One of the two largest U.S. wireless providers, T-Mobile runs the flagship T-Mobile brand alongside Metro by T-Mobile and Mint Mobile, serving over a hundred million postpaid and prepaid customers on a nationwide 5G-led network. Beyond phones, it offers fixed wireless and fiber broadband that compete with cable and DSL. The company also stands out for its "Un-carrier" strategy, a customer-first approach it has used to shake up pricing and perks.
Q2 2026 net income was flat at $3.2B as $684M+ in merger and restructuring costs offset 8% revenue growth to $22.8B.
Merger and restructuring costs held flat this quarter despite growth. Revenue rose 8% to $22.8B and was 19.5% as postpaid revenues rose 13% to $15.9B, while net income stayed at $3.2B against $3.2B a year earlier and was $2.27, down 12% . The company is absorbing integration costs that it expects to convert into synergies later.
Key takeaways
was flat at $3.2B in Q2 2026 as merger-related costs, wholesale network access costs for fiber joint ventures, and higher device costs from a high-end phone mix raised operating expenses 9% to $17.3B.
Total revenues grew 8% to $22.8B, led by a 13% increase in Postpaid revenues to $15.9B from higher accounts and .
Prepaid revenues fell 6% to $2.5B due to lower average per customer from promotional activity and rate plan mix.
Section summaries
Management's Discussion and Analysis
T-Mobile Q2 2026 revenue rose 8% to $22.8B driven by postpaid growth, while net income was flat at $3.2B amid merger and restructuring costs.
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Total revenues grew 8% to $22.8B, led by a 13% increase in Postpaid revenues to $15.9B from higher accounts and .
increased 12% to $9.5B, with margin improving 100 to 50%, reflecting service growth and .
was $7.5B and grew 4% to $4.8B, partially offset by higher for the 5G network and integration.
The company returned $3.3B to shareholders in Q2 via $2.2B in repurchases and $1.1B in dividends under its expanded $18.2B 2026 Stockholder Return Program.
What changed
Q1 2026 flagged tracking Q2 as merger-related costs and restructuring charges phase through; Q2 net income was flat at $3.2B with those costs continuing to weigh, and of $2.27 was down 12% and up 22% from Q1's $1.86.
FY 2025 flagged realization of the $1.2B synergy run-rate ($950M opex, $250M ) and its effect on in 2026; Q2 operating margin was 19.5%, down 3.5 points and down from Q1's 23.0%, with costs still elevated pre-synergy.
FY 2025 flagged the trend as stays elevated; Q2 Adjusted grew 4% to $4.8B against a 7% Q1 rise, with capex still high for network build-out and integration.
Q1 2026 noted cash fell 71.5% to $3.5B from $12.3B a year earlier; the table shows cash at $3.5B at Q1 2026 and the Q2 narrative confirms acquisition and network spending consumed balances, with $3.3B returned in Q2.
The 10-Q adds a restated cyber risk factor: persistent nation-state and AI-assisted attacks, third-party provider breaches, and acquisition security exposure — an update from the FY 2025 carry-over risk.
What to watch
Q3 2026 trajectory as merger-related costs and restructuring charges continue to phase through against the $1.2B synergy run-rate.
Realization of the $1.2B annual synergy run-rate and its effect on in coming quarters.
Postpaid and account growth as DISH and TracFone complete migration off-network under the .
Capital returned under the expanded $18.2B 2026 Stockholder Return Program after $6.0B deployed in Q1 and $3.3B in Q2.
Prepaid revenues fell 6% to $2.5B due to lower average per customer from promotional activity and rate plan mix.
Operating expenses rose 9% to $17.3B, driven by UScellular merger-related costs, wholesale network access costs for fiber JVs, and higher device costs from a high-end phone mix shift.
increased 12% to $9.5B, with margin improving 100 to 50%, reflecting service growth and .
Net was $7.5B, and grew 4% to $4.8B, partially offset by higher for the 5G network and UScellular integration.
The company returned $3.3B to shareholders in Q2 via $2.2B in share repurchases and $1.1B in dividends under its expanded $18.2B 2026 Stockholder Return Program.
Quantitative and Qualitative Disclosures About Market Risk
We are exposed to economic risks in the normal course of business, primarily from changes in interest rates, including changes in investment yields and changes in spreads due to credit risk, foreign currency exchange rate fluctuations and other factors. These risks, along with o…
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We are exposed to economic risks in the normal course of business, primarily from changes in interest rates, including changes in investment yields and changes in spreads due to credit risk, foreign currency exchange rate fluctuations and other factors. These risks, along with other business risks, impact our cost of capital. Our policy is to manage exposure related to fluctuations in interest rates in order to manage capital costs, control financial risks and maintain financial flexibility over the long term. We have established interest rate risk limits that are closely monitored by measuring interest rate sensitivities of our debt portfolio. As of June 30, 2026, we have €7.3 billion outstanding in EUR-denominated Senior Notes, which are subject to foreign currency exchange rate fluctuations. We have entered into cross-currency swap agreements that qualify and have been designated as fair value hedges of our EUR-denominated debt, mitigating our exposure to foreign currency transaction gains and losses. We do not foresee significant changes in the strategies used to manage market risk in the near future.
For more information regarding the legal proceedings in which we are involved, see Note 14 – Commitments and Contingencies of the Notes to the Condensed Consolidated Financial Statements.
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For more information regarding the legal proceedings in which we are involved, see Note 14 – Commitments and Contingencies of the Notes to the Condensed Consolidated Financial Statements.
T-Mobile faces persistent, evolving cyber threats that could materially harm its business, reputation, and financial results.
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T-Mobile is subject to persistent cyberattacks from nation-states and malicious actors aiming to steal confidential data or disrupt operations via and denial-of-service attacks.
The company relies on third-party providers for cloud, , and retail services, whose own security weaknesses have led to unauthorized access to T-Mobile customer and company data.
Past cyberattacks in August 2021 and January 2023 resulted in significant costs from , class action lawsuits, and an FCC investigation.
Increasingly sophisticated attackers, including those using advanced AI tools, may accelerate vulnerability exploitation and outpace T-Mobile's ability to patch systems.
Acquisitions of companies with weaker security postures expose T-Mobile to additional cybersecurity, operational, and financial risks.