Q3 by the numbers
The Bellevue, Washington carrier said Wednesday it brought in 274,000 net monthly accounts in the quarter, a total that includes mobile phone and home internet and came in above the 251,000 analysts were looking for from Bloomberg's tally. Revenue per account averaged $155.73, up 4% from a year earlier, helping push profit to $3.5 billion, up 27%. Earnings per share landed at $3.22 versus the $2.93 estimate.
Revenue from services - spanning mobile plans and home internet - rose 9% year over year to $16.3 billion, coming in slightly above forecasts. T-Mobile no longer reports a standalone figure for changes in wireless customer additions.
Competing for stickier customers
To stay in the hunt for share, T-Mobile on Monday introduced plan options that allow customers to choose perks like streaming, food delivery, and device offers. The company also pointed to its T-Mobile Tuesdays program, which dangles weekly freebies to reinforce loyalty.
Those perks arrived as the Big Three weigh a possible new entrant. Elon Musk's SpaceX is being viewed as a would-be fourth nationwide wireless provider, though achieving that status would still demand significant investment and a multiyear rollout.
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The SpaceX factor and the industry backdrop
T-Mobile already works with SpaceX's Starlink, giving customers satellite coverage to plug holes in its terrestrial network, particularly in very remote locations. Still, in a LinkedIn post, Chief Technology Officer John Saw warned that while SpaceX recently bought 800 MHz spectrum, that alone isn't enough, writing, "There's a big difference between owning spectrum and delivering a great mobile experience to millions of customers."
T-Mobile was the last major carrier to report this season. Earlier in the week, Verizon reported its best third-quarter tally of wireless net adds in five years. AT&T said internet and mobile phone subscriber growth was robust, pushing revenue and earnings past Wall Street forecasts and prompting the company to boost its full-year profit guidance.
What this means for your portfolio
The core trend is intact: more accounts, higher revenue per account, and service revenue up 9% to $16.3 billion. Yet the stocks have diverged this year, with T-Mobile down 27%, AT&T down 17%, and Verizon up 6%. Keep an eye on how new plan bundles, loyalty programs, and satellite partnerships shape future account growth and pricing power.
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