AT&T (T) Earnings Date & Reports

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.

Earnings Context and Why It 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.

Reported 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.

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.

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Market Reaction and Investor Sentiment

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.

Forward Outlook and Key Factors to Monitor

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.

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