T-mobile's q2 earnings plunge as churn rises and digital shift troubles subscribers

T-Mobile's second-quarter earnings report revealed a sharp decline in postpaid net additions, sparking a sell-off that sent the carrier's stock plummeting.

277,000 Postpaid accounts added, down 13% year-over-year

The company's postpaid net additions for the quarter ending June 30, 2026, came in at 277,000, a 13% drop from the same period last year. This metric, which T-Mobile began reporting in its Q1 earnings, reflects the growth of multi-line accounts and the use of various devices beyond smartphones.

Postpaid churn, meanwhile, rose to 0.99% from 0.92% in the second quarter of 2025. This increase could signal growing dissatisfaction among T-Mobile's subscriber base with the carrier's digital transformation.

T-life app requirements stoke customer frustration

Starting August 1, all consumer device upgrades and add-a-line transactions, whether in-store, over the phone, or by customers themselves, must be completed through the T-Life app. This mandate could contribute to the rising churn, as some customers may find the app cumbersome or prefer more traditional methods of interaction with the carrier.

Revenue and earnings still grew, albeit modestly, with total Q2 revenue increasing 7.9% year-over-year to $22.79 billion. Net income rose 0.5% to $3.24 billion, while diluted earnings per share (EPS) gained 5.3% to $2.99.

2026 Outlook maintains postpaid net addition estimate

For the full year 2026, T-Mobile expects postpaid net additions to range between 950,000 and 1.05 million, a forecast unchanged since its Q1 earnings report. The carrier's shares plummeted $13.07, or 6.85%, to $177.87 after the earnings release, as investors reacted negatively to the disappointing subscriber growth and rising churn.