T-Mobile Q1 Revenue Up 11%, EPS Beats by $0.22, Guidance Raised
T-Mobile reported Q1 adjusted EPS of $2.27, beating estimates by $0.22, and revenue rose 11% to $23.11 billion on 217,000 postpaid additions. The carrier lifted full-year guidance to 950,000–1.05 million postpaid additions, $37.1–37.5 billion core EBITDA and $18.1–18.7 billion adjusted free cash flow.
1. Q1 Financial Results
T-Mobile reported Q1 adjusted EPS of $2.27, exceeding the analyst consensus by $0.22, and delivered total revenue of $23.11 billion, an 11% increase from a year earlier.
2. Revenue and Service Growth
The company achieved 217,000 postpaid net additions in the quarter, outpacing estimates by 24,000, while total service revenue climbed 11% to $18.8 billion and postpaid service revenue rose 15% to $15.6 billion; ARPA increased 3.9% to $151.93.
3. Merger Costs and Net Income
Net income declined 15% to $2.5 billion due to $476 million of merger-related costs and accelerated depreciation; core adjusted EBITDA rose 12% to $9.2 billion and adjusted free cash flow grew 5% to $4.6 billion.
4. Raised Guidance and Capital Allocation
T-Mobile raised its full-year 2026 outlook, setting postpaid net addition targets at 950,000–1.05 million, core adjusted EBITDA at $37.1–37.5 billion, and adjusted free cash flow at $18.1–18.7 billion, while shareholder return authorizations increased to $18.2 billion.