T-Mobile Surpasses Q3 2025 Targets, Raises Future Outlook
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T-Mobile Surpasses Q3 2025 Targets, Raises Future Outlook

T-Mobile beat Q3 expectations with revenue of $21.96 billion and EPS of $2.41, raising its full-year outlook on record customer growth and strong demand.
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T-Mobile US, Inc. (NASDAQ: TMUS) has reported its third quarter 2025 financial results, showcasing significant growth in customer additions and financial metrics. The company has also raised its guidance for the remainder of the year, indicating strong confidence in continued growth.

Strong Postpaid Growth and Service Revenue Drive Q3 Outperformance

T-Mobile US, Inc. has delivered an impressive performance in Q3 2025, marked by record customer growth and robust financial results. The company reported total postpaid net customer additions of 2.3 million, the highest in the industry, and postpaid phone net additions of 1 million, marking the best third quarter in over a decade. This growth translated into service revenues of $18.2 billion, a 9% increase year-over-year, and postpaid service revenues of $14.9 billion, representing a 12% year-over-year growth.

The company’s net income for the quarter stood at $2.7 billion, with diluted earnings per share (EPS) of $2.41. This EPS slightly exceeded the market expectation of $2.4, reflecting T-Mobile’s ability to outperform expectations. Additionally, the core adjusted EBITDA grew by 6% year-over-year to $8.7 billion, further solidifying T-Mobile’s position as a leader in the industry.

Compared to expectations, T-Mobile’s total revenues of $21.96 billion surpassed the anticipated $21.78 billion. The company’s strategic focus on expanding its customer base and enhancing service offerings has paid off, as evidenced by the significant increase in both customer additions and financial performance metrics. The company’s ability to consistently deliver strong results has positioned it as a formidable player in the telecommunications industry.

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T-Mobile Lifts Guidance on Sustained Customer and Earnings Growth

Looking ahead, T-Mobile has raised its guidance for the year, reflecting its confidence in sustained growth. The company now expects total postpaid net customer additions to be between 7.2 million and 7.4 million, an increase from the previous guidance of 6.1 million to 6.4 million. This revised outlook includes approximately 3.3 million postpaid phone net customer additions, up from the prior guidance range of 2.95 million to 3.10 million.

In terms of financial metrics, T-Mobile anticipates core adjusted EBITDA to range between $33.7 billion and $33.9 billion, an increase from the previous guidance of $33.3 billion to $33.7 billion. The company also expects net cash provided by operating activities to be between $27.8 billion and $28.0 billion, up from the prior guidance range of $27.1 billion to $27.5 billion. Capital expenditures are projected to be approximately $10.0 billion, reflecting an increase from the previous guidance of $9.5 billion.

Adjusted free cash flow is expected to be between $17.8 billion and $18.0 billion, an upward revision from the prior guidance of $17.6 billion to $18.0 billion. This increase in guidance underscores T-Mobile’s confidence in its strategic initiatives and its ability to drive continued growth in both customer acquisitions and financial performance. The company’s focus on network expansion, customer-centric innovations, and strategic investments positions it well for future success.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.

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