T-Mobile Q4 Revenue Tops Forecast, Phone Adds Miss by 19k
T-Mobile reported Q4 EPS of $2.14, beating expected $2.06, and revenue of $24.33 billion, topping $24.18 billion forecasts. Postpaid net customer additions were 2.4 million (962 000 phone adds versus 981 330 expected) while total broadband adds jumped 29.2% to 558 000.
1. Q4 Financial Performance
T-Mobile posted EPS of $2.14, exceeding the $2.06 consensus, and generated $24.33 billion in revenue, surpassing forecasts of $24.18 billion. Service revenue rose 10.5% year-over-year to $18.70 billion, driven by premium plan uptake.
2. Customer Growth Metrics
Total postpaid net customer additions reached 2.4 million, including 962 000 postpaid phone adds compared with 981 330 expected. Broadband net additions climbed 29.2% year-over-year to 558 000, with 495 000 in 5G broadband and 63 000 fiber adds.
3. Competitive Pressure
Intensified promotional device and plan discounts from rivals weighed on phone subscriber growth, leading to the slight shortfall versus analyst projections. T-Mobile highlighted strong premium plan take rates at 60% among new accounts.
4. 2026 Outlook
Management projects fiscal 2026 postpaid net additions of 900 000 to 1.0 million. It expects net cash from operations of $28.0–$28.7 billion and adjusted free cash flow of $18.0–$18.7 billion, including merger-related costs.