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T-Mobile US

TMUS · Nasdaq

Flat overhead turned 7.4% growth into 25% profit growth

Revenue rose 7.41% while operating expenses rose 2.85%, so operating income climbed 24.97% to $5.66B and the operating margin reached 24.0%.

Q3 FY2026, the quarter to Sep 30, 2026 · 10-Q filed Oct 28, 2026

Q3 FY2026 · revenue
$23.6B+7.4% on the year
Operating margin
24.0%
Net income
$3.5B
Free cash flow, quarter
$5.1B

Largest source of revenue: Postpaid revenues, 69.0% of the total.

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Key insights · Q3 FY2026
  1. 01

    Flat overhead turned 7.4% growth into 25% profit growth

    Revenue rose 7.41% while operating expenses rose 2.85%, so operating income climbed 24.97% to $5.66B and the operating margin reached 24.0%.

    Why it matters

    Selling, general and administrative expense was $6,020M against $6,015M a year earlier, falling from 27.4% to 25.5% of revenue. Depreciation and amortization moved only to $3.45B from $3.41B. Total operating expenses of $17.92B were 76.0% of revenue, down 3.37 points, which is where the 3.37-point widening of the operating margin came from.1

    Part of the jump is a comparison effect. The prior-year quarter carried a $278M impairment of capitalized billing-system software, equal to 6.1% of that quarter's $4.53B operating income, and nothing comparable recurred. The filing also describes selling, general and administrative expense as essentially flat for the quarter only; over the nine months it rose.1

    AnalysisAnalysis: the quarter shows the fixed-cost character of a wireless network. When overhead holds still, most added revenue reaches operating income. Whether that holds depends on restructuring continuing to remove cost faster than the integration of UScellular and new fiber customers adds it. A quarter in which overhead grows in step with revenue again would show that part of this leverage was timing.

  2. 02

    Devices cost 139% of what they bring in

    Cost of equipment sales was $5.44B against equipment revenues of $3.93B: the phone is an acquisition cost repaid by monthly service bills.

    Why it matters

    Equipment revenues were $3.93B, 16.7% of revenue, up 13.39%. Cost of equipment sales rose to $5.44B from $4.85B. The filing attributes both increases to a richer high-end phone mix and higher manufacturer pricing, partly offset by fewer devices sold, mainly prepaid.1

    Service carries the device shortfall. Cost of equipment sales equals 33.5% of the $16.27B in postpaid revenue. Qualified customers can finance a device on an equipment installment plan, which keeps the account attached while the balance is paid down.1

    The filing lists higher procurement costs among its risk factors, naming tariffs and trade policy and "memory chip cost impacts on smartphones", along with dependence on key suppliers.1

    AnalysisAnalysis: because a pricier phone raises both the revenue and the cost of each device, the subsidy per customer tends to grow with the price of the phone unless promotions are trimmed. That makes the device line the first place component and tariff costs would surface in the results.

  3. 03

    Revenue per account rose while more accounts left

    Postpaid ARPA reached $155.73 from $149.44, but monthly account churn rose to 1.09% from 0.97%, so price and retention moved in opposite directions.

    Why it matters

    Postpaid revenues rose 9.32% to $16.27B, 69.0% of revenue, a share up 1.21 points. The filing attributes the gain to more average accounts, including from the UScellular and Metronet acquisitions, and to higher ARPA from fee revenue, plan changes and more customers per account.1

    Postpaid account churn was 1.09% a month against 0.97% a year earlier. The company attributes the rise to "higher average broadband-only accounts which have higher churn" and "the temporary impact of our rate plan modernization".1

    Outside postpaid, revenue shrank. Prepaid fell 7.54% to $2.43B on fewer customers and "dilution from promotional activity and rate plan mix", and wholesale and other service revenue fell 7.49% to $679M, primarily from "lower DISH and TracFone MVNO revenues".1

    AnalysisAnalysis: the company calls part of the churn rise temporary. If that is right, churn should ease as the plan changes settle. If churn stays higher while ARPA keeps climbing, the revenue gain leans on price more than on deeper relationships.

  4. 04

    Free cash flow rose only because capital spending dipped

    Operating cash flow slipped to $7.34B from $7.46B, yet free cash flow rose to $5.07B from $4.82B as capital spending fell on timing.

