TMUS

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. T-Mobile US stock has given investors a 42.1% gain over the past three years, yet current checks suggest the shares now look roughly in line with what the market usually pays for this kind of business rather than clearly cheap or clearly expensive. The 42.1% return over three years highlights that longer term holders have still come out ahead despite more recent weakness. Expansion of network capabilities and services, including satellite supported connectivity and new device launches, can support expectations for future cash flows, while execution risks around major network projects and spectrum usage may weigh on how much investors are willing to pay. T-Mobile US scores 4 out of 6 on the broader valuation checks, which points to a mixed picture rather than a clear bargain or clear overvaluation. For investors, the debate is whether the recent share price pullback is enough to offer a margin of safety if T-Mobile US only trades at about a fair level on current valuation checks. Find out why T-Mobile US' -28.5% return over the last year is lagging behind its peers. The P/E multiple is a useful way to look at T-Mobile US because earnings are a key focus for many telecom investors. On this measure, T-Mobile US currently trades on about 18.4x earnings, which is above the wireless telecom industry average of roughly 15.4x but below the broader peer group at about 27.3x. That places the stock somewhere between a typical sector pricing and the richer levels seen in some other large telecom stocks. A more tailored fair P/E for T-Mobile US, which adjusts for its size, business mix and risk profile, is estimated at about 17.2x. The current 18.4x level sits slightly above that mark, yet not by a wide margin. Recent headlines around satellite supported services and device launches have kept attention on the stock, but even so the valuation still looks broadly consistent with what this framework suggests for the business. On the P/E multiple, T-Mobile US stock looks priced roughly in line with what this model views as a fair valuation. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for T-Mobile US link the valuation puzzle above to clear future assumptions by spelling out what would need to happen to T-Mobile US' growth, margins and earnings for the stock to be worth materially more or less than today's price on current models. Where a single ratio or model offers one figure, these narratives set out the underlying future that figure relies on so you can monitor whether it remains realistic over time. One of the top community narratives on T-Mobile US: 25% undervalued Read one of the top narratives on T-Mobile US Do you think there's more to the story for T-Mobile US? Head over to our Community to see what others are saying! T-Mobile US now looks priced around what current earnings would suggest, rather than clearly undervalued or clearly overvalued. The P/E work points to a stock that is closer to fully reflected expectations, so any further upside case leans more on how the business delivers from here than on multiple expansion alone. The crux for both bulls and bears is whether T-Mobile US can turn network projects and new services into dependable earnings progress without running into execution setbacks that would cap what investors are willing to pay. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TMUS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Array Digital Infrastructure Inc.? Here are five stocks we like better. Array raised its 2026 outlook, increasing adjusted OIBDA guidance to $60 million–$75 million, adjusted EBITDA guidance to $220 million–$235 million, and the low end of total revenue guidance to $205 million. Array completed major spectrum transactions, including a $168 million sale to T-Mobile and a $1 billion transaction with Verizon, monetizing roughly 70% of its spectrum holdings while continuing to evaluate its remaining C-band assets. Cash site rental revenue grew strongly, helped by T-Mobile interim sites, although interim revenue is beginning to decline as T-Mobile integrates operations. Array also narrowed its expected post-integration tenantless tower count to 1,000–1,700 and fully reserved outstanding 2025 DISH balances. MarketBeat Week in Review – 08/03 - 08/07 TDS reported second-quarter progress in its fiber expansion and tower infrastructure operations, while updating 2026 guidance for both TDS Telecom and Array Digital Infrastructure (NYSE:AD). Management also said it would not provide further updates or take questions regarding TDS’s pending proposal to acquire Array shares it does not already own. TDS President and CEO Walter Carlson said the company continued to advance its operational priorities during the first half of 2026. TDS Telecom added fiber service addresses and customers during the quarter, while Array increased tower tenancy on a sequential basis and completed transactions to monetize virtually all of its spectrum outside the C-band. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Is ADM’s Rally Getting Ahead of Its Policy Tailwind? TDS Telecom delivered approximately 66,000 marketable fiber service addresses in the second quarter, bringing first-half delivery to about 106,000 addresses. Ken Dixon, president and CEO of TDS Telecom, said the first-half total was the company’s strongest on record and exceeded its second-half 2025 fiber-address delivery, which is typically its peak construction period. The company raised its 2026 fiber service address delivery outlook by 50,000 addresses and now expects to deliver between 250,000 and 300,000 new fiber service addresses this year. TDS Telecom also increased its capital expenditure guidance to a range of $625 million to $675 million to support the higher construction activity. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be 3 Safe Buy-and-Hold Dividend Stocks With Strong Balance Sheets Dixon said TDS Telecom’s expanded construction capacity and pipeline of addresses under construction support the increased outlook. The build program includes new expansion markets, upgrades through its Fiber Deeper program, and work supported by the federal Enhanced Alternative Connect America Cost Model, or E-ACAM, program. TDS Telecom is the largest recipient of E-ACAM support, according to Dixon, and is using the program to bring fiber to more than 300,000 addresses across 22 states in its incumbent footprint. The company has already met its 2026 E-ACAM obligations in three states and has its highest-ever crew counts in remaining E-ACAM markets, Dixon said. → First Solar’s Profit Engine Faces a New Policy Test in Washington Residential fiber net additions totaled 15,100 during the quarter, up 47% from a year earlier. The company now serves nearly 1.2 million fiber service addresses, representing 60% of its total footprint, with 80% of addresses capable of gigabit speeds. Residential fiber revenue increased 13%, or $11 million, from a year earlier, helping offset declines in legacy revenue streams. Residential revenue per connection rose 1%, reflecting annual price increases partly offset by lower video attachment rates. However, cable revenue declined roughly 10% from the second quarter of 2025, and total residential revenue fell $6 million year over year, including about $2 million attributable to divestitures of primarily copper-based markets. TDS Telecom’s total operating revenue declined 6% in the quarter, or 4% excluding divestitures. Kris Bothfeld, vice president of financial analysis and strategic planning, said roughly half of the year-over-year decline resulted from discrete wholesale revenue adjustments that benefited 2025. The remainder reflected continued pressure in legacy revenue streams, partly offset by fiber customer growth and higher revenue per connection. Cash expenses were flat year over year, as savings from cost-management initiatives were offset by expenses supporting expansion markets and inflation. Capital expenditures totaled $179 million in the quarter. For 2026, TDS Telecom lowered its total revenue outlook to $1 billion to $1.025 billion, citing headwinds in copper and cable markets. It narrowed adjusted EBITDA guidance to $310 million to $330 million. Bothfeld said the legacy revenue challenges were largely falling to the bottom line, while fiber revenue growth and transformation-related cost savings are expected to support results in the second half. TDS also said it remains active in pursuing small- to medium-sized fiber acquisitions that fit its clustering strategy. The company expects to close its acquisition of Granite State Communications in the third quarter, adding approximately 11,000 fully fibered service addresses for $25 million. Array’s second-quarter performance was driven by tower leasing activity and spectrum monetization. Anthony Carlson, president and CEO of Array, said cash site rental revenue increased 55% year over year from all customers, or 65% when normalized for the impact of DISH. Array ceased recognizing revenue from DISH during the first quarter after DISH generally stopped making payments under its contracts in December. Array said all outstanding 2025 DISH balances have been fully reserved, and DISH co-locations are no longer included in the company’s tenancy ratio. The company said T-Mobile interim