18.7-$18.8 billion, while cutting the expected tax rate to 24%-25%. The quarter also funded $3.5 billion of stockholder returns, including $2.4 billion of buybacks and a dividend just raised 15% to $1.17 per share. The offset is softer subscriber momentum: postpaid net account additions of 274 thousand were below the 396 thousand a year ago and postpaid account churn rose to 1.09% from 0.97%, which the company attributes partly to rate plan modernization and a larger base of higher-churn broadband-only accounts. With the stock near its 52-week low, the raised cash-flow guide and buyback pace are the more relevant facts for holders than the account growth deceleration.
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At the time of this filing, TMUS was trading at $149.55 on NASDAQ in the Technology sector, with a market capitalization of approximately $158.8B. The 52-week trading range was $143.75 to $224.75. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.