Postpaid accounts miss estimates for T-Mobile, share slump because of it

T-Mobile US Inc (NASDAQ: TMUS) reported first quarter 2025 earnings that beat analyst expectations, but its shares fell more than 5% in U.S. premarket trading as postpaid phone additions fell short of estimates.

The wireless carrier posted adjusted earnings per share of $2.58, surpassing the analyst consensus of $2.47. Revenue came in at $20.89 billion, above the $20.68 billion estimate.

However, T-Mobile added 495,000 postpaid phone customers in Q1, missing expectations of 506,557 additions.

That number is “impressive relative to peers, but still a 7% decline year-over-year and aided by a free-line offer during the quarter,” Bernstein analysts said.

“It’s a tough crowd in a crowded space against the current macro backdrop,” they noted.

Total postpaid net customer additions reached 1.3 million, which the company touted as its best-ever first-quarter result.

T-Mobile also reported 424,000 net additions for its High-Speed Internet service.

“T-Mobile delivered big yet again with outstanding Q1 results across wireless and broadband, including our best ever Q1 total postpaid customer gross and net additions,” said CEO Mike Sievert.

The company raised its 2025 guidance, now expecting Core Adjusted EBITDA between $33.2 billion and $33.7 billion, up from its previous range of $33.1 billion to $33.6 billion. T-Mobile maintained its forecast for 5.5 million to 6.0 million postpaid net customer additions this year.

Despite the earnings beat and raised outlook, investors appeared focused on the postpaid phone additions miss, sending shares down 5% following the report. T-Mobile’s total revenues grew 6.6% YoY to $20.89 billion in the first quarter.