    Why it matters

    Capital spending was $2.27B against $2.64B a year earlier, which the filing puts down to the "planned timing of capital purchases". It took 30.9% of operating cash flow and equalled 9.6% of revenue. Free cash flow was 21.5% of revenue.1

    The first two quarters of the year ran at a higher pace, with capital spending of $2.62B and $2.70B.1

    The cash also funds shareholder returns. Diluted shares fell to 1.07B from 1.13B through repurchases, so diluted earnings per share rose to $3.22 from $2.41 while net income rose 27.3% to $3,455M.1

    AnalysisAnalysis: since the lower spending is timing rather than a cut, this quarter's free cash flow likely overstates the run rate if purchases return to the pace of the first half.

Sources

  1. 1.T-Mobile US 10-Q for the period to 2026-09-30 (the filing), Oct 28, 2026, read Nov 2, 2026

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Business performance

Growth, profit and margin

Revenue went from $2.8B in FY2008 to $88.3B in FY2025, the operating margin from 17.0% to 20.7%, over 17 years.

  • Revenue$88.3B
  • Operating income$18.3B
  • Operating margin20.7%
Period
Q3 FY2026
Revenue
$23.6B
Operating income
$5.7B
Operating margin
24.0%
Net income
$3.5B
Free cash flow
$5.1B
Business performance

Does the profit turn into cash?

Q3 FY2026: free cash flow of $5.1B against net income of $3.5B in the quarter.

  • Operating cash flow$28.0B
  • Capital expenditure$10.0B
  • Free cash flow$18.0B
  • Net income$11.0B

Capital expenditure is drawn below the axis as cash out. Cash conversion is operating cash flow over net income, shown in the tooltip for years with a profit.

Financial data and sources

How the revenue mix has shifted

Each breakdown the filing reports, as shares of revenue, for every period it restates.

Revenue streams

Condensed Consolidated Statements of Comprehensive Income. The filing restates this breakdown for 1 period.

Click a member to isolate it across the years shown.

The figures

Margins, cash and growth for the period, each with what it was computed from.

Gross margin
Not reported
the company reports expenses by nature: no cost of revenue or gross profit line exists
Operating margin
24.0%
Source10-Q, Derived from Operating income and Total revenues in the 10-Q filed 2026-10-28
Net margin
14.6%
Source10-Q, Derived from Net income and Total revenues in the 10-Q filed 2026-10-28
Free cash flow, quarter
$5.1B
Source10-Q, Derived from the prior period in the history in the 10-Q filed 2026-10-28
Free cash flow margin, quarter
21.5%
Source10-Q, Derived from the prior period in the history in the 10-Q filed 2026-10-28
Cash conversion, quarter
2.12x
Source10-Q, Derived from the prior period in the history in the 10-Q filed 2026-10-28
Capital spending, quarter
9.6%
Source10-Q, Derived from the prior period in the history in the 10-Q filed 2026-10-28
Revenue growth
+7.4%
From the record's own history, against the prior year.

Not reported, or not derivable

  • gross margin: the company reports expenses by nature: no cost of revenue or gross profit line exists

Where revenue comes from

Every breakdown the filing reports for the period, with each item's share.

Revenue streams

Postpaid revenues$16.3B69.0%
Equipment revenues$3.9B16.7%
Prepaid revenues$2.4B10.3%
Wholesale and other service revenues$679.0M2.9%
Other revenues$280.0M1.2%

Source10-Q, us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, as reported in the 10-Q filed 2026-10-28

What it costs

The cost lines beneath operating income, each as a share of revenue, then the operating result.

Costs are reported by nature: what they are (food, labor, occupancy, personnel, marketing), not what they were for, so there is no cost-of-revenue line and no gross profit.

Cost lineQ3 FY2026Of revenueSource
Total operating expenses$17.9B76.0%Source10-Q, us-gaap:CostsAndExpenses, as reported in the 10-Q filed 2026-10-28
Operating income$5.7B24.0%Source10-Q, us-gaap:OperatingIncomeLoss, as reported in the 10-Q filed 2026-10-28

Operating figures the company states

From the text of the filing rather than its statements, each with the sentence that states it.

Postpaid account churn
1.1%
As of Sep 30, 2026
View source
Postpaid account churn 1.09 % 0.97 % 12 bps 1.04 % 0.94 % 10 bps
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, 10-Q filed Oct 28, 2026
Postpaid ARPA
$156
As of Sep 30, 2026
View source
Postpaid ARPA $ 155.73 $ 149.44 $ 6.29 4 % $ 153.53 $ 148.54 $ 4.99 3 %
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, 10-Q filed Oct 28, 2026

The statements, as filed

The income statement, cash flow statement and balance sheet in the company's own order and words. Every line links to the filing.

