AT&T (T) Earnings Date & Reports

Key Takeaways

• Revenues reached $31.6 billion, up 2.3% year over year.
• Adjusted EPS rose to $0.65 from $0.54 in the prior-year quarter.
• Advanced Connectivity service revenue grew 5.1% to $23.5 billion.
• Over 1 million Advanced Connectivity customers added, including strong fiber and fixed wireless net adds.
• Free cash flow increased to $4.7 billion.
• Company reiterates full-year 2026 guidance and accelerates share repurchases.

Earnings Context and Why It Matters

AT&T’s second-quarter results reflect continued progress on its investment-led strategy focused on fiber and wireless convergence. The company’s shift toward higher-value Advanced Connectivity services is driving revenue growth and margin expansion amid a competitive telecom landscape. Investors closely monitor these quarterly updates for signs of sustainable subscriber momentum and progress on legacy network decommissioning, which directly influence cash flow generation and capital return plans.

Reported Results

AT&T reported second-quarter 2026 revenues of $31.6 billion, a 2.3% increase from $30.8 billion a year earlier. Diluted EPS from continuing operations was $0.66 versus $0.62 previously, while adjusted EPS reached $0.65 compared with $0.54. Adjusted operating income totaled $7.5 billion, and adjusted EBITDA rose 5.2% to $12.3 billion. Free cash flow improved to $4.7 billion from $4.4 billion. The company added 646,000 Advanced Connectivity internet net adds and 432,000 postpaid phone net adds. Results exceeded expectations in subscriber growth and cash flow, with revenues and adjusted metrics generally aligning with or surpassing consensus estimates.

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Market Reaction and Investor Sentiment

Following the July 22 release, market sentiment remained positive as AT&T highlighted record quarterly net adds in converged services and reiterated guidance. The emphasis on accelerated share repurchases and fiber expansion supported investor confidence in the company’s execution. Stock movement reflected approval of the subscriber momentum and cash flow improvement, with limited negative reaction to legacy revenue declines given their expected trajectory.

Forward Outlook and Key Factors to Monitor

AT&T reaffirmed its full-year 2026 outlook, including adjusted EPS in the $2.25 to $2.35 range and free cash flow of $18 billion or more. The company expects service revenue growth in the low-single-digit range and Advanced Connectivity service revenue growth of 5% or higher for the year.

Investors should watch progress toward the 40 million fiber locations target by year-end 2026 and the pace of legacy network decommissioning. Continued convergence between home internet and wireless services remains a key growth driver.

Capital allocation updates, including the accelerated $10 billion share repurchase target for 2026, will also be important. Broader industry dynamics such as competitive pricing in wireless and fiber markets, along with regulatory developments around spectrum and network infrastructure, warrant attention in coming quarters.

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