10-QPeriod: Q1 FY2026

T-Mobile US, Inc. Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 28, 2026For Securities:TMUSTMUSZTMUSITMUSL

Summary

T-Mobile US, Inc.'s first quarter 2026 performance showcases robust revenue growth driven by a 15% increase in postpaid revenues, reaching $15.6 billion. This growth is attributed to higher average postpaid accounts, bolstered by recent acquisitions like UScellular, and an increase in Average Revenue Per Account (ARPA), which rose by 4% to $151.93. Despite a slight dip in prepaid revenues, the overall revenue increase of 11% to $23.1 billion reflects the company's expanding market reach and successful integration of acquired entities. However, the company faced increased operating expenses, up 16% year-over-year, driven by significant merger-related costs from the UScellular acquisition, network restructuring initiatives, and higher depreciation and amortization expenses. These factors led to a 6% decrease in operating income and a 15% decline in net income to $2.5 billion for the quarter. Despite the cost pressures, T-Mobile demonstrated strong operational execution with a 5% increase in net cash provided by operating activities and a notable 12% rise in Core Adjusted EBITDA to $9.2 billion, indicating underlying operational strength and efficiency gains.

Financial Highlights

51 data points
Beta

Revenue

$23.11B

Net Income

$2.50B

10.8% Net Margin

EPS (Diluted)

$2.27

Total Assets

$214.67B

Cash & Equivalents

$3.52B

Free Cash Flow

$4.60B

Financial Statements
Beta
Revenue$23.11B
SG&A Expenses$5.97B
Operating Expenses$18.61B
Operating Income$4.50B
Net Income$2.50B
EPS (Basic)$2.28
EPS (Diluted)$2.27
Shares Outstanding (Basic)1.10B
Shares Outstanding (Diluted)1.10B

Key Highlights

  • 1Total revenues increased by 11% to $23.1 billion, driven by a 15% surge in postpaid revenues to $15.6 billion.
  • 2Postpaid Average Revenue Per Account (ARPA) grew by 4% to $151.93, signaling effective monetization of high-value customer relationships.
  • 3Core Adjusted EBITDA increased by 12% to $9.2 billion, demonstrating strong underlying operational profitability.
  • 4Net cash provided by operating activities rose by 5% to $7.2 billion, highlighting efficient cash generation from core operations.
  • 5Significant merger-related costs and restructuring initiatives related to the UScellular acquisition contributed to a 16% increase in total operating expenses.
  • 6Shareholder returns remain a priority, with up to $14.6 billion authorized for repurchases and dividends under the 2026 Stockholder Return Program, including $4.9 billion in share repurchases during the quarter.
  • 7The company is strategically expanding its fiber footprint through joint ventures with Wren House and Oak Hill, investing significantly in future growth areas.

Frequently Asked Questions

T-Mobile's revenue growth is primarily driven by its postpaid segment, which saw a 15% increase in revenue to $15.6 billion. This growth is attributed to an increase in the number of average postpaid accounts, partly due to acquisitions, and a rise in Average Revenue Per Account (ARPA).

Operating expenses saw a significant increase of 16% due to several factors, including merger-related costs associated with the UScellular acquisition, network restructuring initiatives, higher depreciation and amortization expenses from network build-out and acquired assets, and increased selling, general, and administrative expenses, such as severance costs and bad debt expense.

T-Mobile continues to prioritize shareholder returns through its 2026 Stockholder Return Program, which has a total authorization of up to $14.6 billion (recently increased to $18.2 billion). This includes substantial share repurchases, with approximately $4.9 billion executed in Q1 2026, and cash dividends. The company is also investing in strategic growth areas like fiber networks through joint ventures.

While net income decreased by 15% due to increased operating expenses and merger-related costs, T-Mobile's Core Adjusted EBITDA saw a healthy 12% increase to $9.2 billion. This suggests that the core operations remain strong and profitable, with management focused on integrating acquisitions and realizing cost efficiencies that are expected to improve profitability over time.