T-Mobile US (NASDAQ: TMUS) added 277,000 net postpaid accounts in the second quarter of 2026, driving a 13% year-over-year increase in postpaid service revenue. The carrier also raised its full-year adjusted free cash flow guidance to between $18.4 billion and $18.8 billion.

Financial Performance

The company delivered strong top-line growth across its core segments. Postpaid service revenue expanded by 13%, while total service revenue grew by 9%. Core adjusted EBITDA rose 12% year-over-year. Management highlighted an industry-leading free cash flow margin of 25% for the quarter.

Guidance and Capital Allocation

CFO Peter Osvaldik reaffirmed full-year service revenue expectations of approximately $77 billion, representing 8% growth. The company expects core adjusted EBITDA to reach between $37.1 billion and $37.5 billion, implying 10% growth at the midpoint. Cash capital expenditure remains unchanged at approximately $10 billion for the year.

The upward revision to free cash flow guidance reflects lower cash income taxes. T-Mobile repurchased an incremental $2.5 billion in shares during Q2 and through July 17. Since launching its buyback program in late 2022, the company has repurchased 253 million shares, reducing total outstanding shares to 1.07 billion.

Operational Highlights

Customer satisfaction reached a record high with a Net Promoter Score (NPS) of 46, the highest among major US carriers. Postpaid average revenue per account (ARPA) grew 2% year-over-year, or 3.7% excluding mergers and acquisitions impacts from the U.S. Cellular integration.

Port-in ARPAs exceeded port-out ARPAs by approximately 20%, indicating strong value migration. Over 60% of new account customers selected premium plans. The company also noted successful integration of U.S. Cellular and strong momentum in its 5G fixed wireless access (FWA) business, which continues to lead the industry in customer satisfaction.

What the Numbers Show

The divergence between reported ARPA growth (2%) and ex-M&A growth (3.7%) highlights the dilutive impact of integrating U.S. Cellular customers, who typically carry lower average revenues. Despite this drag, the underlying organic pricing power remains robust, supported by a portfolio where premium plans dominate new acquisitions.

T-Mobile US (NASDAQ: TMUS) has generated an average annual return of 14.77% over the past decade, outperforming the broader market by 1.11% on an annualized basis.

An investor who purchased $100 worth of TMUS shares ten years ago would see that position grow to $391.49 today. This calculation is based on the company's share price of $179.81 at the time of writing.

Performance Metrics

The carrier’s market capitalization currently stands at $192.88 billion. The long-term performance highlights the impact of compounded returns on capital growth over extended periods.

What the Numbers Show

The data illustrates the divergence between market benchmarks and individual equity performance. While the source does not provide the absolute market return figure, the stated outperformance of 1.11% implies the broader market returned approximately 13.66% annually over the same period. This spread underscores the specific value creation delivered by T-Mobile US relative to general market indices during this ten-year window.