T-Mobile (TMUS.US) Q2 earnings report mixed, net increase in accounts, 13% year-on-year decline, still better than expected

The Zhitong Finance App learned that T-Mobile US (TMUS.US) announced second-quarter earnings before the US stock market on Thursday. Relying on a mature customer loyalty program, the company continued to stabilize its market base. The number of new wireless accounts and core profit indicators exceeded expectations, but overall sales fell short of market expectations. T-Mobile's stock price dropped nearly 6% after the earnings report was released.

According to the data, T-Mobile's second-quarter sales increased nearly 8% year-on-year to reach US$22.8 billion, falling short of market expectations of US$22.9 billion. Total service revenue (generally referring to connectivity business revenue excluding sales of mobile phones and other devices) rose 9% year over year to reach US$19 billion.

Earnings per share were $2.99, up 5% year over year, better than market expectations of $2.59. Adjusted EBITDA increased 12% year over year to reach US$9.54 billion, slightly higher than market expectations.

In the three months ending June 30, the net increase in accounts was 277,000, down 13% year on year, still higher than market expectations of 264,300.

The “internal volume” of the US telecommunications industry intensifies: T-Mobile changes user assessment indicators and optimizes the package system to stabilize the customer base

T-Mobile no longer reports the number of new traditional wireless customers (that is, the net increase in postpaid phone users); instead, it uses a net increase in the number of accounts as a core growth indicator. This strategic adjustment was led by the new CEO, Srini Gopalan, and was first implemented in the first quarter of 2026 earnings report. Chief Financial Officer Peter Osvaldik explained at the time that more than 90% of postpaid accounts actually include more than one line. Simply increasing the number of lines does not really reflect value creation; what the company values more is the trend of customers shifting all business relationships to T-Mobile.

Notably, T-Mobile continues to provide a wide variety of offers and rewards to attract customers through its “T-Mobile Tuesdays” loyalty program, which has been running for ten years. Gopalan said in a statement on Thursday that T-Mobile's strong relationships with customers are a key factor in the company's “substantial progress” in achieving short- and long-term financial goals.

“As our unrivaled value proposition continues to win customer recognition, and we continue to invest in our networks and technology, we see tremendous room for growth in wireless and broadband as well as in new business areas.” he said.

In the context of increasingly fierce competition in the mobile user market, the three major telecom operators in the US are continuously introducing packaged solutions for home internet and wireless services in an effort to provide one-stop connectivity services. T-Mobile has recently discontinued some of its old plans, leading to a slight increase in fees for some consumers, and AT&T (T.US) has taken similar measures.

Cash flow guidelines were raised for the whole year, and expectations such as a net increase in the number of accounts remained unchanged

T-Mobile raised its 2026 cash flow guidance, while reaffirming that its guidelines, such as net increase in the number of accounts, remain unchanged. The company now expects adjusted free cash flow for the full year (including net expenses associated with the USCellular merger) of between $18.4 billion and $18.8 billion, higher than the previous forecast of $18.1 billion to $18.7 billion. The company still expects a net increase of 950,000 to 1.05 million accounts for the whole year.

T-Mobile is the second of the top three US wireless carriers to report quarterly results. On Wednesday, AT&T mostly exceeded expectations, including the number of new monthly mobile users and adjusted earnings per share. Verizon (VZ.US) will announce second quarter results on July 24 (Friday).

Before the US stock market on Thursday, as of press release, T-Mobile's stock price fell 5.58%, AT&T rose more than 1%, and Verizon fell 0.2%.