Postpaid Growth: Performance and Cash Flow Increase, Shareholder Return Limit Expanded to 18.2 Trillion Won

T-Mobile US (NASDAQ: TMUS) reported that in the first quarter of 2026, service revenues rose 11% year-over-year to $18.8 billion, driven by continued growth in postpaid net account additions and an increase in ARPA. However, net income fell 15% to $2.5 billion, reflecting depreciation expenses related to the UScellular merger. Core Adjusted EBITDA climbed 12% to $9.2 billion, and adjusted free cash flow increased 5% to $4.6 billion. In Q1 alone, the company returned a total of $6.0 billion to shareholders—comprised of $4.9 billion in share repurchases and $1.1 billion in dividends.

The board of directors has raised the cap on its 2026 shareholder‐return program from $14.6 billion to $18.2 billion and has increased its full-year guidance for postpaid net additions, Core Adjusted EBITDA, operating cash flow, and adjusted free cash flow. At the same time, it reaffirmed its annual capital expenditure plan of approximately $10 billion.

In addition to expanding its shareholder-return program by another $3.6 billion, reports have surfaced that parent company Deutsche Telekom is exploring a merger with T-Mobile US in a holding-company structure. Such a deal would represent a major governance restructuring and large-scale consolidation in the U.S. telecom sector. Both companies say they have no concrete plans at this time and are managing market expectations cautiously.

T-Mobile US, one of the top three wireless carriers in the United States, has focused—since its merger with Sprint—on building out a nationwide 5G network, fixed-wireless broadband and enterprise connectivity services to expand its subscriber base and revenue streams. The U.S. wireless market, dominated by large operators like Verizon and AT&T, features high fixed costs and heavy capital investment, fueling intense competition in 5G, fixed-wireless broadband, and AI-enabled services. At the same time, aggressive shareholder-return programs like T-Mobile’s are becoming a notable strategy for strengthening investor support.