T-Mobile $TMUS reported $18.8 billion in total service revenue for the first quarter of 2026, an 11% increase from the same period a year earlier, the company said Tuesday. Total revenue reached $23.1 billion, up 10.6% year-over-year.

Net income fell 15% year-over-year to $2.5 billion, weighed down by $476 million in UScellular merger-related costs, including accelerated depreciation, net of tax. Diluted earnings per share came in at $2.27, with merger costs accounting for $0.43 of the 12% decline.

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T-Mobile raised its full-year 2026 guidance on several metrics. The company now expects postpaid net account additions of 950,000 to 1.05 million, up from a prior range of 900,000 to 1.0 million. It also raised the midpoint of its core adjusted EBITDA guidance to a range of $37.1 billion to $37.5 billion from $37.0 billion to $37.5 billion. Adjusted free cash flow guidance was raised at the midpoint to $18.1 billion to $18.7 billion from $18.0 billion to $18.7 billion. Capital expenditure guidance remained unchanged at about $10.0 billion.

"Q1 marked a strong start to the year as we continue to execute against our ambitious 2026 and 2027 targets," CEO Srini Gopalan said in a statement. "We reported accelerating postpaid net account growth and strong postpaid ARPA growth, reflecting this team's differentiated ability to not only attract new customer relationships but also deepen the engagement with our existing base."

Postpaid service revenue grew 15% year-over-year to $15.6 billion. The company added 217,000 postpaid net accounts in the quarter, a 6% increase from a year ago. Postpaid average revenue per account rose 3.9% to $151.93. Postpaid account churn was 1.04%.

Core adjusted EBITDA reached $9.2 billion, up 12% year-over-year. Adjusted free cash flow increased 5% to $4.6 billion.

T-Mobile's board also increased the company's 2026 stockholder return authorization to up to $18.2 billion, an increase of up to $3.6 billion from the prior authorization. In the first quarter, the company returned $6.0 billion to stockholders, including $4.9 billion in stock repurchases and $1.1 billion in cash dividends.

T-Mobile raises its 2026 guidance after posting double-digit revenue growth

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