T-Mobile's Q2 financial report is a mixed bag, with a net increase in accounts declining by 13% compared to the same period last year, but still better than expected.

T-Mobile announced its second quarter financial report in US stock market pre-market trading on Thursday. The company continued to solidify its market base with a mature customer loyalty program, with wireless account additions and core profit metrics exceeding expectations, but overall sales were below market expectations. After the financial report was released, T-Mobile's stock price fell nearly 6%. Data shows that T-Mobile's second-quarter sales increased by nearly 8% year-on-year to reach $22.8 billion, below the market expectation of $22.9 billion. Service revenue total (usually referring to revenue from connectivity services excluding device sales) increased by 9% year-on-year to reach $19 billion. Earnings per share were $2.99, a 5% increase year-on-year, better than the market expectation of $2.59. Adjusted EBITDA increased by 12% year-on-year to reach $9.54 billion, slightly higher than market expectations. In the three months ending on June 30th, T-Mobile added a net of 277,000 accounts, a 13% decrease year-on-year, but still higher than the market expectation of 264,300. Intensified competition in the US telecommunications industry: T-Mobile adjusts user assessment metrics and optimizes package systems to stabilize customer base T-Mobile no longer reports traditional wireless customer additions (i.e. net additions of postpaid phone users), but instead uses net account additions as the core growth indicator. This strategic adjustment was led by the new CEO Srini Gopalan and was first implemented in the first quarter report of 2026. CFO Peter Osvaldik explained at the time that over 90% of postpaid accounts actually include more than one line, and simply increasing the number of lines does not truly reflect the value created. The company values more the trend of customers transferring all business relationships to T-Mobile. It is worth noting that T-Mobile continues to provide a variety of discounts and rewards through its ten-year-old "T-Mobile Tuesdays" loyalty program to attract customers. Gopalan stated in a statement on Thursday that the strong relationship between T-Mobile and its customers is a key factor in the company making "substantial progress" towards achieving short-term and long-term financial goals. "With our unmatched value proposition continuing to win customer recognition, and our ongoing investments in our network and technology, we see enormous growth potential in wireless and broadband as well as new business areas," he said. Amidst increasingly fierce competition in the mobile user market, the three major US telecommunications operators are continuously launching bundled packages of home internet and wireless services, aiming to provide one-stop connectivity services. T-Mobile recently discontinued some existing plans, resulting in a slight increase in costs for some consumers, and AT&T also took similar measures. Guidance was raised for full-year cash flow and net account additions expectations remain unchanged T-Mobile raised its 2026 cash flow guidance and reiterated its guidance for net account additions. The company now expects full-year adjusted free cash flow (including net spending related to the UScellular merger) to be between $18.4 billion and $18.8 billion, higher than the previous expectation of $18.1 billion to $18.7 billion. The company still expects full-year net account additions to be between 950,000 and 1.05 million. T-Mobile is the second of the three major wireless carriers in the US to announce quarterly performance. On Wednesday, AT&T announced that most of its indicators exceeded expectations, including monthly mobile user additions and adjusted earnings per share. Verizon will announce its second-quarter performance on July 24th (Friday). In US stock market pre-market trading on Thursday, T-Mobile's stock price was down 5.58%, AT&T was up over 1%, and Verizon was down 0.2% at the time of writing.