Why did postpaid account growth slow, and is it a concern?

Postpaid net account additions were 277K, down 13% YoY, because account deactivations rose with the larger base (including UScellular) and a higher mix of broadband-only accounts, partly offset by more gross additions from Metronet fiber. Churn of 0.99% is up 7 basis points YoY. Investors should watch whether this trend persists, since the full-year guidance of 950K–1.05M net adds implies a meaningful pickup in the second half of the year.

How much of the revenue growth is organic versus acquisition-driven?

The filing does not quantify organic growth separately. Management attributes the postpaid service revenue increase to higher average postpaid accounts, including the UScellular and Metronet acquisitions, plus higher postpaid ARPA. ARPA grew 2% YoY, a smaller contributor than the account base expansion, so acquisitions likely account for a large share of the 13% postpaid growth.

Did the EPS and net income figures include one-time items?

Yes. Q2 2026 results included about $146 million (net of tax, $0.14 per share) of UScellular merger-related costs, including accelerated depreciation, and about $46 million ($0.04 per share) of network restructuring costs. The prior-year quarter included a $113 million gain ($0.10 per share) from a spectrum sale, which makes the YoY EPS comparison less clean.

What changed in the 2026 outlook?

Only cash flow guidance changed. Net cash provided by operating activities is now $28.4–28.8B (from $28.1–28.7B) and Adjusted Free Cash Flow is $18.4–18.8B (from $18.1–18.7B). Core Adjusted EBITDA guidance of $37.1–37.5B, postpaid net account additions, the effective tax rate and capex of about $10.0B were all reiterated.

How is T-Mobile returning capital to shareholders?

In Q2 2026 the company returned $3.3B, including $2.2B of share repurchases (11.4 million shares at an average $188.76) and $1.1B of dividends ($1.02 per share). Through July 17, 2026 it had repurchased an additional $392M, for $2.5B since the start of Q2. The 2026 authorization is up to $18.2B, and cumulative returns since Q3 2022 total $54.6B. Net debt excluding tower obligations was $84.1B, about 2.3x LTM Core Adjusted EBITDA.

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

01—Abstract

Summary

Summary of the 8-K filed July 23, 2026. Cited figures are marked; the original filing is the authoritative source.

T-Mobile US (TMUS) reported second-quarter 2026 results on July 23, 2026, led by strong service revenue and profitability growth, while postpaid account growth moderated.

Total service revenues rose 9% year-over-year to $19.0 billion^a, and postpaid service revenues rose 13% to $15.9 billion, supported by higher postpaid ARPA ($152.91, up 2%) and the contribution of the UScellular, Metronet and Lumos acquisitions. Core Adjusted EBITDA grew 12% to $9.5 billion with a 50.2% margin on service revenues, and Adjusted Free Cash Flow rose 4% to $4.8 billion. The main soft spot was customer growth.

Postpaid net account additions fell 13% year-over-year to 277 thousand, and postpaid account churn rose to 0.99% from 0.92% a year earlier, which management attributed to a larger base and a higher mix of broadband-only accounts. Reported net income was $3.2 billion^b (up 1%) and diluted EPS was $2.99 (up 5%), both including roughly $0.14 per share of UScellular merger-related costs. Q2 Net income also reflects $46 million of network restructuring costs, and the prior-year quarter included a gain on a spectrum sale.

Management raised its 2026 guidance for cash flow only. Net cash provided by operating activities is now expected at $28.4^c–$28.8 billion (up $200 million at midpoint), and Adjusted Free Cash Flow at $18.4–$18.8 billion (up $200 million).

Core Adjusted EBITDA ($37.1^d–$37.5 billion), postpaid net account additions (950 thousand–1.05 million) and capital expenditures (~$10.0 billion) were reiterated. Stockholder returns in Q2 totaled $3.3 billion, and the company has repurchased a further $392 million through July 17, within an authorization of up to $18.2 billion for 2026.

02—Key points

Key Highlights

Service revenues of $19.0B, up 9% YoY; postpaid service revenues of $15.9B, up 13% YoY, driven by the UScellular and Metronet acquisitions and higher ARPA.
Core Adjusted EBITDA of $9.5B, up 12% YoY, with a 50.2% margin on service revenues.
Postpaid net account additions slowed to 277K (down 13% YoY) and account churn rose to 0.99% from 0.92%, a key watch item for growth.
Net income of $3.2B (up 1%) and diluted EPS of $2.99 (up 5%), both reduced by about $0.14 per share of UScellular merger-related costs.
Adjusted Free Cash Flow of $4.8B, up 4% YoY; operating cash flow of $7.5B, up 7%.
2026 guidance for operating cash flow ($28.4–28.8B) and Adjusted Free Cash Flow ($18.4–18.8B) raised by $200M at midpoint; EBITDA, account adds and capex guidance unchanged.
Q2 stockholder returns of $3.3B ($2.2B buybacks, $1.1B dividends); an additional $392M repurchased through July 17, 2026.

03—Questions

Frequently Asked Questions

Why did postpaid account growth slow, and is it a concern?
Postpaid net account additions were 277K, down 13% YoY, because account deactivations rose with the larger base (including UScellular) and a higher mix of broadband-only accounts, partly offset by more gross additions from Metronet fiber. Churn of 0.99% is up 7 basis points YoY. Investors should watch whether this trend persists, since the full-year guidance of 950K–1.05M net adds implies a meaningful pickup in the second half of the year.
How much of the revenue growth is organic versus acquisition-driven?
The filing does not quantify organic growth separately. Management attributes the postpaid service revenue increase to higher average postpaid accounts, including the UScellular and Metronet acquisitions, plus higher postpaid ARPA. ARPA grew 2% YoY, a smaller contributor than the account base expansion, so acquisitions likely account for a large share of the 13% postpaid growth.
Did the EPS and net income figures include one-time items?
Yes. Q2 2026 results included about $146 million (net of tax, $0.14 per share) of UScellular merger-related costs, including accelerated depreciation, and about $46 million ($0.04 per share) of network restructuring costs. The prior-year quarter included a $113 million gain ($0.10 per share) from a spectrum sale, which makes the YoY EPS comparison less clean.
What changed in the 2026 outlook?
Only cash flow guidance changed. Net cash provided by operating activities is now $28.4–28.8B (from $28.1–28.7B) and Adjusted Free Cash Flow is $18.4–18.8B (from $18.1–18.7B). Core Adjusted EBITDA guidance of $37.1–37.5B, postpaid net account additions, the effective tax rate and capex of about $10.0B were all reiterated.
How is T-Mobile returning capital to shareholders?
In Q2 2026 the company returned $3.3B, including $2.2B of share repurchases (11.4 million shares at an average $188.76) and $1.1B of dividends ($1.02 per share). Through July 17, 2026 it had repurchased an additional $392M, for $2.5B since the start of Q2. The 2026 authorization is up to $18.2B, and cumulative returns since Q3 2022 total $54.6B. Net debt excluding tower obligations was $84.1B, about 2.3x LTM Core Adjusted EBITDA.

04—Continue

← View all 8-K filings