site revenue contributed to its growth. Cash site rental revenue increased 81% year over year with the addition of that revenue, or 92% when normalized for DISH. However, Carlson said interim site revenue has begun to decline as T-Mobile advances its integration process. T-Mobile has until January 2028 to finalize 2,015 committed sites under the companies’ new master lease agreement. Array narrowed its projected range of tenantless towers following the T-Mobile integration to 1,000 to 1,700. Array has reached agreements to monetize roughly 70% of its spectrum holdings. During the quarter, it closed a $168 million sale of 600 MHz, 700 MHz and AWS licenses to T-Mobile and a $1 billion spectrum transaction with Verizon. Remaining T-Mobile transactions are expected to close by the end of 2026, subject to regulatory approvals and other closing conditions. Array continues to evaluate monetization options for its remaining spectrum, primarily C-band. Carlson said the company does not view itself as a forced seller and believes it has time to pursue value for the spectrum because there are no near-term build-out requirements. Array raised the low end of its 2026 total operating revenue guidance to $205 million from $200 million, while leaving the high end unchanged. The company cited expectations for higher T-Mobile interim site revenue based on the current pace of integration. It increased adjusted OIBDA guidance to $60 million to $75 million from $50 million to $65 million, reflecting the higher revenue outlook and expectations for modestly lower operating expenses. Adjusted EBITDA guidance was revised to $220 million to $235 million, compared with prior guidance of $200 million to $250 million. The company also raised its expected equity income to $145 million from $140 million and increased expected interest and dividend income to $15 million from $10 million, citing year-to-date trends, partnership budgets and a higher cash balance associated with the timing of spectrum transaction inflows and outflows. TDS said it paid its regular quarterly dividend, while Array paid a special dividend of $11 per common share during the quarter. TDS did not repurchase shares in the second quarter because it was restricted by its offer for Array, though it had $520 million remaining under its repurchase authorization at quarter-end. United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers wireless services, including voice, messaging, and data services. It also provides devices, such as smartphones and other handsets, tablets, wearables, mobile hotspots, routers, and internet of things devices. In addition, the company offers various accessories, such as cases, screen protectors, chargers, and memory cards; and consumer electronics, including audio, home automation, and networking products; as well as offers option to purchase devices and accessories under installment contracts. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Array Digital Infrastructure Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

AT&T (NYSE: T) appears to face a significant threat from Space Exploration Technologies (NASDAQ: SPCX). COO Gwynne Shotwell announced that SpaceX's connectivity segment, Starlink, will compete with AT&T, Verizon, and T-Mobile as a full-fledged wireless carrier. Admittedly, such a move appears bleak for AT&T shareholders, since Starlink can cover the entire planet if the law allows, whereas AT&T can cover only the populated parts of the U.S. However, AT&T's 4.7% dividend yield stands out compared to SpaceX, which offers no dividend. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Moreover, AT&T trades at a massive valuation discount to SpaceX, and even with a recent pullback, the competitive threat from SpaceX probably does not justify a discounted valuation for AT&T stock for two reasons. At first glance, competition from SpaceX appears to put AT&T at a competitive disadvantage. Starlink plans to build a terrestrial coverage network, claiming it will use low-cost ground small cells and femtocells to improve signal where coverage is weak. It believes it offers a lower-cost approach to coverage than the massive networks of existing carriers. Still, AT&T investors should remember that satellite internet has not threatened its own internet business. Also, Starlink's internet service comes with critical limitations. It needs a line of sight to a satellite, and adverse weather, network congestion, and other factors can negatively affect its service. That is why it needs its own terrestrial network to compete. Nonetheless, this also raises challenges, suggesting Starlink's service may not add significant value. For one, Starlink has a partnership with T-Mobile in which satellite-to-cell service can take over when the terrestrial network is unavailable. T-Mobile CEO Srini Gopalan said that this type of service accounts for only 0.0003% of its network usage, even during the busiest times of the summer. Another issue is capital expenditures (capex). Even if Starlink can deliver wireless service at a lower cost, the capex costs could still be considerable. The connectivity segment of SpaceX (Starlink) spent just over $4.9 billion on capex over the trailing 12 months. Connectivity accounted for nearly 12% of SpaceX's capex over that period. That will have to increase, which could affect other parts of SpaceX. The main reasons to invest in SpaceX's stock, aside from Elon Musk's reputation as an innovator, are a near-monopoly on space launches and the prospect of AI data centers in space. The massive growth of Starlink also contributes to its success, but its satellite-based internet remains a niche market. Furthermore, investing in SpaceX is considerably riskier than owning AT&T stock. SpaceX does not have a P/E ratio, reflecting ongoing losses. That's one less tool in the standard value investor toolbelt. Buying SpaceX stock today means one pays 85 times sales for a money-losing enterprise that does not pay dividends. Also, AT&T derives nearly all of its revenue from serving as a wireless carrier and a wireless and fiber-based internet service provider. That makes the company much simpler to understand than SpaceX from an investor standpoint. Additionally, it produced over $16 billion in free cash flow over the trailing 12 months. Around $8 billion of that free cash flow funds a $1.11-per-share annual dividend, which offers the aforementioned yield of 4.7%, well above the S&P 500's (SNPINDEX: ^GSPC) average yield of 1.2%. Also, it sells at a P/E ratio of just 8, and the P/S ratio of 1.3 is a tiny fraction of SpaceX's sales multiple. To be sure, AT&T still has its challenges. The company's stock is inexpensive because it has run up massive debt. It has spent heavily on capex and lost tens of billions of dollars in failed satellite TV and media content ventures years ago, leaving it with a strained balance sheet that may concern its investors. Still, its profitability should reassure risk-averse investors, especially when compared with SpaceX. Investors should probably stay with AT&T despite SpaceX's plan to become a wireless carrier. Indeed, Musk has built a reputation for technological transformation, and investors should not forget SpaceX stock. Nonetheless, investors should remember that Starlink has not threatened AT&T's internet service business. Moreover, the massive costs of entering a competitive industry like wireless services offer no obvious benefit to investors. In contrast, AT&T's stable dividend and low valuation probably make it a less risky investment choice than SpaceX stock. Hence, if you're choosing between these stocks, the safer move is to buy AT&T and collect its generous dividend. Before you buy stock in AT&T, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AT&T wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. Will Healy has no position in any of the stocks mentioned. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy. AT&T Yields 4.7% and Trades At 8 Times Earnings. Is the SpaceX Threat Really Worth That Discount? was originally published by The Motley Fool

