By Kelly Cloonan

T-Mobile US logged lower profit despite higher revenue in its latest quarter as it continued to add subscribers for its most lucrative phone offering.

The cell carrier on Wednesday posted a profit of $2.1 billion, or $1.88 a share, compared with $2.98 billion, or $2.57 a share, a year earlier. The recent quarter included certain severance costs, net of tax, of $293 million, the company said.

Analysts polled by FactSet expected earnings of $2.05 a share.

Revenue rose 11% to $24.33 billion, compared with analyst estimates of $24.17 billion.

The Bellevue, Wash., company said it added 962,000 net subscribers for its postpaid phone service, its most lucrative phone offering, where service is paid for each month on a contract.

Analysts expected T-Mobile to add 981,300 net postpaid phone connections in the quarter. Rival AT&T added 421,000 such subscribers in the same period, while Verizon Communications added 616,000, handily beating analyst estimates. Both T-Mobile and Verizon launched promotions to lure rivals' customers during the quarter.

T-Mobile added 495,000 net customers for its 5G broadband service in the quarter, compared with analyst estimates of 460,200. It also added 63,000 net fiber customers.

The results include USCellular, which T-Mobile acquired in August.

Chief Executive Srini Gopalan said the company sees opportunity ahead to cut down on customer pain points and accelerate its digital transformation.

"As we look to 2026, we're even more convicted that the future is brighter than ever before," said Gopalan, who started as CEO in November.

For the full year, T-Mobile expects to add 900,000 to one million postpaid customers in total, including in phone and broadband.

T-Mobile also said Wednesday it plans to offer artificial intelligence-driven services built into its network, including live translation. Starting with a beta version this spring, certain customers will be able to translate phone calls in more than 50 languages, the company said.

The beta version aims to test the service gradually before it launches commercially later this year, T-Mobile said.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

For the full year, T-Mobile expects to add 900,000 to one million net postpaid accounts in total, including in phone and broadband. "T-Mobile 4Q Revenue Climbs on Continued Postpaid Phone Growth," at 7:35 a.m. ET and "T-Mobile Added Fewer Postpaid Phone Subscribers Than Expected in 4Q -- Update" at 8:39 a.m. ET said it expects to add 900,000 to one million net postpaid customers.

(END) Dow Jones Newswires

February 11, 2026 09:06 ET (14:06 GMT)

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