T-Mobile Raises 2026 Guidance Amid Double-Digit Revenue Growth

T-Mobile has raised its 2026 financial guidance after reporting double-digit revenue growth in the first quarter. Total service revenue increased 11% year-over-year to $18.8 billion, driven by strong customer additions and higher average revenue per user. However, net income fell 15% due to costs associated with the merger with UScellular. The company now expects 2026 service revenue to be between $76 billion and $78 billion, up from previous guidance of $74 billion to $76 billion. T-Mobile also raised its forecast for adjusted EBITDA and free cash flow. The merger with UScellular, announced in 2024, is expected to close in mid-2026 pending regulatory approvals. T-Mobile added 1.2 million postpaid phone customers in the quarter, exceeding analyst expectations. The company's stock rose 3% in after-hours trading following the announcement.