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Can Healthy Top-Line Growth Benefit Q1 Earnings of T-Mobile?

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Key Takeaways

  • T-Mobile's Galaxy S26 and iPhone 17e launches likely lifted first-quarter 2026 revenues.
  • 5G Home Internet growth likely improved retention and boosted recurring revenues.
  • Samsung store upgrades may lift engagement, accessory sales and conversion rates.

T-Mobile, US, Inc. (TMUS - Free Report) is set to report first-quarter 2026 results on April 28, after the closing bell. In the trailing four quarters, the company delivered an earnings surprise of 5.83%, beating estimates on all occasions.

The wireless service provider is expected to witness year-over-year revenue growth, supported by strong postpaid subscriber additions, rising 5G adoption and growing demand for premium wireless and broadband services. However, higher promotional spending, intense competition and increased network investments may continue to put pressure on the bottom line.

Factors at Play

During the quarter, T-Mobile launched the Samsung Galaxy S26 lineup with strong promotional offers, which is likely to have boosted revenues in the first quarter of 2026. Free phone deals, trade-in discounts and bundled 5G Home Internet plans are expected to have helped drive device sales, higher service adoption and recurring revenue growth.

T-Mobile’s strong growth in 5G Home Internet is likely to have boosted revenues in the to-be-reported quarter. More broadband customers and premium wireless packages are likely to have improved customer retention and strengthened its position in the broadband market.

During the to-be-reported quarter, T-Mobile began offering the iPhone 17e and iPad Air with attractive promotional offers, highlighting strong demand for its wireless services and premium plans. The launch is expected to have driven the company’s revenue growth in the quarter under review, as device sales, customer upgrades and new line activations began and are likely to have continued.

T-Mobile collaborated with Samsung to improve the in-store customer experience in selected stores during the first quarter. This is expected to have supported revenue growth by improving customer engagement, increasing accessory sales and driving better in-store conversion rates.

T-Mobile remains strong in the competitive U.S. wireless market against rivals like AT&T and Verizon. Its reliable 5G network, attractive plans and customer-friendly offers are likely to have driven subscriber growth, improved retention and supported steady future revenue growth.

Overall Expectations

For the March quarter, the Zacks Consensus Estimate for total revenues is pegged at $23 billion, indicating an improvement from the year-ago quarter’s reported figure of $20.9 billion. The consensus estimate for adjusted earnings per share is pegged at $2.06, indicating a decline from $2.58 reported a year ago.

Earnings Whispers

Our proven model predicts an earnings beat for T-Mobile for the first quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +2.91%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: T-Mobile carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

T-Mobile US, Inc. Price and EPS Surprise

T-Mobile US, Inc. Price and EPS Surprise

T-Mobile US, Inc. price-eps-surprise | T-Mobile US, Inc. Quote

 

 

Other Stocks to Consider

Here are some other stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this season:

Lumen Technologies, Inc. (LUMN - Free Report) is set to release its first-quarter 2026 numbers on May 5. It has an Earnings ESP of +27.27% and sports a Zacks Rank #1 at present. 

The Earnings ESP for Corning Incorporated (GLW - Free Report) is +0.58%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report first-quarter 2026 numbers on April 28.

The Earnings ESP for F5, Inc. (FFIV - Free Report) is +3.50%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report second-quarter fiscal 2026 numbers on April 28.

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