Income statement30 lines, as presented in the 10-Q
LineQ3 FY2026A year earlierChangeOf revenueSource
Revenues
Total revenues$23.58B$21.96B+7.4%100%Source10-Q, us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, as reported in the 10-Q filed 2026-10-28
Service$19.38B$18.24B+6.2%82.2%Source10-Q, us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax [us-gaap:ServiceMember], as reported in the 10-Q filed 2026-10-28
Postpaid revenues$16.27B$14.88B+9.3%69.0%Source10-Q, us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax [tmus:BrandedPostpaidRevenueMember], as reported in the 10-Q filed 2026-10-28
Prepaid revenues$2.43B$2.63B-7.5%10.3%Source10-Q, us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax [tmus:BrandedPrepaidRevenueMember], as reported in the 10-Q filed 2026-10-28
Wholesale and other service revenues$679.0M$734.0M-7.5%2.9%Source10-Q, us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax [tmus:WholesaleAndOtherServiceRevenueMember], as reported in the 10-Q filed 2026-10-28
Equipment revenues$3.93B$3.47B+13%16.7%Source10-Q, us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax [tmus:ProductEquipmentMember], as reported in the 10-Q filed 2026-10-28
Other revenues$280.0M$251.0M+12%1.2%Source10-Q, us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax [us-gaap:ProductAndServiceOtherMember], as reported in the 10-Q filed 2026-10-28
Operating expenses
Service$3.01B$2.87B+4.7%12.8%Source10-Q, us-gaap:CostOfGoodsAndServicesSold [us-gaap:ServiceMember], as reported in the 10-Q filed 2026-10-28
Equipment revenues$5.44B$4.85B+12%23.1%Source10-Q, us-gaap:CostOfGoodsAndServicesSold [tmus:ProductEquipmentMember], as reported in the 10-Q filed 2026-10-28
Selling, general and administrative$6.02B$6.02B+0.1%25.5%Source10-Q, us-gaap:SellingGeneralAndAdministrativeExpense, as reported in the 10-Q filed 2026-10-28
Impairment expense$0$278.0M0.0%Source10-Q, us-gaap:AssetImpairmentCharges, as reported in the 10-Q filed 2026-10-28
Depreciation and amortization$3.45B$3.41B+1.3%14.6%Source10-Q, us-gaap:DepreciationDepletionAndAmortization, as reported in the 10-Q filed 2026-10-28
Total operating expenses$17.92B$17.43B+2.8%76.0%Source10-Q, us-gaap:CostsAndExpenses, as reported in the 10-Q filed 2026-10-28
Income Statement
Operating income$5.66B$4.53B+25%24.0%Source10-Q, us-gaap:OperatingIncomeLoss, as reported in the 10-Q filed 2026-10-28
Other expense, net
Interest expense, net-$1.03B-$924.0M+12%4.4%Source10-Q, us-gaap:InterestIncomeExpenseNonoperatingNet, as reported in the 10-Q filed 2026-10-28
Other expense, net-$90.0M-$78.0M+15%0.4%Source10-Q, us-gaap:OtherNonoperatingIncomeExpense, as reported in the 10-Q filed 2026-10-28
Total other expense, net-$1.12B-$1.00B+12%4.8%Source10-Q, us-gaap:NonoperatingIncomeExpense, as reported in the 10-Q filed 2026-10-28
Income Statement
Income before income taxes$4.54B$3.53B+29%19.3%Source10-Q, us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest, as reported in the 10-Q filed 2026-10-28
Income tax expense (shown as a deduction)($1.09B)$814.0M+33%4.6%Source10-Q, us-gaap:IncomeTaxExpenseBenefit, as reported in the 10-Q filed 2026-10-28
Net income$3.46B$2.71B+27%14.6%Source10-Q, us-gaap:NetIncomeLoss, as reported in the 10-Q filed 2026-10-28
Other comprehensive income (loss), net of tax
Reclassification of loss from cash flow hedges, net of tax effect of $18, $16, $52 and $48 (shown as a deduction)(-$52.0M)-$48.0M+8.3%0.2%Source10-Q, us-gaap:OtherComprehensiveIncomeLossCashFlowHedgeGainLossReclassificationAfterTax, as reported in the 10-Q filed 2026-10-28
Gains (losses) on fair value hedges, net of tax effect of $9, $(7), $45 and $(55)$27.0M-$20.0M0.1%Source10-Q, us-gaap:OtherComprehensiveIncomeLossDerivativeExcludedComponentIncreaseDecreaseAfterAdjustmentsAndTax, as reported in the 10-Q filed 2026-10-28
Unrealized gain (loss) on foreign currency translation adjustment, net of tax effect of $1, $0, $1 and $0$1.0M$00.0%Source10-Q, us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax, as reported in the 10-Q filed 2026-10-28
Prior service cost, net of amortization, and amortization of actuarial gain, on pension and other postretirement benefits, net of tax effect of $(13), $0, $(14) and $(1)-$40.0M-$1.0M+3,900%0.2%Source10-Q, us-gaap:OtherComprehensiveIncomeDefinedBenefitPlansNetUnamortizedGainLossArisingDuringPeriodNetOfTax, as reported in the 10-Q filed 2026-10-28
Other comprehensive income (loss)$40.0M$27.0M+48%0.2%Source10-Q, us-gaap:OtherComprehensiveIncomeLossNetOfTax, as reported in the 10-Q filed 2026-10-28
Income Statement
Total comprehensive income$3.50B$2.74B+28%14.8%Source10-Q, us-gaap:ComprehensiveIncomeNetOfTax, as reported in the 10-Q filed 2026-10-28
Earnings per share
Basic (in USD per share)$3$2+33%0.0%Source10-Q, us-gaap:EarningsPerShareBasic, as reported in the 10-Q filed 2026-10-28
Diluted (in USD per share)$3$2+34%0.0%Source10-Q, us-gaap:EarningsPerShareDiluted, as reported in the 10-Q filed 2026-10-28
Weighted-average shares outstanding
Basic (in shares)1,070,648,1341,123,754,096-4.7%Source10-Q, us-gaap:WeightedAverageNumberOfSharesOutstandingBasic, as reported in the 10-Q filed 2026-10-28
Diluted (in shares)1,071,630,4341,126,627,708-4.9%Source10-Q, us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding, as reported in the 10-Q filed 2026-10-28
Cash flow statement36 lines, as presented in the 10-Q

