T-Mobile US NASDAQ:TMUS, the second-largest U.S. mobile carrier, reported second-quarter revenue that narrowly missed Wall Street expectations, even as earnings and account additions came in ahead of estimates. Total revenue increased 8% from a year earlier to $22.8 billion, compared with analysts' expectations of $22.9 billion, while service revenue rose 9% to $19 billion, matching forecasts. T-Mobile added 277,000 net accounts during the quarter, exceeding the 264,341 expected by analysts, although the result was 13% lower than a year earlier. Earnings per share increased 5% to $2.99, beating projections of $2.59, while adjusted earnings before interest, taxes, depreciation and amortization reached $9.54 billion, above expectations of $9.38 billion.
Despite the stronger earnings and account growth, T-Mobile shares fell 5.7% in premarket trading on Thursday as investors appeared disappointed by the revenue miss and the absence of broader guidance increases. The stock had already declined 6% for the year through Wednesday, compared with a 9.6% gain in the S&P 500 Index. New Street Research analyst David Barden suggested that investors may have been looking for results strong enough to lift the stock from its recent weakness, but noted that this was the first quarter in some time when guidance was not raised across the board. T-Mobile increased its 2026 outlook for net cash and adjusted free cash flow while maintaining the remainder of its account growth and profitability guidance.
Management also warned that recent price changes following the retirement of some legacy plans could temporarily increase customer churn, with Chief Financial Officer Peter Osvaldik projecting approximately 250,000 net account additions in the current quarter. T-Mobile continues to compete in a tight U.S. connectivity market against AT&T NYSE:T, a major U.S. telecommunications provider that reported mostly better-than-expected quarterly results on Wednesday, and Verizon Communications NYSE:VZ, another major U.S. wireless carrier scheduled to release second-quarter results on Friday, July 24. Chief Executive Officer Srini Gopalan said the company sees further growth potential across wireless, broadband, and newer businesses, while future Federal Communications Commission spectrum auctions, including a planned 2.7 GHz auction expected in 2028, could provide T-Mobile with additional capacity to strengthen its 5G network and expand its fixed-wireless home broadband service.