Interested in Telephone and Data Systems, Inc.? Here are five stocks we like better. TDS Telecom accelerated its fiber expansion, raising 2026 delivery guidance to 250,000–300,000 new service addresses and capital-expenditure guidance to $625 million–$675 million. Fiber residential net additions rose 47% year over year in the second quarter. Legacy copper and cable declines continued to weigh on results, prompting TDS to lower 2026 telecom revenue guidance to $1.0 billion–$1.025 billion and narrow adjusted EBITDA guidance to $310 million–$330 million. Array Digital Infrastructure completed $1.17 billion in spectrum sales to T-Mobile and Verizon, has agreements to monetize about 70% of its spectrum holdings, and raised its 2026 revenue and adjusted EBITDA outlooks. 2 Mid-Cap Telecom Stocks Offering Superior Returns Telephone and Data Systems (NYSE:TDS) reported second-quarter progress in its fiber expansion and tower operations, while lowering revenue expectations for its telecom business amid continued pressure from legacy copper and cable services. The company also said Array Digital Infrastructure completed major spectrum transactions during the quarter and raised several elements of its full-year outlook. TDS Chief Executive Officer Walter Carlson said the company would not provide an update on its previously announced all-stock proposal to acquire the Array shares it does not already own. Array’s board has formed an independent special committee to evaluate the proposal. → No Hangover: Revisiting Microsoft One Week After Earnings The Market Is So Over Overstock...But Is It Now Oversold? TDS Telecom delivered approximately 66,000 marketable fiber service addresses during the second quarter, bringing first-half delivery to about 106,000 addresses. Ken Dixon, president and CEO of TDS Telecom, said the first-half performance was the strongest in company history and exceeded the company’s address delivery in the second half of 2025, traditionally its busiest construction period. The company increased its 2026 fiber address delivery guidance by 50,000 addresses and now expects to add between 250,000 and 300,000 new marketable fiber service addresses this year. TDS Telecom also raised its capital-expenditure outlook to a range of $625 million to $675 million to support the accelerated construction activity. → MarketBeat Week in Review – 08/03 - 08/07 These 11 stocks will be Dividend Kings in 5 years or less. TDS Telecom ended the quarter with nearly 1.2 million fiber service addresses, representing 60% of its total footprint, with 80% capable of gigabit speeds. The company said it is using federal Enhanced Alternative Connect America Cost Model, or E-ACAM, support to expand fiber to more than 300,000 addresses in 22 states within its incumbent footprint over the next two years. Dixon said TDS Telecom has already met its 2026 E-ACAM obligations in three states and has its highest crew counts ever in its remaining E-ACAM markets. He added that the company is seeing strong demand when it brings fiber to markets previously served by copper infrastructure. → Why the Landlord of the AI Boom Could Outlast the Chipmakers Residential fiber net additions totaled approximately 15,100 in the second quarter, up 47% from a year earlier. TDS said it has expanded door-to-door sales capacity, added outside sales vendors, and improved performance through its online channel. The company is also adding sales resources in cable and multi-dwelling-unit markets. Despite fiber growth, TDS Telecom reported total operating revenue declined 6% year over year in the second quarter, or 4% excluding divestitures. Kristina Bothfeld, vice president of financial analysis and strategic planning, said approximately half of the year-over-year decline reflected discrete wholesale revenue adjustments that benefited 2025 results. The rest was tied to legacy revenue pressure, partly offset by fiber connection growth and higher revenue per connection. Residential fiber revenue rose 13%, or $11 million, from a year earlier, while cable revenue declined roughly 10%. Total residential revenue decreased by $6 million, including approximately $2 million related to divestitures of primarily copper-based markets. Cash expenses were flat as cost-management savings were offset by expenses tied to expansion markets and inflation. Capital expenditures totaled $179 million during the quarter. TDS Telecom reduced its full-year revenue guidance to $1 billion to $1.025 billion, citing pressure in its copper and cable markets. The company narrowed its adjusted EBITDA outlook to $310 million to $330 million. 2026 telecom revenue guidance: $1.0 billion to $1.025 billion. 2026 adjusted EBITDA guidance: $310 million to $330 million. 2026 fiber address delivery guidance: 250,000 to 300,000. 2026 capital-expenditure guidance: $625 million to $675 million. Chief Financial Officer Vicki Villacrez said the company’s balance sheet has been strengthened by transactions completed during the past year, including Array’s June spectrum sale to Verizon. TDS expects its acquisition of Granite State Communications to close in the third quarter, adding 11,000 fully fibered service addresses for $25 million. Villacrez said TDS continues to evaluate small- and medium-sized fiber acquisition opportunities that fit its clustering strategy and have either existing fiber infrastructure or an economically viable path to full fiber deployment. Array Digital Infrastructure said cash site rental revenue increased 55% year over year from all customers, or 65% when normalized for the impact of DISH. The company stopped recognizing revenue from DISH during the first quarter after DISH generally stopped making payments under its contracts in December and certain DISH entities entered bankruptcy proceedings. Array reported a tenancy ratio of 0.96 at quarter-end, compared with 0.98 at the end of the prior quarter. The company said that, excluding the removal of DISH co-locations from the metric, it continues to see steady tenancy growth. Anthony Carlson, Array’s president and CEO, said T-Mobile interim site revenue drove the year-over-year increase in site rental revenue. That revenue began to decline during the quarter as T-Mobile progresses through its network integration. T-Mobile has until January 2028 to finalize 2,015 committed sites under its master lease agreement with Array. Array narrowed its forecast for tenantless towers following the T-Mobile integration to between 1,000 and 1,700. The company said it is evaluating lease-up opportunities, ground-lease costs, long-term demand and potential decommissioning for sites without a path to economic viability. During the quarter, Array closed a $168 million sale of 600 MHz, 700 MHz and AWS spectrum licenses to T-Mobile and a $1 billion spectrum transaction with Verizon. Array said it has agreements to monetize roughly 70% of its spectrum holdings, with remaining T-Mobile transactions expected to close by the end of 2026, subject to regulatory approval and other closing conditions. The company continues to seek opportunities to monetize its remaining spectrum, primarily C-Band holdings. Carlson said Array is not a forced seller and believes the spectrum has substantial value given its availability for deployment and proximity to Upper C-Band spectrum. Array raised its 2026 total operating revenue outlook to $205 million to $210 million from a prior range beginning at $200 million. It increased adjusted OIBDA guidance to $60 million to $75 million and adjusted EBITDA guidance to $220 million to $235 million. Capital-expenditure guidance was unchanged. Telephone and Data Systems, Inc (NYSE: TDS) is a diversified telecommunications company headquartered in Chicago, Illinois. Through its subsidiaries, the company provides a broad array of communications services, including wireless voice and data, wireline broadband and voice, cable television, and managed IT and cloud solutions. Its two primary operating units—TDS Telecom and U.S. Cellular—serve residential, business and wholesale customers across the United States. TDS Telecom focuses on delivering broadband internet, digital voice, video and data communications services in primarily rural and suburban markets. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Telephone and Data Systems Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Array Digital Infrastructure Inc (NYSE:AD) reported a 65% year-over-year increase in cash site rental revenue, excluding Dish impact, driven by strong demand and new customer agreements. The company successfully closed spectrum monetization transactions with T-Mobile and Verizon, including a $1 billion deal with Verizon, strengthening its balance sheet. Array Digital Infrastructure Inc (NYSE:AD) raised its full-year adjusted EBITDA guidance to $60-$75 million, reflecting higher revenue expectations and lower operating expenses. The tenancy ratio improved sequentially to 0.96, excluding Dish, indicating steady growth in co-locations and tower utilization. The company has a strong pipeline of applications and expects continued revenue growth from existing customers and new leasing opportunities, with no near-term buildout requirements for its C-band spectrum. Array Digital Infrastructure Inc (NYSE:AD) continues to face significant costs related to the wind-down of legacy wireless operations, which are expected to persist throughout 2026. The company's tenancy ratio is negatively impacted by Dish's bankruptcy and cessation of payments, leading to a full reserve of outstanding balances and removal of Dish co-locations from the ratio. T-Mobile interim site revenue is expected to decline as integration progresses, creating uncertainty in future revenue streams. The company faces elevated strategic alternatives costs related to the evaluation of TDS's acquisition proposal, which could impact profitability. Array Digital Infrastructure Inc (NYSE:AD) has a projected 1,000 to 1,700 tenantless towers post T-Mobile integration, requiring ongoing ground lease optimization and potential decommissioning of economically unviable sites. Warning! GuruFocus has detected 6 Warning Signs with AD. Is AD fairly valued? Test your thesis with our free DCF calculator. Q: How should we think about the timing of TDS resuming its share repurchase program given the pending offer for Array, and is there now an open window for C-band spectrum discussions following the recent AWS auction? A: Vicky Villarez (EVP & CFO, TDS): We are pleased with our balance sheet flexibility but were restricted from buybacks in Q2 due to the pending Array