T-Mobile reported its T-Mobile fourth quarter results with solid revenue growth and strong customer additions, but subscriber gains fell slightly below market expectations. The company also issued a softer-than-expected free cash flow outlook for the year ahead, reflecting higher integration costs and competitive intensity in the wireless market.
Fourth Quarter Revenue Rises As Subscriber Growth Misses Estimates
During the October to December quarter, T-Mobile added 962,000 postpaid phone customers. This was the highest total among the three largest wireless carriers in the United States. However, the figure came in below analyst expectations of 981,330 additions.
The company’s churn rate for postpaid services stood at 1.02 percent, compared with 0.92 percent in the same period a year ago. Churn measures the percentage of customers who discontinue service. The slight increase suggests that competition remained intense during the quarter.
Total revenue for the fourth quarter reached 24.33 billion dollars, ahead of estimates of 24.11 billion dollars. Growth was supported by customers choosing premium plans that bundle streaming services such as Netflix and Hulu. According to company management, around 60 percent of new customer accounts selected premium plans, highlighting the success of these T-Mobile fourth quarter results.
The fourth quarter is typically marked by heavy promotional activity across the telecom sector. Rivals offered aggressive device discounts and plan bundles during major shopping events. This competitive environment influenced subscriber performance across the industry.
Annual Free Cash Flow Guidance Trails Expectations
Looking ahead, T-Mobile fourth quarter results indicate that the company projected annual adjusted free cash flow between 18 billion dollars and 18.70 billion dollars. This range is below the average analyst expectation of 18.90 billion dollars.
Management indicated that the guidance reflects higher integration costs tied to the company’s merger with UScellular. These costs are expected to weigh on cash generation in the near term as the company continues to integrate operations and networks.
Despite the softer outlook, T-Mobile highlighted the continued strength of its premium plan strategy and its ability to attract monthly bill paying customers at scale. The company’s focus remains on expanding its customer base while maintaining profitability through higher value plans.
For entrepreneurs and business owners tracking the telecom sector, the results underline two key themes. First, revenue growth remains resilient even in a competitive market. Second, promotional intensity and integration expenses can influence subscriber growth and cash flow projections.
T-Mobile closed the year with solid top-line performance and customer additions among major carriers. However, slightly lower than expected subscriber growth—with 962,000 postpaid phone net adds against a forecast of 981,330—and cautious free cash flow guidance for 2026 shaped investor sentiment around the T-Mobile fourth quarter results.
As the company enters the new fiscal year, attention will center on execution of integration plans, retention trends, and the ability to sustain premium plan adoption while navigating a highly competitive wireless landscape.
