T-Mobile US stock lifts 2026 cash-flow outlook after Q3 growth

T-Mobile US reported stronger postpaid growth for the third quarter on October 28 and raised parts of its full-year 2026 outlook. The company said postpaid average revenue per account rose 4% year over year to 155.73 US dollars, while postpaid net account additions reached 274,000. The figures were published in the company's October 28 earnings release.

T-Mobile US stock traded at 151.37 euros on Lang & Schwarz at 14:37 CET on Tuesday, November 10, 2026, 1.69% above the Xetra close of Monday, November 9. The comparison uses the Xetra instrument identified as TM5 by Börse Frankfurt.

Postpaid momentum supports revenue growth

Service revenue increased 6% year over year to 19.4 billion US dollars in the quarter ended September 30. Postpaid service revenue grew 9% to 16.3 billion US dollars. Net income rose 27% to 3.5 billion US dollars, diluted earnings per share advanced 34% to 3.22 US dollars, and core adjusted EBITDA increased 11% to 9.6 billion US dollars.

Adjusted free cash flow rose 5% to 5.1 billion US dollars. Net cash provided by operating activities declined 2% to 7.3 billion US dollars, while cash purchases of property and equipment fell 14% to 2.3 billion US dollars. T-Mobile identifies core adjusted EBITDA and adjusted free cash flow as non-GAAP measures, so the figures complement rather than replace its GAAP results.

Total postpaid accounts reached 35.0 million, up 3% year over year. Account churn was 1.09%. The company said its third-quarter postpaid account and ARPA growth came in ahead of its original expectations, with CEO Srini Gopalan pointing to network, value and customer experience as drivers of the performance.

Cash-flow targets move higher

T-Mobile raised its 2026 adjusted free cash flow guidance to 18.7 billion to 18.8 billion US dollars from 18.4 billion to 18.8 billion, lifting the midpoint by 150 million US dollars. The new range includes net payments for UScellular merger-related costs and assumes no material net cash inflows from securitization.

Net cash provided by operating activities is now expected at 28.7 billion to 28.8 billion US dollars, compared with 28.4 billion to 28.8 billion previously. The core adjusted EBITDA range moved to 37.35 billion to 37.45 billion US dollars from 37.1 billion to 37.5 billion, while planned capital spending remained at approximately 10.0 billion US dollars.

The company expects approximately 1.0 million postpaid net account additions for 2026, at the midpoint of its earlier range. It also lowered its expected effective tax rate to 24% to 25% from 25% to 26%. For investors, the revised outlook puts the focus on whether higher spending per account and sustained customer additions can offset competitive pressure and support the announced cash returns.

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