TMUS US S&P 500NASDAQ-100Russell 1000 Earnings call
T-Mobile US (TMUS) · Q2 2026 results and valuation
Share price: $172.16 · 2026-11-11
T-Mobile US provides wireless communications and broadband services, including 5G and fiber, to individual and business customers in the United States. The company also sells mobile devices, accessories, and wholesale wireless services to various partners. Source: 10-K annual report (2026-02-11)
Results Q2 2026 vs Q1 2026 · previous quarter · published 23 Jul 2026 and 28 Apr 2026
Net income up 29.4% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.
1 · Numbers
+29.4%
Net income vs Q1 2026
Outlook given
Net income 3.24B vs 2.50B
Revenue −1.4%
Against the same quarter last year (Q2 2025) it is +0.5% — part of the move on last quarter is seasonal.
2 · How management spoke
Upbeat
More upbeat than 81% of company calls
Answers to analysts: typical, in line with the script.
Last call it was different: the answers were less upbeat than the script.
3 · What stood out
T-Mobile increased its adjusted free cash flow guidance to between $18.4 billion and $18.8 billion, an increase of $200 million at the midpoint due to lower cash income taxes.
Valuation
Is T-Mobile US undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 3.5% growth a year (3-year revenue growth), the model's fair value is $163.17 a share — the stock trades 6% above it. Today's price assumes 4.0% growth a year.
Current price
$172.16
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+4.0% for 10 yrs
Fair value / share
$163.17
Buy below
$122.38
Price vs fair value
Overvalued 6%
Price vs buy-below price
Overvalued 41%
Management expects
Growth +8% · from the Q2 2026 report: “T-Mobile expects full-year service revenues of approximately $77 billion, representing 8% growth, with Q3 expectations of approximately $19.3 billion, up 6%…”
A guidance figure for growth, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Guidance
TMUS increased its adjusted free cash flow guidance to between $18.4 billion and $18.8 billion, an increase of $200 million at the midpoint, due to lower cash income taxes.
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Guidance
T-Mobile expects full-year service revenues of approximately $77 billion, representing 8% growth, with Q3 expectations of approximately $19.3 billion, up 6% year-over-year.
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Figure
Postpaid service revenue increased by 13% and total service revenue grew by 9%, both of which are at multiples to the company's competition.
Source quote
“Postpaid service revenue up 13%. Total service revenue up 9%, both at multiples to our competition.”
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Key theme
The company expects postpaid account net additions to be between 950,000 and 1,050,000 based on underlying momentum in the business.
Source quote
“Starting with accounts where we continue to expect postpaid account net additions to be between 950,000 and 1,050,000 on the strength of the underlying momentum in the business.”
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Guidance
T-Mobile reaffirmed a target of 15 million subscribers by 2030 as a rational goal based on current growth mechanisms.
4 more
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Figure
The company's NPS reached a record high of 46 this quarter, demonstrating customer satisfaction.
Source quote
“Nothing demonstrates this better than our NPS, a record high 46 this quarter.”
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Figure
To its dividend, T-Mobile US is also excited to have repurchased an incremental $2.5 billion in Q2 and through July 17.
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Figure
Excluding M&A, postpaid ARPA grew 3.7% on a year-over-year basis.
Source quote
“And if you look ex M&A, postpaid ARPA actually grew 3.7% on a year-over-year basis.”
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Guidance
Wholesale and other revenue is now projected to be roughly flat for the full year instead of flat to slightly up due to the planned roll-off of DISH and TrackPhone.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“I'm really excited to share that our T-Mobile Visa credit card launch was one of the most successful co-branded launches for Capital One, and we're on track to rank amongst...”
“Our philosophical approach to guidance, as you are seeing play out, is to begin the year with an ambitious and industry-leading guidance range based on our best view at the...”
