The raised guidance and increased buyback authorization signal management confidence in post-UScellular integration momentum. Watch for Q2 2026 execution on postpaid account growth and margin expansion as merger-related costs roll off.
Price Chart
Executive Summary
T-Mobile reported Q1 2026 results with service revenue up 11% YoY to $18.8B and Core Adjusted EBITDA up 12% to $9.2B, while GAAP net income fell 15% to $2.5B due to $476M in UScellular merger-related costs. The company raised its 2026 guidance for Core Adjusted EBITDA, operating cash flow, and adjusted free cash flow by $50M at the midpoint, and increased its stockholder return authorization by $3.6B to $18.2B.
Key Financial Metrics
Key Facts
- Service revenues of $18.8B grew 11% YoY; postpaid service revenues of $15.6B grew 15% YoY
- Core Adjusted EBITDA of $9.2B grew 12% YoY, industry-leading growth
- GAAP diluted EPS of $2.27 decreased 12% YoY, impacted by $0.43/share in UScellular merger-related costs
- Postpaid net account additions of 217K grew 6% YoY; postpaid ARPA of $151.93 grew 3.9% YoY
- Adjusted Free Cash Flow of $4.6B grew 5% YoY
- Raised 2026 guidance: Core Adjusted EBITDA midpoint up $50M to $37.1-$37.5B; Adjusted FCF midpoint up $50M to $18.1-$18.7B
- Board increased 2026 stockholder return authorization to up to $18.2B (from $14.6B)
- Repurchased 23.3M shares for $4.9B and paid $1.1B in dividends in Q1 2026
Financial Impact
Core Adjusted EBITDA grew 12% YoY to $9.2B; service revenue grew 11% YoY to $18.8B; GAAP net income fell 15% to $2.5B due to $476M in UScellular merger costs
Risk Factors
- UScellular integration costs and accelerated depreciation will continue to pressure GAAP net income through 2026
- Postpaid account churn increased 10 bps YoY to 1.04%, indicating competitive pressure
- Net debt increased to $84.7B from $83.0B in Q4 2025, with leverage ratio at 2.4x Core EBITDA
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001283699-26-000062 |
| Document: tmus03312026ex991.htm | 0001283699-26-000062 |
| Document: tmus-20260428.htm | 0001283699-26-000062 |
| Document: 0001283699-26-000062-index-headers.html | 0001283699-26-000062 |
| Document: 0001283699-26-000062-index.html | 0001283699-26-000062 |
| Document: 0001283699-26-000062.txt | 0001283699-26-000062 |
| 8-K Data (Synthetic) | 0001283699-26-000062 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
May 1, 2026 25w ago | 144 | $25.01 $23.00 | ▼ −8.04% | ▼ −11.11% | $19.97 (−20.14%) |
Apr 28, 2026 25w ago | 8-K | $24.81 $23.01 | ▼ −7.26% | ▼ −11.37% | $19.97 (−19.51%) |
Apr 27, 2026 25w ago | DEFA14A | $24.94 $22.87 | ▼ −8.30% | ▼ −12.29% | $19.97 (−19.93%) |
US Market Status
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