CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and can afford the risks. Trading CFDs is high risk and is not suitable for everyone. Refer to our PDS and Target Market Determination. AFSL 513393
Open platformOpen platform

Mobile Q3 revenue beats estimates on postpaid service growth; lifts profit outlook

By Reuters News


Overview

  • US wireless carrier's Q3 revenue beat analyst expectations

  • EPS for Q3 rose 34% yr/yr

  • Adjusted free cash flow for Q3 grew 5% yr/yr


Outlook

  • T-Mobile raises midpoint of 2026 Core Adjusted EBITDA guidance, narrows range to $37.35 bln-$37.45 bln

  • Company now expects 2026 Adjusted Free Cash Flow of $18.7 bln-$18.8 bln

  • T-Mobile expects 2026 postpaid net account additions of about 1 mln


Result Drivers

  • ACCOUNT AND ARPA GROWTH - Co said strong postpaid account additions and higher average revenue per account drove service revenue and profit growth

  • SERVICE REVENUE GROWTH - Postpaid service revenue rose 9% yr/yr, supported by account and ARPA growth

  • CUSTOMER EXPERIENCE - CEO said improved customer experience and innovation contributed to deeper customer relationships


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$23.58 bln

$23.14 bln (19 Analysts)

Q3 EPS

$3.22

Q3 Adjusted Free Cash Flow

$5.07 bln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the wireless telecommunications services peer group is "buy"

  • Wall Street's median 12-month price target for T-Mobile US Inc is $235.00, about 60% above its October 27 closing price of $146.83

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago


Reuters Recommended Reads

  • Oct 26 - T-Mobile debuts wireless plans with customizable perks from streaming to food delivery

  • Oct 26 - Verizon Q3 profit beats; raises 2026 postpaid phone net adds forecast

  • Oct 26 - Verizon lifts annual forecasts, signs more than $2 billion AI infrastructure deal with AWS


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.