Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
T-Mobile's second quarter of fiscal year 2026 was marked by robust top-line growth as postpaid revenues surged 13% year-over-year, driven by the UScellular acquisition, fiber joint ventures, and higher postpaid ARPA. The company also advanced its fiber and satellite initiatives, announcing several new joint ventures. However, one-time costs from UScellular integration, network restructuring, and workforce transformation pressured operating margins, which contracted to 24.1% from 24.7% a year ago. Net income was essentially flat at $3.2 billion, as the strong revenue performance was offset by a $195 million charge for UScellular merger-related costs and other restructuring expenses.
Revenue
$22.79B
+7.85% YoY
EPS (Diluted)
$2.99
+5.28% YoY
Operating Income
$5.49B
+5.31% YoY
Source: SEC XBRL
T-Mobile US (TMUS) reported Q2 FY2026 revenue of $22.79B, up 7.9% year over year. Operating margin was 24.1%, down 0.6 points from 24.7% a year earlier. Operating cash flow was $7.5B, up 7.3% year over year. TMUS's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 2.99 | 2.65 | Beat +13.0% |
| Mar 2026 | 2.27 | 2.03 | Beat +11.9% |
| Dec 2025 | 1.88 | 2.10 | Miss -10.4% |
| Sep 2025 | 2.59 | 2.46 | Beat +5.4% |
Reported EPS of $2.99 versus the $2.65 analyst consensus — a +13.0% beat for Jun 2026.
Compiled by AI from 10-Q Item 2 of this filing
Postpaid revenues were the primary growth engine, rising $1.8 billion or 13% YoY, driven by higher average postpaid accounts from the UScellular and Metronet acquisitions and higher postpaid ARPA.
Source: 10-Q Item 2 MD&A
The company recognized $195 million in UScellular merger-related costs during the quarter, impacting operating expenses and margin expansion.
Source: 10-Q Item 2 MD&A
T-Mobile initiated a network restructuring to shut down low-value sites, expecting total costs between $500 million and $800 million, with $63 million incurred in Q2.
Source: 10-Q Item 2 MD&A
Adjusted EBITDA, a key profitability metric, rose 12% to $9.5 billion, reflecting revenue growth partially offset by higher costs.
Source: 10-Q Item 2 MD&A
T-Mobile announced new joint ventures with Wren House and Oak Hill to expand fiber, and agreed in principle to form a joint venture with AT&T and Verizon for satellite-to-device coverage.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 1 high, 4 medium, 0 low
T-Mobile continues to face persistent cyberattacks and has experienced significant breaches in the past, including August 2021 and January 2023, resulting in costly litigation and regulatory scrutiny.
Source: 10-Q Item 1A Risk Factors
The successful integration of UScellular's wireless operations is critical to achieving projected annual cost synergies of $1.2 billion, and failure to execute could lead to higher than expected costs and operational disruptions.
Source: 10-Q Item 2 MD&A
The ongoing network restructuring initiative may exceed the estimated $500-$800 million cost range or take longer than expected, potentially impacting profitability and cash flow.
Source: 10-Q Item 2 MD&A
With a debt-to-equity ratio of approximately 2.8, T-Mobile carries substantial leverage, which could limit financial flexibility and increase vulnerability to rising interest rates.
Source: 10-Q Balance Sheet (XBRL)
The company depends on third-party providers for critical systems and services, and a failure or cyber incident at a key supplier could disrupt operations.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 22.79 $B | 21.13 $B | +7.85% |
Operating Income $B | 5.49 $B | 5.21 $B | +5.31% |
Net Income $B | 3.24 $B | 3.22 $B | +0.53% |
EPS (Basic) $ | 2.99 $ | 2.84 $ | +5.28% |
EPS (Diluted) $ | 2.99 $ | 2.84 $ | +5.28% |
SG&A Expense $B | 5.83 $B | 5.40 $B | +8.10% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
T-Mobile US delivered 10.6% revenue growth in Q1 FY2026 to $23.1B, but net income fell 15.2% to $2.5B as higher SG&A costs, increased D&A from network investments, and a surge in share buybacks weighed on profitability and cash balances.
T-Mobile US delivered strong FY2025 revenue growth of 8.5% to $88.3B, driven by robust operating cash flow of $28.0B, though net income dipped 3.1% to $11.0B amid a 12.7% surge in SG&A expenses and rising long-term debt.
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