offer. We remain committed to executing the $520 million remaining authorization as soon as business and market conditions permit, but cannot speculate on timing. Regarding C-band, we are encouraged by the AWS re-auction results for spectrum value implications. We are not in a quiet period now and will explore sales when permitted, but we are not forced sellers given the reasonable carrying costs relative to the asset's value. Q: Can you elaborate on the confidence behind the TDS Telecom EBITDA guidance inflection in the second half, and should that momentum persist into 2027? A: Chris Botfeld (VP of Financial Analysis & Strategic Planning, TDS): We revised guidance due to legacy revenue pressures and divestitures, but we are seeing strong momentum in fiber revenue growth (up 13% year-over-year in Q2). This will continue as we deliver more service addresses in the back half. Our transformation efforts are generating cost savings that offset inflationary increases and sales capacity investments. The midpoint guides to a 2% cost reduction for the full year, and there is no reason to think this momentum won't persist into 2027. Q: What are you seeing in terms of fiber overbuild activity in your footprint, and do you still deploy fiber in markets where overbuilders are present? A: Ken Dixon (President & CEO, TDS Telecom): We've seen some overbuilder activity in our cable markets, but those markets are already 22% fibered. We ran those markets through our edge-out analysis and found tremendous opportunities to fiberize further. Where we see an economical path, we will expand. We have approved some of these expansions recently and expect continued activity over the next couple of quarters. Q: How are you thinking about M&A on the fiber side given current valuations, and what is Array's perspective on tower M&A? A: Vicky Villarez (EVP & CFO, TDS) and Anthony Carlson (President & CEO, Array): On fiber, we signed an agreement for Granite State Communications (11,000 fiber addresses for $25 million), demonstrating our focus on small, accretive, cluster-adjacent opportunities. We remain active in the space. From Array's perspective, private market tower prices are a bit high relative to other uses of our capital. We are laser-focused on improving operations, including ground lease optimization, which are more attractive uses of money than buying towers at current prices. Q: Can you frame the longer-term leasing opportunity for Array's towers now that you've had time to engage with customers post the T-Mobile integration? A: Anthony Carlson (President & CEO, Array): We are seeing an upward trend in demand. On towers that will ultimately be tenantless post T-Mobile integration, and on towers that already have tenants, we believe there is significant growth potential. We won't speculate on the endpoint, but we see strong potential for growth across the portfolio. Q: Are there any changes from controlling partners in your cellular investments regarding how they value these stakes, and could that help close the bid-ask spread? A: Anthony Carlson (President & CEO, Array): Without getting into specific conversations, there continues to be a bid-ask spread. An NPV calculation based on historical growth rates and cost of capital would yield a value significantly higher than a simple multiple approach. We remain open to offers that reflect the value we see in these businesses, which generate significant cash flow. Q: What is your assessment of sales efficiency for TDS Telecom, and what initiatives are working to improve fiber conversion rates? A: Ken Dixon (President & CEO, TDS Telecom): Address delivery is the first driver, and we've had strong delivery in Q1 and Q2. Our pre-sale execution has helped achieve low-20% pre-sale penetration. We've significantly expanded door-to-door capacity, both internal and with new vendors, and our dotcom channel has seen significant improvement as it's our lowest cost acquisition channel. We've also brought in new leadership for our multi-dwelling unit channel, as 22% of addresses are MDUs, and we want to win there. Q: With the recent spectrum transactions involving satellite players like SpaceX and Amazon, do you see potential to expand the universe of parties interested in your C-band spectrum? A: Anthony Carlson (President & CEO, Array): Yes, there is growing demand for spectrum from a growing number of parties. We are not going to discriminate in who we sell the C-band spectrum to; we are focused on achieving the highest possible value. If a non-traditional party offers that value, we would be happy to sell to them. Q: Can you provide more color on the initiatives driving the tenancy ratio improvement and what could lead to a step change? A: Anthony Carlson (President & CEO, Array): We are working on both the numerator and denominator. On the tenant side, our new sales team has been doing excellent work, and our new vertical sales business is gaining traction with various players. On the tower count side, we are evaluating every tower for economic viability and decommissioning the worst performers, which reduces the denominator. We are also encouraged by potential deployments from AT&T's 600 MHz spectrum and other carriers' network development. Q: What is the penetration rate in the E-ACAM markets, and what is the migration opportunity versus penetration opportunity in those markets? A: Ken Dixon (President & CEO, TDS Telecom): We are not sharing the overall penetration rate externally, but we are seeing very nice early cohort penetration and penetration curves that match our expectations. We are seeing very strong demand as soon as we bring fiber into these unserved markets. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by disciplined cost management and a simplified go-to-market strategy, resulting in expanded gross and adjusted EBITDA margins despite revenue pressure. Management attributed broadband subscriber losses to intense competitive pressure, particularly from fiber overbuilders and fixed wireless providers in the West footprint. The company is pivoting toward a convergence-led strategy, leveraging a new multiyear agreement with T-Mobile to expand its mobile addressable market into wearables and connected devices. Operational efficiency improved significantly through the deployment of AI-powered tools like Google CES and Gemini, which contributed to a 20% year-over-year decline in truck rolls and service calls. Strategic portfolio simplification included the divestiture of a noncore advertising agency and the planned exit from low-density markets and the New York Interconnect joint venture. Management emphasized that the ongoing business transformation requires a meaningful reset of the balance sheet to support long-term growth initiatives. Full-year 2026 revenue is expected to decline mid-single digits, while adjusted EBITDA is projected to decline low-to-mid single digits, reflecting continued subscriber volume pressure. Capital expenditure is targeted between $1.2 billion and $1.5 billion for 2026, with higher spending anticipated in the second half to support fiber expansion and HFC network modernization. The company is pursuing a consensual comprehensive restructuring of CSC Holdings debt to address upcoming 2027 maturities and enhance financial flexibility. Management expects convergence ARPU to become a primary metric for evaluating customer value as mobile penetration and multi-product bundling increase. Future operational improvements depend on the rollout of a new MarTech platform and automated billing solutions to transition from manual to data-driven customer base management. Completed a $300 million tender offer, repurchasing 120 million Class A shares to strengthen the capital structure. Divested an advertising agency business that generated approximately $100 million in 2025 revenue but had an immaterial impact on EBITDA. Identified a 48,000-passing decommissioning of noncore rural markets in the West footprint scheduled for the third quarter. Noted that while broadband ARPU remained stable in the first half, tougher year-over-year comparisons are expected in the fourth quarter due to the timing of prior rate actions. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that the 48,000 passings being exited had nominal penetration and were challenging to service relative to the core footprint. The exit allows the company to prioritize resources and operational execution in geographies where they can drive maximum growth and impact. A recent conversion of an MDU portfolio from retail to bulk added 9,000 broadband and 8,000 video connects in Q2. While bulk ARPUs are lower than retail, management views these long-term exclusive contracts as essential for protecting the 20% of their footprint located in MDUs. The simplified pricing strategy is driving higher top-of-funnel activity, with approximately 60% of new customers opting for 1 gig or higher speeds. Management noted that these offers serve as an entry point for solution-selling, leading to record mobile yield in retail and care channels. Management admitted that current base management is largely manual, often reaching customers only after they have decided to leave. The upcoming MarTech platform and AI-driven churn propensity models are designed to enable proactive engagement earlier in the customer lifecycle.

