T-Mobile delivered another strong quarter in Q2 2026, driven by robust service revenue growth, higher customer spending, expanding broadband opportunities, investment in network infrastructure, and growing leadership in AI-powered network services. The US wireless operator continued translating higher customer engagement into stronger financial performance while raising its full-year cash flow guidance.
T-Mobile reported revenue of $22.79 billion in the second quarter of 2026, an increase of 7.9 percent from $21.13 billion a year earlier. More importantly, service revenue rose 8.9 percent to $18.98 billion from $17.44 billion, while postpaid service revenue increased 12.6 percent to $15.85 billion from $14.08 billion, reflecting growth in higher-value wireless customers and expanding customer relationships. For the first six months of 2026, total revenue reached $45.90 billion, up 9.2 percent, while service revenue increased 10 percent to $37.81 billion.
The company’s customer monetization strategy continued to improve average spending. Postpaid Average Revenue Per Account (ARPA) increased 2 percent to $152.91, compared with $149.87 in Q2 2025 and $151.93 in Q1 2026. First-half 2026 ARPA improved to $152.42, compared with $148.06 in the same period last year, highlighting T-Mobile’s ability to increase customer value through premium plans and bundled services.
T-Mobile added 277,000 postpaid accounts during the quarter, taking the total number of postpaid accounts to 34.70 million, compared with 31.50 million a year earlier. Although quarterly account additions were down 13 percent from 318,000 last year, customer loyalty remained healthy with postpaid account churn of 0.99 percent, demonstrating retention in a highly competitive US wireless market. The company expects 950,000 to 1.05 million postpaid net account additions during full-year 2026.
Broadband remains one of T-Mobile’s biggest long-term growth opportunities. Chief Executive Officer Srini Gopalan said the company’s differentiated strategy continues creating opportunities across both wireless and broadband, supported by ongoing investments in network infrastructure and technology. Management believes its expanding broadband business, together with wireless services and newer digital businesses, provides a significant runway for future revenue growth.
Capital expenditure continued to support T-Mobile’s network leadership. During Q2 2026, Capex of T-Mobile increased 12.8 percent to $2.70 billion from $2.40 billion a year earlier. For the first half of 2026, capital spending reached $5.33 billion, up from $4.85 billion. T-Mobile reaffirmed its expectation to invest approximately $10 billion in capital expenditures during 2026 as it expands network capacity, strengthens broadband infrastructure and supports future growth initiatives.
Digital transformation is becoming a larger part of T-Mobile’s operating strategy. The company disclosed that it incurred $108 million in costs during the quarter related to retail initiatives aimed at closing selected dealer and corporate-owned stores as part of its ongoing digital initiatives. These efforts are designed to simplify routine customer transactions while enhancing customer experiences through larger-format experience stores and greater digital engagement.
Artificial intelligence is also emerging as an important competitive differentiator. T-Mobile received the AI Services Champion award from P3’s Q2 2026 US Mobile Benchmark, while sweeping all 13 benchmark categories. The company also achieved a record wireless Net Promoter Score of 46, its highest ever, won Ookla’s Best Mobile Network award for the third consecutive time, and remained the most awarded operator in Opensignal’s network performance rankings, reinforcing the strength of its AI-enabled network optimization and customer experience initiatives.
BABURAJAN KIZHAKEDATH