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Can Healthy Revenue Growth Boost T-Mobile's Q3 Earnings?

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Key Takeaways

  • TMUS Q3 2026 revenues are expected to rise on subscriber additions, broadband adoption and wireless demand.
  • Device promotions and zero upfront costs may boost switching, upgrades and recurring revenues.
  • Revenues are projected at $23.31B and adjusted EPS at $2.86, but higher costs may pressure profitability.

T-Mobile US, Inc. (TMUS - Free Report) is set to report third-quarter 2026 results on Oct. 28, after the closing bell. It pulled off a trailing four-quarter earnings surprise of 17.3% on average, beating estimates on all previous occasions.

The wireless service provider is expected to witness year-over-year revenue growth, driven by subscriber additions, higher broadband adoption and strong demand for wireless services. However, higher promotional spending, intense competition and rising operating costs might have weighed on overall performance.

Factors at Play

During the quarter, T-Mobile strengthened its customer acquisition strategy by eliminating upfront costs for eligible customers, addressing a major barrier to switching wireless providers. The initiative is expected to have supported third-quarter 2026 revenues by attracting new subscribers, encouraging carrier switching and increasing adoption of its wireless plans.

T-Mobile's “Get iPhone 18 Pro on Us” promotion is likely to have contributed to revenue growth in the quarter under review. The offer might have attracted new customers, encouraged existing subscribers to upgrade their devices and increased demand for postpaid plans, boosting subscriber additions and recurring service revenues.

During the to-be-reported quarter, T-Mobile also promoted the Google Pixel 11 Pro XL and Samsung's new Galaxy foldable smartphones through attractive device offers. These promotions might have encouraged smartphone upgrades, attracted new wireless customers and increased device sales across its retail and online channels. 

Despite these growth opportunities, T-Mobile's September earnings could have been affected by higher promotional spending, device subsidies and customer acquisition costs amid strong competition. Continued investments in 5G networks and broadband expansion might also have increased operating expenses and depreciation, limiting profitability.

For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $23.31 billion, indicating an improvement from the year-ago quarter’s reported figure of $21.96 billion. The consensus estimate for adjusted earnings per share is pegged at $2.86, implying growth from $2.59 reported a year ago.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for T-Mobile for the third 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. However, that is not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. 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

 

 

Stocks to Consider

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

Seagate Technology Holdings plc (STX - Free Report) has an Earnings ESP of +2.49% and currently sports a Zacks Rank #1. It is set to release its first-quarter fiscal 2027 numbers on Oct. 27. 

The Earnings ESP for Corning Incorporated (GLW - Free Report) is +0.68%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report third-quarter 2026 numbers on Oct. 27.

The Earnings ESP for Intel Corporation (INTC - Free Report) is +2.22%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report third-quarter 2026 numbers on Oct. 29.

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