Interested in Deutsche Telekom AG? Here are five stocks we like better. Deutsche Telekom raised its 2026 free-cash-flow outlook to approximately €20 billion, while maintaining its €47.5 billion group EBITDA target and €15.4 billion ex-U.S. EBITDA guidance. The company plans up to an additional €3 billion in 2026 share repurchases, potentially bringing total shareholder remuneration to nearly €10 billion, while management expects leverage to remain below its 2.75 target. T-Mobile US remained the primary growth engine, delivering 9.6% organic EBITDA growth and strong customer gains; Germany also continued expanding fiber additions and pricing, despite modest broadband-customer losses. Big Insider Sales at NVDA, DELL, TMUS Raise Questions—Or Do They? Deutsche Telekom (ETR:DTE) reported continued organic growth in the first half of 2026, raised its group free-cash-flow outlook following an increase at T-Mobile US, and announced plans for up to an additional €3 billion in share repurchases during 2026. Chief Executive Officer Tim Höttges said group organic service revenue rose 3.9% in the first six months, while organic EBITDA increased 7.4%. Adjusted earnings per share grew 10.3%, he said, with customer growth remaining strong across the company’s markets. → 3 Drone Stocks That Should Soar After the Summer Slump “Our EBITDA growth is best in class and our earnings per share, the growth is double digit,” Höttges said. He added that the company was investing to maintain network leadership and support future growth while keeping leverage at prudent levels. Deutsche Telekom raised its 2026 group free-cash-flow guidance to around €20 billion after T-Mobile US increased its own outlook by $0.2 billion at the midpoint on July 23. The company maintained its constant-currency guidance for group EBITDA growth of around 6% to €47.5 billion and reiterated DT ex-U.S. EBITDA guidance of €15.4 billion. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth The company said it is continuing to execute an existing €2 billion share-buyback program in Europe and is proposing an additional facility of up to €3 billion for 2026. If fully used, the additional program would bring total shareholder remuneration for 2026 to almost €10 billion, according to Höttges. Höttges said the decision reflected the company’s view that its shares had traded at the bottom of their long-term valuation ranges despite what management sees as favorable growth prospects. He described repurchasing shares as an investment intended to support adjusted earnings-per-share accretion rather than a program conducted at any price. → Jersey Mike's Serves Fresh Gains After IPO Stumble “We want to take advantage of any excessive discounts, but we will not put our network leadership, our spectrum flexibility, our A-rating, or our strategic flexibility at risk,” Höttges said. Chief Financial Officer Christian Illek said the company’s leverage ratio, including leases, stood at 2.65, while leverage excluding leases was 2.3. He said Deutsche Telekom expects to remain below its stated leverage target of 2.75 even with the expanded share-repurchase program. The company also confirmed that it will not sell shares into T-Mobile US’s share-buyback program during 2026. Deutsche Telekom’s stake in T-Mobile US increased to 54.3% by July, up 2 percentage points from a year earlier. Management pointed to T-Mobile US as a key contributor to group performance. Höttges said the U.S. business posted 9.6% organic EBITDA growth under IFRS in the first half and added about 500,000 accounts over the period. T-Mobile US reported 277,000 account additions in the second quarter under U.S. GAAP, according to Illek. Illek said T-Mobile US service revenue increased 8.9% year over year in the second quarter and core EBITDA rose 11.7%. He said growth was supported in part by last year’s acquisition of UScellular. Annual ARPA growth was 2%, while postpaid phone churn declined to 0.85% in the quarter. Höttges cited rural expansion, business-to-business services and fixed wireless as major growth opportunities for T-Mobile US. The company is investing in digitization, the integration of UScellular, fiber opportunities and wireless technology leadership, he said. Management said planned broadband customer targets at T-Mobile US do not require additional spectrum purchases, though future upper C-band and 2.7 GHz auctions could provide further capacity and growth flexibility. In Germany, Deutsche Telekom recorded its 39th consecutive quarter of EBITDA growth, according to Höttges. Illek said total revenue rose 3.7% in the second quarter, supported by World Cup-related non-service revenue, while adjusted EBITDA increased 2.7%. The company expects German EBITDA growth to fall below its recent 2.5% to 2.7% range in the third quarter due to cost phasing, before rising above that range in the fourth quarter. Illek said the company’s full-year German EBITDA target of €11 billion remains intact. Mobile service revenue growth accelerated sequentially to 2.4%, while fixed-line service revenue also improved. Broadband revenue growth increased to 1.9% in the second quarter from 1.6% in the first quarter. Management expects further acceleration in the second half as the effect of back-book price increases becomes more pronounced. Deutsche Telekom lost 20,000 broadband customers during the quarter, which Illek said was largely related to price-driven churn and similar to the level recorded a year earlier. He said churn has been lower than initially anticipated and should moderate in the third quarter before normalizing in the fourth quarter. Fiber net additions rose 18% year over year, with 161,000 additions during the quarter. Fiber penetration increased 11%, and management said it intends to accelerate fiber monetization through a stronger focus on both single-dwelling and multi-dwelling units. Höttges said the company was encouraged by customer reaction to a €2 monthly increase affecting roughly 4.9 million broadband customers. He argued that pricing discipline is necessary as operators continue investing in fiber and network infrastructure. Deutsche Telekom’s European segment generated 4.1% organic service-revenue growth and 4.1% organic EBITDA growth in the quarter. Höttges said this represented the unit’s 34th consecutive quarter of organic growth. Reported revenue growth was 1.5%, affected by the deconsolidation of Romania and a planned reduction in wholesale transit revenues, partly offset by the stronger Hungarian forint. T-Systems recorded year-over-year revenue and EBITDA growth and remains on track toward its capital-markets-day targets, Illek said. While order-book performance was slower due to timing, management expects a stronger second half. The IT-services unit secured contracts to build and operate Volkswagen’s global private-cloud network and, alongside SAP, develop a central citizen application. Höttges said demand is rising for sovereign cloud infrastructure, secure digitization and artificial-intelligence applications. He also said the company’s industrial AI cloud in Munich, built with NVIDIA and containing 10,000 Blackwell B200 GPUs, was sold out. Deutsche Telekom is considering an expansion, though Höttges stressed that data-center and AI investments would need to meet return requirements and would not be pursued solely for political reasons. Deutsche Telekom AG, together with its subsidiaries, provides integrated telecommunication services. The company operates through Germany, United States, Europe, Systems Solutions, Group Development, and Group Headquarters and Group Services segments. It offers fixed-network services, including voice and data communication services based on fixed-network and broadband technology; and sells terminal equipment and other hardware products, as well as services to resellers. In addition, the company provides mobile voice and data services to consumers and business customers; sells mobile devices and other hardware products; and sells mobile services to resellers and to companies that purchases and markets network services to third parties, such as mobile virtual network operators. