T-Mobile US stock gains after strong Q3 and higher cash outlook

T-Mobile US reported strong third-quarter operating growth on Wednesday, October 28, as postpaid account additions and average revenue per account exceeded the company’s original expectations. The company also raised the midpoint of its 2026 adjusted free cash flow outlook, giving investors a stronger cash-generation signal for the remainder of the year.

According to the T-Mobile investor relations release, postpaid net account additions reached 274,000 in the quarter ended September 30. Total postpaid accounts rose 3 percent year over year to 35.0 million, while postpaid account churn was 1.09 percent.

Account growth strengthens revenue

Postpaid average revenue per account rose 4 percent year over year to 155.73 US dollars. T-Mobile attributed the increase to higher fee revenue, rate-plan modernization and a greater number of customers per account, including continued adoption of 5G broadband and growth in business accounts.

Service revenue increased 6 percent year over year to 19.375 billion US dollars. Postpaid service revenue grew 9 percent to 16.269 billion US dollars. Net income advanced 27 percent to 3.455 billion US dollars, while diluted earnings per share increased 34 percent to 3.22 US dollars. Core adjusted EBITDA rose 11 percent to 9.620 billion US dollars, and adjusted free cash flow increased 5 percent to 5.071 billion US dollars.

The figures combine GAAP results with non-GAAP measures. Core adjusted EBITDA and adjusted free cash flow are management measures, while net income and diluted earnings per share are reported under GAAP. Operating cash flow declined 2 percent year over year to 7.341 billion US dollars, partly highlighting the distinction between cash generation before investment and adjusted free cash flow after capital spending.

Guidance moves higher

T-Mobile now expects adjusted free cash flow of 18.7 billion to 18.8 billion US dollars in 2026, compared with its previous range of 18.4 billion to 18.8 billion US dollars. The midpoint therefore increased by 150 million US dollars. The outlook includes net payments related to the UScellular merger and does not assume material net cash inflows from securitization.

Core adjusted EBITDA guidance moved to 37.35 billion to 37.45 billion US dollars from 37.1 billion to 37.5 billion US dollars. The company kept its postpaid net account addition outlook at approximately 1.0 million for the full year and raised its postpaid ARPA growth expectation to approximately 3.5 percent. Management also lowered its expected effective tax rate range to 24 percent to 25 percent from 25 percent to 26 percent.

CEO Srini Gopalan said the quarter showed that T-Mobile’s network, value proposition and customer experience were supporting durable growth across wireless, broadband and adjacent services. The company’s outlook still depends on customer retention, promotional intensity and continued adoption of premium plans.

Stock tracks operating momentum

T-Mobile US stock traded at 143.30 euros on Lang & Schwarz at 14:36 CET on Tuesday, November 3, 2026, 1.33 percent above the Xetra close of Friday, October 30, at 141.42 euros. The real-time quote of T-Mobile US stock provides the latest trading level.

For investors, the key question is whether higher account additions and ARPA can remain durable while seasonal promotions and merger-related costs continue to affect the operating picture. The next material focus will be the company’s execution against its full-year cash-flow and account-growth targets.

Broader sentiment in the US equity market remains relevant for communication-services shares; follow current S&P 500 market coverage.

More news and analyses are available on the T-Mobile US stock topic page.

T-Mobile US at a glance

• Company: T-Mobile US, Inc.
• ISIN: US8725901040
• Ticker: TMUS
• Primary exchange: Nasdaq
• Lang & Schwarz price: 143.30 euros at 14:36 CET on Tuesday, November 3, 2026
• Xetra close: 141.42 euros on Friday, October 30, 2026
• Sector: Communication Services