Year to date, as a quarterly filing reports it.

LineQ3 FY2026A year earlierChangeSource
Operating activities
Net income$3.46B$2.71B+27%Source10-Q, us-gaap:NetIncomeLoss, as reported in the 10-Q filed 2026-10-28
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization$3.45B$3.41B+1.3%Source10-Q, us-gaap:DepreciationDepletionAndAmortization, as reported in the 10-Q filed 2026-10-28
Stock-based compensation expense$197.0M$227.0M-13%Source10-Q, us-gaap:ShareBasedCompensation, as reported in the 10-Q filed 2026-10-28
Deferred income tax expense$637.0M$797.0M-20%Source10-Q, us-gaap:DeferredIncomeTaxesAndTaxCredits, as reported in the 10-Q filed 2026-10-28
Bad debt expense$437.0M$337.0M+30%Source10-Q, us-gaap:ProvisionForDoubtfulAccounts, as reported in the 10-Q filed 2026-10-28
Losses from sales of receivables (shown as a deduction)(-$15.0M)-$17.0M-12%Source10-Q, us-gaap:SecuritizationFinancialAssetForWhichTransferIsAccountedAsSaleGainLossOnSale, as reported in the 10-Q filed 2026-10-28
Impairment expense$0$278.0MSource10-Q, us-gaap:AssetImpairmentCharges, as reported in the 10-Q filed 2026-10-28
Changes in operating assets and liabilities
Accounts receivable (shown as a deduction)($9.0M)$366.0M-98%Source10-Q, us-gaap:IncreaseDecreaseInAccountsReceivable, as reported in the 10-Q filed 2026-10-28
Equipment installment plan receivables (shown as a deduction)($9.0M)-$44.0MSource10-Q, us-gaap:IncreaseDecreaseInFinanceReceivables, as reported in the 10-Q filed 2026-10-28
Inventory (shown as a deduction)($892.0M)$537.0M+66%Source10-Q, us-gaap:IncreaseDecreaseInInventories, as reported in the 10-Q filed 2026-10-28
Operating lease right-of-use assets (shown as a deduction)(-$969.0M)-$929.0M+4.3%Source10-Q, tmus:IncreaseDecreaseinOperatingLeaseRightofUseAsset, as reported in the 10-Q filed 2026-10-28
Other current and long-term assets (shown as a deduction)($122.0M)$322.0M-62%Source10-Q, us-gaap:IncreaseDecreaseInOtherOperatingAssets, as reported in the 10-Q filed 2026-10-28
Accounts payable and accrued liabilities-$421.0M$890.0MSource10-Q, us-gaap:IncreaseDecreaseInAccountsPayableAndAccruedLiabilities, as reported in the 10-Q filed 2026-10-28
Short- and long-term operating lease liabilities-$979.0M-$936.0M+4.6%Source10-Q, us-gaap:IncreaseDecreaseInOperatingLeaseLiability, as reported in the 10-Q filed 2026-10-28
Other current and long-term liabilities$334.0M-$239.0MSource10-Q, us-gaap:IncreaseDecreaseInOtherOperatingLiabilities, as reported in the 10-Q filed 2026-10-28
Adjustments to reconcile net income to net cash provided by operating activities
Other, net$277.0M$216.0M+28%Source10-Q, us-gaap:OtherOperatingActivitiesCashFlowStatement, as reported in the 10-Q filed 2026-10-28
Operating activities
Net cash provided by operating activities$7.34B$7.46B-1.6%Source10-Q, us-gaap:NetCashProvidedByUsedInOperatingActivities, as reported in the 10-Q filed 2026-10-28
Investing activities
Purchases of property and equipment, including capitalized interest of $(7), $(13), $(20) and $(33) (shown as a deduction)($2.27B)$2.64B-14%Source10-Q, us-gaap:PaymentsToAcquirePropertyPlantAndEquipment, as reported in the 10-Q filed 2026-10-28
Purchases of spectrum licenses and other intangible assets, including deposits (shown as a deduction)($324.0M)$1.59B-80%Source10-Q, us-gaap:PaymentsToAcquireIntangibleAssets, as reported in the 10-Q filed 2026-10-28
Proceeds from the sale of property, equipment and intangible assets$2.93B$18.0M+16,161%Source10-Q, us-gaap:ProceedsFromSaleOfProductiveAssets, as reported in the 10-Q filed 2026-10-28
Acquisition of companies, net of cash acquired (shown as a deduction)($0)$2.80BSource10-Q, us-gaap:PaymentsToAcquireBusinessesNetOfCashAcquired, as reported in the 10-Q filed 2026-10-28
Investments in unconsolidated affiliates, net (shown as a deduction)(-$4.0M)$3.07BSource10-Q, tmus:PaymentsForProceedsFromEquityMethodInvestments, as reported in the 10-Q filed 2026-10-28