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Deutsche Telekom Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Group Organic Revenue Growth: 3.9% in the first six months. Group Organic EBITDA Growth: 7.4% in the first six months. Adjusted EPS Growth: 10.3% increase. Group Free Cash Flow Guidance: Raised to around EUR20 billion for 2026. Group EBITDA Guidance: Constant currency growth of around 6% to EUR47.5 billion in 2026. DT ex US EBITDA Guidance: Reiterated at EUR15.4 billion. T-Mobile Organic EBITDA Growth (IFRS): 9.6% in the first half. T-Mobile Account Additions: 0.5 million added in the first six months. T-Mobile Service Revenue Growth (US GAAP): 8.9% year-on-year. T-Mobile Core EBITDA Growth (US GAAP): 11.7%. T-Mobile ARPA Growth: Up 2% on an annual basis. Germany Total Revenue Growth: 3.7% in the quarter. Germany Adjusted EBITDA Growth: 2.7% in the quarter. Germany Mobile Service Revenue Growth: 2.4% sequentially. Germany Broadband Revenue Growth: 1.9% in the second quarter, up from 1.6% in the first quarter. Germany Broadband Customer Losses: Lost 20,000 customers in the quarter. Germany Fiber Net Adds: 161,000 in the quarter, an 18% increase on an annual basis. Germany TV Customers: Added 200,000 TV customers in the first half. Europe Reported Revenue Growth: 1.5%. Europe Organic Service Revenue Growth: 4.1%. Europe Organic EBITDA Growth: 4.1% in the quarter. Group Adjusted Net Profit Growth: 11% year-on-year. Group Free Cash Flow Growth: Up 3% year-on-year. Leverage Ratio (including leases): 2.68. Leverage Ratio (excluding leases): 2.3. Additional Share Buyback Facility: Up to EUR3 billion proposed for 2026. Total Shareholder Remuneration in 2026: Almost EUR10 billion if fully utilized. Warning! GuruFocus has detected 2 Warning Sign with DTEGF. Is DTEGF fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Deutsche Telekom AG (DTEGF) delivered strong group organic sales revenue growth of 3.9% and organic EBITDA growth of 7.4% in the first half of 2026, with adjusted EPS growing by 10.3%. T-Mobile US remains the clear growth leader in the US, with organic EBITDA growth of 9.6% and peer-leading ARPA growth, supported by strong account additions and network leadership. The company announced a significant step-up in shareholder returns, proposing an additional EUR3 billion share buyback facility for 2026, bringing total shareholder remuneration to almost EUR10 billion, the highest ever. The European segment continues to perform consistently, delivering its 34th consecutive quarter of organic EBITDA growth, with 4% organic service revenue and EBITDA growth. T-Systems has become a strategic asset, securing flagship contracts like Volkswagen's global private cloud network and the central citizen app with SAP, positioning it well for digital sovereignty demand. Deutsche Telekom AG (DTEGF) raised its group free cash flow guidance to around EUR20 billion for 2026, reflecting T-Mobile's guidance increase and strong cash generation. The company's leverage ratio remains prudent at 2.68 including leases, well below its 2.75 target, providing balance sheet headroom for additional capital returns. Germany delivered its 39th consecutive quarter of EBITDA growth, with mobile service revenue accelerating to 2.4% and broadband revenue growth improving to 1.9%. The company's industrial AI cloud in Munich, built with NVIDIA, is fully sold out with 10,000 GPUs, demonstrating strong demand for sovereign and AI-ready infrastructure. Deutsche Telekom AG (DTEGF) received 11 out of 11 Ookla awards for network quality, reinforcing its position as a quality leader in the market. Deutsche Telekom AG (DTEGF) experienced significant share price volatility, trading at the bottom of its long-term valuation ranges despite strong operational performance. The German broadband market remains challenging, with the company losing 20,000 broadband customers in the quarter due to price-related churn following back-book price increases. The company faces potential competitive threats from satellite providers like SpaceX's Starlink, which could impact the market perception and long-term growth prospects. Reported revenues in the European segment were impacted by the deconsolidation of Romania and planned unwind of wholesale transit revenues, creating headwinds. The order book at T-Systems was slower due to phasing, with expectations of a stronger second half to achieve full-year growth targets. The company's fiber penetration and net adds in Germany, while improving, are still not at the desired accelerated run rate to fully monetize fiber investments. Wholesale service revenues in Germany declined due to rolling over price increases from previous years, though no further deterioration is anticipated. The company faces complexity in its relationship with T-Mobile US, including third-party transaction requirements and independent procurement activities in areas like Apple accounts. There is uncertainty regarding the outcome of upcoming spectrum auctions in the US, though the company has prepared for both C-band and 2.7 gigahertz opportunities. The German market remains highly promotional despite some price increases, with competitors like 1&1 removing tariffs below EUR6.99 but the environment still competitive. Q: Does buying back more of your own shares tilt your view on not selling into the TMUS buyback, and are there any comments on the reported Cellnex-GD Towers deal?A: CFO Christian Illek confirmed the decisions are completely independent, noting that T-Mobile expanded its buyback by up to EUR3.6 billion due to volatility, and DT is doing the same. He confirmed DT will not sell into the T-Mobile US buyback this year. CEO Timotheus Hoettges added that buying back DT shares is an excellent investment, citing a free cash flow yield of around 10%, a growth premium over European peers, and EPS accretion. On towers, he declined to comment on M&A speculation, stating the company is happy with its current assets. Q: Are we through the peak churn from the German back-book price increase, and how is front-book price competition in German broadband?A: CFO Christian Illek stated that churn-related net add losses will moderate in Q3 and normalize in Q4, as the actual churn is significantly lower than initially anticipated. He noted that while the market remains promotional, there is no structural change in competition, and the focus on value is the right strategy for growth in a market with little volume growth. Q: How do you respond to SpaceX's ambitions and the perceived satellite risk to your business, and what is the Q3/Q4 EBITDA phasing in Germany?A: CEO Timotheus Hoettges stated that satellite connectivity is complementary, expanding the market in rural areas, but terrestrial networks retain structural advantages in capacity, indoor coverage, latency, and cost per gigabyte. He dismissed substitution risks, citing T-Mobile's spectrum leadership and network density. CFO Christian Illek explained the German EBITDA phasing is purely a cost phasing effect, with Q3 growth trailing below 2.5% and Q4 above, keeping the full-year guidance intact. Q: Is there anything the current corporate structure prevents you from doing with T-Mobile, and how do you view the German mobile market dynamics?A: CEO Timotheus Hoettges acknowledged the relationship works well but noted complexity in third-party transactions and areas like procurement where the two entities operate independently. On the German market, he noted a shift to more stable pricing with increases from all carriers, but the environment remains highly promotional. He downplayed the impact of 1&1's tariff changes, stating they affect competitors more than the Telekom main brand. Q: What are your thoughts on the AI Gigafactory project and data center monetization, and how do you plan to grow and protect your moat?A: CEO Timotheus Hoettges stated the industrial AI cloud in Munich with 10,000 NVIDIA B200 GPUs is sold out, and they are considering expanding capacity. He noted improvements in the Gigafactory tender documents but emphasized they will only participate with decent financial returns. CFO Christian Illek added that the buyback decision reflects future needs without compromising investments in US spectrum auctions, and highlighted offensive plays like ad businesses, financial services, and AI-driven efficiencies. Q: Does the success of your German price increases give you confidence to be bolder on back-book pricing, and has anything surprised you from SpaceX's disclosures?A: CEO Timotheus Hoettges said the price increase of EUR2 per month affecting 4.9 million customers was well received, encouraging further monetization of investments. On SpaceX, he noted the technology is complementary, particularly in rural areas, but fiber remains superior. He expressed surprise at the capacity of LEO competitors like Amazon and AST, suggesting multiple satellite players will emerge. Q: How much balance sheet headroom do you have left, and would there be scope for further buybacks in 2027? Also, how do you view your network position if you don't get additional US spectrum?A: CFO Christian Illek stated the 18-19 million broadband customer targets are calculated without additional spectrum, so the upper C-band and 2.7 GHz auctions