T-Mobile reports 13% drop in Q2 postpaid account additions and the stock collapses
T-Mobile reported higher churn and a decline in a major metric causing Wall Street to panic.
T-Mobile shares fall sharply after earnings release | Image by PhoneArena
T-Mobile released its second-quarter earnings report this morning and reported that for the period from April through June, it had 277,000 postpaid net account additions. This figure was down 13% year-over-year. T-Mobile added this metric starting with the Q1 earnings report, replacing postpaid phone net additions. While the latter was arguably seen as the most important number released by the company every three months, T-Mobile said that the majority of its accounts are multi-line and employ various devices besides smartphones.
Postpaid churn rose year-over-year, not a great sign for T-Mobile
T-Mobile also reported that, at $152.91, the Postpaid Average Revenue Per Account (ARPA) grew 2% on an annual basis. The quarter ended last month, and at that time, the carrier had 34.7 million postpaid accounts. Postpaid churn, or the percentage of postpaid subscribers that left the wireless provider during the quarter, rose to 0.99% from the year-ago's 0.92%. Last quarter, postpaid churn was 1.04%.
The rising churn could be a sign that T-Mobile subscribers are getting fed up with the carrier's transformation to a digital-first brand as it relies increasingly on its T-Life app to handle transactions. Starting on August 1, every consumer device upgrade and add-a-line transaction, even those done in a T-Mobile store, over the phone, or done independently by a customer, must be done via the T-Life app.
Earnings per share rose 5.3% on an annual basis
The company reported total Q2 revenue of $22.79 billion, up from last year's $21.13 billion, a gain of 7.9% from the 2025 second quarter. At $3.24 billion, net income rose 0.5% year-over-year, and diluted earnings per share rose 5.3% to $2.99 from the $2.84 reported in Q2 2025's report.
For 2026, the carrier expects postpaid net account additions to be between 950,000 and 1.05 million. That is the same estimate that T-Mobile made after reporting its Q1 earnings earlier this year.
T-Mobile shares dive sharply after the report is released
Investors have been dumping their T-Mobile shares since the report came out. As of 12:30 PM EDT, T-Mobile's stock is down $13.07, or 6.85%, to $177.87.
This is a breaking story and will be updated.
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