Why did GAAP net income and EPS decline if operating results grew?

Net income fell 15% to $2.5 billion and diluted EPS fell 12% to $2.27, mainly because of Special Items. UScellular merger-related costs, including accelerated depreciation, reduced net income by $476 million ($0.43 per share). Workforce transformation severance and network restructuring costs added further drag, and higher interest expense ($1.03 billion, up from $916 million) also weighed on results. These items are excluded from Core Adjusted EBITDA, which grew 12%.

How strong is the account growth trend?

Postpaid net account additions of 217 thousand grew 6% year-over-year, and total postpaid accounts reached 34.4 million. Growth was supported by fiber account additions following the Metronet and Lumos acquisitions. Higher industry switching lifted account deactivations, and churn rose to 1.04% from 0.94% a year earlier. Full-year 2026 guidance was raised to 950 thousand to 1.05 million net additions.

Has leverage changed materially?

Net debt excluding tower obligations was $84.7 billion at March 31, 2026, versus $76.0 billion a year earlier. The ratio of net debt to LTM Adjusted EBITDA was steady at 2.4x, but the ratio to LTM net income rose to 8.0x from 6.4x because trailing GAAP earnings declined. Total debt fell sequentially, with short-term debt dropping to $2.2 billion from $5.1 billion at year-end 2025, and cash declined to $3.5 billion.

What changed in the 2026 guidance and capital return plan?

Guidance was raised modestly at the midpoint: Core Adjusted EBITDA is now $37.1 to $37.5 billion (up $50 million at the midpoint), operating cash flow $28.1 to $28.7 billion, and Adjusted Free Cash Flow $18.1 to $18.7 billion. Capex is unchanged at about $10.0 billion, and the effective tax rate is unchanged at 25% to 26%. The 2026 stockholder return authorization was increased by up to $3.6 billion to $18.2 billion. Management does not provide GAAP net income guidance.

What non-GAAP measures should investors understand?

Core Adjusted EBITDA excludes interest, taxes, depreciation and amortization, stock-based compensation, and Special Items, and it also removes device lease revenues. Adjusted Free Cash Flow equals operating cash flow less capital purchases, including capitalized interest. Both are non-GAAP and are reconciled to GAAP net income and operating cash flow in the exhibits. Because net payments for merger-related costs ($153 million in Q1) reduce operating cash flow, investors should weigh the Adjusted Free Cash Flow figures alongside those cash costs.

T-Mobile US, Inc. 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed April 28, 2026. Cited figures are marked; the original filing is the authoritative source.

T-Mobile US (TMUS) reported first quarter 2026 results on April 28, 2026, showing continued postpaid account growth and strong financial growth, though GAAP net income and EPS declined year-over-year due to UScellular merger-related costs.

Postpaid net account additions were 217 thousand, up 6% year-over-year, and postpaid ARPA rose 3.9% to $151.93^a. Total service revenues grew 11% to $18.8 billion, with postpaid service revenues up 15% to $15.6 billion. Core Adjusted EBITDA rose 12% to $9.2 billion, and Adjusted Free Cash Flow grew 5% to $4.6 billion.

GAAP results were weighed down by Special Items. Net income fell 15% to $2.5 billion^b and diluted EPS fell 12% to $2.27, including $476 million (or $0.43 per share) of net-of-tax UScellular merger-related costs including accelerated depreciation. Other Special Items included $105 million of workforce transformation severance and $103 million of network restructuring costs.

Net debt excluding tower obligations rose to $84.7 billion^c, and the net debt to LTM net income ratio increased to 8.0x from 6.4x a year earlier, reflecting lower trailing GAAP earnings rather than a material change in leverage on an EBITDA basis (2.4x). Management raised guidance modestly: postpaid net account additions are now expected at 950 thousand to 1.05 million, Core Adjusted EBITDA at $37.1 to $37.5 billion, operating cash flow at $28.1 to $28.7 billion, and Adjusted Free Cash Flow at $18.1 to $18.7 billion, with capital expenditures unchanged at about $10.0 billion.

