T-Mobile US, Inc.

T-Mobile said Q2 postpaid net account additions were 277,000, postpaid service revenue increased 13% year over year, total service revenue increased 9%, core adjusted EBITDA increased 12%, and free cash flow margin was 25%. The company also cited 2% year-over-year postpaid ARPA growth, with ex-M&A postpaid ARPA up 3.7%, and said CLVs were up double digits. For full-year 2026, management reaffirmed service revenue of approximately $77 billion, core adjusted EBITDA of $37.1 billion to $37.5 billion, cash CapEx of approximately $10 billion, and adjusted free cash flow of $18.4 billion to $18.8 billion, up $200 million at the midpoint. For Q3, it guided to about 250,000 postpaid net account additions, service revenue of about $19.3 billion, and core adjusted EBITDA of about $9.4 billion.

Srini Gopalan framed the quarter as evidence that T-Mobile’s strategy of combining the best network, value, and experience is continuing to win customers. He highlighted a record-high NPS, strong share gains in households and rural markets, fast-growing broadband, and the view that network leadership will unlock future opportunities in enterprise, edge AI, physical AI, and 6G. His tone was confident and expansive, with repeated emphasis that the company still has substantial runway ahead.

Peter Osvaldik said the quarter reinforced strong full-year guidance and reiterated 2026 targets across accounts, revenue, EBITDA, CapEx, and cash flow. He noted that Q3 postpaid net adds will be temporarily affected by rate plan modernization, but said the first half already delivered almost 500,000 net postpaid account additions. He also said free cash flow guidance was lifted because of lower cash income taxes, and outlined continued share repurchases: an incremental $2.5 billion in Q2 and through July 17, with 253 million shares repurchased since late 2022 and shares outstanding reduced to $1.07 billion.

Analysts focused on the balance between pricing and volume, device subsidies, spectrum auctions, fixed wireless competition, fiber expansion, prepaid trends, and direct-to-device satellite strategy. Management said pricing and volume are managed through CLV, not as separate goals, and stressed that postpaid ARPA strength and double-digit CLV growth show the model is working. On subsidies, T-Mobile said it is not increasing subsidy levels and is broadening the value proposition beyond free phones. On satellite and the Starlink JV, management said direct-to-cell is complementary, the exclusivity does not end this year, and most future sourcing is expected to flow through the JV.