Other, net (shown as a deduction)(-$21.0M)$59.0MSource10-Q, us-gaap:PaymentsForProceedsFromOtherInvestingActivities, as reported in the 10-Q filed 2026-10-28
Net cash provided by (used in) investing activities$358.0M-$10.14BSource10-Q, us-gaap:NetCashProvidedByUsedInInvestingActivities, as reported in the 10-Q filed 2026-10-28
Financing activities
Proceeds from issuance of long-term debt, net$498.0M$498.0M0.0%Source10-Q, tmus:ProceedsFromIssuanceOfLongTermDebtNet, as reported in the 10-Q filed 2026-10-28
Repayments of financing lease obligations (shown as a deduction)($331.0M)$318.0M+4.1%Source10-Q, us-gaap:FinanceLeasePrincipalPayments, as reported in the 10-Q filed 2026-10-28
Repayments of long-term debt (shown as a deduction)($1.37B)$828.0M+65%Source10-Q, us-gaap:RepaymentsOfLongTermDebt, as reported in the 10-Q filed 2026-10-28
Repurchases of common stock (shown as a deduction)($2.42B)$2.48B-2.5%Source10-Q, us-gaap:PaymentsForRepurchaseOfCommonStock, as reported in the 10-Q filed 2026-10-28
Dividends on common stock (shown as a deduction)($1.09B)$987.0M+10%Source10-Q, us-gaap:PaymentsOfDividendsCommonStock, as reported in the 10-Q filed 2026-10-28
Tax withholdings on share-based awards (shown as a deduction)($86.0M)$92.0M-6.5%Source10-Q, us-gaap:PaymentsRelatedToTaxWithholdingForShareBasedCompensation, as reported in the 10-Q filed 2026-10-28
Other, net-$55.0M-$32.0M+72%Source10-Q, us-gaap:ProceedsFromPaymentsForOtherFinancingActivities, as reported in the 10-Q filed 2026-10-28
Net cash used in financing activities-$4.85B-$4.24B+14%Source10-Q, us-gaap:NetCashProvidedByUsedInFinancingActivities, as reported in the 10-Q filed 2026-10-28
Statement of Cash Flows
Effect of exchange rate changes on cash and cash equivalents, including restricted cash$0$0Source10-Q, us-gaap:EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents, as reported in the 10-Q filed 2026-10-28
Change in cash and cash equivalents, including restricted cash$2.85B-$6.92BSource10-Q, us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect, as reported in the 10-Q filed 2026-10-28
Cash and cash equivalents, including restricted cash
Beginning of period$3.18BSource10-Q, us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents, as reported in the 10-Q filed 2026-10-28
End of period$6.03B$3.67B+64%Source10-Q, us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents, as reported in the 10-Q filed 2026-10-28
Balance sheet38 lines, as presented in the 10-Q
LineQ3 FY2026A year earlierChangeSource
Current assets
Cash and cash equivalents$5.62BSource10-Q, us-gaap:CashAndCashEquivalentsAtCarryingValue, as reported in the 10-Q filed 2026-10-28
Accounts receivable, net of allowance for credit losses of $251 and $226$5.01BSource10-Q, us-gaap:AccountsReceivableNetCurrent, as reported in the 10-Q filed 2026-10-28
Equipment installment plan receivables, net of allowance for credit losses and unamortized discount of $723 and $733$4.53BSource10-Q, us-gaap:NotesAndLoansReceivableNetCurrent, as reported in the 10-Q filed 2026-10-28
Inventory$3.09BSource10-Q, us-gaap:InventoryNet, as reported in the 10-Q filed 2026-10-28
Prepaid expenses$909.0MSource10-Q, us-gaap:PrepaidExpenseCurrent, as reported in the 10-Q filed 2026-10-28
Other current assets$2.69BSource10-Q, us-gaap:OtherAssetsCurrent, as reported in the 10-Q filed 2026-10-28
Total current assets$21.84BSource10-Q, us-gaap:AssetsCurrent, as reported in the 10-Q filed 2026-10-28
Assets
Property and equipment, net$36.04BSource10-Q, us-gaap:PropertyPlantAndEquipmentNet, as reported in the 10-Q filed 2026-10-28
Operating lease right-of-use assets$24.21BSource10-Q, us-gaap:OperatingLeaseRightOfUseAsset, as reported in the 10-Q filed 2026-10-28
Financing lease right-of-use assets$2.99BSource10-Q, us-gaap:FinanceLeaseRightOfUseAsset, as reported in the 10-Q filed 2026-10-28