provide upside but aren't necessary. He noted the usual cadence for buyback announcements is around Q3, making it too early to discuss 2027. CEO Timotheus Hoettges confirmed they will not exit upcoming auctions without spectrum, having saved money in the AWS-3 auction. Q: Why focus on buybacks rather than critical fiber infrastructure, and would the German government participate in the buyback?A: CEO Timotheus Hoettges acknowledged the challenge but stated the discrepancy between market value and stock price necessitated decisive action. CFO Christian Illek defended the 2.5 million homes passed target, noting expansion costs increase exponentially due to construction capacity constraints. On the government, Hoettges said he doesn't see them selling shares, as they feel comfortable with their position. Q: Have you had discussions with CFIUS about dividends from T-Mobile US, and are you interested in buying Globalstar or partnering with other satellite players?A: CEO Timotheus Hoettges stated he has never heard of any concerns from CFIUS regarding dividends or US government support. On satellite, he noted the potential limitations on SpaceX's S-band spectrum access in Germany is a political decision, but they remain partners and would love to launch with them. If spectrum isn't available to SpaceX, others may use it. Q: Is the US more at risk from satellite competition than Europe, and why allocate capital to DT rather than T-Mobile?A: CFO Christian Illek stated fixed wireless access remains superior to satellite in download speed, and two-thirds of 5G broadband customers come from top 100 markets, reducing rural overexposure. On capital allocation, CEO Timotheus Hoettges explained the undervaluation of DT stock is higher than T-Mobile's, making DT investments more attractive. By buying DT, they effectively buy T-Mobile profitability, driving accretion. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

T-Mobile US, Inc. TMUS delivered another solid quarterly performance, driven by healthy subscriber growth, expanding service revenues and improving profitability. Management also raised its adjusted free cash flow guidance for the year, reinforcing confidence in the company's operating momentum. While the stronger outlook supports the long-term investment case, investors should continue monitoring competitive pressures and execution risks before becoming more aggressive on the stock. T-Mobile reported broad-based strength across its second-quarter results, highlighted by double-digit growth in postpaid service revenue, higher core adjusted EBITDA and continued expansion in average revenue per account (ARPA). Management noted postpaid service revenue increased 13% year over year, while total service revenues rose 9%, reflecting the strength of the company's recurring wireless business. Core adjusted EBITDA climbed 12%, supported by subscriber growth and operating leverage. The company also reported 2% year-over-year ARPA growth, with more than 60% of customers joining new accounts selecting premium plans. Image Source: Zacks Investment Research Recurring service revenues remain the foundation of T-Mobile's business model. Continued postpaid account additions, improving customer mix and expanding broadband adoption provide greater visibility into future revenue and cash flow generation. The most notable development from the quarter was management's decision to raise its adjusted free cash flow guidance. T-Mobile now expects adjusted free cash flow of $18.4 billion to $18.8 billion for 2026, an increase of $200 million at the midpoint, primarily reflecting lower expected cash income taxes. The company also reaffirmed its outlook for approximately $77 billion in service revenues and $37.1 billion to $37.5 billion in core adjusted EBITDA for the year.Higher cash generation strengthens T-Mobile's financial flexibility. It supports continued network investment, spectrum opportunities, dividend payments and share repurchases while allowing management to maintain a disciplined capital allocation strategy. Image Source: Zacks Investment Research Wireless remains T-Mobile's core business, but broadband is becoming an increasingly important contributor to long-term growth.Management highlighted continued momentum in fixed wireless broadband, describing it as one of the industry's fastest-growing offerings. The company also continues expanding through fiber joint ventures, which broaden its addressable market while complementing its wireless franchise. Executives noted that fiber deployments and fixed wireless are designed to work together by expanding customer reach while efficiently utilizing network capacity. Enterprise services also remain an attractive opportunity as T-Mobile continues investing in advanced 5G capabilities and AI-enabled network services. Despite the favorable operating trends, investors should not overlook the challenges facing the business.Competition from Verizon Communications Inc. VZ and AT&T Inc. T remains intense, with promotional activity continuing across the U.S. wireless market. T-Mobile has emphasized competing through network quality and overall customer value rather than materially increasing device subsidies, but aggressive pricing from competitors could still pressure margins and subscriber economics over time.Investors should also monitor integration of acquired assets, including UScellular operations, as well as the company's leverage and continued capital spending requirements. Successful execution across these initiatives will remain essential to sustaining earnings growth and cash flow expansion. TMUS currently carries a Zacks Rank #3 (Hold), reflecting a balanced near-term investment outlook. The stock also benefits from favorable Value Score and Growth Score, while a more moderate Momentum Score suggests earnings estimate revisions and price momentum are less compelling than those typically associated with the strongest buy candidates. Under the Zacks framework, the Style Scores complement the Zacks Rank, supporting a measured investment approach rather than an aggressive bullish stance.T-Mobile's stronger earnings, higher free cash flow outlook and expanding broadband business reinforce the company's attractive long-term fundamentals. At the same time, competitive intensity, integration execution and financial commitments continue to justify a balanced investment view that aligns with the current Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report AT&T Inc. (T) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

T-Mobile (NASDAQ: TMUS) investors saw some serious volatility last week. On Thursday, July 23, the wireless carrier reported second-quarter results in which profit came in ahead of Wall Street's expectations while revenue landed just shy of them. The stock fell 10.75% to $170.42. Then on Friday, July 24, shares turned around and rose 5.67% to close at $180.09. Two wild sessions, one report, and a nearly $10-per-share gap between their closing verdicts. Clearly, investors are having a hard time making up their mind about the stock. With the stock now sitting about 31% below its 52-week high of $261.56, at about 14 times forward earnings, it's worth sorting out what is going on with the underlying business. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » The second quarter itself held up fine. Total revenue rose about 8% year over year to $22.8 billion. Service revenue (the recurring monthly billings that matter most for a carrier) grew 9% to $19.0 billion. The company added 277,000 postpaid accounts in the period, with average revenue per account up 2% from a year ago. The discomfort came from the outlook. Management told investors to expect only about 250,000 postpaid account additions in the third quarter, a step down from the second quarter's pace. The cause is a deliberate one. T-Mobile is migrating customers onto its newer rate plans, and it expected that shift to cost it some smaller accounts along the way as the migration plays out. "As part of our full-year plan and guidance, we anticipated our Q3 rate plan modernization would result in a temporary elevated account churn profile," said chief financial officer Peter Osvaldik in the company's second-quarter earnings call. He noted the impact is concentrated in accounts with fewer lines, so the effect on phone customers leaving is smaller. There is also a mild slowdown built into the revenue guide. After 9% service revenue growth in the second quarter, management expects about 6% growth in the third quarter and 8% for the full year, at approximately $77 billion. A slightly soft revenue quarter plus a slower quarter ahead was enough for a market that had priced the stock for