T-Mobile reported strong third quarter 2026 financial results, characterized by significant beats on both top and bottom lines. Growth was primarily fueled by high-value postpaid service revenue and an expansion in Average Revenue Per Account (ARPA), which allowed management to raise the midpoint for full-year profitability and cash flow guidance.

Key Highlights

  • Diluted EPS of $3.22 surged 34% year-over-year, significantly outperforming the analyst consensus of $2.86.
  • Postpaid service revenues grew 9% year-over-year to $16.3 billion, leading the industry in growth rate.
  • Postpaid ARPA reached $155.73, a 4% increase driven by rate plan modernization and the adoption of high-tier 5G plans.
  • Full-year 2026 Adjusted Free Cash Flow guidance was raised to a midpoint of $18.75 billion, up from the previous $18.6 billion.