Goodwill$13.67BSource10-Q, us-gaap:Goodwill, as reported in the 10-Q filed 2026-10-28
Spectrum licenses$99.98BSource10-Q, us-gaap:IndefiniteLivedLicenseAgreements, as reported in the 10-Q filed 2026-10-28
Other intangible assets, net$3.07BSource10-Q, us-gaap:FiniteLivedIntangibleAssetsNet, as reported in the 10-Q filed 2026-10-28
Equipment installment plan receivables due after one year, net of allowance for credit losses and unamortized discount of $199 and $213$2.46BSource10-Q, us-gaap:NotesAndLoansReceivableNetNoncurrent, as reported in the 10-Q filed 2026-10-28
Other assets$8.86BSource10-Q, us-gaap:OtherAssetsNoncurrent, as reported in the 10-Q filed 2026-10-28
Total assets$213.10BSource10-Q, us-gaap:Assets, as reported in the 10-Q filed 2026-10-28
Current liabilities
Accounts payable and accrued liabilities$8.62BSource10-Q, us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent, as reported in the 10-Q filed 2026-10-28
Short-term debt$6.34BSource10-Q, us-gaap:ShortTermBorrowings, as reported in the 10-Q filed 2026-10-28
Deferred revenue$1.41BSource10-Q, us-gaap:ContractWithCustomerLiabilityCurrent, as reported in the 10-Q filed 2026-10-28
Short-term operating lease liabilities$3.64BSource10-Q, us-gaap:OperatingLeaseLiabilityCurrent, as reported in the 10-Q filed 2026-10-28
Short-term financing lease liabilities$1.16BSource10-Q, us-gaap:FinanceLeaseLiabilityCurrent, as reported in the 10-Q filed 2026-10-28
Other current liabilities$2.82BSource10-Q, us-gaap:OtherLiabilitiesCurrent, as reported in the 10-Q filed 2026-10-28
Total current liabilities$23.99BSource10-Q, us-gaap:LiabilitiesCurrent, as reported in the 10-Q filed 2026-10-28
Liabilities and Stockholders' Equity
Nonrelated Party$77.32BSource10-Q, us-gaap:LongTermDebtNoncurrent [us-gaap:NonrelatedPartyMember], as reported in the 10-Q filed 2026-10-28
Related Party$0Source10-Q, us-gaap:LongTermDebtNoncurrent [us-gaap:RelatedPartyMember], as reported in the 10-Q filed 2026-10-28
Tower obligations$3.42BSource10-Q, tmus:SaleLeasebackTransactionTowerObligation, as reported in the 10-Q filed 2026-10-28
Deferred tax liabilities$21.72BSource10-Q, us-gaap:DeferredIncomeTaxLiabilitiesNet, as reported in the 10-Q filed 2026-10-28
Operating lease liabilities$25.02BSource10-Q, us-gaap:OperatingLeaseLiabilityNoncurrent, as reported in the 10-Q filed 2026-10-28
Financing lease liabilities$1.14BSource10-Q, us-gaap:FinanceLeaseLiabilityNoncurrent, as reported in the 10-Q filed 2026-10-28
Other long-term liabilities$4.20BSource10-Q, us-gaap:OtherLiabilitiesNoncurrent, as reported in the 10-Q filed 2026-10-28
Total long-term liabilities$132.81BSource10-Q, us-gaap:LiabilitiesNoncurrent, as reported in the 10-Q filed 2026-10-28
Stockholders' equity
Common stock, par value $0.00001 per share, 2,000,000,000 shares authorized; 1,280,056,882 and 1,275,774,235 shares issued, 1,062,845,266 and 1,106,930,661 shares outstanding$0Source10-Q, us-gaap:CommonStockValue, as reported in the 10-Q filed 2026-10-28
Additional paid-in capital$70.09BSource10-Q, us-gaap:AdditionalPaidInCapitalCommonStock, as reported in the 10-Q filed 2026-10-28
Treasury stock, at cost, 217,211,616 and 168,843,574 shares (shown as a deduction)($40.10B)Source10-Q, us-gaap:TreasuryStockCommonValue, as reported in the 10-Q filed 2026-10-28
Accumulated other comprehensive loss-$595.0MSource10-Q, us-gaap:AccumulatedOtherComprehensiveIncomeLossNetOfTax, as reported in the 10-Q filed 2026-10-28
Retained earnings$26.92BSource10-Q, us-gaap:RetainedEarningsAccumulatedDeficit, as reported in the 10-Q filed 2026-10-28
Total stockholders' equity$56.31B$60.48B-6.9%Source10-Q, us-gaap:StockholdersEquity, as reported in the 10-Q filed 2026-10-28
Liabilities and Stockholders' Equity
Total liabilities and stockholders' equity$213.10BSource10-Q, us-gaap:LiabilitiesAndStockholdersEquity, as reported in the 10-Q filed 2026-10-28