The Board also raised the 2026 stockholder return authorization to up to $18.2 billion^d, up $3.6 billion. Q1 stockholder returns totaled $6.0 billion.

02—Key points

Key Highlights

Postpaid net account additions of 217 thousand, up 6% year-over-year, with postpaid account churn of 1.04%, up 10 basis points year-over-year on higher industry switching.
Postpaid ARPA of $151.93, up 3.9% year-over-year, driven by rate plan optimization, higher fee revenue, and more customers per account.
Total service revenues of $18.8 billion (up 11%) and postpaid service revenues of $15.6 billion (up 15%), supported by the UScellular, Metronet and Lumos acquisitions.
Core Adjusted EBITDA of $9.2 billion, up 12% year-over-year, with a 49.1% margin on service revenues.
GAAP net income of $2.5 billion (down 15%) and diluted EPS of $2.27 (down 12%), including $0.43 per share of UScellular merger-related costs.
2026 guidance raised at the midpoint for postpaid net account additions, Core Adjusted EBITDA, operating cash flow, and Adjusted Free Cash Flow, while capex remains about $10.0 billion.
Stockholder return authorization for 2026 increased to up to $18.2 billion; Q1 returns were $6.0 billion, including $4.9 billion of buybacks.

03—Questions

Frequently Asked Questions

Why did GAAP net income and EPS decline if operating results grew?
Net income fell 15% to $2.5 billion and diluted EPS fell 12% to $2.27, mainly because of Special Items. UScellular merger-related costs, including accelerated depreciation, reduced net income by $476 million ($0.43 per share). Workforce transformation severance and network restructuring costs added further drag, and higher interest expense ($1.03 billion, up from $916 million) also weighed on results. These items are excluded from Core Adjusted EBITDA, which grew 12%.
How strong is the account growth trend?
Postpaid net account additions of 217 thousand grew 6% year-over-year, and total postpaid accounts reached 34.4 million. Growth was supported by fiber account additions following the Metronet and Lumos acquisitions. Higher industry switching lifted account deactivations, and churn rose to 1.04% from 0.94% a year earlier. Full-year 2026 guidance was raised to 950 thousand to 1.05 million net additions.
Has leverage changed materially?
Net debt excluding tower obligations was $84.7 billion at March 31, 2026, versus $76.0 billion a year earlier. The ratio of net debt to LTM Adjusted EBITDA was steady at 2.4x, but the ratio to LTM net income rose to 8.0x from 6.4x because trailing GAAP earnings declined. Total debt fell sequentially, with short-term debt dropping to $2.2 billion from $5.1 billion at year-end 2025, and cash declined to $3.5 billion.
What changed in the 2026 guidance and capital return plan?
Guidance was raised modestly at the midpoint: Core Adjusted EBITDA is now $37.1 to $37.5 billion (up $50 million at the midpoint), operating cash flow $28.1 to $28.7 billion, and Adjusted Free Cash Flow $18.1 to $18.7 billion. Capex is unchanged at about $10.0 billion, and the effective tax rate is unchanged at 25% to 26%. The 2026 stockholder return authorization was increased by up to $3.6 billion to $18.2 billion. Management does not provide GAAP net income guidance.
What non-GAAP measures should investors understand?
Core Adjusted EBITDA excludes interest, taxes, depreciation and amortization, stock-based compensation, and Special Items, and it also removes device lease revenues. Adjusted Free Cash Flow equals operating cash flow less capital purchases, including capitalized interest. Both are non-GAAP and are reconciled to GAAP net income and operating cash flow in the exhibits. Because net payments for merger-related costs ($153 million in Q1) reduce operating cash flow, investors should weigh the Adjusted Free Cash Flow figures alongside those cash costs.

04—Continue

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