T-Mobile Raises 2026 Free Cash Flow Forecast to $18.7–$18.8 Billion
Key Facts
T-Mobile raised its 2026 adjusted free cash flow forecast to a range of $18.7–$18.8 billion, compared with a previous range of $18.4–$18.8 billion, according to a company statement issued with its third-quarter results on October 28, 2026. The midpoint was raised alongside results that exceeded analysts’ estimates for earnings per share and revenue. The company reported earnings per share of $3.22, versus a consensus estimate of $2.89, while revenue was $23.58 billion, compared with an estimate of $23.15 billion. Net income was $3.5 billion, up 27% year over year, while diluted earnings per share rose 34%. The adjusted free cash flow guidance includes net payments for UScellular merger costs and assumes no material net cash proceeds from securitizations.
Total revenue was $23.584 billion for the quarter, up 7.4% from the same period a year earlier, while service revenue increased 6.2% to $19.375 billion. The company also reported service revenue of $19.4 billion, up 6% year over year, and postpaid service revenue of $16.3 billion, up 9%. The detailed comparison shows postpaid service revenue rose to $16.269 billion from $14.882 billion a year earlier, an increase of 9.3%. The company said growth in accounts and average revenue per account contributed to increases in revenue, net income and Core Adjusted EBITDA. Average revenue per postpaid account was $155.73, up 4% year over year, while total postpaid accounts reached 35.0 million.
T-Mobile added a net 274,000 postpaid accounts during the quarter, slightly fewer than the 277,000 added in the previous quarter. Meanwhile, the postpaid account churn rate rose to 1.09% from 0.99% in the second quarter. For the year, the company expects to add about 1.0 million postpaid accounts, at the midpoint of its previous range of 950,000 to 1.05 million. These indicators put customer-base growth alongside higher revenue per account, while the quarterly comparison shows a slight slowdown in additions and higher churn. Net income rose from $3.239 billion in the second quarter to $3.455 billion in the third, while diluted earnings per share increased from $2.99 to $3.22.
Core Adjusted EBITDA was about $9.6 billion, up 11% year over year, while adjusted free cash flow rose to $5.1 billion, an increase of 5%. Alongside the higher adjusted free cash flow range, the company raised its 2026 net cash from operating activities forecast to $28.7–$28.8 billion, from $28.4–$28.8 billion previously. This guidance also includes net payments for UScellular merger costs. The company lowered its full-year effective tax rate forecast to 24%–25%, from 25%–26%. Chief Executive Srini Gopalan said, "The winning formula of the best network, best value and best experiences is driving sustainable, profitable growth."
Third-quarter shareholder returns totaled $3.5 billion, including $2.4 billion in share repurchases and $1.1 billion in cash dividends. The buybacks and dividends were part of an authorization for shareholder returns of up to $18.2 billion through December 31, 2026. In its guidance details, the company said the adjusted free cash flow range does not assume material net cash proceeds from securitizations. It had scheduled its third-quarter results call for October 28, 2026, at 4:30 p.m. Eastern Time, and later listed it among past investor events. The available data did not include a share price or its movement after the results announcement.