clean execution. That was the logic behind Thursday's selling. But look at what management actually did with its guidance. Not only did T-Mobile hold its full-year target of 950,000 to 1,050,000 postpaid account additions (it has already delivered almost 500,000 in the first half), but it also raised its cash outlook. The company now expects adjusted free cash flow of $18.4 billion to $18.8 billion this year, an increase of $200 million at the midpoint, helped by lower cash taxes. Core adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) is still expected to grow about 10% at the midpoint of its range. The quality signals underneath held up, too. Management said more than 60% of customers on new accounts are choosing its premium plans, and that customers switching to T-Mobile carry monthly bills about 20% higher than those of customers leaving. In other words, the quarter that spooked the market came with its profit engine intact, its full-year targets unchanged or better, and its cash forecast moving higher. Now set that against the price. At a market capitalization of about $193 billion, the midpoint of that free cash flow guidance works out to a yield of nearly 10% on the whole company. The stock's forward price-to-earnings ratio of about 14 also sits well below its trailing multiple of about 19, which is another way of saying earnings are expected to grow into the price quickly. For a business growing service revenue 9% and paying a 2.3% dividend yield on top, that is arguably a modest ask. So which trading session had it right? I think the rebound did. What disappointed on Thursday was slower account growth and a revenue line that still grew 8%. What didn't change was everything the investment case rests on: service revenue growth, EBITDA growth of about 10%, and a raised cash forecast. With that said, if the churn from the plan migration worsens, I'd revisit. Until then, T-Mobile looks like a growth business trading at a value multiple. Before you buy stock in T-Mobile US, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and T-Mobile US wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $390,394!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,209,184!* Now, it’s worth noting Stock Advisor’s total average return is 899% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of July 29, 2026. Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool recommends T-Mobile US. The Motley Fool has a disclosure policy. T-Mobile Fell 11% on an Earnings Beat, Then Rebounded 6% the Next Day. Here's What's Going On. was originally published by The Motley Fool

Interested in AT&T Inc.? Here are five stocks we like better. AT&T, T-Mobile, and Verizon all grew EPS year over year in Q2 and boosted shareholder returns through buybacks and dividends, signaling improved retention economics across the telecom sector. AT&T shares rose on strong subscriber growth and low churn from its convergence strategy, while Verizon posted a major subscriber beat and raised its full-year guidance. T-Mobile shares fell despite an EPS beat, as slowing postpaid net account additions and weak Q3 guidance tied to price hikes overshadowed otherwise solid earnings growth. Three telecom giants reported Q2 earnings over three days, and now that the market has had time to digest, a theme is emerging in the sector. One positive trend from the trio of reports last week is that telecommunications companies are no longer paying up for growth through promotions or subsidization. All three companies grew earnings per share (EPS) year over year (YOY) in Q2, indicating stronger retention economics and subscriber growth. Additionally, all three increased shareholder returns through buybacks and dividends, a signal to the market that management thinks it's sitting on a cheap stock. → Plugging In: How Kinder Morgan Powers Up Profits To choose a winner from Q2, we’ll need to break down the earnings reports in greater detail. Despite earnings, subscriber, and cash flow growth, not every stock responded the same way after its release. The sector as a whole might be its healthiest in years, but not every carrier is capturing upside in the same way. Shares of AT&T Inc. (NYSE: T) popped more than 3% following its July 22 earnings release, driven by rapid growth and low churn as its services converge. In its Q2 2026 results, the company reported a clear EPS beat and a slight revenue miss, but the underlying numbers are the true driver of the reaction. AT&T added 432,000 postpaid phone subscribers and 646,000 internet subscribers, with more than 147,000 being new accounts, not just extra lines. Home internet service is a key area, with revenue growing 27% year-over-year (YOY), and management expects fiber internet to reach more than 40 million households by the end of the year. → Microsoft Earnings Are Coming—But Azure and CapEx Will Decide the Reaction Another bullish beacon is the impressively low churn rates in Q2 despite carrier price increases. Postpaid wireless churn declined to 0.86% YOY, indicating that fewer than 1% of customers cancel their plans each month. Additionally, 42% of home internet customers now subscribe to AT&T wireless, supporting the ‘convergence’ thesis of selling wireless and internet services to the same households. The Q2 metrics show that this strategy is not only driving growth and earnings but also decreasing churn rates. Management reaffirmed full-year EPS guidance of $2.25 to $2.35 and free cash flow guidance of $18 billion while committing to $45 billion in shareholder returns through 2028. The share repurchase program was increased from $8 billion to $10 billion, as CEO John Stankey cited improved cash flow and the stock's value (10.29 times forward earnings). If there’s one fly in the ointment, it’s the dividend, which has remained frozen at $1.11 annually since 2022 and continues to be stagnant despite the capital return commitments. → MarketBeat Week in Review – 07/20- 07/24 T-Mobile US Inc. (NASDAQ: TMUS) is only one of three to sell off following its Q2 2026 earnings release, which might seem odd given that it beat EPS estimates by more than 15% and raised adjusted free cash flow guidance to a range of $18.4 billion to $18.8 billion. But while the company grew subscribers above consensus, the 277,000 total postpaid net accounts additions represented a 13% YOY decline. T-Mobile doesn’t publish phone churn rates (only account churn rates), but management prepared the market for a weak Q3 due to “rate plan modernization,” i.e., price hikes. Q3 postpaid net account guidance of just 250,000 adds likely triggered the sell-off. Disappointing results following a strong start to the year in Q1, and the market punished the missteps. It should be noted that despite the weak subs and troublesome guidance, the earnings growth does appear real. Average revenue per account (ARPA) grew 2% to $152.91, and management guided full-year ARPA to 2.5% to 3%. T-Mobile is deliberately trading volume for monetization, accepting lower subscriber growth in exchange. Verizon Communications Inc. (NYSE: VZ) called the game this quarter thanks to a massive subscriber beat and guidance raise. Expectations were high coming into the Q2 2026 report, but the company surpassed EPS projections (6.6% YOY growth) despite a roughly 2.5% revenue miss vs. consensus. However, the most impressive numbers were the subscriber metrics. Verizon added 184,000 postpaid phone nets in Q2, smashing the consensus expectation of 106,000 and a swift reversal from Q2 2025 when the company lost phone subscribers. The company also added 348,000 broadband subs, bringing the total first-half adds over one million. Phone churn improved 84 basis points, an impressive feat when paired with lower acquisition and retention costs. Management expects mobility and broadband service revenue to grow 3% in Q3 and 4% in Q4, and boosted full-year EPS estimates to $4.99 to $5.04 and free cash flow estimates to $21.9 billion to $22.1 billion. The cash influx strengthened Verizon’s industry-best dividend, which now yields 6.25% and absorbs only about 31% of free cash flow. Verizon also has a 20-year track record of dividend payout increases, making it the most shareholder-friendly of the major telecoms. If Verizon’s report contained a red flag, it's that the record profitability and cash flow sit on declining revenue. Management expects revenue growth to pick up in the second half of the year, but this guidance projection is now the most crucial for any of the three major telecoms. A strong Q3 is needed to confirm which trajectory is real. The article "Telecom Earnings Reveal a Sector That Finally Looks Healthier" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.