T-Mobile reports strong customer adds, still below Wall Street forecasts
By Josh White
Date: Wednesday 11 Feb 2026
(Sharecast News) - T-Mobile US reported industry-leading customer additions in the fourth quarter on Wednesday, but fell slightly short of Wall Street's expectations for phone subscriber growth, as aggressive holiday promotions intensified competition across the US wireless market.
The Bellevue, Washington-based carrier added 962,000 postpaid phone customers in the fourth quarter, ahead of major rivals but below analyst forecasts of about 981,000 to 992,000.
Total postpaid net customer additions reached 2.4 million in the quarter and 7.8 million for 2025, while postpaid net account additions were 261,000 in the quarter and 1.2 million for the year.
Postpaid phone churn rose to 1.02% from 0.92% a year earlier.
The company said it would stop reporting postpaid phone net additions going forward, shifting its focus to account growth and average revenue per account.
Broadband remained a key growth driver.
T-Mobile said it added 558,000 broadband customers in the quarter and 2.0 million in 2025, including 495,000 5G broadband additions in the quarter.
It said it ended the year with 8.5 million 5G broadband customers and 142.4 million total customers overall.
Fourth-quarter total revenue rose 11% year on year to $24.33bn, slightly ahead of analyst estimates.
Service revenues increased 10% to $18.7bn in the quarter and 8% to $71.3bn for 2025, with postpaid service revenue up 14% in the quarter to $15.4bn.
Net income was $2.1bn in the quarter, or $1.88 per share, down from a year earlier and below consensus estimates, reflecting $293m in severance and related costs tied to a workforce transformation programme.
For the full year, net income was $11.0bn and diluted EPS $9.72.
Core adjusted EBITDA rose 7% to $8.4bn in the quarter and $33.9bn for the year.
Net cash from operating activities increased 20% to $6.7bn in the quarter and 25% to $28.0bn for 2025.
Adjusted free cash flow rose 2% to $4.2bn in the quarter and 6% to $18.0bn for the year, although its 2026 free cash flow guidance of $18.0bn to $18.7bn came in below consensus expectations, partly due to higher integration costs related to its UScellular deal.
The company forecast 2026 postpaid net account additions of 900,000 to one million and core adjusted EBITDA of $37.0bn to $37.5bn.
It also raised its 2027 outlook, projecting service revenue of up to $81.5bn, compared with a prior range of $75bn to $76bn, and adjusted free cash flow of $19.5bn to $20.5bn, up from a previous ceiling of $19bn.
Management attributed customer momentum to premium plans bundling streaming services such as Netflix and Hulu, with about 60% of new accounts opting for higher-tier offerings.
Chief executive Srini Gopalan said average revenue per account has grown 13% since 2020, as the company looked to differentiate on value and network quality amid intensifying competition from AT&T and Verizon.
At 1200 ET (1700 GMT), shares in T-Mobile US were up 1.85% in New York at $203.11.
Reporting by Josh White for Sharecast.com.
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