GET DAILY SIGNALSAT&T (T) Delivers Q3 Beat: Revenue +5.3%, EPS Raised to $2.40
Key Takeaways
- Adjusted earnings per share (EPS) of $0.65 topped the consensus estimate of $0.60.
- Revenue reached $32.3 billion, up 5.3% year over year and ahead of the $31.69 billion estimate.
- AT&T raised its full-year 2026 adjusted EPS outlook to approximately $2.40.
- The company added more than 1 million Advanced Connectivity customers for the second consecutive quarter.
- Free cash flow came in at $5.0 billion, roughly in line with the prior-year period.
- Shares slipped about 3.3% in premarket trading despite the top- and bottom-line beat.
Why This Earnings Report Matters
AT&T's third-quarter 2026 report matters because it tests whether the telecom giant can sustain its dual growth engine in wireless and fiber while competing against aggressive rivals. Over the past year, the company has leaned on broadband expansion and disciplined customer acquisition to offset a maturing wireless market. Investors are watching subscriber trends, free cash flow, and capital efficiency closely, since these factors underpin the dividend and ongoing share buybacks. A beat here signals that the company's "Advanced Connectivity" strategy, which bundles fiber and mobility, is still translating into profitable growth even as competitive and macroeconomic pressures mount across the telecom sector.
Breaking Down the Q3 Results
For the third quarter ended September 30, 2026, AT&T reported adjusted earnings of $0.65 per share, exceeding the analyst consensus of $0.60 by $0.05. Revenue totaled $32.3 billion, a 5.3% increase from $30.7 billion a year earlier and above the roughly $31.69 billion Wall Street expected. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
The company added more than 1 million Advanced Connectivity customers for the second straight quarter. That included 769,000 internet net additions, composed of 442,000 fiber and 327,000 fixed wireless customers, along with 379,000 postpaid phone net additions. Advanced Connectivity service revenue rose 6.1% year over year to $23.9 billion, while the segment's operating income climbed 18.9% to $7.6 billion.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 5.4% to $12.5 billion, and free cash flow came in at $5.0 billion versus $4.9 billion in the prior-year quarter. AT&T returned about $4.8 billion to shareholders during the period, including $2.8 billion in share repurchases.
The company also raised its full-year 2026 adjusted EPS guidance to approximately $2.40, above the prior consensus of $2.34, and reiterated free cash flow targets of $18 billion or more in 2026, $19 billion or more in 2027, and $21 billion or more in 2028.
How the Market Responded
Despite beating estimates on both revenue and adjusted EPS and raising its full-year outlook, AT&T shares fell roughly 3.3% in premarket trading. The muted reaction suggests investors may have been looking for stronger confirmation on forward growth or cash flow, or that the stock's recent run had already priced in much of the good news. Sentiment around the sector has also been shaped by intensifying wireless competition and emerging threats from satellite-based connectivity, which may be tempering enthusiasm even when core results come in ahead of expectations. The raised guidance and robust customer additions, however, indicate underlying business momentum remains intact.
What to Watch Going Forward
Following this report, investors should watch whether AT&T can maintain its pace of customer additions while managing the costs of network expansion. The company guided full-year 2026 capital investment to a range of $23 billion to $24 billion, and its ability to grow free cash flow toward the $18 billion-plus target will be central to supporting both the dividend and buyback program.
Fiber penetration and fixed wireless growth remain key demand signals, as does the ongoing integration of wireless and broadband services. Competitive intensity from other carriers and non-traditional entrants, including satellite-based offerings, could pressure pricing and churn in future quarters.
Finally, margin trends within the Advanced Connectivity segment and the trajectory of adjusted EBITDA will help investors gauge whether the raised 2026 EPS guidance of about $2.40 is achievable. Balancing subscriber growth against capital discipline will likely define the investment narrative heading into the fourth quarter and beyond.
Using AI Tools for Deeper Analysis
In my own research process, I find Tickeron’s AI Screener helpful for quickly comparing names like AT&T against peers on fundamentals and technical signals. It lets me scan for similar opportunities in telecom without spending hours on manual filtering, which keeps my watchlist more focused and data-driven.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
T sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for T moved above the 200-day moving average on September 30, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where T's RSI Indicator exited the oversold zone, 15 of 39 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 38%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 35 of 55 cases where T's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 64%.
Following a +2.84% 3-day Advance, the price is estimated to grow further. Considering data from situations where T advanced for three days, in 199 of 320 cases, the price rose further within the following month. The odds of a continued upward trend are 62%.
T may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 24, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on T as a result. In 40 of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 50%.
T moved below its 50-day moving average on September 29, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for T crossed bearishly below the 50-day moving average on October 02, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 7 of 12 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 58%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where T declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 58%.
The Aroon Indicator for T entered a downward trend on October 20, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 46 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 47 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 58 (best 1 - 100 worst), indicating steady price growth. T’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 60 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.453) is normal, around the industry mean (1.817). P/E Ratio (7.755) is within average values for comparable stocks, (-3.796). Projected Growth (PEG Ratio) (1.511) is also within normal values, averaging (8.005). Dividend Yield (0.047) settles around the average of (0.113) among similar stocks. P/S Ratio (1.435) is also within normal values, averaging (5.777).
The Tickeron PE Growth Rating for this company is 88 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a provider of dsl internet, local and long-distance voice and data services
Industry MajorTelecommunications
Advertisement