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T-Mobile lifts cash-flow forecast as revenue and account gains beat estimates

T-Mobile raised its annual adjusted free-cash-flow forecast floor to $18.7 billion after quarterly revenue and postpaid account additions beat estimates.

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Oct 29, 2026 - 06:59

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T-Mobile lifts cash-flow forecast as revenue and account gains beat estimates

T-Mobile raised the lower end of its annual adjusted free-cash-flow forecast after stronger customer growth helped the US wireless carrier beat quarterly revenue expectations, Reuters reported on October 28.

The company reported revenue of $23.58 billion for the third quarter ended September 30, an increase of 7.4%. That exceeded the $23.14 billion estimate compiled by LSEG.

Cash-flow forecast floor rises to $18.7 billion

T-Mobile now expects full-year adjusted free cash flow of $18.7 billion to $18.8 billion. It previously put the lower end at $18.4 billion; the upper end remains unchanged.

Chief Financial Officer Peter Osvaldik told Reuters that the expected increase was mainly driven by strong performance in T-Mobile's core business. The revised outlook is a company forecast, not a reported full-year result.

Postpaid account additions beat expectations

The carrier added 274,000 postpaid net accounts during the quarter, compared with 251,917 expected by analysts polled by Visible Alpha.

Accounts are customer billing relationships, not individual wireless lines. A family or business account can include several lines, so the account-addition figure should not be described as a count of new phone subscriptions.

Premium plans increase revenue per account

Average revenue per account rose 4% to $155.73 as more customers moved toward premium offerings, Reuters reported. Osvaldik said more than 60% of postpaid lines among new accounts were choosing the company's top-tier plans.

The figures highlight two parts of T-Mobile's strategy: adding customer accounts while increasing spending within existing billing relationships. They also arrive as US wireless carriers compete on benefits and flexibility as well as network coverage and device promotions.

The quarterly revenue and account figures are reported results. Whether the stronger performance continues through the rest of the year will determine how the company finishes within its revised cash-flow range.