T-Mobile US Inc (NASDAQ:TMUS, XETRA:TM5) shares fell about 5% in early trade on Thursday after the wireless carrier reported second quarter results that topped Wall Street expectations on earnings but narrowly missed revenue estimates.
The company reported adjusted earnings per share of $2.99 for the quarter, ahead of analyst expectations of about $2.55.
Revenue came in at $22.79 billion, slightly below the consensus estimate of $22.95 billion.
T-Mobile added 277,000 net postpaid accounts during the quarter, exceeding expectations for 259,000 additions, though the figure declined 13% year over year. Postpaid average revenue per account (ARPA) rose 2% from a year earlier to $152.91.
Service revenue increased 9% year over year to $19 billion, while postpaid service revenue grew 13% to $15.9 billion. Net income was $3.2 billion, up 1% from the prior-year period, while diluted earnings per share increased 5% to $2.99.
The company highlighted continued customer momentum, including a record wireless Net Promoter Score (NPS) of 46, which it described as the highest score for a major U.S. carrier based on HarrisX survey data.
“Q2 marked another strong quarter of execution as we continued making meaningful progress toward our ambitious 2026 and 2027 objectives, including achieving our highest-ever wireless NPS score of 46,” T-Mobile CEO Srini Gopalan said.
Gopalan added that the company’s strategy remained focused on combining network quality, value and customer experience to support growth across wireless, broadband and other businesses.
T-Mobile also raised its full-year adjusted free cash flow outlook, now expecting a range of $18.4 billion to $18.8 billion.
Despite the earnings beat and higher free cash flow forecast, investors focused on the slight revenue shortfall and the sequential slowdown in postpaid account additions, weighing on shares following the results.