T-Mobile's Third Quarter Results Exceeded Expectations

T-Mobile US, Inc. (NASDAQ: TMUS) shares experienced a slight decline after announcing its third-quarter results. The company reported earnings per share of $2.41, surpassing analysts' estimates of $2.39.

Third-quarter revenues were $21.96 billion, exceeding the market estimate of $21.92 billion. This marks a significant increase compared to $20.16 billion reported in the same period last year.

T-Mobile showed the best performance in the industry with a 2.3 million postpaid net customer increase during the third quarter. The net postpaid phone customer increase for the third quarter was reported at 1.0 million, the highest figure in the last ten years.

Competitor AT&T Inc. (NYSE: T) achieved a net postpaid phone customer increase of 405,000. T-Mobile also reported a net increase of 396,000 postpaid accounts, which represents a 26% increase compared to last year. Additionally, total net broadband customer growth was 560,000, showing a 34% increase and the best result in the sector.

T-Mobile added approximately 4.5 million customers through its acquisition of US Cellular in August and attracted new users with the release of the iPhone 17 by Apple Inc. (NASDAQ: AAPL) in September. Mike Katz, president responsible for marketing, strategy, and products, noted that new iPhone releases have driven consumers to seek better mobile plans.

Service revenues rose to $18.2 billion, a 9% increase compared to last year, representing the best growth in the sector. Postpaid service revenues stood at $14.9 billion, showing a 12% increase.

These results reflect CEO Mike Sievert approaching the end of his term. The new CEO Srini Gopalan is expected to take over on November 1 and implement steps towards expansion in the fiber internet sector.

Moreover, net income was recorded at $2.71 billion, down from $3.06 billion compared to last year. Cash flow from operating activities showed an increase of 21%, reaching $7.5 billion. Adjusted free cash flow decreased to $4.82 billion.

T-Mobile forecasts postpaid net customer growth of between 7.2 million and 7.4 million for the 2025 fiscal year, which is an increase from the previous estimate of between 6.1 million and 6.4 million. These figures include approximately 3.3 million net postpaid phone customer increases and 130,000 net fiber customer increases.