About this data

Source
T-Mobile US 10-Q, accession 0001283699-26-000129, filed Oct 28, 2026, read on Nov 2, 2026.
History
From the SEC's XBRL company facts, the value from the latest filing that stated each period.
Reading
Paragraphs marked Analysis are CXProWealth's reading; everything else is the filing's own numbers and words, or a cited source.
Version
methodology business-lens-1.0 · schema 1.2.0 · run business-lens-2026-11-02
Edge and risks

What holds T-Mobile US's model up, and what could bend it

Competitive edge

  • A built network turns added revenue into profit

    From FY2022 to FY2025 revenue rose from $79.57B to $88.31B while operating income nearly tripled, from $6.54B to $18.28B.

    The detail

    Over the same years capital spending fell from $13.97B to $9.96B and free cash flow rose from $2.81B to $18.0B. The Sprint merger year shows what building that scale cost: revenue went from $45.0B in FY2019 to $68.4B in FY2020 while free cash flow went from $433M to -$2,394M on capital spending of $11.03B.1

    AnalysisAnalysis: a wireless network costs much the same to run whether it carries a little more traffic or a little less. Once a network is bought, integrated and its duplicate sites closed, added accounts mostly add revenue. The advantage holds while overhead stays still and the coverage would take a rival comparable spending to match.

