T-Mobile (TMUS) dialed up a big second quarter against the backdrop of heightened competition for new customers with rivals Verizon (VZ) and AT&T (T).

The telecom giant easily beat analyst estimates on Wednesday after market close. It gained the most net new customers in the second quarter compared to its competitors. This comes as it leaned into its value messaging by releasing a five-year price lock on phone plans in April.

T-Mobile CEO Mike Sievert told me on Yahoo Finance the company’s steady value messaging is helping it to gain market share.

The company lifted its full-year adjusted operating profit guidance. It also hinted at $1.5 billion in cash tax savings in 2026 from the new Trump tax bill. Sievert says the company will allocate the capital accordingly, not ruling out more stock buybacks.

Shares rose 5% in after-hours trading.

“T-Mobile remains a top idea based on 1) strong medium-term financial guidance with upside to estimates as it closes pending acquisitions (USM deal close expected August 1st), 2) continued postpaid phone share gains (Top 100 markets, SMRA, and Enterprise), and 3) robust capital returns of up to $50 billion through 2027 (with $20 billion of ‘flex’),” JPMorgan analyst Sebastiano Petti said.

Read more: Live coverage of corporate earnings

• Net sales: +6.9% year over year to $21.1 billion vs. estimate of $21.01 billion

• Adjusted EPS: +14% year over year to $2.84 vs. estimate of $2.69

• Postpaid net additions: 1.7 million vs. estimate of 1.3 million

  • Q2 AT&T: +410,000

  • Q2 Verizon: -51,000

• Postpaid churn: 0.90% vs. 0.86% estimated

• Postpaid net customer additions are expected to be between 6.1 million and 6.4 million. Prior guidance was for an increase of 5.5 million to 6 million.

• Adjusted operating profits are seen in the range of $33.3 billion to $33.7 billion. Prior guidance was for a range of $33.2 billion to $33.7 billion.

Brian Sozzi is Yahoo Finance’s Executive Editor and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.

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