TMUS Builds on Strong Service Revenue Growth: Can it Continue?
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T-Mobile, US, Inc. TMUS is benefiting from sustained momentum in its service business. In the second quarter of 2026, total service revenues increased 9% year over year to $19 billion, while postpaid service revenues jumped 13% to $15.9 billion. A major contributor is the continuous expansion of T-Mobile's postpaid account base. Postpaid accounts reached 34.7 million in the second quarter, up from 31.5 million a year earlier. The acquisitions of UScellular and Metronet have also increased the number of customers. The company also reports that postpaid average revenue per account rose to $152.91, up 2% year over year. There are several factors driving the ARPA. Continued adoption of 5G broadband is raising customers per account. Its business vertical is benefiting from the growing demand for 5G Advanced networks and associated enterprise solutions. Another positive factor is customer migration toward higher-value plans. Management said more than 60% of customers on new accounts are selecting premium rate-plan tiers. This is also supporting ARPA growth. The company's strong focus on improving network and customer experience remains an important driver for customer acquisition and retention. Its customer-centric approach is also evident from the company's recent disaster response efforts. It has proactively deployed network resources, backup power and connectivity solutions to...
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