  • Postpaid accounts carry 69% of revenue

    Postpaid revenue of $16.27B is 69.0% of the total, up 1.21 points, and the company now manages the business by the paying account.

    The detail

    This year the company "shifted away from reporting customer performance measures" to align with its "long-held priority on growing high-value accounts". Postpaid ARPA, average monthly postpaid revenue per account, was $155.73 against $149.44 a year earlier.1

    AnalysisAnalysis: each phone line, watch or home internet connection added to one bill raises revenue per relationship while billing and serving costs grow far less, and a household with several services has more to unwind before switching. The broadband-only accounts that lifted churn show the reverse: a single-product account holds less firmly.

  • Fiber partners build the lines, T-Mobile keeps customers

    In its fiber joint ventures, partners own the network while T-Mobile owns the customer relationship and records the revenue as postpaid.

    The detail

    The filing describes the strategy as "us owning customer relationships and selling fiber service under the T-Mobile brand". Cost of services rose to $3.01B from $2.87B, which the filing attributes first to "higher wholesale network access costs and amortization of customer installation fees paid to Metronet and Lumos".1

    AnalysisAnalysis: the capital-heavy part sits with partners, so fiber adds accounts without the full build cost on T-Mobile's own balance sheet. The trade is a wholesale fee on every customer served, which the account has to earn back through added services.

What to watch

  • Competition already shows in rising churn

    Competition heads the filing's risk list, and the filing already cites higher industry switching among the reasons more postpaid accounts left this year.

    The detail

    Postpaid account churn was 1.09% a month against 0.97% a year earlier. Over the nine months, the filing ties higher account deactivations to broadband-only accounts, a larger account base after the UScellular and Metronet acquisitions, and higher industry switching. It lists competition, industry consolidation and changes in the market for wireless and other connectivity first among its risk factors.1

    AnalysisAnalysis: with most revenue coming from postpaid bills, retention is where competition reaches the income statement first, before any change in pricing shows.

  • Interest takes 18% of operating profit

    Net interest expense rose 11.58% to $1.03B, faster than revenue's 7.41%, and equals 18.2% of operating income.

    The detail

    Interest expense equalled 20.4% of operating income a year earlier, so faster profit growth lowered the share even as the bill rose. The company names its "substantial level of indebtedness", changes in credit markets and possible rating downgrades among its risks, along with the scarcity and cost of wireless spectrum, whose licenses are subject to renewal and may be revoked.1

    AnalysisAnalysis: the network depends on spectrum bought largely with borrowed money, so the interest bill follows the company's growth by acquisition as well as the level of rates.

  • Cybersecurity is the risk the company rewrote

    The one risk factor updated this quarter covers state-sponsored attacks, legal exposure from past breaches and attackers using advanced AI tools.

    The detail

    The company says it faces persistent attacks, including from state-sponsored parties, that two earlier attacks brought class actions, mass arbitration and an FCC investigation, and that attackers using advanced AI tools may find and exploit weaknesses faster than patches can be deployed. It adds that companies it acquired brought their own security weaknesses.1

    AnalysisAnalysis: unlike device costs or churn, this risk does not show in the quarter's operating figures. Its cost has so far arrived through litigation and regulatory proceedings from earlier incidents, which is why the rewrite is worth noting.

Sources

  1. 1.T-Mobile US 10-Q for the period to 2026-09-30 (the filing), Oct 28, 2026, read Nov 2, 2026
Go deeper

T-Mobile US, further in

Member research, then your own questions on ChatGPT.

What could change the outlook

What T-Mobile US's numbers depend on from here, read from the filing: the conditions behind this period's margins and growth, and where a change would show first.

  • What has to hold for the margin gain to last

    Which costs the quarter's flat overhead depends on, how capital spending timing shapes cash, and what churn would have to do for the account strategy to pay.

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Questions to start with
  • How much of T-Mobile's margin gain this quarter came from flat overhead, and how much from the prior-year impairment not recurring?
  • If T-Mobile's postpaid churn stays at 1.09% while ARPA keeps rising, what does that suggest about its postpaid growth?
  • How would higher smartphone memory chip costs change what T-Mobile spends to win each postpaid account?

Business Lens describes T-Mobile US from its own filings with the SEC. It is not a view on its shares, a target, or advice to buy, sell or hold anything; figures are as filed and may be restated by the company later. The filing, the dates and the version are under the financial data above.