T-Mobile US, Inc. (NASDAQ:TMUS) stock rose on Wednesday after the company released its fourth-quarter results.
Earnings Detail
T-Mobile reported quarterly earnings of $2.14 per share, which beat the analyst consensus estimate of $2.06.
Quarterly revenue came in at $24.33 billion, which exceeded the Street estimate of $24.18 billion and is up from the revenue of $21.87 billion reported for the same period last year.
For the quarter, T-Mobile reported postpaid net customer additions of 2.4 million, best in the industry.
The quarterly postpaid phone net customer additions were 962 thousand, the best in the industry.
T-Mobile reported quarterly postpaid net account additions of 261 thousand, down 0.8% year-over-year, best-in-industry performance.
It reported quarterly total broadband net customer additions of 558 thousand, up 29.2% Y/Y, the best in the industry.
This includes 495 thousand 5G broadband net customer additions, up 15.7% year-over-year, and 63 thousand fiber net customer additions.
Rival carriers pushed steep device and plan discounts around Black Friday and Cyber Monday, intensifying competition across the telecom sector.
T-Mobile US’s quarterly service revenues of $18.70 billion increased 10.5% Y/Y, representing the best industry growth.
The quarter’s postpaid service revenues of $15.38 billion increased 13.9% Y/Y, representing the best industry growth.
How Rivals Stacked Up?
Verizon Communications Inc. (NYSE:VZ) reported 372 thousand broadband net additions in the quarter.
In its Consumer Wireline segment, AT&T Inc. (NYSE:T) continued to expand its fiber optic footprint, adding 283,000 AT&T Fiber net subscribers and 221,000 AT&T Internet Air net additions.
Comcast Corp. (NASDAQ:CMCSA) lost 181 thousand broadband customers during the quarter, reflecting pressure from telecom rivals.
Charter Communications Inc. (NASDAQ:CHTR) lost 119,000 internet customers during the quarter.
Net Income Decline
Net income of $2.10 billion declined from $2.98 billion a year ago, as it included the impact of severance and related costs associated with the 2025 workforce transformation and reinvestment initiative.
Net cash provided by operating activities increased 20% Y/Y to $6.65 billion.
Adjusted free cash flow rose to $4.19 billion, from $4.08 billion a year ago.
Finance chief Peter Osvaldik told CNBC one major competitor ramped up device-focused offers to generate headline postpaid growth.
T-Mobile added 962,000 postpaid phone subscribers in the fourth quarter, the highest total among the three major U.S. wireless carriers, but fell short of the 981,330 additions analysts had expected, as intensified promotional offers from rivals weighed on customer growth.
Revenue topped expectations, supported by more customers choosing premium plans that bundle services like Netflix Inc. (NASDAQ:NFLX), with Osvaldik noting strong uptake among new accounts.
He pointed to new customer accounts for its premium plans at 60% take rates.
Outlook
T-Mobile sees fiscal 2026 postpaid net account additions between 900 thousand and 1.0 million.
Net cash provided by operating activities, including payments for UScellular merger-related costs, is expected to be between $28.0 billion-$28.7 billion.
Adjusted free cash flow, including payments for UScellular merger-related costs, is expected to be between $18.0 billion-$18.7 billion.
TMUS Price Action: T-Mobile US shares were up 2.81% at $205.03 at the time of publication on Wednesday, according to Benzinga Pro data.
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