“And so we have absolutely aspirations to continue to take volume and continue to see ARPA growth and reiterated what we expect to be very strong, 2.5% to 3% on...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 22.79B | 23.11B | −1.4% | 21.13B | +7.9% |
| Operating income | 5.49B | 4.50B | +22.1% | 5.21B | +5.3% |
| Net income | 3.24B | 2.50B | +29.4% | 3.22B | +0.5% |
| EPS | 2.99 | 2.27 | +31.7% | 2.84 | +5.3% |
| P/E today 15.6 | 17.5 | 22.3 | −4.8 | 22.5 | −5.0 |
Topics
Most discussed now
- New This quarter, the highest percentage ever of network seeking prospects ranked T-Mobile #1 on having an extremely reliable network and...
- New Postpaid phone, T-Mobile US is not going to give you the whole spreadsheet, but one thing I can tell you is it...
- New From a fixed wireless perspective, T-Mobile US saw another very strong quarter.
- T-Mobile US rolled out many new member benefits and brought back old favorites from the Delta premium in-flight beverage on us...
- You're right, the sequential growth from Q2 to Q3 is excitingly even more than what T-Mobile US justs delivered from Q1...
Faded since Q1 2026
- Dropped What I've been told is hypothetically, if someone were to ever consider such a transaction reported in the article, that...
- Dropped Kannan, it just struck me that your reference to large deals potentially was you asking the question I get asked...
- Fading This widening differentiation gives it access to unprecedented growth opportunities, and T-Mobile US's industry-leading growth this quarter…
- Fading This is an opportunity with a lot of runway and one where T-Mobile US is making great progress.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
T-Mobile announced that Jessica Uhl will join as CFO Designate in mid-September 2026 and succeed Peter Osvaldik as Chief Financial Officer in February 2027.
- Results of operations · SEC 8-K
T-Mobile reported service revenues of $19.0 billion, up 9% year-over-year, and net income of $3.2 billion, up 1% year-over-year for the quarter ended June 30, 2026.
- Director or officer change; Regulation FD disclosure · SEC 8-K
T-Mobile appointed Chris Sambar as Chief Enterprise Officer effective October 14, 2026, and André Almeida as Chief Marketing, Brand and Broadband Officer.
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
T-Mobile reported service revenues of $18.8 billion, up 11% year-over-year, and postpaid service revenues of $15.6 billion, up 15% year-over-year, for the quarter ended March 31, 2026.
- Other events · SEC 8-K
T-Mobile US, Inc. filed a Form 8-K on April 23, 2026, listing various senior notes with interest rates ranging from 3.150% to 6.250%.
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-11.
Cash & runway
Cash & equivalents
$2.83B
2026-06-30
Long-term investments
$19.3M
total liquidity $2.84B
Implied runway
—
operating cash flow positive over the TTM window
Dilution
weighted-average basic shares, per quarter. Change: -4.5% YoY, -1.7% QoQ.
| Quarter | Shares |
|---|---|
| Q3 2024 | 1.17B |
| Q1 2025 | 1.14B |
| Q2 2025 | 1.13B |
| Q3 2025 | 1.12B |
| Q1 2026 | 1.10B |
| Q2 2026 | 1.08B |
Shares outstanding: 1.07B (2026-07-17)
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 56 filings; 50 filings parsed.
Sold by insiders
756.0K shares
$163.9M · 19 transactions
Bought by insiders
14.9K shares
$3.0M · 2 transactions
Net direction
net selling
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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Q3
net postpaid account additions
Source quote
“and expect Q3 net postpaid account additions to be approximately 250,000.”
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this year
full year service revenues
Source quote
“We continue to expect to deliver full year service revenues of approximately $77 billion this year, representing 8% growth with Q3 expectations of approximately $19.3 billion or up 6% year-over-year.”
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this year
post_paid ARPA growth
Source quote
“As part of that service revenue guide, we continue to [ step back ] strong postpaid ARPA growth of between 2.5% and 3% this year.”
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full year
core adjusted EBITDA
Source quote
“We continue to expect core adjusted EBITDA to be between $37.1 billion and $37.5 billion for the full year, representing 10% growth year-over-year at the midpoint.”
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Q3
core adjusted EBITDA
Source quote
“As part of that, we expect Q3 core adjusted EBITDA of approximately $9.4 billion or up 8% year-over-year.”