T-Mobile Q2 revenue slightly misses analyst estimates

Overview

• US wireless carrier's Q2 revenue slightly missed analyst expectations, service revenue grew 9% yr/yr

• Diluted EPS for Q2 rose 5% yr/yr to $2.99

• Company returned $3.3 bln to shareholders via buybacks and dividends in Q2

Outlook

• T-Mobile raises full-year net cash from operating activities guidance to $28.4-$28.8 bln

• Company lifts full-year Adjusted Free Cash Flow guidance,including net payments for UScellular merger-related costs, to $18.4-$18.8 bln

• T-Mobile expects 2026 postpaid net account additions of 950,000 to 1.05 mln

Result Drivers

• POSTPAID ACCOUNT GROWTH - Co said strong postpaid account and ARPA growth contributed to service revenue gains

• NETWORK RECOGNITION - Co cited multiple independent awards for network quality and customer experience as drivers of customer retention and differentiation

• CUSTOMER SATISFACTION - Record-high wireless NPS score cited as evidence of customer satisfaction and deepening relationships

Company press release: ID:nBw1CgTSDa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 26 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the wireless telecommunications services peer group is "buy"

• Wall Street's median 12-month price target for T-Mobile US Inc is $254.00, about 33% above its July 22 closing price of $190.94

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads

• July 22 - ATT tops targets for new wireless subscribers as bundle offers spur demand

• July 22 - Rogers misses quarterly wireless subscriber estimates, shares fall

• July 21 - Mexico's America Movil posts 9% rise in Q2 profit

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)