TMUS · Q2 FY2026
T-Mobile US, Inc. Q2 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $22.79B | $21.13B (yr ago) | Beat |
| EPS | $2.99 | $2.84 (yr ago) | Beat |
| Free Cash Flow | $4.80B adjusted | $4.60B adjusted (yr ago) | Beat |
| Gross Margin | Not meaningful | Not meaningful | Miss |
| Operating Margin | 24.1% (supplied pre-tax proxy) | 24.7% (yr ago) | Miss |
What changed
Revenue rose 7.9% year over year to $22.79 billion, EPS increased 5.3% to $2.99 and adjusted free cash flow advanced 4.4% to $4.80 billion. Service revenue growth accelerated to 8.9%, but postpaid net account additions fell 13.0% and the supplied pre-tax-margin proxy declined to 24.1% from 24.7%. Management raised the midpoints of operating cash flow and adjusted free-cash-flow guidance by $200 million.
Impact on the investment thesis
There is no prior SageNoodle fair value to revise. We initiate fair value at $182 per share: the cash-flow guidance increase supports a modest premium to the supplied 18.5x TTM P/E, while slower account growth, weaker churn and substantial debt limit the multiple.