T-Mobile (TMUS) Stock Slides 4% — Why the Earnings Beat Wasn’t Enough

TLDR

• T-Mobile stock dropped 4.2% premarket to $183 after Q2 revenue came in below expectations
• Revenue rose 7.9% year-over-year to $22.8 billion, missing the $22.9 billion analyst estimate
• Adjusted EPS of $2.99 beat the $2.54 consensus by a wide margin
• The company added 277,000 net postpaid subscribers, slightly above the 268,300 Wall Street expected
• Full-year adjusted free cash flow guidance was raised to $18.4–$18.8 billion, up from $18.1–$18.7 billion

T-Mobile stock dropped around 4.2% in premarket trading Thursday, hitting $183, after the carrier posted Q2 revenue that fell short of analyst forecasts despite beating on earnings.

T-Mobile US, Inc., TMUS

Revenue for the quarter came in at $22.8 billion, up 7.9% year-over-year but just below the $22.9 billion consensus. Adjusted EPS of $2.99 comfortably topped the $2.54 estimate.

The revenue miss was enough to send the stock lower. Even a solid earnings beat couldn’t offset the disappointment.

T-MOBILE $TMUS Q2’26 EARNINGS HIGHLIGHTS

🔹 Revenue: $22.79B (Est. $22.94B) 🔴
🔹 EPS: $2.99 (Est. $2.59) 🟢; +5% YoY
🔹 Postpaid Net Account Adds: 277,000 (Est. ~259,000-264,000) 🟢
🔸 Results included $146M, or $0.14/share, of UScellular merger-related costs

Customer Metrics:… pic.twitter.com/oxV3PS0D86

— Wall St Engine (@wallstengine) July 23, 2026

Service revenues grew 9% year-over-year to $19.0 billion. Postpaid service revenues were up 13% to $15.9 billion.

Core adjusted EBITDA rose 12% year-over-year to $9.5 billion. Adjusted free cash flow came in at $4.8 billion, up 4%.

Postpaid net account additions totaled 277,000 for the quarter. That was a 13% drop year-over-year, though it edged past Wall Street’s estimate of 268,300.

Postpaid average revenue per account rose 2% year-over-year to $152.91. That’s a modest but steady increase in monetization per customer.

Guidance Gets a Lift

T-Mobile raised its full-year adjusted free cash flow guidance to $18.4–$18.8 billion, up from the prior range of $18.1–$18.7 billion.

Net cash from operating activities guidance was also bumped up to $28.4–$28.8 billion, from $28.1–$28.7 billion previously.

The company noted the updated guidance does not assume any material net cash inflows from securitization.

T-Mobile reiterated its full-year targets for postpaid net account additions of 950,000 to 1.05 million and core adjusted EBITDA of $37.1–$37.5 billion.

Capital expenditure guidance remains at approximately $10 billion for the year.

Where T-Mobile Stands in the Big Three

T-Mobile is the second of the three major U.S. wireless carriers to report this quarter. AT&T also beat on earnings but missed on revenue.

Verizon is set to report before Friday’s market open.

T-Mobile reiterated its full-year postpaid account addition target of 950,000 to 1.05 million, keeping its subscriber outlook intact.

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