T-Mobile reported $3.5 billion in net income for the third quarter of 2026, a 27% jump over the same period a year earlier.

The Bellevue-based carrier published the results Oct. 28 in an earnings release. Diluted earnings per share hit $3.22, up 34% year over year. Total service revenues rose 6% to $19.4 billion.

The results land at a complicated moment for T-Mobile's local workforce. The company has cut thousands of jobs companywide in 2026 while posting strong profits at its Factoria-area headquarters.

What the numbers show

T-Mobile added 274,000 net postpaid accounts during the quarter, bringing its total to 35 million. Average revenue per postpaid account, or ARPA, climbed 4% to $155.73.

Core Adjusted EBITDA, a non-GAAP profitability measure, grew 11% to $9.6 billion. Adjusted free cash flow rose 5% to $5.1 billion.

The company returned $3.5 billion to stockholders in the quarter through $2.4 billion in stock buybacks and $1.1 billion in dividends.

Since the program began in the third quarter of 2022, T-Mobile has returned a cumulative $58.1 billion to shareholders, according to the earnings release.

Raised guidance

T-Mobile lifted its full-year outlook at the midpoint for several measures.

The company now expects Core Adjusted EBITDA between $37.35 billion and $37.45 billion, up from prior guidance of $37.1 billion to $37.5 billion.

Adjusted free cash flow guidance, which includes net payments for UScellular merger-related costs, rose to $18.7 billion to $18.8 billion, from $18.4 billion to $18.8 billion previously.

CEO touts growth

Srini Gopalan, T-Mobile's CEO, called the quarter "further proof that our winning formula of the best network, best value, and best experiences drives durable and profitable growth," according to the earnings release.

Gopalan said more families and businesses are choosing T-Mobile, fueling what he called industry-leading financial growth.

Local workforce still shrinking

The strong earnings come against a backdrop of sustained job cuts. T-Mobile's U.S. headcount fell from 70,036 at the end of 2025 to 65,365 as of June 30, a reduction of 4,671 positions, the Downtown Bellevue Network reported in August, citing parent company Deutsche Telekom's second-quarter report.

In August, a state WARN notice showed T-Mobile planned to permanently lay off 77 more employees at eight Washington locations, including Bellevue, with separations beginning Sept. 21.

That followed 393 Washington layoffs earlier in the year.

T-Mobile employs roughly 6,800 people in the Puget Sound region, according to the Downtown Bellevue Network, though that figure predates the most recent rounds of cuts.

The company's Q3 earnings release noted $50 million in costs during the quarter tied to closing certain dealer- and corporate-owned stores as part of a shift toward large-format experience stores and digital tools.

An additional $141 million in severance costs from a workforce transformation initiative appeared in the first quarter of 2026.