T-Mobile (TMUS) posted a standout second quarter, delivering all-time highs in both customer growth and profitability.
The wireless giant exceeded Wall Street forecasts across the board, raised its full-year guidance, and signaled strong momentum across core services. Investors took notice, sending shares up more than 5% in early trading.
Postpaid Momentum and 5G Broadband Fuel Top-Line Growth
T-Mobile added 1.7 million postpaid net customers last quarter, including 830,000 postpaid phone users—marking the best second-quarter performance in its history. These gains pushed service revenue up 6% to $17.4 billion, driven by strong demand for its value-laden wireless offerings. Postpaid service revenue alone surged 9% year over year to $14.1 billion.
Growth wasn’t limited to mobile phones. The 5G broadband business added 454,000 customers, while the company’s premium-tier "Experience Beyond" plan saw sign-ups double in popularity over the past year. The strategy of offering both the best network and best value appears to be resonating in an increasingly competitive telecom landscape.
Profit Hits New High as Premium Plans and Network Expansion Pay Off
T-Mobile’s net income reached $3.2 billion, or $2.84 per share—up more than 10% from the same period last year and well ahead of consensus expectations. Adjusted EBITDA grew to $8.54 billion, reflecting both service growth and higher average revenue per account, which rose to nearly $150.
The company’s expanding fiber footprint and the upcoming UScellular acquisition are set to push network capacity further, growing its physical infrastructure from 9,000 to 12,000 sites. Meanwhile, satellite service integration and fixed broadband options continue to broaden T-Mobile’s service reach, helping it carve out new growth channels beyond traditional wireless.
Investor Payouts Top $3.5 Billion as Capex and Customer Value Climb
Amid record results, T-Mobile returned $3.5 billion to shareholders last quarter—$2.5 billion in share repurchases and nearly $1 billion in dividends. Since launching its capital return program in 2022, the company has handed back more than $38 billion.
Despite intensified competition, T-Mobile sees higher lifetime value from its growing base. Its postpaid churn rate held steady at 0.9%, even as customer acquisition costs climbed slightly due to more aggressive device promotions. Management emphasized that average revenue and customer retention are both on the rise, keeping return on investment strong.
With full-year guidance now calling for up to 6.4 million postpaid net adds and adjusted free cash flow potentially hitting $18 billion, the company continues to signal confidence in both its network leadership and long-term growth model.
Conclusion
T-Mobile’s record-setting second quarter underscores its unique position in U.S. telecom—delivering on both value and performance. As the company leans further into broadband, premium wireless, and satellite integration, it’s not just defending its turf, but expanding it. With financials improving and customer loyalty holding firm, T-Mobile is showing that scale, strategy, and service still drive results in a crowded market.
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