T-Mobile (NASDAQ:TMUS) delivered better-than-expected first-quarter earnings and revenue, but a miss on key subscriber growth figures overshadowed the strong financials, sending shares down more than 6% in premarket trading.
The wireless carrier reported adjusted earnings of $2.58 per share, topping analyst estimates of $2.47. Revenue reached $20.89 billion, slightly ahead of the $20.68 billion consensus and up 6.6% from the same period a year ago.
However, the market reacted negatively to a shortfall in postpaid phone customer additions. T-Mobile added 495,000 postpaid phone subscribers during the quarter, missing expectations of roughly 507,000. Still, total postpaid net additions reached a record 1.3 million, driven by strong performance across other plan categories. The company also added 424,000 High Speed Internet customers.
Despite the subscriber miss, T-Mobile raised its full-year 2025 Core Adjusted EBITDA guidance to a range of $33.2 billion to $33.7 billion, slightly above its previous forecast. The company reaffirmed its target of 5.5 to 6.0 million postpaid net customer additions for the year.
While the first-quarter results demonstrated strength in profitability and broader customer growth, the lower-than-expected phone subscriber numbers drew investor scrutiny, triggering a sharp sell-off in early trading.