T-Mobile US shares rose 3.2% in morning trading after Deutsche Telekom released Q2 2026 results that exceeded expectations and revised higher its outlook for the year. Management said the performance of its majority-owned U.S. unit was a principal driver behind the stronger group numbers.
Deutsche Telekom reported Q2 revenue growth of 4.4%, adjusted EBITDA after leases increased 7.5%, and adjusted net profit was up 11.1%. The company raised its 2026 free cash flow guidance to approximately c20 billion, up from an earlier target of more than c19.8 billion, signaling an improved cash generation outlook tied in part to its U.S. operations.
The parent company also said it was doubling its 2026 share buyback program to as much as c5 billion, a move that investors interpreted as a vote of confidence in the groups cash flow prospects and that helped support sentiment toward the U.S. carrier. a0
T-Mobile US itself had already raised guidance when it reported Q2 results on July 23. In that report, the carrier posted adjusted earnings per share of $2.99, which comfortably exceeded the consensus estimate of $2.58. Analysts maintain a broadly bullish stance on the stock, with a strong buy consensus and average price targets sitting well above prevailing market levels.
Part of todays advance is also a rebound from weakness earlier this week, when an announcement from SpaceX about building ground cellular infrastructure - including towers, core networks and billing systems - to complement its Starlink satellite service prompted concern about increased competition. That SpaceX disclosure led to a 1.2% decline in TMUS on August 5; todays move represents a partial recovery from that selloff.
The broader market provided little directional impetus: the S&P 500 was up 0.04%, the Dow Jones rose 0.1% and the NASDAQ was fractionally negative at -0.1%, indicating that TMUSs gains were driven largely by company- and parent-level developments. Shares traded near session highs of $179.34.
In sum, the combination of Deutsche Telekoms stronger-than-expected quarterly performance and explicit guidance lift linked to T-Mobile US, the expanded buyback, a partial unwinding of SpaceX-driven selling pressure and ongoing positive analyst coverage contributed to the stocks advance in morning trade.