AT&T raised its 2026 adjusted earnings outlook after reporting a 5.3% year-on-year increase in third-quarter revenue to $32.3 billion. Its 21 October results also showed record advanced-connectivity internet customer additions, led by fiber broadband. Yet the upbeat guidance came alongside concerns about discounts, spending per customer and competition, underscoring why subscriber growth and profitability can tell different stories for telecom investors.
AT&T reported adjusted earnings per share (EPS) of $0.65 for the three months ended September 2026, up from $0.54 a year earlier. Its adjusted EBITDA reached $12.5 billion, a 5.4% increase. These are company-defined non-GAAP measures; the company also reported GAAP diluted EPS from continuing operations of $0.13, which was affected by charges related to its planned Mexico wireless-business sale and employee separations.
The company added 769,000 consumer and business advanced-connectivity internet customers on a net basis, comprising 442,000 fiber and 327,000 fixed-wireless additions. It also recorded 379,000 postpaid phone net additions. AT&T said 42.8% of households with its advanced home internet services also subscribed to its wireless offering, reflecting a strategy to serve customers through both broadband and mobile connections.
The company reported reaching more than 39 million consumer and business locations with fiber. Its stated target of more than 60 million locations by the end of 2030 is a company plan, not an achieved result or guarantee.
AT&T now expects full-year 2026 adjusted EPS in the $2.40 range, compared with its previous forecast of $2.25 to $2.35. It also projects 2026 free cash flow of at least $18 billion and capital investment of $23 billion to $24 billion. Its 2027-2028 annual capital-investment outlook is $22 billion to $23 billion.
Management explained on its results call that the revised EPS outlook was driven primarily by lower depreciation expense associated with held-for-sale accounting for AT&T Mexico. This accounting effect matters when interpreting the upgrade: it should not be described solely as evidence of stronger underlying customer demand or an equivalent improvement in cash earnings.
The company also reported $28.2 billion in quarterly operating expenses, compared with $24.6 billion a year earlier. The increase included non-cash impairment and separation charges as well as wireless-equipment, advertising and customer-related costs. These separate accounting and operating items require care when comparing GAAP and adjusted profitability.
The tension for investors lies in the economics of discounted bundles. Reuters reported on 21 October that average revenue per AT&T fiber user declined 4% in the third quarter, reflecting promotional pricing, introductory offers and the addition of lower-priced customers from the acquired Lumen business. AT&T anticipated that average revenue per fiber customer would remain under pressure in the fourth quarter.
Bundling internet and wireless services may support customer retention, but lower revenue per user can offset some benefits of faster sign-ups. This is an analytical possibility rather than a prediction of future margins. AT&T’s 379,000 postpaid-phone net additions were close to a FactSet estimate of 379,300 reported by Reuters, highlighting the difference between robust absolute subscriber growth and results relative to expectations.
Reuters reported a 6.5% fall in AT&T shares on 21 October, alongside declines in other major US telecom names. The report linked investors’ concerns to fiber pricing and intensifying competition, but a single trading session cannot establish one exclusive cause of a share-price move.
AT&T Inc. is listed as symbol T on ICM’s live US Stocks page, which offers stock contracts for difference (CFDs). The company-specific results therefore have direct instrument relevance for an ICM-listed equity CFD. The figures may also inform broader US telecom-sector sentiment, but they do not indicate the direction or suitability of any trade. Actual trading availability and specifications should be checked on the relevant platform and account before publication.
-
- Whether fiber subscriber additions continue to outpace changes in average revenue per customer and acquisition costs.
- Whether further company updates clarify how much of the improved earnings outlook comes from operating performance versus accounting changes.
- Competitive pricing and bundled wireless-broadband offers across the US telecom sector.
- AT&T’s progress toward its fiber footprint and free-cash-flow objectives, alongside broader US stock-market conditions.
AT&T reported $32.3 billion in revenue, a 5.3% increase from the same quarter of 2025.
The company expects adjusted EPS of approximately $2.40 in 2026, versus previous guidance of $2.25 to $2.35. Adjusted EPS is a non-GAAP measure.
It can indicate that promotions, pricing or customer mix are reducing average receipts per subscriber, even if total subscriptions rise. It is one factor among several affecting the economics of the business.
No. Share prices respond to expectations, competitive developments, valuation, broader market conditions and the composition of reported results. AT&T shares declined on the day of the announcement according to Reuters.
